Corrected: Franklin Covey Q3 revenue slightly misses estimates; lowers 2026 revenue outlook

Franklin Covey

01/07/2026 21:27

Corrects headline to clarify it was a 'slight' miss and lowered outlook for 'revenue'; adds prior guidance to second Outlook bullet to reflect range was narrowed, not maintained

Overview
U.S. leadership training firm's fiscal Q3 revenue up 1%, slightly missing analyst expectations
Adjusted EPS for fiscal Q3 was $0.27; net income rose to $3.1 mln
Company revised fiscal 2026 revenue guidance lower, citing contract timing and budget headwinds

Outlook
Franklin Covey sees fiscal 2026 revenue between $260 mln and $267 mln, down from prior guidance
Company now expects fiscal 2026 adjusted EBITDA of $28 mln to $31 mln, compared to prior guidance of $28 mln to $33 mln
Company cites timing shifts, budget reductions and international challenges as reasons for revised outlook

Result Drivers
ENTERPRISE NORTH AMERICA - Growth in invoiced amounts and deferred revenue in Enterprise North America supported overall results, per CEO Paul Walker
EDUCATION DIVISION - Higher subscription revenue from more training and coaching days drove Education Division growth, partly offset by lower materials revenue and a state budget reduction
COST DISCIPLINE - Improved profitability attributed to operational discipline and cost reduction measures, per CFO Jessi Betjemann

Company press release: ID:nBw49dX2Ka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Slight Miss*
$67.81 mln
$68.33 mln (4 Analysts)
Q3 EPS
 
$0.27
 
Q3 Net Income
 
$3.09 mln
 
*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 is $30.00, about 22.3% above its June 30 closing price of $24.53
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)