Leadership training services provider Franklin Covey's Q4 sales slightly beat estimates

Overview

• Franklin Covey Q4 sales slightly beat analyst expectations

• Adjusted EBITDA for Q4 misses analyst expectations

• Company completed $10 mln stock repurchases in Q4 FY2025

Outlook

• Franklin Covey expects FY2026 revenue between $265 mln and $275 mln

• Company anticipates FY2026 Adjusted EBITDA between $28 mln and $33 mln

• Franklin Covey sees strong invoiced growth translating into revenue growth in FY2027

Result Drivers

• ENTERPRISE DIVISION DECLINE - Revenue impacted by macroeconomic uncertainties, geopolitical trade tensions, and canceled U.S. federal contracts

• EDUCATION DIVISION STABILITY - Revenue consistent with prior year, with increased training and subscription revenue offset by decreased materials revenue

• STRONG LIQUIDITY - Co maintains strong liquidity with over $90 mln, $31.7 mln in cash, and no credit facility drawdowns

Key Details

*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 $35.00, about 51.9% above its November 4 closing price of $16.82

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw5vSTNca

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)