Franklin Covey Co. (FC) Q4 2025 Earnings Call Transcript
Total reported revenue for fiscal year 2025 $267.1 million, down 7% year-over-year. The decline was due to a 10% decrease in the Enterprise Division revenue, partially offset by a 1% increase in the Education Division revenue. The decrease in Enterprise revenue was attributed to canceled U.S. federal government contracts, geopolitical trade tensions, and macroeconomic uncertainty.
Enterprise Division revenue for fiscal year 2025 $188.1 million, down 10% year-over-year. The decline was driven by canceled U.S. federal government contracts, geopolitical trade tensions, and macroeconomic uncertainty.
Education Division revenue for fiscal year 2025 $74.6 million, up 1% year-over-year. The increase was due to higher coaching and consulting revenue, which offset lower material sales.
Consolidated subscription revenue for fiscal year 2025 $147.9 million, flat year-over-year. This reflects the macroeconomic factors and challenges faced during the year.
Deferred revenue balance for fiscal year 2025 $111.7 million, up 3% year-over-year. This increase indicates a solid foundation for future revenue growth.
Unbilled deferred revenue for fiscal year 2025 $48.4 million, up 7% year-over-year. This reflects contracted revenue that will be recognized in future periods.
Gross margin for fiscal year 2025 76.2%, down from 77% in fiscal year 2024. The decline was due to increased product amortization costs and lower sales in international direct offices.
Adjusted EBITDA for fiscal year 2025 $28.8 million, down from $46.6 million in the prior year. The decrease was due to lower revenue and increased SG&A expenses tied to the go-to-market transformation.
Free cash flow for fiscal year 2025 $12.1 million, down from $48.9 million in fiscal year 2024. The decline was driven by lower net income, increased restructuring costs, and higher capital expenditures.
Education subscription revenue for fiscal year 2025 $45.9 million, up 10% year-over-year. This growth was driven by increased demand for subscription services.
Enterprise North America revenue for fiscal year 2025 $147.6 million, down 10% year-over-year. The decline was attributed to macroeconomic factors and a $6.2 million IP contract that did not repeat.
International direct operations revenue for fiscal year 2025 $29.3 million, down from $33.3 million in the prior year. The decline was due to challenging business conditions in Asia and the U.K. caused by geopolitical and trade tensions.
International licensee revenue for fiscal year 2025 $11.1 million, down 3% year-over-year. The decline reflects lower contributions from international licensees.
Education Division deferred subscription revenue balance $54.6 million, up 13% year-over-year. This growth establishes a strong foundation for fiscal year 2026.
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Franklin Covey (FC) Q1 2026 Earnings Transcript
Firm Capital Declares Special Year-End Dividend of $0.084 per Share
- Special Dividend Announcement: Firm Capital has declared a special year-end dividend of $0.084 per share, reflecting that the annual income generated in 2025 exceeded regular dividends, thereby ensuring the distribution of all taxable income.
- Total Dividend Growth: The total dividends paid to common shareholders in 2025 amounted to $1.02 per share, indicating a slight increase from the previous year and demonstrating the company's ongoing commitment to stable shareholder returns.
- Future Dividend Plans: The board has announced monthly cash dividends of $0.078 per share, scheduled for timely payments over the coming months, ensuring shareholders receive a consistent cash flow.
- Clear Investment Objectives: Firm Capital aims to preserve shareholder equity and provide stable monthly dividends through mortgage investments, highlighting its strategic positioning in underserved niche markets.
Franklin Covey (FC) Expected to Report Q1 Earnings of 13 Cents, Down from 20 Cents
- Earnings Decline: Franklin Covey is expected to report Q1 earnings of 13 cents per share on January 7, 2025, a 35% decrease from 20 cents in the same period last year, indicating profitability challenges that may impact investor confidence.
- Revenue Expectations: The anticipated quarterly revenue of $64.77 million, while down from $69.09 million a year earlier, still reflects some market demand, potentially supporting future growth for the company.
- Stock Price Movement: Franklin Covey's shares fell 0.8% to close at $16.64 last Friday, indicating market caution ahead of the earnings report, which may influence short-term investor decisions.
- Analyst Rating Changes: Barrington Research analyst maintained an Outperform rating with a price target of $22, while Roth Capital reduced its target from $30 to $27, highlighting differing market perspectives on the company's future performance.
Franklin Covey Schedules Q1 2026 Earnings Call for January 7, 2026
- Earnings Call Announcement: Franklin Covey will hold a conference call on January 7, 2026, at 5:00 p.m. ET to review its Q1 2026 financial results, which are expected to be released after market close, ensuring timely access to critical information for investors.
- Diverse Participation Options: Interested parties can register to join the call, offering personalized PIN access or an automated call option, enhancing investor engagement and reflecting the company's commitment to transparency and communication.
- Replay Availability: The conference call webcast will be archived on the company's website for at least 30 days post-event, ensuring that investors who cannot attend live can still access important information, further improving information accessibility.
- Global Business Context: Franklin Covey operates in over 160 countries and territories, providing professional services aimed at enhancing organizational performance, showcasing its influence and leadership position in the global market.
Firm Capital Announces 2025 Special Dividend of $0.084 per Share
- Special Dividend Announcement: Firm Capital has announced a special year-end cash dividend of $0.084 per share for 2025, with total dividends expected to reach $1.02 per share, indicating that the company's income exceeds regular monthly dividends and boosting shareholder confidence.
- December Dividend Confirmation: The company also confirmed a monthly cash dividend of $0.078 per share for December 2025, totaling an estimated $0.162 per share when combined with the special dividend, which is set to be paid on January 15, 2026, further stabilizing cash flow for shareholders.
- Q1 2026 Dividend Plan: The board has approved monthly cash dividends of $0.078 per share for Q1 2026, ensuring ongoing returns for shareholders in the coming months, reflecting the company's commitment to providing stable dividends.
- Investment Strategy Background: Firm Capital focuses on underserved niche markets by large lending institutions to preserve shareholder equity while providing a stable stream of monthly dividends, showcasing its strategic positioning in the mortgage investment sector.
Barrington Research Keeps Outperform Rating for Franklin Covey, Adjusts Price Target to $22
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Franklin Covey (FC) Q1 2026 Earnings Transcript
Firm Capital Declares Special Year-End Dividend of $0.084 per Share
- Special Dividend Announcement: Firm Capital has declared a special year-end dividend of $0.084 per share, reflecting that the annual income generated in 2025 exceeded regular dividends, thereby ensuring the distribution of all taxable income.
- Total Dividend Growth: The total dividends paid to common shareholders in 2025 amounted to $1.02 per share, indicating a slight increase from the previous year and demonstrating the company's ongoing commitment to stable shareholder returns.
- Future Dividend Plans: The board has announced monthly cash dividends of $0.078 per share, scheduled for timely payments over the coming months, ensuring shareholders receive a consistent cash flow.
- Clear Investment Objectives: Firm Capital aims to preserve shareholder equity and provide stable monthly dividends through mortgage investments, highlighting its strategic positioning in underserved niche markets.
Franklin Covey (FC) Expected to Report Q1 Earnings of 13 Cents, Down from 20 Cents
- Earnings Decline: Franklin Covey is expected to report Q1 earnings of 13 cents per share on January 7, 2025, a 35% decrease from 20 cents in the same period last year, indicating profitability challenges that may impact investor confidence.
- Revenue Expectations: The anticipated quarterly revenue of $64.77 million, while down from $69.09 million a year earlier, still reflects some market demand, potentially supporting future growth for the company.
- Stock Price Movement: Franklin Covey's shares fell 0.8% to close at $16.64 last Friday, indicating market caution ahead of the earnings report, which may influence short-term investor decisions.
- Analyst Rating Changes: Barrington Research analyst maintained an Outperform rating with a price target of $22, while Roth Capital reduced its target from $30 to $27, highlighting differing market perspectives on the company's future performance.
Franklin Covey Schedules Q1 2026 Earnings Call for January 7, 2026
- Earnings Call Announcement: Franklin Covey will hold a conference call on January 7, 2026, at 5:00 p.m. ET to review its Q1 2026 financial results, which are expected to be released after market close, ensuring timely access to critical information for investors.
- Diverse Participation Options: Interested parties can register to join the call, offering personalized PIN access or an automated call option, enhancing investor engagement and reflecting the company's commitment to transparency and communication.
- Replay Availability: The conference call webcast will be archived on the company's website for at least 30 days post-event, ensuring that investors who cannot attend live can still access important information, further improving information accessibility.
- Global Business Context: Franklin Covey operates in over 160 countries and territories, providing professional services aimed at enhancing organizational performance, showcasing its influence and leadership position in the global market.
Firm Capital Announces 2025 Special Dividend of $0.084 per Share
- Special Dividend Announcement: Firm Capital has announced a special year-end cash dividend of $0.084 per share for 2025, with total dividends expected to reach $1.02 per share, indicating that the company's income exceeds regular monthly dividends and boosting shareholder confidence.
- December Dividend Confirmation: The company also confirmed a monthly cash dividend of $0.078 per share for December 2025, totaling an estimated $0.162 per share when combined with the special dividend, which is set to be paid on January 15, 2026, further stabilizing cash flow for shareholders.
- Q1 2026 Dividend Plan: The board has approved monthly cash dividends of $0.078 per share for Q1 2026, ensuring ongoing returns for shareholders in the coming months, reflecting the company's commitment to providing stable dividends.
- Investment Strategy Background: Firm Capital focuses on underserved niche markets by large lending institutions to preserve shareholder equity while providing a stable stream of monthly dividends, showcasing its strategic positioning in the mortgage investment sector.
Barrington Research Keeps Outperform Rating for Franklin Covey, Adjusts Price Target to $22
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing collaboration and information sharing.
Market Winning Tools: Benzinga Pro equips traders with tools and intelligence to improve their trading success daily.
