Franklin Covey (NYSE:FC) Releases Earnings Results, Misses Expectations By $0.30 EPS

Franklin Covey (NYSE:FC) issued its quarterly earnings data on Wednesday. The business services provider reported ($0.27) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.30), RTT News reports. The business had revenue of $64.05 million for the quarter, compared to analysts’ expectations of $64.77 million. Franklin Covey had a return on equity of 9.54% and a net margin of 1.15%.During the same period in the previous year, the firm posted $0.20 EPS.

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

• Enterprise North America showed clear momentum in Q1 with Invoiced Amounts up 7% (13% excl. government), new-logo subscription invoiced amounts up 25%, services bookings up 29%, and deferred subscription balance up 8% to $49.1M.
• Management reaffirmed fiscal 2026 guidance of $265–$275M revenue and $28–$33M Adjusted EBITDA, and expects meaningful acceleration in reported revenue, Adjusted EBITDA, and free cash flow in fiscal 2027.
• Q1 operating results were weaker year‑over‑year with reported revenue down 7% to $64M, Adjusted EBITDA down to $3.7M (from $7.7M), and free cash flow negative $3.7M, with $3.4M of restructuring charges contributing to near‑term margin pressure.
• Education results were impacted by timing of a large multi‑year statewide contract (creating an approx. $3.5M invoiced gap in Q1), but education subscriptions rose 12% and management expects revenue to be back‑loaded into Q3–Q4.
• Strategic investments are producing results—sales reorganization is driving larger, more strategic deals and higher services attach, and product innovation (including AI offerings like an AI Sales Coach and AI Coach for 4DX plus “Leading AI Adoption” solutions) is being embedded to support future growth.

Franklin Covey Stock Down 0.5%

Shares of Franklin Covey stock opened at $17.89 on Thursday. The company’s fifty day simple moving average is $16.16 and its two-hundred day simple moving average is $18.43. Franklin Covey has a 12-month low of $14.03 and a 12-month high of $39.22. The firm has a market cap of $214.44 million, a PE ratio of 74.52, a price-to-earnings-growth ratio of 1.13 and a beta of 0.66.

Analyst Ratings Changes

Several research analysts recently issued reports on FC shares. Barrington Research reiterated an “outperform” rating and issued a $22.00 target price on shares of Franklin Covey in a research report on Thursday, December 11th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Franklin Covey in a report on Friday, October 31st. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $24.50.

Insider Buying and Selling at Franklin Covey

In other news, insider Michael Sean Merrill Covey sold 7,000 shares of the stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $14.68, for a total transaction of $102,760.00. Following the completion of the sale, the insider directly owned 218,636 shares in the company, valued at approximately $3,209,576.48. This represents a 3.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 15.20% of the company’s stock.

Institutional Investors Weigh In On Franklin Covey

Several institutional investors and hedge funds have recently modified their holdings of FC. Wiser Advisor Group LLC purchased a new position in shares of Franklin Covey during the 3rd quarter worth approximately $35,000. Amundi purchased a new position in shares of Franklin Covey in the 1st quarter valued at approximately $58,000. BNP Paribas Financial Markets boosted its position in shares of Franklin Covey by 98.9% during the third quarter. BNP Paribas Financial Markets now owns 2,236 shares of the business services provider’s stock valued at $43,000 after purchasing an additional 1,112 shares in the last quarter. Quarry LP purchased a new stake in Franklin Covey in the third quarter worth $74,000. Finally, Aquatic Capital Management LLC grew its stake in Franklin Covey by 37.7% in the third quarter. Aquatic Capital Management LLC now owns 6,766 shares of the business services provider’s stock worth $131,000 after purchasing an additional 1,851 shares during the period. 69.88% of the stock is owned by hedge funds and other institutional investors.

Franklin Covey News Roundup

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

• Positive Sentiment: Company press release and slide deck highlighted results and an adjusted EPS beat that management emphasized, plus materials and a slide deck were made available for investors. Franklin Covey Reports First Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Company issued FY2026 revenue guidance of $265.0M–$275.0M (roughly in line with consensus ~$266.3M), giving some forward visibility but a wide range that leaves uncertainty about growth.
• Neutral Sentiment: Full earnings call transcript was published for investors to parse management commentary and questions about demand, margins, and cash. Franklin Covey Co. (FC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Multiple market reports flagged a revenue miss and market reaction: Investing.com reported the shares plunged after the Q1 results and revenue missed estimates, which is driving the short‑term selloff. Franklin Covey shares plunge nearly 12% as Q1 earnings, revenue miss estimates
• Negative Sentiment: Third‑party data summaries report a tougher picture on GAAP metrics: ~Q1 revenue of $64.0M (down ~7% YoY), widened operating loss, GAAP net loss and a reported diluted EPS miss, plus sharply lower operating cash flow and a ~67% decline in cash on hand — all of which raise short‑term liquidity and execution concerns. Franklin Covey Company (FC) Releases Q1 2026 Earnings: Revenue Decline and EPS Miss
• Negative Sentiment: Insider selling was noted in recent filings (a director/exec sale), which can increase investor caution given the weaker quarter and cash metrics. (See Quiver summary link above for insider activity.)
• Neutral Sentiment: Press wire and snapshot coverage (AP/KHOU, MarketBeat) provide alternate presentations of the quarter; some outlets focused on adjusted EPS outperformance while others emphasized the top‑line miss and cash decline — the mixed messaging is contributing to volatility. Franklin Covey: Fiscal Q1 Earnings Snapshot

About Franklin Covey

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.