Franklin Covey Co.
- Open
- 20.70
- Day high
- 22.03
- Day low
- 20.70
- Prev close
- 20.60
- Volume
- 42K
- Mkt cap
- $248M
- P/E (TTM)
- 122.1
- EPS (TTM)
- $0.18
- P/B
- 5.8
- P/S
- 0.9
- Yield
- —
- Per share
- —
Franklin Covey Co. (FC) is a Industrials company listed on NYSE. The stock is up 2% over the past year. Drillr has 1 published research article covering FC.
Franklin Covey Co. (FC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 1, 2026 | $0.24 | $0.34 | +41.7% | $68M | -0.8% |
| Apr 1, 2026 | $0.03 | $-0.03 | -220.0% | $60M | +1.6% |
| Jan 7, 2026 | $0.03 | $0.07 | +133.3% | $64M | +6.9% |
| Nov 5, 2025 | $0.43 | $0.34 | -20.9% | $71M | +5.7% |
| Jul 2, 2025 | $-0.08 | $0.18 | +325.0% | $67M | -5.6% |
| Apr 2, 2025 | $-0.11 | $-0.08 | +27.3% | $60M | -4.8% |
| Jan 8, 2025 | $0.22 | $0.09 | -59.1% | $69M | +7.7% |
| Jan 4, 2024 | $0.19 | $0.36 | +89.5% | $68M | +3.8% |
| Nov 1, 2023 | $0.49 | $0.49 | +0.0% | $78M | -4.5% |
| Jan 5, 2023 | $0.28 | $0.32 | +14.3% | $69M | +1.5% |
| Nov 2, 2022 | $0.27 | $0.39 | +44.4% | $79M | +6.7% |
| Jan 6, 2022 | $0.03 | $0.27 | +710.1% | $61M | +7.3% |
FC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 4, 2026 | Procter Hollyofficer: President, Enterprise Division | Tax | 989 | $23.30 |
| Jun 4, 2026 | Procter Hollyofficer: President, Enterprise Division | Grant | 3,385 | — |
| Jan 27, 2026 | Chow Anne Hdirector | Grant | 5,778 | — |
| Jan 27, 2026 | Cuffie Craigdirector | Grant | 5,778 | — |
| Jan 27, 2026 | Phillips Nancy Rdirector | Grant | 5,778 | — |
| Jan 27, 2026 | RIVERA EFRAINdirector | Grant | 5,778 | — |
| Jan 27, 2026 | MCNAMARA DONALD Jdirector | Grant | 5,778 | — |
| Jan 27, 2026 | VAN BEVER DEREK C Mdirector | Grant | 5,778 | — |
| Jan 27, 2026 | WHITMAN ROBERT Adirector | Grant | 5,778 | — |
| Nov 25, 2025 | Procter Hollyofficer: President, Enterprise Division | Grant | 1,343 | — |
| Nov 25, 2025 | Walker Paul Sdirector, officer: CEO, Director | Tax | 3,663 | $15.13 |
| Nov 25, 2025 | Hatch Anthony Derekofficer: Chief Accounting Officer | Tax | 212 | $19.56 |
| Nov 25, 2025 | Hatch Anthony Derekofficer: Chief Accounting Officer | Tax | 126 | $17.65 |
| Nov 25, 2025 | Betjemann Jessicaofficer: CFO | Tax | 287 | $17.65 |
| Nov 25, 2025 | Walker Paul Sdirector, officer: CEO, Director | Grant | 2,923 | — |
Source: FC SEC Form 4 filings, latest Jun 4, 2026. For informational purposes only — not investment advice.
See the full FC insider & 13F page →Franklin Covey Co. company profile
Overview
Franklin Covey Co. (NASDAQ:FC) is a professional services company founded in 1983 and headquartered in Salt Lake City, Utah. The company went public in 1992 and has evolved from its origins as a time management and productivity training provider into a comprehensive organizational effectiveness consulting firm. Franklin Covey is best known for creating "The 7 Habits of Highly Effective People" methodology and has expanded to serve both corporate enterprises and educational institutions worldwide through training programs, consulting services, and digital learning platforms.
Business
Franklin Covey operates in the organizational development and training industry, providing leadership development, productivity training, and cultural transformation services to organizations globally. The company's core offering centers around behavioral change methodologies that help individuals and organizations improve performance, execution, and leadership effectiveness. The company operates through three primary business segments. The Enterprise Division represents approximately 73% of total revenue and focuses on corporate clients, delivering leadership development programs, sales performance training, and organizational culture transformation services. This division includes both North American direct operations and international direct operations. The Education Division accounts for about 26% of revenue and serves K-12 schools through the "Leader in Me" program, which teaches leadership principles and character development to students, educators, and administrators. The International Licensee segment represents the remaining revenue and operates through franchise-like partnerships in various international markets. Franklin Covey's flagship products include the All Access Pass, a subscription-based platform that provides unlimited access to the company's entire curriculum library, and the Impact Platform, a digital learning management system that delivers content through various formats including video, assessments, and interactive tools. The "7 Habits of Highly Effective People" remains their most recognized content, alongside newer offerings like "Speed of Trust," "The 4 Disciplines of Execution," and various sales performance methodologies. These programs are delivered through a combination of live facilitated sessions, digital learning modules, coaching services, and consulting engagements.
Revenue model
Franklin Covey operates primarily on a subscription-based business model with additional revenue streams from professional services and consulting. The company generates revenue through several channels: subscription fees for access to their content libraries and digital platforms, professional services fees for facilitated training sessions and workshops, consulting fees for organizational transformation projects, and licensing fees from international partners. The primary customers are corporate enterprises seeking leadership development and organizational effectiveness solutions, ranging from small businesses to Fortune 500 companies. In the education sector, customers include school districts, individual schools, and educational administrators looking to implement character and leadership development programs. Government agencies also represent a significant customer segment, contributing approximately 6% of total business. Several factors influence Franklin Covey's margins and profitability. Positive margin drivers include the scalable nature of their subscription model, which allows for high gross margins (typically around 76%), the recurring revenue base that provides predictable cash flows, and the ability to deliver content digitally rather than solely through in-person facilitation. The company benefits from annual price increases of approximately 3% and strong customer retention rates above 90%. Margin pressures come from significant investments in sales force expansion, content development costs, technology platform maintenance and enhancement, and competitive pricing pressures in the crowded corporate training market. Economic downturns can impact corporate training budgets, though the company's focus on mission-critical leadership development provides some insulation. International operations face currency fluctuation risks and geopolitical challenges, particularly in markets like China. The education segment is vulnerable to changes in government funding, including the expiration of federal programs like ESSER funds.
Competitive moat
Franklin Covey's competitive moat is moderately strong but faces ongoing challenges in a fragmented and competitive market. The company's primary moat stems from its brand recognition and content legacy, particularly around "The 7 Habits of Highly Effective People," which has become deeply embedded in corporate and educational culture over decades. This creates significant switching costs for organizations that have invested in training their workforce on Franklin Covey methodologies. The company benefits from network effects within client organizations, where the common language and frameworks create organizational alignment that becomes difficult to replace. Multi-year subscription contracts (54% of All Access Pass clients) and high retention rates above 90% demonstrate customer stickiness. The subscription model creates recurring revenue streams that provide some protection against competitive pressures. However, the moat faces several vulnerabilities. The corporate training and leadership development market is highly fragmented with numerous competitors ranging from large consulting firms like McKinsey and Deloitte to specialized training companies and independent consultants. Barriers to entry are relatively low, as new entrants can develop competing methodologies and content without significant capital requirements. The rise of digital learning platforms and AI-powered training solutions poses potential disruption to traditional facilitated training models. Franklin Covey's content, while well-established, is not proprietary in the sense of having patent protection, and competing methodologies can emerge. The company must continually invest in content refresh and new product development to maintain relevance. Additionally, economic pressures on corporate training budgets can commoditize the market, forcing price competition that erodes the value of brand premium.
Risks & safety
Franklin Covey presents a moderate margin of safety with some financial strengths offset by recent operational challenges and valuation concerns. **Cash and Solvency Position:** - Cash and short-term investments: $40.4 million as of Q2 2025 - Current ratio: 0.90 (slightly below 1.0, indicating potential liquidity pressure) - Debt-to-equity ratio: 0.057 (very low debt burden) - Free cash flow: -$3.6 million in Q2 2025 (concerning recent trend) - Operating cash flow: -$1.4 million in Q2 2025 (temporary weakness) **Valuation Metrics:** - Price-to-book ratio: 5.78 (elevated for a services company) - EV/EBITDA: Not meaningful due to negative EBITDA in recent quarter - Historical P/E ratios have ranged from 10-36x depending on earnings volatility **Other Considerations:** - Revenue guidance has been revised downward multiple times - Company is in midst of $16 million investment in sales transformation - Strong historical cash generation but recent quarters show pressure - Subscription model provides some revenue predictability but growth has slowed
Recent development
Franklin Covey has undergone significant strategic transformation over the past few years, centered around sales organization restructuring and technology platform development. The most substantial recent initiative is a $16 million investment in transforming their North American enterprise sales approach, splitting the sales organization into specialized "Land" teams focused on acquiring new clients and "Expand" teams dedicated to growing existing client relationships. This hunter-farmer model represents a departure from their previous generalist sales approach and aims to accelerate revenue growth from single digits to double digits. The company has made substantial investments in their digital platform capabilities, with 90% of clients now converted to their Impact Platform. They have integrated AI-powered features including an AI coach and recommendation systems to enhance the user experience. Content development has remained a priority, with recent launches including refreshed versions of core programs like "7 Habits 5.0," updated "Speed of Trust" solutions, and new modules like "Navigating Difficult Conversations." In the education segment, Franklin Covey has focused on expanding their "Leader in Me" program globally, now serving 7,800 schools worldwide. They have adapted to challenges from expiring federal ESSER funds by developing alternative funding strategies including foundation support and Title 1 grants. The company has also been addressing international market challenges, particularly in China where geopolitical and economic conditions have impacted performance. Recent strategic moves include hiring a new Chief Revenue Officer, Holly Proctor, and making significant investments in sales leadership, marketing resources, and sales operations infrastructure. The company has maintained its focus on subscription model expansion, with multi-year contracts now representing 54% of All Access Pass clients, providing greater revenue predictability and customer retention.
FC company profile · for informational purposes only — not investment advice.
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