Franklin Covey (NYSE:FC) Issues Earnings Results

Franklin Covey (NYSE:FC) announced its quarterly earnings results on Wednesday. The business services provider reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.06), Zacks reports. Franklin Covey had a negative net margin of 0.88% and a positive return on equity of 11.55%. The company had revenue of $59.65 million for the quarter, compared to the consensus estimate of $58.71 million.

Here are the key takeaways from Franklin Covey’s conference call:

• Invoiced growth accelerated: Consolidated invoiced amounts rose 5% year?over?year (Enterprise North America +7%, or +10% excluding government), and billed deferred subscription revenue increased 16% to $59M, supporting higher reported revenue in future periods.
• Profitability and cash flow improved materially: Q2 Adjusted EBITDA nearly doubled to $4.1M and free cash flow was $13.2M (vs. a -$3.6M loss a year ago), while liquidity remains strong (~$76M) and management has repurchased ~$28M of shares year?to?date.
• Guidance affirmed with a path to FY27 upside: Management reaffirmed FY26 revenue ($265M–$275M) and Adjusted EBITDA ($28M–$33M) targets and expects invoice-led acceleration of reported revenue, EBITDA, and cash flow in fiscal 2027 as deferred revenue converts.
• Strategic positioning around AI and expansion opportunity: Management argues AI is increasing demand for leadership/change?management services, the company is embedding AI into offerings, and current client penetration is only ~5–10%, implying substantial expansion runway.
• Near?term headwinds and costs remain: Reported revenue was flat in Q2, gross margin dipped to 75.9% (amortization and mix), the company incurred $1.5M of restructuring costs and other one?time expenses, and federal spending reductions have weighed on government business.

Franklin Covey Stock Up 46.6%

Shares of NYSE FC opened at $23.68 on Friday. The firm has a market capitalization of $273.46 million, a P/E ratio of -112.74, a P/E/G ratio of 0.98 and a beta of 0.58. The stock’s 50-day simple moving average is $15.87 and its two-hundred day simple moving average is $16.94. Franklin Covey has a twelve month low of $11.16 and a twelve month high of $24.70.

Key Franklin Covey News

Here are the key news stories impacting Franklin Covey this week:

• Positive Sentiment: Revenue beat and company outlook reaffirmed — Franklin Covey reported consolidated Q2 revenue around $59.6M and reiterated its FY2026 outlook, giving investors confidence about near?term guidance. Franklin Covey Reports Second Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Strong Education division growth called out on the earnings call — management highlighted momentum in the Education segment as a growth driver, which supports a better revenue mix and recurring opportunities. Franklin Covey Co (FC) Q2 2026 Earnings Call Highlights
• Positive Sentiment: Analyst backing — Barrington Research reaffirmed an “Outperform” rating and a $25 price target, providing an analyst catalyst and cover for buyers. Benzinga
• Positive Sentiment: Market headlines framed results as a revenue beat with constructive cash?flow commentary, helping lift sentiment. Franklin Covey rises on revenue beat, strong cash flow
• Neutral Sentiment: Full earnings call transcript and slide deck posted — useful for digging into segment-level metrics and management commentary but not an immediate directional driver. Franklin Covey Co. (FC) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Company press release and slide deck provide the official figures and guidance detail — recommended for verification of headline numbers. Press Release / Slide Deck
• Negative Sentiment: EPS missed and the company reported a quarterly loss — reported EPS figures were negative (various outlets cite a loss vs. small positive estimates), which is a near?term profitability concern and likely tempers the rally for some investors. Franklin Covey Q2 Results (MarketBeat)
• Negative Sentiment: Balance?sheet and cash?flow nuances: outlets report a large year?over?year decline in cash on hand and mixed operating cash, plus rising liabilities and at least one insider sale — these raise questions about capital flexibility despite the reported revenue beat. QuiverQuant: Franklin Covey Stock Rises on Q2 2026 Earnings

Analyst Ratings Changes

Separately, Barrington Research reaffirmed an “outperform” rating and set a $25.00 price objective on shares of Franklin Covey in a research note on Thursday. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Franklin Covey has a consensus rating of “Hold” and an average price target of $26.00.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Numerai GP LLC grew its stake in Franklin Covey by 15.9% in the 3rd quarter. Numerai GP LLC now owns 15,703 shares of the business services provider’s stock worth $305,000 after buying an additional 2,151 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Franklin Covey during the 3rd quarter valued at $290,000. EP Wealth Advisors LLC purchased a new stake in shares of Franklin Covey during the 4th quarter valued at $274,000. Man Group plc bought a new stake in shares of Franklin Covey during the 4th quarter worth $226,000. Finally, Creative Planning purchased a new position in Franklin Covey in the second quarter worth $217,000. Hedge funds and other institutional investors own 69.88% of the company’s stock.

Franklin Covey Company Profile

Franklin Covey Co (NYSE:FC) is a global consulting and training firm specializing in performance improvement solutions for individuals and organizations. The company offers a range of services, including leadership development, productivity tools, execution frameworks and assessments designed to foster personal effectiveness and drive business results. Its flagship offerings integrate training workshops, digital resources and coaching to support clients in areas such as strategic planning, team productivity and change management.

The origins of Franklin Covey trace back to the merger in 1997 of Franklin Quest Co, founded in 1983 by Hyrum W.