Franklin Covey(NYSE) FC

Franklin Covey helps teams and leaders work better. They provide training programs to businesses and schools. These services help people improve their daily productivity.

Tools for Leaders and Schools

• Enterprise Division: Training and advisory services for corporations and governments; generated $48.1 million in revenue in the third quarter of fiscal 2026.
• Education Division: Leadership and culture programs for schools; accounted for $19.0 million in revenue in the third quarter of fiscal 2026.
• Subscription Services: Digital content and coaching access; produced $57.5 million in revenue for the quarter ended May 31, 2026.

New Strategies and Growth

• Completed the final payment for the acquisition of Strive in fiscal 2026.
• Initiated a new sales strategy and structure in North America during fiscal 2025.
• Approved a $50 million common stock purchase plan in April 2024.
• Authorized an additional $50 million for stock purchases in August 2025.

Subscriptions and Global Reach

The company maintains a global presence with programs used by over 8,000 schools through its Leader in Me initiative. Its subscription-based model builds a large base of deferred revenue, which is money collected from customers for services delivered in future periods.

Profitability and Revenue Trends

• Consolidated revenue reached $67.8 million for the quarter ended May 31, 2026, up 1% year-over-year.
• Net income was $3.1 million in the third quarter of fiscal 2026, compared to a $1.4 million loss in the prior year.
• Adjusted EBITDA increased 14% to $8.3 million for the quarter ended May 31, 2026.
• Total deferred revenue grew 7% to $96 million as of May 31, 2026.

The Evolution of Training

Franklin Covey has shifted from selling one-time training materials to a subscription-based business model. This evolution creates more predictable revenue while helping corporate and educational clients improve organizational performance.