FRANKLIN COVEY CO

Franklin Covey Co.

What the company does

Franklin Covey is a global organizational performance improvement company. Its mission is to enable greatness in people and organizations by helping leaders and teams achieve lasting behavioral change. The company delivers a blend of content, technology, and consulting to transform client results, with solutions offered as subscriptions, assessments, and advisory services.

Core offerings combine proprietary content libraries, delivery platforms, assessments, and consulting/coaching to drive strategy execution and human performance.

Divisions and offerings

Enterprise Division

Serves corporations, governments, not-for-profits, and related organizations in North America and internationally. Focus areas include mission-critical objectives and transformation programs.

Education Division

Centered on Leader in Me and related educational offerings, including a digital curriculum, leadership lessons, illustrated stories, and implementation resources. Coaches and consultants support school implementation.

Subscriptions and platforms

• All Access Pass (AAP) for Enterprise clients; Leader in Me membership for Education clients.
• AI Coach integrated into AAP to deepen learning and application.

Content and solutions

Key offerings include The 7 Habits of Highly Effective People; The 4 Disciplines of Execution; The Speed of Trust; Multipliers; The Leader in Me; Working with AI; Leading AI Adoption; The 4 Essential Roles of Leadership; and 6 Critical Practices for Leading a Team. Solutions can be delivered as complete content suites or as selected concepts customized to client goals.

Delivery and technology

Solutions combine content, technology platforms, and consulting/coaching services, with multi-language deployment for multinational clients. Education offerings include digital curriculum and resources, with hands-on coaching for implementation.

Global footprint and customers

• Direct offices and operations in Austria, Australia, China, France, Germany, Ireland, Japan, New Zealand, Switzerland, and the United Kingdom. Specific offices include Banbury (UK), Tokyo (Japan), Beijing and Shanghai (China).
• Licensed/content delivery via independent licensee partners in approximately 150 other countries and territories.
• Customer base includes thousands of organizational, governmental, educational, and individual clients.
• No single client accounted for more than 10% of consolidated revenues.

Financial highlights (fiscal year 2026)

• Consolidated revenue: $261.5 million (down 2% from $267.1 million in fiscal 2025). Constant currency: $260.4 million.
• Enterprise Division revenue: $182.668 million (down 3% from $188.064 million in 2025). North America down about $5.0 million; International down about $0.4 million due to a lower deferred revenue base.
• Education Division revenue: $76.179 million (up 2% from $74.618 million in 2025). Education subscription revenue up 10% year-over-year.
• Corporate and other: $2.608 million (down from $4.385 million in 2025).
• Gross profit: $196.0 million (margin 75.0%; down from $203.6 million and 76.2% margin in 2025), driven by a lower revenue mix, higher delivery costs, and higher amortization of capitalized curriculum expense.
• Cost of revenue: $65.4 million.
• Operating expenses: $188.9 million (down from $197.9 million in 2025), including:
  • SG&A expense declined by $7.2 million, largely from restructuring-related reductions in associate costs.
  • Amortization expense declined by $1.9 million.
  • Restructuring charges: $6.7 million in 2026 (consistent with 2025).
• Net income: $4.9 million ($0.42 per diluted share; compared with $3.1 million, or $0.24 per diluted share, in 2025).
• Adjusted EBITDA: $28.9 million (up slightly from $28.8 million in 2025). Constant currency Adjusted EBITDA: $28.6 million.
• Deferred revenue: $116.1 million (vs. $111.7 million in 2025). Long-term portion: $3.5 million (vs. $5.1 million in 2025). Unbilled deferred revenue: $67.3 million (vs. $72.8 million in 2025). 59% of North America AAP contracts are for at least two years; multi-year contracts represent about 60% of contracted amounts.
• Liquidity and capital resources:
  • Cash and cash equivalents: $13.3 million (as of August 31, 2026).
  • Revolving credit facility: $62.5 million available; no borrowings under the facility.
  • Share repurchases: Approximately $28.1 million spent on repurchases during fiscal 2026.
  • Capital expenditures: $12.4 million in fiscal 2026.
• Shares outstanding: 11,335,471 (as of October 31, 2026).
• Dividends: No cash dividends paid in fiscal 2026 or 2025; dividends are discretionary and not currently planned as a recurring obligation.

Intellectual property and products

Proprietary content and methodologies are core assets. The company holds 692 trademarks registered in the United States and internationally (including FranklinCovey, The 7 Habits, and The 4 Disciplines of Execution) and 265 registered copyrights across books, manuals, training materials, and related media. Intellectual property is protected through licenses, confidentiality agreements, and enforcement efforts; some content is licensed to protect IP rights.

People and culture

• Approximately 1,010 associates globally (as of August 31, 2026).
• Company values include The Whole Person and The Pursuit of Growth, integrated into day-to-day operations.
• In 2026, the company launched Culture of Greatness, a framework that connects individual performance to organizational results, including a Winning Culture survey and ongoing coaching and development programs.
• An internal AI enablement program launched in 2026 includes an AI Hub (data protection and governance), an AI Lab (cross-functional AI solutions), and client-facing courses (Working with AI and Leading AI Adoption) available to associates.

Strategic focus and 2027 plan

Five strategic objectives for fiscal 2027:

1. Lead as the performance partner for an AI-enabled world by combining content, consultants/coaches, and AI capabilities to deliver outcomes beyond standalone AI.
2. Accelerate growth in the Enterprise business by strengthening sales capacity, demand generation, and senior executive engagement, and by extending into international markets.
3. Strengthen and expand the Education business by increasing school reach and renewals and enhancing the Leader in Me experience with technology and data.
4. Innovate and integrate solutions by unifying the product organization and combining content, technology, and consulting while incorporating AI capabilities and data.
5. Operate as “one” FranklinCovey by completing the transition to a shared services model, improving efficiency, and redeploying resources to higher-return growth opportunities.

In fiscal 2027, the company unified product functions under a single Chief Product Officer and appointed new leadership for the Education Division to support these objectives.

Governance and risk disclosures

Results can be affected by market conditions, subscription renewals, government contracts, cybersecurity, data privacy, currency fluctuations, and other risk factors disclosed in the company’s Form 10-K.