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Feb 28
FranklinCovey Q2 2025 Earnings Report
Franklin Covey reported a net loss and slight revenue decline in Q2 2025 amid macroeconomic headwinds.
Key Takeaways
Franklin Covey experienced a challenging Q2 2025, with revenue slightly declining and net income turning negative. Despite headwinds from canceled government contracts and weaker international performance, the company saw strength in its Education Division and promising traction from its revamped go-to-market strategy.
Total revenue was $59.6 million, down from $61.3 million in Q2 2024.
Net loss of $1.1 million compared to a net income of $0.9 million in the prior year quarter.
Adjusted EBITDA dropped to $2.06 million from $7.45 million in Q2 2024.
Education Division revenue grew 3% year-over-year, supported by higher training and coaching demand.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
FranklinCovey Revenue by Geographic Location
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.comRevenue by Geographic Location
International Direct Offices Revenue
CapyFin.comInternational Licensees Revenue
CapyFin.com Forward Guidance
Franklin Covey revised its FY25 revenue and Adjusted EBITDA guidance downward due to macroeconomic conditions and government-related revenue impacts, but expressed optimism about future growth from strategic investments.
Positive Outlook
- Strong early results from new go-to-market strategy in North America.
- Highest quarter in over a year for new logo acquisition.
- Education Division showing sustained strength.
- Deferred subscription revenue increased 10% YoY.
- Company expects improved EBITDA flow-through in FY26.
Challenges Ahead
- Canceled and postponed government contracts affected revenue.
- International operations under pressure due to macroeconomic factors.
- Adjusted EBITDA guidance lowered to $30–$33 million.
- Revenue guidance reduced to $275M–$285M from original outlook.
- One-year step back expected due to current headwinds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income