Franklin Covey beats Q2 revenue estimates, maintains 2026 sales forecast

Franklin Covey

01/04/2026 21:25

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$59.65 mln
$58.71 mln (4 Analysts)
Q2 Net Income
-$1.98 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 $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

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.)