Training firm Franklin Covey's Q1 revenue misses expectations

Franklin Covey

07/01/2026 21:20

Overview

Franklin Covey's fiscal Q1 revenue missed analyst expectations

Company reported a net loss for fiscal Q1

Company repurchased $11.1 mln of common stock during fiscal Q1

Outlook

Company affirms fiscal 2026 revenue guidance of $265 mln to $275 mln

Franklin Covey expects fiscal 2026 Adjusted EBITDA of $28 mln to $33 mln

Company anticipates strong invoiced growth translating to revenue growth in FY2027

Result Drivers

NORTH AMERICA INVOICING - Enterprise North America invoiced amounts grew 7%, or 13% excluding government business, despite macro uncertainties

DEFERRED REVENUE GROWTH - Deferred subscription revenue increased 7% year-over-year, indicating potential future revenue growth

MACROECONOMIC IMPACT - Revenue decline attributed to macroeconomic uncertainties, geopolitical trade tensions, and canceled U.S. federal government contracts

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$64.05 mln
$65.29 mln (4 Analysts)
Q1 EPS
-$0.27
Q1 Net Income
-$3.29 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 $22.00, about 22.4% above its January 6 closing price of $17.98

Press Release: ID:nBw4DJVrpa

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.)