olivLaw · US equity research
Franklin Covey Co. FC
Services-Management Services · SIC 8741 · Vertical: Engineering, research and management services (SIC 874x)
Franklin Covey Co. (NYSE: FC) is a global organizational performance company that sells subscription-based content, coaching and consulting to corporations, governments and schools. The company had a difficult year, with revenue of $267.1 million in fiscal 2025, but invoiced amounts in North America returned to growth in the third quarter of fiscal 2026, which matters for its outlook in the coming periods.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Franklin Covey Co. (FC) stock was 17.33 USD (+0.93% on the day), with market capitalisation 195.7 m USD, P/E 106.3 on diluted EPS of 0.16 USD over the last 12 months, beta 1.15, 52-week range 11.54–25.55 USD. Latest reported quarter (Q3 2026): revenue of 67.8 m USD (+1.0% YoY), net income of 3.1 m USD, diluted EPS 0.27 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 40.0
- weak (30–45)
- Bollinger (20, 2)
- 17.25 – 19.10
- in the lower half of the band · %B 0.04 · band width 10.1%
- SMA 50 / 200
- 18.15 / 19.58
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.15 / -0.04
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −0.1% | −1.1% | +1.0 pp | — |
| 3 months | −20.7% | −0.5% | −20.3 pp | — |
| 6 months | −22.8% | +4.4% | −27.2 pp | — |
| Year to date | +3.3% | +12.3% | −9.0 pp | — |
| 1 year | +3.0% | +13.5% | −10.5 pp | −20.9% |
| 3 years | −51.8% | +76.4% | −128.2 pp | −29.7% |
| 5 years | −61.6% | +63.7% | −125.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 31 May 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 84.1 m | 69.1 m | 59.6 m | 67.1 m | 71.2 m | 64.0 m | 59.6 m | 67.8 m |
| Cost of revenue | 18.4 m | 16.4 m | 13.9 m | 15.8 m | 17.5 m | 15.7 m | 14.4 m | 17.7 m |
| Gross profit | 65.7 m | 52.7 m | 45.7 m | 51.3 m | 53.8 m | 48.4 m | 45.3 m | 50.1 m |
| SG&A | 45.9 m | 47.2 m | 45.1 m | 46.2 m | 44.2 m | 46.1 m | 43.5 m | 43.3 m |
| Operating income | 17.9 m | 1.5 m | -1.5 m | -2.2 m | 7.9 m | -3.7 m | -2.0 m | 4.2 m |
| Interest expense | 203.0 k | 178.0 k | 156.0 k | 135.0 k | 95.0 k | 95.0 k | 92.0 k | 54.0 k |
| Pre-tax income | 18.0 m | 1.6 m | -1.3 m | -2.1 m | 8.0 m | -3.6 m | -2.1 m | 4.2 m |
| Income tax | 6.0 m | 406.0 k | -272.0 k | -718.0 k | 3.6 m | -343.0 k | -80.0 k | 1.1 m |
| Net income | 12.0 m | 1.2 m | -1.1 m | -1.4 m | 4.4 m | -3.3 m | -2.0 m | 3.1 m |
| Diluted EPS | 0.89 ≈ | 0.09 | -0.08 | -0.11 | 0.33 ≈ | -0.27 | -0.17 | 0.27 |
| Operating cash flow | 21.9 m | 14.1 m | -1.4 m ≈ | 6.3 m ≈ | 9.9 m | 98.0 k | 16.3 m ≈ | 1.1 m ≈ |
| Capex | 1.1 m | 998.0 k | 1.3 m ≈ | 1.8 m ≈ | 4.2 m | 1.7 m | 1.0 m ≈ | 1.2 m ≈ |
| Share repurchases | 4.9 m | 6.0 m | 8.7 m ≈ | 8.3 m ≈ | 3.4 m | 10.7 m | 17.4 m ≈ | 7.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 90 percentile of its own 21-quarter history (min 23.1, median 34.1, max 151.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 209.8 m | 225.4 m | 198.5 m | 224.2 m | 262.8 m | 280.5 m | 287.2 m | 267.1 m |
| Revenue YoY | +13.2% | +7.4% | −11.9% | +13.0% | +17.3% | +6.7% | +2.4% | −7.0% |
| Net income | -5.9 m | -1.0 m | -9.4 m | 13.6 m | 18.4 m | 17.8 m | 23.4 m | 3.1 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | +35.3% | −3.5% | +31.6% | −86.9% |
| Diluted EPS | unavailable | -0.07 | -0.68 | 0.96 | 1.27 | 1.24 | 1.74 | 0.24 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | +32.3% | −2.4% | +40.3% | −86.2% |
| net % | -2.8% | -0.5% | -4.8% | 6.1% | 7.0% | 6.3% | 8.1% | 1.1% |
| Free cash flow | 10.3 m | 26.3 m | 23.4 m | 44.6 m | 49.1 m | 31.2 m | 56.6 m | 20.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Aug 2025
- Cash
- 31.7 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 66.9 m USD
- Total assets
- 242.9 m USD
- Debt / equity
- unavailable
- Current ratio
- 0.82x
- ROE
- 4.1%
- ROA
- 1.2%
- FCF margin
- 7.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 198.5 m | 224.2 m | 262.8 m | 280.5 m | 287.2 m | 267.1 m | SEC (XBRL)· 12 Nov 2025verified |
| Cost of revenue | 53.1 m | 51.3 m | 60.9 m | 67.0 m | 66.2 m | 63.5 m | SEC (XBRL)· 12 Nov 2025verified |
| Gross profit | 145.4 m | 172.9 m | 201.9 m | 213.5 m | 221.1 m | 203.6 m | SEC (XBRL)· 12 Nov 2025verified |
| SG&A | 130.0 m | 153.6 m | 168.1 m | 178.0 m | 175.9 m | 182.7 m | SEC (XBRL)· 12 Nov 2025verified |
| Operating income | 3.1 m | 8.1 m | 23.7 m | 26.4 m | 33.0 m | 5.7 m | SEC (XBRL)· 12 Nov 2025verified |
| Depreciation & amortisation | 11.3 m | — | — | — | — | — | SEC (XBRL)· 16 Nov 2020verified |
| EBITDA | 14.3 m ≈ | — | — | — | — | — | SEC (XBRL)· 16 Nov 2020derived |
| Interest expense | 2.3 m | 2.1 m | 1.7 m | 1.6 m | 1.1 m | 565.0 k | SEC (XBRL)· 12 Nov 2025verified |
| Pre-tax income | 796.0 k | 6.1 m | 22.1 m | 25.9 m | 33.0 m | 6.1 m | SEC (XBRL)· 12 Nov 2025verified |
| Income tax | 10.2 m | -7.5 m | 3.6 m | 8.1 m | 9.6 m | 3.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Net income | -9.4 m | 13.6 m | 18.4 m | 17.8 m | 23.4 m | 3.1 m | SEC (XBRL)· 12 Nov 2025verified |
| Diluted EPS | -0.68 | 0.96 | 1.27 | 1.24 | 1.74 | 0.24 | SEC (XBRL)· 12 Nov 2025verified |
| Weighted average diluted shares | 13.9 m | 14.1 m | 14.6 m | 14.3 m | 13.5 m | 13.1 m | SEC (XBRL)· 12 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 27.1 m | 47.4 m | 60.5 m | 38.2 m | 48.7 m | 31.7 m | SEC (XBRL)· 12 Nov 2025verified |
| Receivables | 56.4 m | 70.7 m | 72.6 m | 81.9 m | 86.0 m | 68.4 m | SEC (XBRL)· 12 Nov 2025verified |
| Inventories | 3.0 m | 2.5 m | 3.5 m | 4.2 m | 4.0 m | 5.2 m | SEC (XBRL)· 12 Nov 2025verified |
| Current assets | 101.7 m | 136.7 m | 155.9 m | 145.0 m | 160.3 m | 129.5 m | SEC (XBRL)· 12 Nov 2025verified |
| Property, plant & equipment, net | 15.7 m | 11.5 m | 9.8 m | 10.0 m | 8.7 m | 14.3 m | SEC (XBRL)· 12 Nov 2025verified |
| Goodwill | 24.2 m | 31.2 m | 31.2 m | 31.2 m | 31.2 m | 31.2 m | SEC (XBRL)· 12 Nov 2025verified |
| Intangibles (excl. goodwill) | 47.1 m | 50.1 m | 44.8 m | 40.5 m | 37.8 m | 34.6 m | SEC (XBRL)· 12 Nov 2025verified |
| Total assets | 205.4 m | 249.7 m | 259.2 m | 245.9 m | 261.5 m | 242.9 m | SEC (XBRL)· 12 Nov 2025verified |
| Accounts payable | 5.6 m | 6.9 m | 10.9 m | 6.5 m | 7.9 m | 8.8 m | SEC (XBRL)· 12 Nov 2025verified |
| Long-term debt | — | 18.8 m | — | — | — | — | SEC (XBRL)· 12 Nov 2021verified |
| Current liabilities | 102.5 m | 136.5 m | 153.8 m | 151.6 m | 162.5 m | 157.3 m | SEC (XBRL)· 12 Nov 2025verified |
| Total liabilities | 146.0 m | 169.8 m | 176.3 m | 167.3 m | 178.4 m | 176.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Equity | 59.5 m † | 79.9 m † | 82.8 m † | 78.7 m † | 83.1 m † | 66.9 m † | SEC (XBRL)· 12 Nov 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 27.6 m | 46.2 m | 52.3 m | 35.7 m | 60.3 m | 29.0 m | SEC (XBRL)· 12 Nov 2025verified |
| Capex | 4.2 m | 1.6 m | 3.2 m | 4.5 m | 3.7 m | 8.3 m | SEC (XBRL)· 12 Nov 2025verified |
| Free cash flow | 23.4 m ≈ | 44.6 m ≈ | 49.1 m ≈ | 31.2 m ≈ | 56.6 m ≈ | 20.7 m ≈ | SEC (XBRL)· 12 Nov 2025derived |
| Investing cash flow | -11.9 m | -14.3 m | -5.3 m | -13.6 m | -11.3 m | -16.9 m | SEC (XBRL)· 12 Nov 2025verified |
| Financing cash flow | -16.6 m | -11.5 m | -32.7 m | -44.2 m | -38.7 m | -28.8 m | SEC (XBRL)· 12 Nov 2025verified |
| Share repurchases | 14.0 m | 3.0 m | 23.9 m | 35.6 m | 30.7 m | 26.4 m | SEC (XBRL)· 12 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 50 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 195.7 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet60
- Growth2
- Quality72
- Returns100
- Valuation55
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.10 – 3.88 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E2.10 – 3.88 (Mid 2.75)14 companies used · median multiple 16.9x · quartiles 12.9x – 23.8xAERT, BAH, EXPO, FCN, G, HCKT, HURN, ICFI, III, IT, RMR, TSSI, VCIG, ZTG
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 50/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 0.8% | 44 (vs peers) | 10% |
| FCF conversion · Quality | 882.5% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 0.5% | 4 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | -42.6% | 0 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 19.1x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 0.7x | 0 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 106.3x | 19 (vs peers) | 16% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 9.9% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 16.1% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet60/100 · 2/3 factors with a value
- Growth2/100 · 2/2 factors with a value
- Quality72/100 · 2/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation55/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
FRANKLIN COVEY CO. (FC). Latest full fiscal year: 2025; data up to 2026-05-31.
Figures computed from the financial statements: revenue 267.1 m USD in 2025; YoY growth -7.0%; net margin 0.8%; ROE 4.0%.
The estimated value range is 2.10–3.88 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 2.75 USD, the price of 17.33 USD leaves a potential of -84.1% (value / price − 1) and a margin of safety of -529.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 50/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 882.5%
- Interest coverage: 19.1x
- FCF yield: 9.9%
- Shareholder yield (distributions): 16.1%
What contradicts it
- Revenue CAGR 3Y: 0.5%
- EPS CAGR 3Y: -42.6%
- Current ratio: 0.7x
- P/E (TTM): 106.3x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Engineering, research and management services (SIC 874x) · same industry group (3-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| RTORentokil Initial PLC | 61.1 bn | 130.4 | 8.7% | 6.8% | +4.4% | −13% / −12% |
| ITGartner, Inc. | 13.1 bn | 14.8 | 365.8% | 14.8% | +3.7% | −11% / −52% |
| BAHBooz Allen Hamilton Holding Corporation | 10.5 bn | 13.7 | 70.0% | 7.1% | −6.4% | +6% / −29% |
| GGenpact Limited | 6.9 bn | 12.1 | 22.4% | 11.1% | +6.6% | −7% / +20% |
| FCNFti Consulting, Inc | 5.4 bn | 24.7 | 15.2% | 5.9% | +2.4% | +22% / −10% |
| EXPOExponent, Inc. | 4.2 bn | 39.2 | 31.2% | 17.7% | +4.2% | +21% / +14% |
| HURNHuron Consulting Group Inc. | 2.7 bn | 25.8 | 25.5% | 6.1% | +11.7% | +5% / +66% |
| ASTHAstrana Health, Inc. | 2.2 bn | 48.3 | 5.1% | 1.1% | +56.4% | +72% / +19% |
| ICFIICF International, Inc. | 1.7 bn | 20.1 | 8.6% | 4.9% | −7.3% | +24% / −31% |
| BWMNBowman Consulting Group Ltd. | 744.2 m | 105.3 | 2.9% | 1.4% | +14.9% | +19% / +39% |
| ONTOnterris, Inc. | 566.4 m | — | -2.5% | -1.4% | +19.3% | −37% / −48% |
| EVHEvolent Health, Inc. | 542.7 m | — | -79.0% | -24.1% | −26.6% | +14% / −83% |
| PPHCPublic Policy Holding Company, Inc. | 381.3 m | — | -39.5% | -18.9% | +24.7% | unavailable / unavailable |
| HCKTHackett Group, Inc. | 329.4 m | 19.0 | 20.7% | 6.3% | −2.6% | −28% / −40% |
| IIIInformation Services Group Inc. | 289.5 m | 25.2 | 12.7% | 4.7% | −1.2% | +13% / +46% |
| AERTAeries Technology, Inc. | 282.0 m | 20.9 | — | 3.6% | −0.3% | +35% / −68% |
| RMRRmr Group Inc. | 250.5 m | 12.6 | 8.7% | 3.1% | −22.0% | +10% / −30% |
| SUPXSuperx Ai Technology Limited | 209.8 m | — | -101.8% | -527.7% | +1,878.6% | −84% / unavailable |
| FCFranklin Covey Co. | 195.7 m | 106.3 | 4.0% | 0.8% | −7.0% | +3% / −52% |
| TSSITss, Inc. | 193.3 m | 14.1 | 32.0% | 7.4% | +65.9% | −29% / +1,976% |
| VCIGVCI Global Limited | 141.3 m | 0.1 | 14.7% | 28.3% | +40.6% | −99% / −100% |
| GRNQGreenpro Capital Corp. | 122.4 m | — | -26.8% | -169.6% | −40.7% | −57% / −19% |
| AUCAtif Holdings Limited | 109.4 m | — | -90.5% | -723.7% | −74.7% | −12% / −70% |
| ROMARoma Green Finance Limited | 101.0 m | — | -44.2% | -287.8% | −22.2% | +138% / unavailable |
| RTBRTB Digital, INC. | 92.6 m | — | -141.9% | -198.5% | −38.7% | −49% / −94% |
1- and 3-year price returns: for FC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 11.68 Total return -33% · Per year -33% | 20.68 Total return 19% · Per year 19% | 31.21 Total return 80% · Per year 80% |
| 3 years | 10.45 Total return -40% · Per year -16% | 20.90 Total return 21% · Per year 6% | 34.76 Total return 101% · Per year 26% |
| 5 years | 9.35 Total return -46% · Per year -12% | 21.13 Total return 22% · Per year 4% | 38.71 Total return 123% · Per year 17% |
- Exit P/E± 5.23
- Net margin± 3.66
- Annual revenue growth± 3.12
- Annual dilution± 0.31
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 07 Jul 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
Franklin Covey Co. (NYSE: FC) is a global organizational performance company that sells subscription-based content, coaching and consulting to corporations, governments and schools. The company had a difficult year, with revenue of $267.1 million in fiscal 2025, but invoiced amounts in North America returned to growth in the third quarter of fiscal 2026, which matters for its outlook in the coming periods 123.
SWOT
Strengths
- The company has well-known content in the industry, based on established works such as The 7 Habits of Highly Effective People, and a subscription model with recurring revenue 1.
- Most clients have renewed their AAP subscriptions and Leader in Me memberships, and multi-year contracts give visibility into future revenue 12.
- Global presence through subsidiaries and licensee partners allows the same model to be delivered in many countries 1.
Weaknesses
- Revenue declined in fiscal 2025 and gross margin came under pressure in the third quarter of fiscal 2026, showing sensitivity to delivery costs 12.
- Dependence on government contracts and public budgets exposes the company to unexpected reductions, as seen with a state contract in the third quarter 23.
- Liquidity has fallen compared with the prior year, and free cash flow was negative in the third quarter 23.
Opportunities
- Growth in North American invoiced amounts and services bookings could lead to stronger revenue growth in fiscal 2027 23.
- Demand for human leadership in the context of AI could open new offerings for corporate clients 1.
- Opening a direct office in France, replacing a licensee partnership, could add growth in international markets 1.
Risks
- Dependence on subscription renewalshigh
Most revenue comes from subscriptions, so a drop in renewals or new sales would directly affect revenue 1.
- Government budgetshigh
Contracts with public entities can be reduced or terminated because of changing budget priorities, which already happened in the third quarter of fiscal 2026 12.
- Competition and new technologiesmedium
Competitors may launch programs or methods that make the company's offering less attractive, and AI could change delivery models 1.
- Intellectual propertymedium
Limited content protection in some countries and unauthorized use of AI could reduce revenue or require costly new developments 1.
- Reputation and operational riskslow
Negative interpretation of content or campaigns, and cyberattacks on platforms, could affect the brand and results 1.
Investment thesis
What would need to be true (bull case)
- If invoiced amounts in North America keep growing, the company could convert its bookings momentum into higher reported revenue in fiscal 2027 23.
- The subscription structure and multi-year contract value provide a relatively predictable revenue base 12.
- Demand for human leadership in the AI era could widen the market for the company's content 1.
What would break the thesis
- Revenue declined in fiscal 2025 and guidance for fiscal 2026 was revised downward, showing the difficulty of recovering top-line growth 13.
- Negative free cash flow and falling liquidity could limit financial flexibility if results do not improve 23.
- Unstable government budgets and strong competition could slow growth in both divisions 12.
What to watch
- Development of invoiced amounts and bookings in North AmericaQ4 fiscal 2026
- Achievement of the fiscal 2026 revenue guidance rangefiscal 2026
- Restoration of funding for state contracts in the Education Divisionfiscal 2027
- Increase in reported revenue that management has signalledfiscal 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 07 Jul 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
Franklin Covey organizes its activity in two divisions: the Enterprise Division, which sells solutions to corporations, governments and not-for-profits, and the Education Division, centered on the Leader in Me program for educational institutions 1. Its offering is delivered through subscriptions, especially the All Access Pass (AAP) and the Leader in Me membership, supplemented by coaching and consulting, with proprietary content such as The 7 Habits of Highly Effective People 1. The company serves clients in the United States, Canada and through subsidiaries in other countries, and delivers its content in approximately 150 other countries through independent licensee partners 1.
Segments
Enterprise Division
The Enterprise Division generated $188.1 million in fiscal 2025, down from $208.1 million in the prior year, as macroeconomic uncertainty and reduced U.S. government spending weighed on new logo sales and retention 1. In the third quarter of fiscal 2026 division revenue edged up, and growth in North America invoiced amounts was the main positive signal 23.
Education Division
The Education Division reported revenue of $74.6 million in fiscal 2025, slightly above the prior year, supported by coaching, consulting and subscriptions 1. In the third quarter of fiscal 2026 revenue rose, but an unexpected state education budget cut affected a large contract for training materials 23.
Market context
The corporate training market is large: Training Industry estimates U.S. corporate training spending at about $188 billion, and about $400 billion globally 1. The education market includes external curriculum budgets and government, foundation and community funding, which makes public funding an important risk factor 1.
Trends
- Artificial intelligence and the role of human leadershipmixed
The company argues that the rise of AI could increase demand for leadership and human interaction at work, which could benefit its development offerings; at the same time AI could reshape delivery models and pressure pricing 1. The effect depends on how the company adapts its platforms 1.
- Macroeconomic uncertainty and tariffsheadwind
Threatened or enacted tariffs and reduced U.S. government spending delayed client decisions, reduced contract expansion and lowered retention in fiscal 2025 1. If the uncertainty persists, Enterprise revenue could remain under pressure 12.
- Growth in North American invoiced amountstailwind
North American invoiced amounts have grown for three consecutive quarters, indicating the effect of the new sales model introduced in fiscal 2025, and management believes this momentum could lead to higher reported revenue in fiscal 2027 23.
- Government funding for schoolsheadwind
Budget reductions in some states affected Education Division contracts, and the company has shown that government and charitable support for the Leader in Me program is a critical factor 123. The restoration of these funds is uncertain 2.
Competitive position
Competition in the Enterprise Division includes large consulting firms, recruitment and advisory firms, leadership development providers, coaching platforms, sales-training organizations, HR technology providers and online learning libraries 1. In the Education Division competitors include solutions providers such as 7 Mindsets, Capturing Kids' Hearts, Second Step, Responsive Classroom and CharacterStrong 1. The company says it is well positioned through content quality, delivery flexibility and global reach 1.
- McKinsey & Company
Consulting firm named among competitors of the Enterprise Division, particularly for strategic transformation projects.
- Deloitte
Consulting and professional services firm competing for performance and organizational transformation projects.
- Korn Ferry
Recruitment and leadership consulting firm active in the same leadership development space.
- Second Step
Provider of social-emotional learning programs for schools, a competitor in the Education Division.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report04 Nov 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report21 Oct 2026Other events · Financial statements and exhibits
- Current report01 Sept 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report07 Jul 2026
- Current report01 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report17 Jun 2026Other events · Financial statements and exhibits
- Quarterly report08 Apr 2026
- Current report01 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report18 Mar 2026Other events · Financial statements and exhibits
- Current report23 Jan 2026Shareholder vote · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-08-31 · SEC / Franklin Covey Co. · 12 Nov 2025
- [2] Form 10-Q, quarter ended 2026-05-31 · SEC / Franklin Covey Co. · 07 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Franklin Covey Co. · 01 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.