Nasdaq Rises 1.2% as Energy Sector Struggles
Relief rally discounting de-escalation in the Middle East continued on Wednesday, with investors sending the Nasdaq Composite up 1.2% and S&P 500 up 0.7 in the first trading day of the new quarter. Materials was once again among the best performing sectors on the benchmark, with State Street Materials Select Sector SPDR ETFnow up over 3% from Friday's lows following three sessions of gains. Energy, meanwhile, entered the new quarter as the worst performing sector on the day as WTI Crude Oil prices continued to fall, sliding back below $100 per barrel on diminishing geopolitical premium.Ahead of this evening's address by President Trump updating the nation on the cabinet's plans for Iran, equity futures are little changed, with S&P e-minis at 6,617 and Nasdaq 100 contract around 24,190. May WTI Crude Oil has also resumed quotation to the downside and below $99 while precious metals are advancing for the 5th consecutive session - Gold is above $4,820 and Silver is just shy of the $76 per ounce mark.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Franklin Coveyup 11.4%Penguin Solutionsup 10.7%ALSO HIGHER -Globalstarup 15.3% after FT reports Amazon.com is in talks to acquire companyWingstopup 1.8% after valuation-driven Piper Sandler upgrade to OverweightDOWN AFTER EARNINGS -Bassett Furniture Industriesdown 3.8%ALSO LOWER -Celldex Therapeuticsdown 5.3% after equity offeringAlto Neurosciencedown 3.0% after announcing ALTO-101 did not achieve statistical significance
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- Earnings Call Scheduled: Franklin Covey Co. will hold a conference call on July 1, 2026, at 5:00 p.m. ET to review its Q3 2026 financial results, with results expected to be released after market close, ensuring timely access to critical information for investors.
- Flexible Participation Options: Interested individuals can register to participate via a provided link, with options to dial in or use the 'Call Me' feature for an automated call, catering to diverse investor preferences for engagement.
- Replay Availability: A replay of the conference call will be archived on the company's website for at least 30 days post-event, enhancing information transparency for investors who cannot attend live, thereby fostering trust and communication.
- Company Overview: Franklin Covey Co. is a global leadership and organizational performance partner focused on helping organizations achieve breakthrough results, with over 40 years of experience and services spanning 160 countries, showcasing its deep expertise in leadership training.
- Leadership Gap Resolution: FranklinCovey will host two complimentary webinars on June 26 and 30, featuring renowned authors and leadership experts to assist HR and L&D leaders in closing critical leadership gaps, thereby enhancing organizational performance.
- Expert Framework Sharing: Liz Wiseman and Jennifer Colosimo will present in the first webinar on how to reduce rework and missed commitments by establishing clear leadership habits, which will enhance employee trust and engagement, ultimately fostering high-performing teams.
- Navigating Constant Change: The second webinar, led by James Patterson and Patrick Leddin, will explore effective team leadership in a rapidly changing environment, emphasizing the importance of quick decision-making and team collaboration to address frequent disruptions.
- Global Impact: As a global partner in leadership and organizational performance, FranklinCovey serves numerous Fortune 100 companies across 160 countries, showcasing its profound capabilities in enhancing leadership and execution.
- AI Adoption Barriers: Research from FranklinCovey reveals that 80% of employees perceive their managers as 'hands-off' regarding AI, indicating a significant gap between AI's potential and its actual workplace application, which adversely affects productivity and business performance.
- Lack of Training: Only 14% of workers report receiving any AI training, while 40% say their managers are unaware of their AI usage, leading to inconsistent and scattered implementation of AI projects across organizations.
- Leadership Patterns Impact: The study identifies that leadership patterns encouraging AI use without guidance result in inconsistent outcomes, while framing AI primarily as a cost-reduction tool creates anxiety rather than engagement, hindering proactive participation.
- Solution Launch: FranklinCovey has introduced two customizable solutions aimed at helping leaders and teams establish effective AI usage behaviors, accelerating AI impact through empathy and action, thereby enhancing team confidence and capabilities.
- Revenue Growth: Franklin Covey reported total revenue of $59.6 million, flat year-over-year, with a notable 16% increase in Education Division revenue to $17.5 million, indicating strong demand in the education market that is expected to drive future performance.
- Significant EBITDA Improvement: Adjusted EBITDA reached $4.1 million, a 99% increase from the prior year, reflecting substantial improvements in cost control and operational efficiency, which enhances investor confidence.
- Strong Cash Flow Performance: Cash flow from operating activities was $16.4 million, up 28% year-over-year, while free cash flow improved to $13.2 million from a negative position last year, indicating a continued positive trend in the company's financial health.
- Increased Client Confidence: Deferred revenue rose 7% to $101.5 million, with 62% of revenue under multi-year contracts, demonstrating strong client trust and willingness for long-term collaboration, thereby enhancing the company's competitive position in the market.
- Revenue Growth Momentum: Franklin Covey reported total revenue of $59.6 million for Q2 2026, reflecting a 5% year-over-year increase, with a notable 7% growth in Enterprise North America, indicating strong execution and growth momentum that supports future revenue and cash flow enhancement.
- Increase in Multi-Year Contracts: The company reported a 16% year-over-year growth in deferred revenue to $59 million, with 62% of revenue coming from multi-year contracts, which not only enhances revenue predictability but also lays a solid foundation for future financial stability.
- Strong Cash Flow Performance: Free cash flow for the second quarter reached $13.2 million, showing significant growth compared to the previous year, reflecting successful working capital management that further supports future investment and growth plans.
- Full-Year Performance Outlook: Management reaffirmed the revenue guidance for fiscal 2026 at $265 million to $275 million and adjusted EBITDA at $28 million to $33 million, demonstrating confidence in the second half's performance while emphasizing ongoing execution and market opportunities.
- Earnings Performance: Franklin Covey reported a Q2 GAAP EPS of -$0.17, missing expectations by $0.20, indicating challenges in profitability that may affect investor confidence.
- Revenue Status: The company achieved revenue of $59.6 million in Q2, which is flat year-over-year, although it slightly beat expectations by $0.9 million, reflecting weak market demand.
- Future Guidance: For fiscal 2026, Franklin Covey projects total revenue in the range of $265 million to $275 million, indicating cautious optimism about future growth, but market conditions remain a concern.
- Adjusted EBITDA: The company anticipates adjusted EBITDA between $28 million and $33 million, providing a specific range, yet the feasibility of achieving this remains to be seen and its impact on overall financial health is crucial.







