Overview

* Franklin Covey ( FC ) Q4 sales slightly beat analyst expectations

* Adjusted EBITDA for Q4 misses analyst expectations

* Company completed $10 mln stock repurchases in Q4 FY2025

Outlook

* Franklin Covey ( FC ) expects FY2026 revenue between $265 mln and $275 mln

* Company anticipates FY2026 Adjusted EBITDA between $28 mln and $33 mln

* Franklin Covey ( FC ) sees strong invoiced growth translating into revenue growth in FY2027

Result Drivers

* ENTERPRISE DIVISION DECLINE - Revenue impacted by macroeconomic uncertainties, geopolitical trade tensions, and canceled U.S. federal contracts

* EDUCATION DIVISION STABILITY - Revenue consistent with prior year, with increased training and subscription revenue offset by decreased materials revenue

* STRONG LIQUIDITY - Co maintains strong liquidity with over $90 mln, $31.7 mln in cash, and no credit facility drawdowns

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Slight $71.25 $71.10

Beat* mln mln (4

Analysts

)

Q4 Net $4.37

Income mln

Q4 Miss $11.72 $12 mln

Adjusted mln (4

EBITDA Analysts

)

Q4 Beat $7.96 $7.58

Pretax mln mln (3

Profit Analysts

)

Q4 Gross $53.79

Profit mln

Q4 $7.89

Income mln

From

Operatio

ns

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the professional & business education peer group is "buy"

* Wall Street's median 12-month price target for Franklin Covey Co ( FC ) is $35.00, about 51.9% above its November 4 closing price of $16.82

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)