Franklin Covey Q4 net income rises to $7.1M
Fiscal 2027 guidance calls for $263 million to $273 million in revenue and $29 million to $34 million in Adjusted EBITDA.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Franklin Covey Co. (FC) reported fourth-quarter fiscal 2026 revenue of $70.0 million, compared with $71.2 million a year earlier, while net income rose to $7.1 million from $4.4 million and Adjusted EBITDA increased 9% to $12.8 million. For the fiscal year ended August 31, 2026, revenue was $261.5 million versus $267.1 million; net income was $4.9 million versus $3.1 million, and Adjusted EBITDA was $28.9 million versus $28.8 million.
Fiscal 2026 operating cash flow was $21.6 million, compared with $29.0 million, while free cash flow was $9.2 million versus $12.1 million. In FY2026, Enterprise North America invoiced amounts increased 4% to $151.4 million, and its deferred revenue increased 17% to $59.2 million. For fiscal 2027, the company guided to revenue of $263 million to $273 million and Adjusted EBITDA of $29 million to $34 million, in constant currency. The company entered into a definitive agreement to transition its China direct operations to a locally owned licensee, with closing expected by the end of Q2 FY2027. After closing, the shift to licensee royalties is expected to make reported revenue approximately $2.0 million lower than it otherwise would have been; the transition is not expected to materially affect Adjusted EBITDA.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointFiscal 2026 net income rose to $4.9 million from $3.1 million.
- Minor pointFourth-quarter Adjusted EBITDA rose 9% to $12.8 million.
- Minor pointFourth-quarter net income increased to $7.1 million from $4.4 million.
Negative
- Moderate pointFiscal 2026 operating cash flow fell to $21.6 million from $29.0 million.
- Minor pointFourth-quarter operating cash flow fell to $4.1 million from $9.9 million.
Filing Explained
Franklin Covey reports buying approximately 1,573,000 shares for $28.1 million in fiscal 2026, including open-market purchases and tax withholding.
This Form 8-K furnishes FY2026 results; at
During FY2026, Franklin Covey purchased approximately 1,573,000 common shares for
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Free Cash Flow financial
Deferred revenue financial
Earnings Snapshot
Fiscal 2027 revenue of $263 million to $273 million and Adjusted EBITDA of $29 million to $34 million, in constant currency.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FC's fourth-quarter FY2026 results?
What is FC's fiscal 2027 financial guidance?
How will FC's China transition affect revenue?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Registrant’s Telephone Number, Including Area Code: |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On November 4, 2026, Franklin Covey Co. (the Company) announced its financial results for the fourth quarter and fiscal year 2026, which ended on August 31, 2026. A copy of the earnings release is being furnished as Exhibit 99.1 to this current report on Form 8-K.
Certain information in this Report (including the exhibit) is furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure
On October 21, 2026, the Company announced that it would host a discussion for shareholders and the financial community to review its financial results for the fourth quarter and fiscal 2026. The discussion is scheduled to be held on Wednesday, November 4, 2026, at 5:00 p.m. Eastern Time (3:00 p.m. Mountain Time).
Interested persons may access a live webcast https://edge.media-server.com/mmc/p/nb23ri7m or may participate via telephone by registering at https://register-conf.media-server.com/register/BI4b4514ba38524aec81bdca060efe03ee. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone. For either option, registration will be required to access the call. A replay of the conference call webcast will be archived on the Company’s website for at least 30 days.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Earnings release dated November 4, 2026.
104 Cover Page Interactive Data File – the cover page XBRL tags are embedded within the inline XBRL document.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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FRANKLIN COVEY CO. |
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Date: |
November 4, 2026 |
By: |
/s/ Jessica G. Betjemann |
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Jessica G. Betjemann |
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Exhibit 99.1
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Press Release |
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13907 S. Minuteman Drive, Suite 500 Draper, UT 84020 |
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www.franklincovey.com
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FRANKLIN COVEY REPORTS FINANCIAL RESULTS FOR
FOURTH QUARTER AND FULL FISCAL 2026
Consolidated Fourth Quarter Revenue of $70.0 Million and Fiscal 2026 Revenue of
$261.5 Million within Updated Guidance Range
Net Income for the Fourth Quarter Increases to $7.1 Million
Fourth Quarter Adjusted EBITDA Increases 9% to $12.8 Million and Fiscal 2026
Adjusted EBITDA of $28.9 Million within Original Full-Year Guidance Range
Deferred Revenue Increases 4% Year-over-Year to $116.1 Million; Enterprise Division
Deferred Revenue Increases 14% to $64.9 Million
Liquidity Remains Strong at Over $75 Million, with $13.3 Million of Cash and
the Company’s $62.5 Million Credit Facility Fully Available
Company Provides Fiscal 2027 Guidance
Salt Lake City, Utah – Franklin Covey Co. (NYSE: FC), a global leadership and organizational performance partner that gives strategy the human edge, announced today its financial results for the fourth quarter and fiscal year ended August 31, 2026.
Fiscal 2026 results reflect growing traction from the Company’s investments in its Enterprise North America go-to-market model, where full-year invoiced amounts increased 4% and deferred revenue increased 17%, supporting the Company’s outlook for revenue and Adjusted EBITDA growth in fiscal 2027.
Fourth Quarter Fiscal 2026 Financial Overview
The Company’s consolidated revenue for Q4 FY2026 was within its updated guidance range at $70.0 million compared with $71.2 million in Q4 FY2025. The Company’s financial results for Q4 FY2026 include the following:
Fiscal 2026 Financial Overview
The Company’s consolidated revenue for FY2026 was within updated guidance at $261.5 million compared with $267.1 million in FY2025. The Company’s financial results for FY2026 include the following:
Paul Walker, President and Chief Executive Officer, commented, “In fiscal 2026, the investments we made to build a stronger, faster-growing company gained traction and delivered measurable results. In Enterprise North America, our largest business and the primary focus of these investments, invoiced amounts grew 4% to $151.4 million, and deferred revenue grew 17% to $59.2 million. These increases reflect growing client commitments and give us greater visibility into revenue we expect to recognize in fiscal 2027.
“Our go-to-market model is working, and we are seeing increasingly clear evidence of its potential. Compared with fiscal 2024, the year before we launched the new model, invoiced amounts per new-client sales professional have more than doubled, and existing clients are expanding their work with us. Our Education business remains strong, with school retention at its highest level since 2022 and Leader in Me now serving more than 8,000 schools worldwide. With larger client commitments and a more productive sales engine, we believe we are well positioned to deliver renewed revenue growth and improved profitability in fiscal 2027 and beyond.”
Jessi Betjemann, Chief Financial Officer, said, “We delivered fourth-quarter and fiscal 2026 revenue within our updated guidance range and full-year Adjusted EBITDA within both our original and narrowed guidance ranges, while strengthening our cost structure and continuing to invest in growth. We grew fourth-quarter Adjusted EBITDA 9% despite lower revenue, reflecting the operating discipline we have built into our business. As a larger base of contracted commitments translates into reported revenue, we expect to benefit from operating leverage, with fiscal 2027 Adjusted EBITDA growing faster than revenue.”
Fiscal 2027 Guidance
The Company expects revenue and Adjusted EBITDA to grow in FY2027, supported by the growing volume of client commitments, increased invoiced amounts in Enterprise North America, and services bookings generated during FY2026. As this activity converts into reported revenue over time, the Company expects improved profitability.
As previously announced, the Company entered into a definitive agreement to transition its direct operations in China to a locally owned licensee partner, with closing expected by the end of the second quarter of fiscal 2027. Because China
revenue will shift from direct-office revenue to licensee royalties after closing, the Company expects FY2027 reported revenue to be approximately $2.0 million lower than it otherwise would have been, and this impact is reflected in the Company’s FY2027 guidance, as shown in the table below. The transaction is not expected to have a material impact on the Company’s Adjusted EBITDA.
Based on current expectations, the Company provides the following guidance, in constant currency:
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FY2026 |
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FY2027 Guidance |
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$ in M |
Actual |
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Low |
Midpoint |
High |
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Revenue |
261.5 |
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263.0 |
268.0 |
273.0 |
YoY Growth |
-2.1% |
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0.6% |
2.5% |
4.4% |
Less: China revenue impact, second half⁽¹⁾ |
(2.0) |
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- |
- |
- |
Revenue, comparable basis |
259.5 |
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263.0 |
268.0 |
273.0 |
YoY Growth, comparable basis |
n/a |
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1.4% |
3.3% |
5.2% |
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Adjusted EBITDA⁽²⁾ |
28.9 |
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29.0 |
31.5 |
34.0 |
YoY Growth |
0.4% |
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0.4% |
9.1% |
17.7% |
Adjusted EBITDA margin % |
11.0% |
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11.0% |
11.8% |
12.5% |
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⁽¹⁾ China is expected to move from a direct office to a licensee by the end of Q2 FY2027. FY2026 excludes approximately $2.0M for the second-half revenue impact of the China transition. The transition is not expected to have a material effect on Adjusted EBITDA. |
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⁽²⁾ Non-GAAP; see definitions. |
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Earnings Conference Call
On Wednesday, November 4, 2026, at 5:00 p.m. Eastern (3:00 p.m. Mountain Time) Franklin Covey will host a conference call to review its fourth quarter and full fiscal 2026 financial results. Interested persons may access a live audio webcast at https://edge.media-server.com/mmc/p/nb23ri7m or may participate via telephone by registering at https://register-conf.media-server.com/register/BI4b4514ba38524aec81bdca060efe03ee. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone. For either option, registration will be required to access the call. A replay of the conference call webcast will be archived on the Company’s website for at least 30 days.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including those statements related to the Company’s future results and profitability and other goals relating to the growth and operations of the Company. Forward-looking statements are based upon management’s current expectations and are subject to various risks and uncertainties including, but not limited to: general macroeconomic conditions; renewals of subscription contracts; the impact of strategic projects and initiatives on future financial results; growth in and client demand for add-on services; market acceptance of new products or services, including new AAP portal upgrades and content launches; impacts from geopolitical trade tensions and the general business environment; and other factors identified and discussed in the Company’s most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Many of these conditions are beyond the Company’s control or influence, any one of which may cause future results to differ materially from the Company’s current expectations, and there can be no assurance that the Company’s actual future performance will meet management’s expectations. These forward-looking statements are based on management’s current expectations, and the Company undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances subsequent to this press release.
Non-GAAP Financial Information
This earnings release includes the concepts of Adjusted EBITDA and Free Cash Flow which are non-GAAP measures. The Company defines Adjusted EBITDA as net income or loss excluding the impact of interest, income taxes, intangible asset amortization, depreciation, stock-based compensation expense, and certain other infrequently occurring items such as restructuring and building exit costs. Free Cash Flow is defined as GAAP calculated cash flows from operating activities less capitalized expenditures for purchases of property and equipment, curriculum development, and content or license rights. The Company references these non-GAAP financial measures in its decision-making because they provide supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods, and the Company believes they provide investors with greater transparency to evaluate operational activities and financial results. Refer to the attached tables for the reconciliation of the non-GAAP financial measure, Adjusted EBITDA, to consolidated net income, a related GAAP financial measure, and for the calculation of Free Cash Flow.
The Company is unable to provide a reconciliation of the above forward-looking estimate of non-GAAP Adjusted EBITDA to GAAP measures because certain information needed to make a reasonable forward-looking estimate is difficult to obtain and dependent on future events which may be uncertain, or out of the Company’s control, including the amount of AAP contracts invoiced, the number of AAP contracts that are renewed, necessary costs to deliver the Company’s offerings, such as unanticipated curriculum development costs, and other potential variables. Accordingly, a reconciliation is not available without unreasonable effort.
About Franklin Covey Co.
Franklin Covey Co. (NYSE: FC) is a global leadership and organizational performance partner that gives strategy the human edge. It helps organizations achieve the breakthrough results that matter most. Using proven, principle-centered frameworks and practices, it builds high-trust leaders, teams and cultures and helps clients translate strategy into consistent execution. For more than 40 years, it has tested this approach with thousands of clients from Fortune 100 companies to educational and government institutions, providing professional services across 160 countries. Visit www.franklincovey.com and explore insights on LinkedIn, Facebook, X, Instagram, and YouTube.
Investor Contact: |
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Media Contact: |
Franklin Covey |
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Franklin Covey |
Boyd Roberts |
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Debra Lund |
801-817-5127 |
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801-817-6440 |
investor.relations@franklincovey.com |
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Debra.Lund@franklincovey.com |
FRANKLIN COVEY CO. |
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Condensed Consolidated Income Statements |
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(in thousands, except per-share amounts, and unaudited) |
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Quarter Ended |
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Fiscal Year Ended |
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August 31, |
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August 31, |
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August 31, |
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August 31, |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue |
$ |
69,957 |
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$ |
71,248 |
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$ |
261,455 |
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$ |
267,067 |
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Cost of revenue |
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17,667 |
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17,458 |
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65,421 |
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63,498 |
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Gross profit |
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52,290 |
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53,790 |
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196,034 |
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203,569 |
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Selling, general, and administrative |
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40,492 |
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42,148 |
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173,374 |
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180,617 |
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Restructuring costs |
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1,085 |
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- |
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6,735 |
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6,723 |
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Building exit costs |
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88 |
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1,569 |
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1,359 |
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2,067 |
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Loss on assets held for sale |
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218 |
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- |
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218 |
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- |
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Depreciation |
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1,218 |
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1,088 |
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4,642 |
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4,066 |
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Amortization |
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571 |
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1,098 |
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2,542 |
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4,392 |
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Income from operations |
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8,618 |
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7,887 |
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7,164 |
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5,704 |
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Interest income (expense), net |
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(25 |
) |
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68 |
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(98 |
) |
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363 |
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Income before income taxes |
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8,593 |
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7,955 |
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7,066 |
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6,067 |
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Income tax provision |
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(1,484 |
) |
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(3,583 |
) |
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(2,143 |
) |
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(2,999 |
) |
Net income |
$ |
7,109 |
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$ |
4,372 |
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$ |
4,923 |
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$ |
3,068 |
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Net income per common share: |
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Basic |
$ |
0.63 |
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$ |
0.35 |
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$ |
0.43 |
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$ |
0.24 |
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Diluted |
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0.62 |
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0.34 |
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0.42 |
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0.24 |
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Weighted average common shares: |
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Basic |
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11,293 |
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12,623 |
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11,546 |
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12,927 |
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Diluted |
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11,553 |
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12,778 |
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11,726 |
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13,053 |
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Other data: |
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Adjusted EBITDA(1) |
$ |
12,770 |
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$ |
11,717 |
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$ |
28,884 |
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$ |
28,757 |
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(1) Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock-based compensation, and certain other items) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP measure to a comparable GAAP measure, refer to the Reconciliation of Net Income to Adjusted EBITDA as shown below.
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FRANKLIN COVEY CO. |
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Reconciliation of Net Income to Adjusted EBITDA |
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(in thousands and unaudited) |
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Quarter Ended |
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Fiscal Year Ended |
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August 31, |
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August 31, |
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August 31, |
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August 31, |
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2026 |
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2025 |
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2026 |
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2025 |
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Reconciliation of net income to Adjusted EBITDA: |
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Net income |
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$ |
7,109 |
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$ |
4,372 |
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$ |
4,923 |
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$ |
3,068 |
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Adjustments: |
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Interest expense (income), net |
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25 |
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(68 |
) |
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98 |
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(363 |
) |
Income tax provision |
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1,484 |
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3,583 |
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2,143 |
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2,999 |
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Amortization |
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571 |
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1,098 |
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2,542 |
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4,392 |
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Depreciation |
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1,218 |
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1,088 |
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4,642 |
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4,066 |
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Stock-based compensation |
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972 |
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75 |
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6,562 |
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5,805 |
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Restructuring costs |
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1,085 |
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- |
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6,735 |
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6,723 |
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Building exit costs |
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88 |
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1,569 |
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1,359 |
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2,067 |
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Loss on assets held for sale |
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218 |
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- |
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218 |
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- |
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Gain on license liability restructuring |
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- |
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- |
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(338 |
) |
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- |
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Adjusted EBITDA |
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$ |
12,770 |
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$ |
11,717 |
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$ |
28,884 |
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$ |
28,757 |
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Adjusted EBITDA margin |
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18.3 |
% |
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16.4 |
% |
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11.0 |
% |
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10.8 |
% |
FRANKLIN COVEY CO. |
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Additional Financial Information |
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(in thousands and unaudited) |
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Quarter Ended |
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Fiscal Year Ended |
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August 31, |
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August 31, |
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August 31, |
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August 31, |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue by Division/Segment: |
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Enterprise Division: |
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|
|
|
|
|
|
||||
North America |
|
$ |
35,828 |
|
|
$ |
35,898 |
|
|
$ |
142,590 |
|
|
$ |
147,609 |
|
International |
|
|
9,668 |
|
|
|
9,770 |
|
|
|
40,078 |
|
|
|
40,455 |
|
|
|
|
45,496 |
|
|
|
45,668 |
|
|
|
182,668 |
|
|
|
188,064 |
|
Education Division |
|
|
23,589 |
|
|
|
24,450 |
|
|
|
76,179 |
|
|
|
74,618 |
|
Corporate and other |
|
|
872 |
|
|
|
1,130 |
|
|
|
2,608 |
|
|
|
4,385 |
|
Consolidated |
|
$ |
69,957 |
|
|
$ |
71,248 |
|
|
$ |
261,455 |
|
|
$ |
267,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross Profit by Division/Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Enterprise Division: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America |
|
$ |
28,661 |
|
|
$ |
30,099 |
|
|
$ |
115,584 |
|
|
$ |
122,601 |
|
International |
|
|
7,452 |
|
|
|
7,389 |
|
|
|
30,814 |
|
|
|
31,295 |
|
|
|
|
36,113 |
|
|
|
37,488 |
|
|
|
146,398 |
|
|
|
153,896 |
|
Education Division |
|
|
15,707 |
|
|
|
15,767 |
|
|
|
48,327 |
|
|
|
47,735 |
|
Corporate and other |
|
|
470 |
|
|
|
535 |
|
|
|
1,309 |
|
|
|
1,938 |
|
Consolidated |
|
$ |
52,290 |
|
|
$ |
53,790 |
|
|
$ |
196,034 |
|
|
$ |
203,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA by Division/Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Enterprise Division: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America |
|
$ |
6,586 |
|
|
$ |
7,610 |
|
|
$ |
25,523 |
|
|
$ |
27,398 |
|
International |
|
|
2,320 |
|
|
|
1,493 |
|
|
|
7,853 |
|
|
|
5,057 |
|
|
|
|
8,906 |
|
|
|
9,103 |
|
|
|
33,376 |
|
|
|
32,455 |
|
Education Division |
|
|
6,856 |
|
|
|
6,179 |
|
|
|
8,022 |
|
|
|
8,184 |
|
Corporate and other |
|
|
(2,992 |
) |
|
|
(3,565 |
) |
|
|
(12,514 |
) |
|
|
(11,882 |
) |
Consolidated |
|
$ |
12,770 |
|
|
$ |
11,717 |
|
|
$ |
28,884 |
|
|
$ |
28,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FRANKLIN COVEY CO. |
|
||||||
Condensed Consolidated Balance Sheets |
|
||||||
(in thousands and unaudited) |
|
||||||
|
|
|
|
|
|
||
|
August 31, |
|
|
August 31, |
|
||
|
2026 |
|
|
2025 |
|
||
Assets |
|
|
|||||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
13,287 |
|
|
$ |
31,698 |
|
Accounts receivable, less allowance for |
|
|
|
|
|
||
credit losses of $2,151 and $2,929 |
|
67,771 |
|
|
|
68,415 |
|
Inventories |
|
5,794 |
|
|
|
5,165 |
|
Prepaid expenses and other current assets |
|
24,059 |
|
|
|
24,199 |
|
Assets held for sale |
|
1,404 |
|
|
|
- |
|
Total current assets |
|
112,315 |
|
|
|
129,477 |
|
|
|
|
|
|
|
||
Property and equipment, net |
|
12,460 |
|
|
|
14,324 |
|
Intangible assets, net |
|
31,272 |
|
|
|
34,551 |
|
Goodwill |
|
30,965 |
|
|
|
31,220 |
|
Deferred income tax assets |
|
1,144 |
|
|
|
231 |
|
Other long-term assets |
|
30,098 |
|
|
|
33,109 |
|
|
$ |
218,254 |
|
|
$ |
242,912 |
|
|
|
|
|
|
|
||
Liabilities and Shareholders' Equity |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Current portion of notes payable |
$ |
- |
|
|
$ |
823 |
|
Accounts payable |
|
6,051 |
|
|
|
8,780 |
|
Deferred revenue |
|
112,625 |
|
|
|
106,534 |
|
Customer deposits |
|
8,946 |
|
|
|
16,327 |
|
Accrued liabilities |
|
22,550 |
|
|
|
24,828 |
|
Liabilities held for sale |
|
1,004 |
|
|
|
- |
|
Total current liabilities |
|
151,176 |
|
|
|
157,292 |
|
|
|
|
|
|
|
||
Other liabilities |
|
11,008 |
|
|
|
14,718 |
|
Deferred income tax liabilities |
|
4,706 |
|
|
|
3,991 |
|
Total liabilities |
|
166,890 |
|
|
|
176,001 |
|
|
|
|
|
|
|
||
Shareholders' equity: |
|
|
|
|
|
||
Common stock |
|
1,353 |
|
|
|
1,353 |
|
Additional paid-in capital |
|
230,146 |
|
|
|
230,251 |
|
Retained earnings |
|
131,195 |
|
|
|
126,272 |
|
Accumulated other comprehensive loss |
|
(1,176 |
) |
|
|
(1,032 |
) |
Treasury stock at cost, 15,735 and 14,565 shares |
|
(310,154 |
) |
|
|
(289,933 |
) |
Total shareholders' equity |
|
51,364 |
|
|
|
66,911 |
|
|
$ |
218,254 |
|
|
$ |
242,912 |
|
|
|
|
|
|
|
||
FRANKLIN COVEY CO. |
|
||||||||
Condensed Consolidated Free Cash Flow |
|
||||||||
(in thousands and unaudited) |
|
||||||||
|
|
|
|
|
|
|
|
||
|
Fiscal Year Ended |
|
|||||||
|
|
August 31, |
|
|
|
August 31, |
|
||
|
|
2026 |
|
|
|
2025 |
|
||
|
|
|
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||
Net income |
$ |
|
4,923 |
|
|
$ |
|
3,068 |
|
Adjustments to reconcile net income to net cash |
|
|
|
|
|
|
|
||
provided by operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
7,184 |
|
|
|
|
8,458 |
|
Amortization of capitalized curriculum costs |
|
|
5,687 |
|
|
|
|
4,440 |
|
Stock-based compensation |
|
|
6,562 |
|
|
|
|
5,805 |
|
Loss on assets held for sale |
|
|
218 |
|
|
|
|
- |
|
Deferred income taxes |
|
|
(423 |
) |
|
|
|
1,468 |
|
Amortization of right-of-use operating lease assets |
|
|
831 |
|
|
|
|
610 |
|
Gain on license obligation restructuring |
|
|
(338 |
) |
|
|
|
- |
|
Changes in working capital |
|
|
(3,057 |
) |
|
|
|
5,128 |
|
Net cash provided by operating activities |
|
|
21,587 |
|
|
|
|
28,977 |
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(5,375 |
) |
|
|
|
(8,253 |
) |
Curriculum development costs |
|
|
(7,008 |
) |
|
|
|
(7,561 |
) |
Reacquisition of license rights |
|
|
- |
|
|
|
|
(1,074 |
) |
Net cash used for investing activities |
|
|
(12,383 |
) |
|
|
|
(16,888 |
) |
|
|
|
|
|
|
|
|
||
Free Cash Flow |
$ |
|
9,204 |
|
|
$ |
|
12,089 |
|
|
|
|
|
|
|
|
|
||