Overview

• U.S. leadership training firm's fiscal Q3 revenue up 1%, slightly missing analyst expectations

• Adjusted EPS for fiscal Q3 was $0.27; net income rose to $3.1 mln

• Company revised fiscal 2026 revenue guidance lower, citing contract timing and budget headwinds

Outlook

• Franklin Covey sees fiscal 2026 revenue between $260 mln and $267 mln, down from prior guidance

• Company expects fiscal 2026 adjusted EBITDA of $28 mln to $31 mln, maintaining prior guidance

• Company cites timing shifts, budget reductions and international challenges as reasons for revised outlook

Result Drivers

• ENTERPRISE NORTH AMERICA - Growth in invoiced amounts and deferred revenue in Enterprise North America supported overall results, per CEO Paul Walker

• EDUCATION DIVISION - Higher subscription revenue from more training and coaching days drove Education Division growth, partly offset by lower materials revenue and a state budget reduction

• COST DISCIPLINE - Improved profitability attributed to operational discipline and cost reduction measures, per CFO Jessi Betjemann

Company press release: ID:nBw49dX2Ka

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales	Slight Miss*	$67.81 mln	$68.33 mln (4 Analysts)
Q3 EPS		$0.27
Q3 Net Income		$3.09 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the professional & business education peer group is "buy"

• Wall Street's median 12-month price target for Franklin Covey Co is $30.00, about 22.3% above its June 30 closing price of $24.53

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 19 three months ago

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