Franklin Covey Co Stock Price, News & Analysis
Company Description
Franklin Covey Co. (NYSE: FC) is described as an organizational performance company that focuses on helping clients achieve systemic changes in human behavior to transform their results. According to company disclosures and recent earnings releases, Franklin Covey creates and distributes content, training, processes, and tools that organizations and individuals use to improve performance. The company is classified in the Professional, Scientific, and Technical Services sector and is associated with the payroll and related services industry classification provided in the input data.
Franklin Covey’s operations are organized into two primary divisions: the Enterprise Division and the Education Division. The Enterprise Division includes North America and International segments and works with business and institutional clients on leadership, culture, and performance improvement. The Education Division focuses on education customers and generates revenue from training, coaching, membership subscriptions, and related materials, as described in the company’s financial results.
The company describes itself in its news releases as the “premier organizational performance partner” with directly owned and licensee partner offices providing professional services in over 160 countries and territories. Its approach to leadership and organizational change has been tested and refined over more than 30 years of working with tens of thousands of teams and organizations. Disclosures state that clients have included organizations in the Fortune 100, Fortune 500, small and mid-sized businesses, educational institutions, and government entities.
Franklin Covey offers its content and services through membership and subscription models referenced in its releases, including the FranklinCovey All Access Pass and Leader in Me membership. Company materials state that these offerings bundle content, experts, technology, and metrics to support lasting behavior change at scale. Solutions are available in multiple delivery modalities and in more than 20 languages, reflecting the company’s stated global reach.
In addition to training and consulting, Franklin Covey’s earlier description notes that the company derives revenue from the sale of books, audio media, and other related products. The company has identified business segments such as North America, International Direct Offices, International Licensees, and an Education Division, and has noted business presence in markets including Australia, New Zealand, China, Japan, the United Kingdom, Ireland, and other countries.
Recent financial disclosures divide revenue and profitability between the Enterprise and Education divisions and show that a substantial portion of revenue is subscription and subscription services. The company reports consolidated subscription and subscription services revenue and emphasizes deferred subscription revenue and unbilled deferred subscription revenue as key metrics, indicating the importance of multi-period contracts and recurring revenue arrangements to its business model.
Franklin Covey also highlights its use of non-GAAP measures such as Adjusted EBITDA and Free Cash Flow in its earnings releases. The company defines Adjusted EBITDA as net income or loss excluding interest, income taxes, amortization, depreciation, stock-based compensation, and certain other items such as restructuring and building exit costs. Free Cash Flow is defined as cash flows from operating activities less capitalized expenditures for property and equipment, curriculum development, and content or license rights.
Company communications describe ongoing investments in a go-to-market transformation and cost reduction actions within the Enterprise and Education divisions. Management commentary in earnings releases refers to a sales model focused on new logo acquisition and existing customer expansion, and to the role of multi-year contracts in driving deferred subscription revenue. Franklin Covey has also reported share repurchase authorizations and 10b5-1 trading plans as part of its capital allocation approach.
Franklin Covey is incorporated in Utah and files reports with the U.S. Securities and Exchange Commission under Commission File No. 001-11107. Its proxy materials and 8-K filings reference an annual meeting of shareholders and standard corporate governance items such as the election of directors, advisory votes on executive compensation, and ratification of independent auditors.
Business Segments and Offerings
Company disclosures identify several structural components of Franklin Covey’s business:
- Enterprise Division – North America: Provides organizational performance offerings to clients in North America. Financial tables in recent releases show revenue, gross profit, and Adjusted EBITDA for this segment.
- Enterprise Division – International: Serves international clients through direct offices and licensee partners. Revenue and gross profit for this segment are reported separately in financial disclosures.
- Education Division: Focuses on education customers and generates revenue from training, coaching, membership subscriptions, and materials. Earnings releases note that increased training, coaching, and membership subscription revenue can be offset by changes in materials revenue.
- Corporate and Other: Financial tables show a corporate and other category for revenue and gross profit, reflecting activities not allocated to the main operating divisions.
Franklin Covey’s content and services are made available through the FranklinCovey All Access Pass and Leader in Me membership. Company descriptions state that these memberships provide access to content, tools, experts, technology, and metrics designed to support leadership development, culture building, and performance improvement.
Geographic Reach and Delivery
According to repeated “About Franklin Covey Co.” sections in company news releases, Franklin Covey operates through directly owned and licensee partner offices providing professional services in over 160 countries and territories. Solutions are offered in more than 20 languages and in multiple delivery modalities, which the company describes broadly as different formats for accessing its content and services.
The earlier Polygon description also notes that Franklin Covey has business presence in Australia, New Zealand, China, Japan, the United Kingdom, Ireland, and other countries. Taken together, these statements indicate a broad international footprint supported by both direct operations and licensee relationships.
Capital Allocation and Share Repurchases
Franklin Covey’s news releases and 8-K filings describe an active share repurchase program. The Board of Directors has approved authorizations to repurchase up to a specified aggregate amount of outstanding common stock, and the company has adopted Rule 10b5-1 trading plans to facilitate repurchases in compliance with securities laws. Disclosures explain that these plans are part of the company’s capital allocation strategy and its approach to returning capital to shareholders.
Recent announcements report that the company has repurchased shares under prior 10b5-1 plans and that new plans have been initiated under an existing authorization. Management commentary links these actions to the company’s view of its long-term performance and business model.
Financial Reporting and Key Metrics
Franklin Covey’s earnings releases provide condensed consolidated income statements, balance sheets, and segment information. The company reports revenue by division and segment, gross profit by division and segment, and Adjusted EBITDA by division and segment. It also highlights metrics such as deferred subscription revenue, unbilled deferred subscription revenue, and the proportion of multi-year contracts within its All Access Pass contracts in North America.
Non-GAAP measures, including Adjusted EBITDA, Free Cash Flow, and constant currency, are used by management and presented to investors with reconciliations to GAAP measures. The company states that these measures provide supplemental information that facilitates internal comparisons to prior periods and offer additional transparency into operational activities and financial results.
Corporate Governance and Shareholder Matters
Franklin Covey’s definitive proxy statement (DEF 14A) outlines standard corporate governance topics. These include information about the board of directors and its committees, corporate responsibility and sustainability, principal holders of voting securities, certain relationships and related transactions, compensation discussion and analysis, executive compensation, and pay versus performance.
The proxy materials describe the agenda for the annual meeting of shareholders, which includes the election of directors, an advisory vote on executive compensation, and ratification of the appointment of the independent registered public accounting firm. The company also explains its proxy solicitation process, voting procedures, and concepts such as broker non-votes and householding.