FC · Franklin Covey Co.

Franklin Covey Co. announced Q2 FY2026 results showing revenue stability at $59.6 million despite a $2.0 million decline in Enterprise North America to $41.6 million, offset by 16% growth in Education to $17.5 million driven by higher training, coaching, and subscriptions. Subscription revenue rose to $50.9 million with 16% invoiced growth to $39.3 million, and deferred revenue expanded 7% to $101.5 million, with Enterprise deferred up 15% and 59% of North America AAP contracts multi-year. Despite a wider net loss of $2.0 million due to $1.5 million restructuring and $0.5 million building exit costs, Adjusted EBITDA doubled to $4.1 million from cost controls and operational leverage. Cash generation strengthened markedly with $16.3 million operating cash flow and $13.2 million free cash flow versus prior year losses, enabling $17.0 million share repurchases of 947,000 shares while maintaining $76 million liquidity. Management highlights go-to-market transformation traction, with two quarters of 7% Enterprise North America invoiced growth amid AI-driven demand for leadership solutions. CFO reaffirms FY2026 guidance of $265-275 million revenue and $28-33 million Adjusted EBITDA in constant currency, expecting invoiced growth to drive FY2027 acceleration in a cautious macro environment.