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Nov 30, 2025
FranklinCovey Q1 2026 Earnings Report
FranklinCovey reported a decrease in revenue and net income for the first quarter of fiscal year 2026, with adjusted EBITDA also declining.
Key Takeaways
FranklinCovey Co. reported a consolidated revenue of $64.0 million for Q1 FY2026, a decrease from $69.1 million in Q1 FY2025. The company experienced a net loss of $3.3 million, or $(0.27) per share, compared to a net income of $1.2 million in the prior year. Adjusted EBITDA for the quarter was $3.7 million, down from $7.7 million in the previous year.
Consolidated revenue for Q1 FY2026 decreased to $64.0 million from $69.1 million in Q1 FY2025.
The company reported a net loss of $3.3 million, or $(0.27) per share, in Q1 FY2026, a significant decline from net income of $1.2 million in Q1 FY2025.
Adjusted EBITDA for Q1 FY2026 was $3.7 million, less than half of the $7.7 million reported in the prior year.
Deferred subscription revenue increased 5% year-over-year to $100.2 million, indicating continued growth in subscription-based services.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
FranklinCovey affirms its annual guidance for fiscal 2026, expecting a return to growth in both revenue and Adjusted EBITDA, driven by go-to-market transformation and cost reduction actions.
Positive Outlook
- Expects to return to growth in both revenue and Adjusted EBITDA in FY2026.
- Benefits from go-to-market transformation and cost reduction actions are anticipated to increase revenue and lower costs.
- Anticipates strong invoiced growth in FY2026.
- Strong invoiced growth in FY2026 is expected to translate into meaningful reported growth in revenue and Adjusted EBITDA in FY2027.
- Positive momentum is expected in both the Enterprise and Education divisions.
Challenges Ahead
- Ongoing macroeconomic uncertainties may impact results.
- Geopolitical trade tensions could affect performance.
- The company maintains a disciplined view of risks and opportunities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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