Franklin Covey beats Q2 revenue estimates, maintains 2026 sales forecast

Overview

• US leadership training firm's fiscal Q2 revenue was flat yr/yr but beat analyst expectations

• Company posted a wider net loss of $2.0 mln for the quarter

• Adjusted EBITDA nearly doubled to $4.1 mln

• Company repurchased $17 mln of its common stock during the quarter

Outlook

• Franklin Covey affirms FY2026 revenue guidance of $265 mln to $275 mln

• Company maintains FY2026 Adjusted EBITDA outlook of $28 mln to $33 mln

• Company expects strong invoiced growth in FY2026 to drive revenue and EBITDA growth in FY2027

Result Drivers

• ENTERPRISE NORTH AMERICA INVOICED GROWTH - Co said Enterprise North America invoiced amounts grew 7% for the second consecutive quarter

• EDUCATION DIVISION REVENUE - Co said Education Division revenue rose 16%, driven by higher training, coaching, materials, and membership subscription revenue

• SUBSCRIPTION SERVICES GROWTH - Co said consolidated subscription and subscription services revenue increased to $50.9 mln from $49.5 mln in Q2 FY2025

Company press release: ID:nBw1sr6Rka

Key Details

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 is $25.00, about 58.3% above its March 31 closing price of $15.79

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

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