Franklin Covey

Franklin Covey helps businesses and schools train their leaders to be more effective. Their programs teach people how to manage time, build trust, and reach goals. These services help teams work better together to improve their performance.

How They Teach Greatness

• All Access Pass: Subscription service for corporate and government clients providing training content; revenue was $21.5 million in North America for Q2 2026.
• Leader in Me: Educational membership program that helps schools improve student performance and culture; generated $17.5 million in revenue during Q2 2026.
• International Licensees: Network of independent partners that deliver training programs in regions where the company lacks direct offices.
• Direct Offices: Consulting and training services provided by company-owned teams in markets like China, Japan, and the United Kingdom.

Growth and Expansion Plans

• Amended the purchase agreement for Strive Talent in Q2 2026 to retain the former principal owner.
• Launched a new sales and go-to-market strategy in North America during fiscal 2025 to drive future growth.
• Initiated a long-term restructuring plan in the second quarter of fiscal 2026 to simplify the operating model.
• Completed a $20 million stock purchase plan in January 2026 to buy back shares of its common stock.

What Makes the Company Unique?

The company operates through direct offices and independent licensees to reach clients in the Americas, Asia, and Europe. It owns rights to popular training frameworks based on best-selling books like The 7 Habits of Highly Effective People.

The Financial Scorecard

• Net revenue reached $59.6 million for the quarter ended February 28, 2026, up 0.1% year-over-year.
• Net loss hit $2.0 million for the quarter ended February 28, 2026, worsening 84.2% from the prior year.
• Adjusted EBITDA hit $4.1 million in the second quarter of fiscal 2026, up 99% from the previous year.
• Deferred revenue, representing pre-paid contracts, grew to $101.5 million as of February 28, 2026.
• Free cash flow hit $13.2 million in the quarter ended February 28, 2026, up 466.4% year-over-year.

Bottom Line

Franklin Covey has transitioned from a traditional training firm into a subscription-based consulting business. This shift toward recurring revenue through its digital and educational platforms supports its long-term financial stability.