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Franklin Covey Co

Franklin Covey Co

FC
$17.96USD↑+0.28%+0.05 today

MARKET CAP

202.8M

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$18 – $18

52W RANGE

$11
$27

AI Summary

Stalk
StalkMedium

Despite the Stage 2 advance and rising 50 SMA, the recent support failure at the short EMA zone signals distribution risk. Price has pulled back into the 9/21 EMA and is approaching the 50 SMA support area. The medium-term bullish trend remains intact but execution should be deferred until structural support is accepted. Key risks include failure of the EMAs, transition to Stage 3 distribution, and a break below the 50 SMA.

  • ↑Q3 revenue $67.8M (+1% YoY), enterprise and education divisions +2%
  • ↑Adjusted EBITDA $8.3M (+14% YoY) enhances operating leverage
  • ↓Revenue up only 1% in Q3, signaling growth challenges
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Franklin Covey Co. (NYSE: FC) is a global leader in organizational performance improvement, focusing on delivering solutions related to leadership development, execution frameworks, and productivity. The firm caters to both enterprise and educational sectors, leveraging its expertise to foster high levels of engagement and effectiveness among clients. As an established player in the consulting and training industry, it is poised to navigate current market dynamics, especially with the integration of AI technologies within its service offerings.

Bull says

  • ↑Q3 revenue $67.8M (+1% YoY), enterprise and education divisions +2%
  • ↑Adjusted EBITDA $8.3M (+14% YoY) enhances operating leverage
  • ↑Subscription revenue growth of 11% YoY with retention rising ~1–2%
  • ↑AI integration in leadership solutions meets growing market demand
  • ↑Fiscal 2026 guidance of $260–267M signals confidence and momentum
  • ↑High earnings yield, strong book-to-price ratio and rising analyst revisions

Bear says

  • ↓Revenue up only 1% in Q3, signaling growth challenges
  • ↓Gross margin fell to 73.9% from 76.5% due to rising service costs
  • ↓Free cash flow negative -$1M versus $2.8M last year
  • ↓Elevated leverage risk amid stretched capital structure and rising rates
  • ↓Geopolitical tensions hinder China operations; state funding delays persist
  • ↓Low institutional interest and small size may limit stock liquidity

Investment themes with FC

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Earnings Call · Q3 2024 · Mgmt. Guidance

Updated 07-03-2025neutral

Transcript signals

Bull points

  • third quarter revenue was $73.4 million, 3% higher than the $71.4 million generated in last year's third quarter.
  • Third quarter adjusted EBITDA was $13.9 million, compared to $11.9 million achieved last year.
  • The combination of subscription and subscription services revenue in North America was $35.9 million in the third quarter, representing 3% growth.

Bear points

  • revenue from our international direct operations, which accounts for approximately 17% of total enterprise division revenue, was $8.5 million in the third quarter, which was down 7%. This decrease is more than 100% attributable to the geopolitical issues related to China, as every other international direct operation grew revenues over the prior year.
  • $24.4 million, which is down 5%
  • we feel good about growing right through it. Maybe the most encouraging thing is that we've already been facing ESSER all year, because a lot of these schools use their ESSER funds and districts early on. They're coming up for renewal. They don't have us for funds anymore, because they've used them all and they're renewing and staying with us. And so, it's kind of like we're halfway through it already, even though officially it ends at the end of our fiscal year and up through, like you said, through the calendar year. It's kind of like we're halfway through it and we're growing right through it right now.
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