Franklin Covey (FC)
Market Price (8/7/2026): $21.48 | Market Cap: $241.9 MilSector: Consumer Discretionary | Industry: Education Services
Franklin Covey (FC)
Market Price (8/7/2026): $21.48Market Cap: $241.9 MilSector: Consumer DiscretionaryIndustry: Education Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% Megatrend and thematic driversMegatrends include Future of Work & Human Capital. Themes include Leadership Development, Workforce Productivity Solutions, and Organizational Effectiveness Consulting. | Weak multi-year price returns2Y Excs Rtn is -92%, 3Y Excs Rtn is -123% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 36x, P/EPrice/Earnings or Price/(Net Income) is 110x Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.1%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -2.2% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.5% Key risksFC key risks include execution risks associated with its strategic initiatives, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% |
| Megatrend and thematic driversMegatrends include Future of Work & Human Capital. Themes include Leadership Development, Workforce Productivity Solutions, and Organizational Effectiveness Consulting. |
| Weak multi-year price returns2Y Excs Rtn is -92%, 3Y Excs Rtn is -123% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 36x, P/EPrice/Earnings or Price/(Net Income) is 110x |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -6.1%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -2.2% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.5% |
| Key risksFC key risks include execution risks associated with its strategic initiatives, Show more. |
Qualitative Assessment
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Franklin Covey (FC) stock has remained largely at the same level since 4/30/2026 because of the following key factors:
1. Mixed Fiscal Q3 2026 Earnings with Revenue Miss Offset by EPS Beat and EBITDA Growth.
Franklin Covey (FC) reported mixed financial results for its fiscal third quarter ended May 31, 2026, on July 1, 2026. While the company exceeded analyst expectations with an Adjusted EPS of $0.27 against a consensus of $0.24, its revenue of $67.81 million fell short of the $68.33 million analyst estimate, representing only a 1% year-over-year increase. This conflicting performance, combining a profitability beat with a top-line miss, created an immediate negative reaction, causing shares to plunge 21.73% after hours. However, the 14% increase in Adjusted EBITDA to $8.3 million and a 7% rise in consolidated deferred revenue to $96.0 million provided some underlying strength and helped prevent a sustained downward trend.
2. Downward Revision of Full-Year Fiscal 2026 Revenue Guidance.
A significant factor contributing to the stock's struggle to achieve upward momentum was the company's decision to lower its full-year fiscal 2026 revenue guidance. The updated forecast for total revenue was revised to a range of $260 million to $267 million, down from the previous guidance of $265 million to $275 million. This revision was attributed to several factors, including a timing shift in service delivery for a large Enterprise North America contract, budget cuts affecting a state education contract, and ongoing challenges in international markets due to geopolitical tensions. This lowered near-term revenue outlook acted as a headwind, limiting investor enthusiasm.
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Franklin Covey (FC) stock has remained largely at the same level since 4/30/2026 because of the following key factors:
1. Mixed Fiscal Q3 2026 Earnings with Revenue Miss Offset by EPS Beat and EBITDA Growth.
Franklin Covey (FC) reported mixed financial results for its fiscal third quarter ended May 31, 2026, on July 1, 2026. While the company exceeded analyst expectations with an Adjusted EPS of $0.27 against a consensus of $0.24, its revenue of $67.81 million fell short of the $68.33 million analyst estimate, representing only a 1% year-over-year increase. This conflicting performance, combining a profitability beat with a top-line miss, created an immediate negative reaction, causing shares to plunge 21.73% after hours. However, the 14% increase in Adjusted EBITDA to $8.3 million and a 7% rise in consolidated deferred revenue to $96.0 million provided some underlying strength and helped prevent a sustained downward trend.
2. Downward Revision of Full-Year Fiscal 2026 Revenue Guidance.
A significant factor contributing to the stock's struggle to achieve upward momentum was the company's decision to lower its full-year fiscal 2026 revenue guidance. The updated forecast for total revenue was revised to a range of $260 million to $267 million, down from the previous guidance of $265 million to $275 million. This revision was attributed to several factors, including a timing shift in service delivery for a large Enterprise North America contract, budget cuts affecting a state education contract, and ongoing challenges in international markets due to geopolitical tensions. This lowered near-term revenue outlook acted as a headwind, limiting investor enthusiasm.
3. Maintained Fiscal 2026 Adjusted EBITDA Guidance and Positive Fiscal 2027 Outlook.
Despite the cut to its fiscal 2026 revenue guidance, Franklin Covey maintained its Adjusted EBITDA guidance within a narrower range of $28 million to $31 million, compared to the prior range of $28 million to $33 million. This was achieved through effective cost control measures. Furthermore, management expressed confidence in stronger net revenue, Adjusted EBITDA, and free cash flow growth for fiscal 2027, bolstered by the solid 7% year-over-year increase in consolidated deferred revenue to $96.0 million. This forward-looking optimism and the reaffirmed profitability outlook for the current fiscal year helped to stabilize the stock after the initial post-earnings drop, preventing further declines and contributing to its relatively level movement.
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Stock Movement Drivers
Fundamental Drivers
The 1.0% change in FC stock from 4/30/2026 to 8/6/2026 was primarily driven by a 1.4% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 4302026 | 8062026 | Change |
|---|---|---|---|
| Stock Price ($) | 21.20 | 21.42 | 1.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 262 | 263 | 0.3% |
| P/S Multiple | 0.9 | 0.9 | -0.7% |
| Shares Outstanding (Mil) | 11 | 11 | 1.4% |
| Cumulative Contribution | 1.0% |
Market Drivers
4/30/2026 to 8/6/2026| Return | Correlation | |
|---|---|---|
| FC | 1.0% | |
| Market (SPY) | 6.9% | 14.6% |
| Sector (XLY) | -0.2% | 31.8% |
Fundamental Drivers
The 5.2% change in FC stock from 1/31/2026 to 8/6/2026 was primarily driven by a 8.4% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 1312026 | 8062026 | Change |
|---|---|---|---|
| Stock Price ($) | 20.37 | 21.42 | 5.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 262 | 263 | 0.3% |
| P/S Multiple | 0.9 | 0.9 | -3.3% |
| Shares Outstanding (Mil) | 12 | 11 | 8.4% |
| Cumulative Contribution | 5.2% |
Market Drivers
1/31/2026 to 8/6/2026| Return | Correlation | |
|---|---|---|
| FC | 5.2% | |
| Market (SPY) | 11.4% | 14.5% |
| Sector (XLY) | -2.3% | 14.8% |
Fundamental Drivers
The 8.7% change in FC stock from 7/31/2025 to 8/6/2026 was primarily driven by a 362.6% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 8062026 | Change |
|---|---|---|---|
| Stock Price ($) | 19.71 | 21.42 | 8.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 280 | 263 | -6.1% |
| Net Income Margin (%) | 3.8% | 0.8% | -78.1% |
| P/E Multiple | 23.9 | 110.3 | 362.6% |
| Shares Outstanding (Mil) | 13 | 11 | 14.5% |
| Cumulative Contribution | 8.7% |
Market Drivers
7/31/2025 to 8/6/2026| Return | Correlation | |
|---|---|---|
| FC | 8.7% | |
| Market (SPY) | 22.6% | 20.8% |
| Sector (XLY) | 7.3% | 23.6% |
Fundamental Drivers
The -55.0% change in FC stock from 7/31/2023 to 8/6/2026 was primarily driven by a -85.9% change in the company's Net Income Margin (%).| (LTM values as of) | 7312023 | 8062026 | Change |
|---|---|---|---|
| Stock Price ($) | 47.65 | 21.42 | -55.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 281 | 263 | -6.6% |
| Net Income Margin (%) | 5.9% | 0.8% | -85.9% |
| P/E Multiple | 39.2 | 110.3 | 181.3% |
| Shares Outstanding (Mil) | 14 | 11 | 21.0% |
| Cumulative Contribution | -55.0% |
Market Drivers
7/31/2023 to 8/6/2026| Return | Correlation | |
|---|---|---|
| FC | -55.0% | |
| Market (SPY) | 73.8% | 33.5% |
| Sector (XLY) | 39.0% | 33.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| FC Return | 108% | 1% | -7% | -14% | -55% | 30% | -2% |
| Peers Return | 19% | -16% | 11% | 9% | -16% | 16% | 18% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| FC Win Rate | 92% | 42% | 50% | 42% | 25% | 75% | |
| Peers Win Rate | 48% | 45% | 53% | 52% | 50% | 57% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| FC Max Drawdown | -15% | -32% | -29% | -22% | -63% | -45% | |
| Peers Max Drawdown | -22% | -42% | -29% | -30% | -40% | -37% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: KFY, HURN, SKIL, FCN, MAN. See FC Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/6/2026 (YTD)
How Low Can It Go
| Event | FC | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -27.2% | -6.7% |
| % Gain to Breakeven | 37.4% | 7.1% |
| Time to Breakeven | 91 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -26.5% | -24.5% |
| % Gain to Breakeven | 36.1% | 32.4% |
| Time to Breakeven | 22 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -61.5% | -33.7% |
| % Gain to Breakeven | 160.0% | 50.9% |
| Time to Breakeven | 465 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -15.3% | -12.2% |
| % Gain to Breakeven | 18.1% | 13.9% |
| Time to Breakeven | 53 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -26.3% | -6.8% |
| % Gain to Breakeven | 35.7% | 7.3% |
| Time to Breakeven | 376 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -44.4% | -17.9% |
| % Gain to Breakeven | 79.8% | 21.8% |
| Time to Breakeven | 361 days | 123 days |
In The Past
Franklin Covey's stock fell -3.2% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 3.3% gain to breakeven.
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Asset Allocation
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| Event | FC | S&P 500 |
|---|---|---|
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -27.2% | -6.7% |
| % Gain to Breakeven | 37.4% | 7.1% |
| Time to Breakeven | 91 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -26.5% | -24.5% |
| % Gain to Breakeven | 36.1% | 32.4% |
| Time to Breakeven | 22 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -61.5% | -33.7% |
| % Gain to Breakeven | 160.0% | 50.9% |
| Time to Breakeven | 465 days | 140 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -26.3% | -6.8% |
| % Gain to Breakeven | 35.7% | 7.3% |
| Time to Breakeven | 376 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -44.4% | -17.9% |
| % Gain to Breakeven | 79.8% | 21.8% |
| Time to Breakeven | 361 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -27.2% | -15.4% |
| % Gain to Breakeven | 37.3% | 18.2% |
| Time to Breakeven | 99 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -55.7% | -53.4% |
| % Gain to Breakeven | 125.7% | 114.4% |
| Time to Breakeven | 377 days | 1085 days |
In The Past
Franklin Covey's stock fell -3.2% during the 2024 Yen Carry Trade Unwind. Such a loss loss requires a 3.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Franklin Covey (FC)
Franklin Covey Co. (FC) is a global professional services firm specializing in training and consulting designed to enhance performance for organizations and individuals worldwide. The company provides expertise and solutions in critical areas such as improving execution, boosting sales performance, increasing productivity, fostering customer loyalty, and driving educational improvement. Its mission is to equip clients with practical skills and frameworks to achieve superior results.
The company's primary offerings include a comprehensive suite of leadership development and individual-effectiveness training programs, alongside strategic consulting services and related products. These solutions help clients address challenges from C-suite strategy implementation to front-line employee development. Franklin Covey delivers its services through three main channels: its Direct Offices, a network of International Licensees, and a dedicated Education Practice, catering to a broad spectrum of corporate, government, and educational clients globally.
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Here are 1-3 brief analogies for Franklin Covey (FC):
The Dale Carnegie of corporate and individual effectiveness.
A consulting firm like McKinsey or Deloitte, but focused specifically on improving corporate leadership, productivity, and culture.
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- Execution & Productivity Solutions: Provides training and consulting services to enhance organizational and individual effectiveness in executing strategies and boosting overall productivity.
- Sales Performance & Customer Loyalty Solutions: Offers training and consulting aimed at improving sales strategies and fostering stronger customer relationships and loyalty.
- Educational Improvement Solutions: Delivers services and programs designed to enhance learning environments, teaching methodologies, and educational outcomes.
- Individual-Effectiveness Development: Supplies training programs and products focused on developing personal skills for greater individual productivity and goal achievement.
- Leadership Development: Offers comprehensive training and products designed to cultivate and strengthen leadership capabilities for individuals and teams.
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Franklin Covey (FC) primarily provides training, consulting, and products to organizations worldwide, though it also serves individuals.
Due to the broad and diverse nature of its client base, Franklin Covey does not publicly disclose specific major customer company names. Its major customers encompass a wide range of organizations, which include:
- Businesses: Companies of all sizes, from small enterprises to large corporations across various industries, seeking leadership development, execution training, sales performance improvement, and productivity solutions.
- Government Agencies: Local, state, federal, and international governmental bodies utilizing Franklin Covey's services for organizational effectiveness and leadership training.
- Educational Institutions: K-12 schools, districts, and universities that implement programs like "The Leader in Me" and other leadership development initiatives for students and staff.
In addition to organizations, Franklin Covey also serves individuals who purchase its personal development products (e.g., planners, books) and participate in individual-focused workshops.
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Paul Walker – Chief Executive Officer
Paul Walker was appointed CEO of FranklinCovey in November 2019. He began his career with the company in 2000 as a sales development associate and progressed through various leadership roles, including client partner, area director, general manager for the North America Central Region, and head of the company's United Kingdom business. Before becoming CEO, he served as executive vice president of global sales and delivery, president of the Enterprise division, and president and chief operating officer. Walker has overseen several digital transformation initiatives, including the shift to the FranklinCovey All Access Pass, and has been involved in three major acquisitions. He holds a Bachelor of Arts in Communications from Brigham Young University.
Jessica G. Betjemann – Executive Vice President and Chief Financial Officer
Jessica G. Betjemann became FranklinCovey's Chief Financial Officer on May 1, 2025, bringing over 30 years of financial leadership experience. Prior to joining FranklinCovey, she served as Executive Vice President and CFO of Gogo, Inc. At Gogo, she also held roles as Senior Vice President of Finance, Chief Accounting Officer, and Treasurer. Betjemann was instrumental in leading Gogo through significant transactions, including the acquisition of Satcom Direct in 2024 and the sale of Gogo's Commercial Aviation division to Intelsat in 2020, which transformed Gogo into a private aviation-focused growth business. Her previous experience includes senior leadership positions in strategy and finance at Nokia, Alcatel-Lucent, Lucent Technologies, and AT&T. She earned an MBA from the Stern School of Business at New York University and a Bachelor of Arts in mathematics and economics from Lafayette College.
Sean Covey – President, Education Division
Sean Covey serves as the President of FranklinCovey Education and Executive Vice President of Global Solutions and Partnerships. He is responsible for the development of many of FranklinCovey's offerings, including "The 4 Disciplines of Execution," "The Leader in Me," and "The 7 Habits of Highly Effective People," and oversees international partnerships in over 140 countries. A New York Times bestselling author, his works include "The 7 Habits of Highly Effective Teens." Covey holds a bachelor's degree in English from Brigham Young University and an MBA from Harvard Business School. He previously worked at Deloitte and Touche consulting and Trammel Crow Ventures.
Todd Davis – Chief People Officer and Executive Vice President
Todd Davis is FranklinCovey's Chief People Officer and Executive Vice President. With over 35 years of experience in human resources, talent development, executive recruiting, sales, and marketing, he has been with FranklinCovey for over 27 years. He is responsible for the company's global talent development across more than 40 offices in 160 countries. Davis previously led the FranklinCovey's Innovations Group, contributing to the development of core offerings. He is the author of "Get Better: 15 Proven Practices to Build Effective Relationships at Work" and co-author of "Talent Unleashed." Before joining FranklinCovey, he spent a decade in the medical industry.
Adam Merrill – Executive Vice President, Market & Customer Intelligence
Adam Merrill holds the position of Executive Vice President, Market & Customer Intelligence, and is the Executive Director of the FranklinCovey Institute. He has over 30 years of experience in the learning industry, where he has guided innovative product development and created award-winning solutions. Merrill has played a significant role in developing many of FranklinCovey's products and has been deeply involved in the company's digital transformation. He is the co-author of the Wall Street Journal bestselling book, "The 5 Choices: The Path to Extraordinary Productivity." Merrill earned a Bachelor of Arts in Philosophy from Brigham Young University and a Master of Business Administration in International Management from the Thunderbird School of Global Management.
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Here are the key risks to Franklin Covey's business:
- Macroeconomic Conditions and Cyclicality in Client Spending: Franklin Covey's business is highly susceptible to broader economic downturns and uncertainties. During periods of economic contraction or instability, organizations often reduce discretionary spending, including budgets for training, consulting, and leadership development services. Factors such as client demand, ability to conduct in-person programs, and clients' capacity to pay for services can negatively affect the company's performance. Recent financial reports indicate revenue declines attributed to macroeconomic factors and canceled contracts.
- Intense Competition and Technological Disruption: The corporate training and consulting industry is intensely competitive with numerous players, including global and regional learning vendors, HR tech platforms, and specialized point-solution providers. Franklin Covey faces ongoing pressure from new programs, services, and delivery methods introduced by competitors. The rapid advancement of technology, particularly Artificial Intelligence (AI) and generative AI, is transforming how learning and development are delivered, posing a challenge if Franklin Covey does not continuously innovate and adapt its offerings. This competitive environment can lead to pricing pressure and affect win rates.
- Maintaining Content Relevance and Proving Program Effectiveness: A significant risk for Franklin Covey, operating in the leadership and individual effectiveness space, is ensuring its content remains relevant and its programs demonstrably effective in driving desired outcomes for clients. Studies indicate that many leadership development programs fail to achieve their intended results, with a substantial portion of training content forgotten shortly after completion. If Franklin Covey's offerings are perceived as not aligning with modern leadership challenges or failing to deliver practical, lasting behavior change and measurable business impact, it could negatively affect client retention, subscription renewals, and new business acquisition.
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The rapid emergence and adoption of advanced Artificial Intelligence (AI) technologies, particularly generative AI, capable of delivering highly personalized coaching, skill development, and productivity insights. These AI platforms can potentially offer cost-effective, on-demand, and scalable alternatives to traditional human-led training and consulting services in areas such as execution, sales performance, productivity, and leadership development, thereby challenging Franklin Covey's core business model.
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Franklin Covey Co. (NYSE: FC) operates within several substantial addressable markets globally, providing training and consulting services for organizations and individuals. These markets include corporate training, leadership development, sales training, management consulting, and professional development, with a specific focus on the K-12 education sector.
Addressable Market Sizes:
- Global Corporate Training Market: The global corporate training market was valued at approximately USD 412.83 billion in 2024 and is projected to reach USD 808.89 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 7.76% during the forecast period (2026–2033). Other estimates place the market at USD 361.5 billion in 2023, growing to USD 805.6 billion by 2035 at a CAGR of 7%. The North American corporate training market alone was valued at USD 62.08 billion in 2024, with a projected CAGR of 6.4% from 2024 to 2031.
- Global Leadership Development Program Market: This market was valued at USD 82.2 billion in 2024 and is expected to reach USD 193.2 billion by 2032, exhibiting a CAGR of 11.29% from 2025 to 2032. Another source indicates the global corporate leadership training market is projected to expand from USD 39.71 billion in 2025 to USD 65.31 billion by 2031, with a CAGR of 8.64%.
- Global Sales Training Market: The global sales training market is estimated to be valued at USD 8.46 billion in 2025 and is anticipated to reach USD 16.91 billion by 2032, growing at a CAGR of 10.4% from 2025 to 2032. Another report states the global sales training market reached USD 10.32 billion in 2024 and is projected to grow to nearly USD 19 billion by 2032.
- Global Management Consulting Services Market: The global management consulting services market size was valued at USD 466.68 billion in 2024, with projections to grow from USD 491.68 billion in 2025 to USD 721.60 billion by 2032, at a CAGR of 5.63%. Other analyses indicate the global management consulting market was USD 257.394 billion in 2021, with an expectation to reach USD 334.5 billion by 2025 and USD 564.924 billion by 2033, at a CAGR of 6.77% from 2025 to 2033.
- Global Professional Development Market: This market was valued at USD 56.89 billion in 2025 and is estimated to grow to USD 76.25 billion by 2031, at a CAGR of 5.01% during the forecast period (2026-2031). The U.S. professional development market is valued at over USD 70 billion.
- Global K-12 Education Market: The global K-12 education market size was valued at USD 2.50 trillion in 2023 and is anticipated to reach USD 5.66 trillion by 2030, growing at a CAGR of 12.5% from 2024 to 2030.
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Expected Drivers of Future Revenue Growth for Franklin Covey (FC)
Over the next 2-3 years, Franklin Covey (FC) is expected to drive revenue growth through several key initiatives:
- Growth in Subscription Offerings: The company anticipates continued revenue expansion from its subscription-based "All-Access Pass" and "Leader in Me" memberships. This growth is supported by strong client retention rates and clients opting to expand the duration of their contracts.
- Increased New Client Acquisition and Expanded Services in Enterprise North America: Franklin Covey is focusing on significantly increasing new logo subscription sales and the booking pace of services within its Enterprise North America segment. This is a crucial component of their go-to-market transformation strategy.
- Strategic Investments in Sales, Marketing, and Operational Realignment: The company has made substantial investments in its sales and marketing efforts, including a realignment of its North America sales force, to enhance client acquisition and improve operational efficiency. These initiatives are expected to translate into accelerated revenue growth in the coming years.
- Consistent Growth in the Education Division: The Education Division has demonstrated consistent revenue growth and is expected to continue contributing positively to the company's overall top line, driven by increased sales of classroom materials and new initiatives.
- Integration of Artificial Intelligence (AI) into Offerings: Franklin Covey is embedding AI across its various offerings, a strategic move aimed at enhancing its content and services, which is expected to be a future driver of growth.
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Share Repurchases
- Franklin Covey's Board of Directors approved replenishing the company's authorization to repurchase up to $50 million of its outstanding common stock on August 13, 2025.
- As of May 31, 2025, approximately $17 million of common stock had been repurchased in fiscal year 2025, with about $28 million remaining under a prior $50 million authorization.
- During the fourth quarter of fiscal 2025 and the first quarter of fiscal 2026, the company repurchased approximately $10 million of its common stock. Since 2021, total stock repurchases have amounted to approximately $96 million.
Share Issuance
- In 2025, the issuance of common shares totaled USD 289.0 thousand.
- Shareholders approved an amendment on January 24, 2025, to increase the number of shares available for issuance under the 2022 Omnibus Incentive Plan by 575,000, bringing the new total authorization to 1,575,000 shares.
Outbound Investments
- Franklin Covey is making $16 million in "growth investments" for fiscal year 2025, primarily directed towards additional sales, sales support, and marketing personnel to accelerate revenue growth.
- These investments include developing a new "hunting team" of salespeople, along with marketing and lead-generation support.
- Future growth is expected to be driven by ongoing investments in AI integration and sales transformation initiatives.
Capital Expenditures
- Capital expenditures, which include purchases of property and equipment, curriculum development, and content or license rights, were approximately $16.9 million for fiscal year 2025.
- For fiscal year 2024, capital expenditures were approximately $11.4 million.
- In the first quarter of fiscal year 2025, capital expenditures amounted to approximately $2.7 million.
Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 69.00 |
| Mkt Cap | 2.5 |
| Rev LTM | 2,350 |
| Op Inc LTM | 217 |
| FCF LTM | 76 |
| FCF 3Y Avg | 87 |
| CFO LTM | 103 |
| CFO 3Y Avg | 134 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 5.1% |
| Rev Chg 3Y Avg | -0.6% |
| Rev Chg Q | 6.2% |
| QoQ Delta Rev Chg LTM | 1.5% |
| Op Inc Chg LTM | 9.2% |
| Op Inc Chg 3Y Avg | 3.6% |
| Op Mgn LTM | 7.3% |
| Op Mgn 3Y Avg | 9.1% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 10.1% |
| CFO/Rev 3Y Avg | 9.0% |
| FCF/Rev LTM | 5.8% |
| FCF/Rev 3Y Avg | 7.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 2.5 |
| P/S | 1.0 |
| P/Op Inc | 11.3 |
| P/EBIT | 11.9 |
| P/E | 16.5 |
| P/CFO | 9.8 |
| Total Yield | 2.8% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 5.8% |
| D/E | 0.3 |
| Net D/E | 0.3 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 8.1% |
| 3M Rtn | 8.8% |
| 6M Rtn | 8.9% |
| 12M Rtn | 13.3% |
| 3Y Rtn | -19.3% |
| 1M Excs Rtn | 9.7% |
| 3M Excs Rtn | 7.1% |
| 6M Excs Rtn | -11.5% |
| 12M Excs Rtn | -7.1% |
| 3Y Excs Rtn | -86.1% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Subscription | 148 | 148 | 139 | ||
| Services and Products | 99 | 119 | 121 | ||
| Royalties | 17 | 17 | 17 | ||
| Leases and Other | 3 | 4 | 4 | ||
| Corporate and eliminations | 7 | 7 | |||
| Direct offices | 184 | 160 | |||
| Education Division | 62 | 49 | |||
| International licensees | 11 | 9 | |||
| Total | 267 | 287 | 281 | 263 | 224 |
| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Direct offices | 50 | 44 | 37 | 28 | |
| Education Division | 10 | 7 | 8 | 5 | -0 |
| International licensees | 6 | 6 | 5 | 4 | |
| Contingent consideration liabilities | 0 | -0 | |||
| Impaired assets | -1 | 0 | |||
| Restructuring costs | -3 | -1 | 0 | 0 | -2 |
| Depreciation | -4 | -4 | -5 | -6 | -7 |
| Amortization | -4 | -4 | -5 | -5 | -5 |
| Stock-based compensation | -10 | -13 | -8 | -9 | 1 |
| Corporate and eliminations | -10 | -9 | -9 | -8 | -6 |
| Business acquisition costs | 0 | -0 | |||
| Gain from insurance settlement | 0 | 0 | 1 | ||
| Government COVID-19 assistance | 0 | 0 | 1 | ||
| Increase in contingent consideration liabilities | -0 | -0 | 0 | ||
| Enterprise | 20 | ||||
| Knowledge Capital wind-down costs | -0 | ||||
| Total | 33 | 26 | 24 | 8 | 3 |
| $ Mil | 2007 | 2006 | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|
| Organizational Strategic Business Unit | 104 | 105 | 108 | 115 | 123 |
| Consumer Strategic Business Unit | 18 | 13 | 13 | 18 | 21 |
| Total | 122 | 118 | 121 | 133 | 144 |
Price Behavior
| Market Price | $21.42 | |
| Market Cap ($ Bil) | 0.2 | |
| First Trading Date | 06/03/1992 | |
| Distance from 52W High | -16.2% | |
| 50 Days | 200 Days | |
| DMA Price | $22.58 | $19.07 |
| DMA Trend | up | down |
| Distance from DMA | -5.1% | 12.3% |
| 3M | 1YR | |
| Volatility | 52.3% | 65.1% |
| Downside Capture | 132.00 | 141.95 |
| Upside Capture | 82.37 | 120.38 |
| Correlation (SPY) | 14.4% | 20.4% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.22 | 0.61 | 0.57 | 0.84 | 1.07 | 1.09 |
| Up Beta | 0.67 | 0.01 | -0.09 | -0.50 | 0.47 | 0.73 |
| Down Beta | 0.67 | -0.64 | -0.11 | 0.25 | 0.85 | 1.32 |
| Up Capture | 232% | 102% | 99% | 152% | 139% | 76% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 10 | 20 | 31 | 56 | 121 | 359 |
| Down Capture | 390% | 150% | 112% | 138% | 125% | 108% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 12 | 22 | 31 | 69 | 127 | 387 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FC | |
|---|---|---|---|---|
| FC | 13.3% | 65.0% | 0.42 | - |
| Sector ETF (XLY) | 8.6% | 19.4% | 0.30 | 22.8% |
| Equity (SPY) | 23.5% | 12.9% | 1.37 | 20.3% |
| Gold (GLD) | 25.3% | 28.3% | 0.79 | -9.2% |
| Commodities (DBC) | 32.4% | 19.8% | 1.30 | -8.9% |
| Real Estate (VNQ) | 12.9% | 13.8% | 0.64 | 20.8% |
| Bitcoin (BTCUSD) | -43.6% | 43.0% | -1.21 | 11.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FC | |
|---|---|---|---|---|
| FC | -7.9% | 46.4% | -0.03 | - |
| Sector ETF (XLY) | 5.9% | 24.1% | 0.21 | 34.5% |
| Equity (SPY) | 13.2% | 17.2% | 0.59 | 35.5% |
| Gold (GLD) | 17.9% | 18.5% | 0.78 | -3.6% |
| Commodities (DBC) | 8.0% | 19.6% | 0.31 | 2.5% |
| Real Estate (VNQ) | 2.3% | 18.9% | 0.02 | 28.9% |
| Bitcoin (BTCUSD) | 10.0% | 53.0% | 0.38 | 15.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FC | |
|---|---|---|---|---|
| FC | 3.9% | 45.0% | 0.24 | - |
| Sector ETF (XLY) | 12.4% | 22.2% | 0.51 | 41.4% |
| Equity (SPY) | 15.3% | 17.9% | 0.73 | 43.6% |
| Gold (GLD) | 11.8% | 16.2% | 0.59 | -2.6% |
| Commodities (DBC) | 7.4% | 18.0% | 0.33 | 12.9% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 38.8% |
| Bitcoin (BTCUSD) | 58.3% | 66.2% | 0.98 | 12.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 8/4/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/1/2026 | -12.8% | -17.1% | -14.2% |
| 4/1/2026 | 44.4% | 33.1% | 33.0% |
| 1/7/2026 | 0.5% | 11.8% | 9.4% |
| 11/5/2025 | -10.1% | -14.3% | -10.0% |
| 7/2/2025 | -12.0% | -17.8% | -23.3% |
| 4/2/2025 | -26.5% | -24.5% | -24.0% |
| 1/8/2025 | -11.5% | -6.7% | 9.8% |
| 11/6/2024 | -14.8% | -14.1% | -17.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 14 | 11 | 15 |
| # Negative | 10 | 13 | 9 |
| Median Positive | 4.2% | 11.7% | 9.8% |
| Median Negative | -11.7% | -11.1% | -17.0% |
| Max Positive | 44.4% | 33.1% | 37.6% |
| Max Negative | -26.5% | -24.5% | -24.0% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/1/2026 | -12.8% | -17.1% | -14.2% |
| 4/1/2026 | 44.4% | 33.1% | 33.0% |
| 1/7/2026 | 0.5% | 11.8% | 9.4% |
| 11/5/2025 | -10.1% | -14.3% | -10.0% |
| 7/2/2025 | -12.0% | -17.8% | -23.3% |
| 4/2/2025 | -26.5% | -24.5% | -24.0% |
| 1/8/2025 | -11.5% | -6.7% | 9.8% |
| 11/6/2024 | -14.8% | -14.1% | -17.9% |
| 6/26/2024 | 5.2% | 11.7% | 22.4% |
| 3/27/2024 | 2.5% | -2.5% | 3.2% |
| 1/4/2024 | 3.3% | 5.0% | -0.6% |
| 11/1/2023 | -9.2% | -6.0% | 1.7% |
| 6/28/2023 | 26.3% | 21.6% | 30.0% |
| 3/29/2023 | -18.0% | -14.5% | -17.0% |
| 1/5/2023 | -4.5% | -1.2% | 4.5% |
| 11/2/2022 | 1.5% | -5.1% | 1.8% |
| 6/29/2022 | 21.4% | 29.4% | 37.6% |
| 3/30/2022 | -8.3% | -11.1% | -18.7% |
| 1/6/2022 | 10.8% | 11.5% | 1.1% |
| 11/9/2021 | 2.4% | 7.3% | -0.2% |
| 6/30/2021 | 11.3% | 9.8% | 13.1% |
| 4/1/2021 | 2.8% | 0.4% | 4.9% |
| 1/7/2021 | 1.4% | -0.4% | 12.3% |
| 11/5/2020 | 10.8% | 24.0% | 18.2% |
| SUMMARY STATS | |||
| # Positive | 14 | 11 | 15 |
| # Negative | 10 | 13 | 9 |
| Median Positive | 4.2% | 11.7% | 9.8% |
| Median Negative | -11.7% | -11.1% | -17.0% |
| Max Positive | 44.4% | 33.1% | 37.6% |
| Max Negative | -26.5% | -24.5% | -24.0% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 05/31/2026 | 07/07/2026 | 10-Q |
| 02/28/2026 | 04/08/2026 | 10-Q |
| 11/30/2025 | 01/09/2026 | 10-Q |
| 08/31/2025 | 11/12/2025 | 10-K |
| 05/31/2025 | 07/08/2025 | 10-Q |
| 02/28/2025 | 04/08/2025 | 10-Q |
| 11/30/2024 | 01/10/2025 | 10-Q |
| 08/31/2024 | 11/12/2024 | 10-K |
| 05/31/2024 | 07/08/2024 | 10-Q |
| 02/29/2024 | 04/05/2024 | 10-Q |
| 11/30/2023 | 01/09/2024 | 10-Q |
| 08/31/2023 | 11/13/2023 | 10-K |
| 05/31/2023 | 07/07/2023 | 10-Q |
| 02/28/2023 | 04/05/2023 | 10-Q |
| 11/30/2022 | 01/09/2023 | 10-Q |
| 08/31/2022 | 11/14/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 05/31/2026 | 07/07/2026 | 10-Q |
| 02/28/2026 | 04/08/2026 | 10-Q |
| 11/30/2025 | 01/09/2026 | 10-Q |
| 08/31/2025 | 11/12/2025 | 10-K |
| 05/31/2025 | 07/08/2025 | 10-Q |
| 02/28/2025 | 04/08/2025 | 10-Q |
| 11/30/2024 | 01/10/2025 | 10-Q |
| 08/31/2024 | 11/12/2024 | 10-K |
| 05/31/2024 | 07/08/2024 | 10-Q |
| 02/29/2024 | 04/05/2024 | 10-Q |
| 11/30/2023 | 01/09/2024 | 10-Q |
| 08/31/2023 | 11/13/2023 | 10-K |
| 05/31/2023 | 07/07/2023 | 10-Q |
| 02/28/2023 | 04/05/2023 | 10-Q |
| 11/30/2022 | 01/09/2023 | 10-Q |
| 08/31/2022 | 11/14/2022 | 10-K |
| 05/31/2022 | 07/07/2022 | 10-Q |
| 02/28/2022 | 04/06/2022 | 10-Q |
| 11/30/2021 | 01/07/2022 | 10-Q |
| 08/31/2021 | 11/12/2021 | 10-K |
| 05/31/2021 | 07/08/2021 | 10-Q |
| 02/28/2021 | 04/08/2021 | 10-Q |
| 11/30/2020 | 01/08/2021 | 10-Q |
| 08/31/2020 | 11/16/2020 | 10-K |
| 05/31/2020 | 07/10/2020 | 10-Q |
| 02/29/2020 | 04/09/2020 | 10-Q |
| 11/30/2019 | 01/09/2020 | 10-Q |
| 08/31/2019 | 11/14/2019 | 10-K |
Recent Forward Guidance
Updated 7/27/2026Latest: Q3 2026 Earnings Reported 7/1/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Total Revenue | 260.00 Mil | 263.50 Mil | 267.00 Mil | -2.4% | Lowered | Guidance: 270.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | 28.00 Mil | 29.50 Mil | 31.00 Mil | -3.3% | Lowered | Guidance: 30.50 Mil for 2026 | |
Prior: Q2 2026 Earnings Reported 4/1/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 265.00 Mil | 270.00 Mil | 275.00 Mil | 0 | Affirmed | Guidance: 270.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | 28.00 Mil | 30.50 Mil | 33.00 Mil | 0 | Affirmed | Guidance: 30.50 Mil for 2026 | |
Q1 2026 Earnings Reported 1/7/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Total Revenue | 265.00 Mil | 270.00 Mil | 275.00 Mil | 0 | Affirmed | Guidance: 270.00 Mil for 2026 | |
| 2026 Adjusted EBITDA | 28.00 Mil | 30.50 Mil | 33.00 Mil | 0 | Affirmed | Guidance: 30.50 Mil for 2026 | |
Q4 2025 Earnings Reported 11/5/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Total Revenue | 265.00 Mil | 270.00 Mil | 275.00 Mil | 0 | Same New | Guidance: 270.00 Mil for 2025 | |
| 2026 Adjusted EBITDA | 28.00 Mil | 30.50 Mil | 33.00 Mil | 0 | Same New | Guidance: 30.50 Mil for 2025 | |
Insider Activity
Updated 7/14/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Covey, Michael Sean Merrill | President, Education Division | Direct | Sell | 11142025 | 14.68 | 7,000 | 102,788 | 3,210,451 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Covey, Michael Sean Merrill | President, Education Division | Direct | Sell | 11142025 | 14.68 | 7,000 | 102,788 | 3,210,451 | Form |
Franklin Covey — Investor Video Playlist
Industry Resources
| Consumer Discretionary Resources |
| Retail Dive |
| Business of Fashion (BoF) |
| WWD (Women's Wear Daily) |
| National Retail Federation (NRF) |
| McKinsey & Company - Consumer |
| Mintel Consumer Trends |
| Education Services Resources |
| EdSurge |
| Education Week |
| Inside Higher Ed |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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