Loading...
•
Aug 31
FranklinCovey Q4 2025 Earnings Report
FranklinCovey reported its financial results for the fourth quarter and full fiscal year ended August 31, 2025.
Key Takeaways
FranklinCovey's Q4 FY2025 revenue was $71.2 million, within guidance, but a decrease from the prior year. Net income for the quarter was $4.4 million, and Adjusted EBITDA was $11.7 million, also within guidance. The company saw strong liquidity with $31.7 million in cash and no credit facility drawdowns, and deferred subscription revenue increased by 3% year-over-year.
Consolidated revenue for Q4 FY2025 was $71.2 million, a decrease from $84.1 million in Q4 FY2024.
Net income for Q4 FY2025 was $4.4 million, or $0.34 per diluted share, down from $12.0 million, or $0.89 per diluted share, in the prior year.
Adjusted EBITDA for Q4 FY2025 was $11.7 million, compared to $22.9 million in Q4 FY2024.
Deferred subscription revenue increased 3% year-over-year to $111.7 million at August 31, 2025, indicating continued subscription growth.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
FranklinCovey Revenue by Geographic Location
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.comCorporate and other Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational direct offices Revenue
CapyFin.comInternational licensees Revenue
CapyFin.com Forward Guidance
FranklinCovey expects to return to growth in both revenue and Adjusted EBITDA in fiscal year 2026, driven by its go-to-market transformation and cost reduction actions. The company anticipates strong invoiced growth in FY2026, translating into meaningful reported growth in revenue and Adjusted EBITDA in the latter half of FY2026 and accelerating into FY2027.
Positive Outlook
- Expected return to growth in revenue for FY2026.
- Anticipated return to growth in Adjusted EBITDA for FY2026.
- Positive momentum expected in both Enterprise and Education divisions.
- Strong invoiced growth projected for FY2026.
- Meaningful reported growth in revenue and Adjusted EBITDA expected in the back-half of FY2026 and accelerating into FY2027.
Challenges Ahead
- Guidance is balanced with a disciplined view of risks and opportunities in an uncertain macro environment.
- The full benefits of growth in reported revenue and Adjusted EBITDA are expected to materialize more significantly in the latter half of FY2026 and into FY2027, implying a slower start to the fiscal year.
- Ongoing macroeconomic uncertainties could impact performance.
- Geopolitical trade tensions remain a potential headwind.
- The company is unable to provide a reconciliation of forward-looking non-GAAP Adjusted EBITDA to GAAP measures due to inherent uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income