Franklin Covey (NYSE:FC) Issues Quarterly Earnings Results, Misses Estimates By $0.30 EPS

Franklin Covey (NYSE:FC) issued its quarterly earnings results on Wednesday. The business services provider reported ($0.27) earnings per share for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.30), RTT News reports. Franklin Covey had a return on equity of 9.54% and a net margin of 1.15%.The business had revenue of $64.05 million for the quarter, compared to analysts’ expectations of $64.77 million. During the same quarter in the previous year, the firm posted $0.20 EPS.

Here are the key takeaways from Franklin Covey’s conference call:

• Enterprise North America showed clear momentum in Q1 with Invoiced Amounts up 7% (13% excl. government), new-logo subscription invoiced amounts up 25%, services bookings up 29%, and deferred subscription balance up 8% to $49.1M.
• Management reaffirmed fiscal 2026 guidance of $265–$275M revenue and $28–$33M Adjusted EBITDA, and expects meaningful acceleration in reported revenue, Adjusted EBITDA, and free cash flow in fiscal 2027.
• Q1 operating results were weaker year‑over‑year with reported revenue down 7% to $64M, Adjusted EBITDA down to $3.7M (from $7.7M), and free cash flow negative $3.7M, with $3.4M of restructuring charges contributing to near‑term margin pressure.
• Education results were impacted by timing of a large multi‑year statewide contract (creating an approx. $3.5M invoiced gap in Q1), but education subscriptions rose 12% and management expects revenue to be back‑loaded into Q3–Q4.
• Strategic investments are producing results—sales reorganization is driving larger, more strategic deals and higher services attach, and product innovation (including AI offerings like an AI Sales Coach and AI Coach for 4DX plus “Leading AI Adoption” solutions) is being embedded to support future growth.

Franklin Covey Price Performance

Franklin Covey stock opened at $17.89 on Thursday. The firm has a market cap of $214.44 million, a PE ratio of 74.52, a price-to-earnings-growth ratio of 1.13 and a beta of 0.66. The stock’s fifty day moving average price is $16.16 and its two-hundred day moving average price is $18.43. Franklin Covey has a one year low of $14.03 and a one year high of $39.22.

Franklin Covey News Summary

Here are the key news stories impacting Franklin Covey this week:

• Positive Sentiment: Company press release and slide deck highlighted results and an adjusted EPS beat that management emphasized, plus materials and a slide deck were made available for investors. Franklin Covey Reports First Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Company issued FY2026 revenue guidance of $265.0M–$275.0M (roughly in line with consensus ~$266.3M), giving some forward visibility but a wide range that leaves uncertainty about growth.
• Neutral Sentiment: Full earnings call transcript was published for investors to parse management commentary and questions about demand, margins, and cash. Franklin Covey Co. (FC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Multiple market reports flagged a revenue miss and market reaction: Investing.com reported the shares plunged after the Q1 results and revenue missed estimates, which is driving the short‑term selloff. Franklin Covey shares plunge nearly 12% as Q1 earnings, revenue miss estimates
• Negative Sentiment: Third‑party data summaries report a tougher picture on GAAP metrics: ~Q1 revenue of $64.0M (down ~7% YoY), widened operating loss, GAAP net loss and a reported diluted EPS miss, plus sharply lower operating cash flow and a ~67% decline in cash on hand — all of which raise short‑term liquidity and execution concerns. Franklin Covey Company (FC) Releases Q1 2026 Earnings: Revenue Decline and EPS Miss
• Negative Sentiment: Insider selling was noted in recent filings (a director/exec sale), which can increase investor caution given the weaker quarter and cash metrics. (See Quiver summary link above for insider activity.)
• Neutral Sentiment: Press wire and snapshot coverage (AP/KHOU, MarketBeat) provide alternate presentations of the quarter; some outlets focused on adjusted EPS outperformance while others emphasized the top‑line miss and cash decline — the mixed messaging is contributing to volatility. Franklin Covey: Fiscal Q1 Earnings Snapshot

Analyst Upgrades and Downgrades

FC has been the subject of a number of recent analyst reports. Barrington Research reissued an “outperform” rating and issued a $22.00 target price on shares of Franklin Covey in a report on Thursday, December 11th. Weiss Ratings restated a “sell (d+)” rating on shares of Franklin Covey in a research report on Friday, October 31st. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $24.50.

Insider Buying and Selling

In other news, insider Michael Sean Merrill Covey sold 7,000 shares of the firm’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $14.68, for a total value of $102,760.00. Following the completion of the sale, the insider directly owned 218,636 shares in the company, valued at $3,209,576.48. This trade represents a 3.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 15.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Franklin Covey

Several institutional investors have recently modified their holdings of the business. Jane Street Group LLC raised its holdings in shares of Franklin Covey by 274.3% during the 1st quarter. Jane Street Group LLC now owns 84,874 shares of the business services provider’s stock worth $2,344,000 after acquiring an additional 62,201 shares in the last quarter. Goldman Sachs Group Inc. increased its position in Franklin Covey by 26.9% in the first quarter. Goldman Sachs Group Inc. now owns 238,547 shares of the business services provider’s stock worth $6,589,000 after purchasing an additional 50,568 shares during the last quarter. AQR Capital Management LLC raised its stake in Franklin Covey by 14.1% during the first quarter. AQR Capital Management LLC now owns 68,376 shares of the business services provider’s stock valued at $1,889,000 after purchasing an additional 8,441 shares in the last quarter. Invesco Ltd. raised its stake in Franklin Covey by 17.6% during the second quarter. Invesco Ltd. now owns 16,323 shares of the business services provider’s stock valued at $372,000 after purchasing an additional 2,445 shares in the last quarter. Finally, State of Wyoming lifted its position in Franklin Covey by 123.0% during the second quarter. State of Wyoming now owns 14,366 shares of the business services provider’s stock valued at $328,000 after purchasing an additional 7,923 shares during the last quarter. 69.88% of the stock is owned by hedge funds and other institutional investors.

About Franklin Covey

Franklin Covey Co (NYSE:FC) is a global consulting and training firm specializing in performance improvement solutions for individuals and organizations. The company offers a range of services, including leadership development, productivity tools, execution frameworks and assessments designed to foster personal effectiveness and drive business results. Its flagship offerings integrate training workshops, digital resources and coaching to support clients in areas such as strategic planning, team productivity and change management.

The origins of Franklin Covey trace back to the merger in 1997 of Franklin Quest Co, founded in 1983 by Hyrum W.