Franklin Covey Q3 2026 Earnings Call Transcript

Franklin Covey (NYSE: FC ) reported third-quarter financial results on Wednesday.

The transcript from the company's third-quarter earnings call has been provided below.

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Access the full call at Summary Franklin Covey reported third quarter revenue of $67.8 million, up 1% year-over-year, with both the Enterprise and Education divisions growing 2%.

The company revised its full-year revenue guidance to $260-$267 million due to timing shifts in contracted services, state budget cuts, and international challenges, but maintained adjusted EBITDA guidance of $28-$31 million.

Enterprise North America showed strong performance with invoiced amounts up 6% year-to-date and deferred revenue up 18%, setting a solid foundation for fiscal 2027.

The Education division experienced a $2 million impact due to delayed state funding but maintained strong school retention and subscription revenue growth of 11% in Q3.

Franklin Covey is investing in AI-driven solutions and expects these to contribute to growth, with plans to launch new solutions in leadership, execution, and AI transformation in fiscal 2027.

Management highlighted strategic positioning for accelerated growth in fiscal 2027, emphasizing the importance of their services in addressing leadership and execution challenges in an AI-driven environment.

Full Transcript OPERATOR Thank you for standing by.

Welcome to the Franklin Covey third quarter 2026 earnings conference call.

At this time, all participants are in listen-only mode.

After the speaker's presentation, there will be a question and answer session.

To ask a question during this session, you'll need to press star 11 on your telephone.

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Again, as a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Boyd Roberts, Head of Investor Relations.

Please go ahead, sir.

Boyd Roberts, Head of Corporate Development and Investor Relations Thank you and good afternoon everyone.

Thank you for joining us today on Franklin Covey's third quarter 2026 earnings call.

We appreciate having the opportunity to connect with you.

Before we begin, please remember that today's remarks contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including without limitation statements that may predict, forecast, indicate, or imply future results, performance, or achievements, and may contain words such as believe, anticipate, expectations, estimate, project, or words or phrases of similar meaning.

These statements reflect management's current judgment and analysis and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations, including but not limited to risks relating to macroeconomic conditions, tariffs, and other risk factors described in our most recent Form 10-K and other filings made with the SEC.

We undertake no obligation to update or revise any forward-looking statements except as required by law.

Now, with that out of the way, I'd like to turn it over to Mr.

Paul Walker, our Chief Executive Officer.

Paul Walker, CEO Thank you, Boyd.

Good afternoon everyone, and thank you for joining us today.

It's great to be with you and have the opportunity to share our results for the third quarter and provide an update on the business and our outlook for the remainder of the year.

There are two themes I'd like to address today.

The first is that the company's strategic strength and resiliency continue to be reflected in the company's performance, including in this year's third quarter results and in our expected results for the year.

Importantly, the impact of this strategic strength and resilience is also establishing the foundation for accelerated growth in fiscal 27.

The second theme is that the strategic importance of the opportunities and challenges we help our clients address, coupled with our focused investments in high-impact solutions and go-to-market activities, are further strengthening our strategic positioning and establishing the foundation for accelerated growth.

I'd like to briefly touch on each of these themes.

Before I do, I want to address our full-year guidance.