Coaching firm Franklin Covey misses Q3 revenue estimates

Franklin Covey

02/07/2025 21:22

Overview

Franklin Covey Q3 fiscal 2025 revenue misses analyst expectations, per LSEG data

Adjusted EBITDA for Q3 fiscal 2025 beats guidance, per LSEG data

Company repurchased $8.3 mln worth of its common stock, maintaining strong liquidity

Outlook

Franklin Covey updates fiscal 2025 revenue guidance to $265 mln-$275 mln on a constant currency basis

Company sees fiscal 2025 adjusted EBITDA at $28 mln-$33 mln on a constant currency basis

Uncertainty impacting clients' decision-making and timing risk for services

Franklin Covey expects significant growth in fiscal 2026 adjusted EBITDA

Result Drivers

MACROECONOMIC UNCERTAINTIES - Revenue decline in Enterprise Division attributed to macroeconomic uncertainties and geopolitical trade tensions

EDUCATION MATERIALS - Decrease in Education Division revenue due to lower materials sales compared to a strong prior year

RESTRUCTURING COSTS - Net loss includes $4.7 million in restructuring charges as part of go-to-market transformation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$67.12 mln
$67.50 mln (4 Analysts)
Q3 Net Income
-$1.41 mln
Q3 Adjusted EBITDA
Beat
$7.31 mln
$4.52 mln (4 Analysts)
Q3 Pretax Profit
Miss
-$2.13 mln
-$603,000 (3 Analysts)
Q3 Gross Profit
$51.32 mln
Q3 Income From Operations
-$2.20 mln


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 $35.00

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBwbR3qz0a

(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.)