Leadership training services provider Franklin Covey's Q4 sales slightly beat estimates

Franklin Covey

05/11/2025 21:43

Overview

Franklin Covey Q4 sales slightly beat analyst expectations

Adjusted EBITDA for Q4 misses analyst expectations

Company completed $10 mln stock repurchases in Q4 FY2025

Outlook

Franklin Covey expects FY2026 revenue between $265 mln and $275 mln

Company anticipates FY2026 Adjusted EBITDA between $28 mln and $33 mln

Franklin Covey sees strong invoiced growth translating into revenue growth in FY2027

Result Drivers

ENTERPRISE DIVISION DECLINE - Revenue impacted by macroeconomic uncertainties, geopolitical trade tensions, and canceled U.S. federal contracts

EDUCATION DIVISION STABILITY - Revenue consistent with prior year, with increased training and subscription revenue offset by decreased materials revenue

STRONG LIQUIDITY - Co maintains strong liquidity with over $90 mln, $31.7 mln in cash, and no credit facility drawdowns

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Slight Beat*
$71.25 mln
$71.10 mln (4 Analysts)
Q4 Net Income
$4.37 mln
Q4 Adjusted EBITDA
Miss
$11.72 mln
$12 mln (4 Analysts)
Q4 Pretax Profit
Beat
$7.96 mln
$7.58 mln (3 Analysts)
Q4 Gross Profit
$53.79 mln
Q4 Income From Operations
$7.89 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 $35.00, about 51.9% above its November 4 closing price of $16.82

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw5vSTNca

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