Franklin Covey Co.

franklincovey.com

What Do They Do?

Sells leadership and organizational performance programs to businesses, government agencies, and schools.

How Do They Make Money?

Clients pay for subscriptions to learning content, training and course materials, and rights to sell content in specific territories. Subscriptions are billed annually in advance; training and materials are billed within the month they are delivered, and licensees pay royalties based on sales.

revenue

Segment	Share	How money arrives
Services And Products Sold outright	37% FY2022: 45%	Sold outright
Subscriptions Recurring	55% FY2022: 47%	Recurring
Royalties Licensed	6.2% FY2022: 5.8%	Licensed
Leases And Other	1.2% FY2022: 2.1%

Who Are Their Customers?

Organizations and government bodies buy leadership and performance programs; schools buy the Leader in Me program. Franklin Covey serves clients through its own offices and independent licensee partners where it lacks a direct office.

Do Revenues Turn Into Profits?

Yes. It kept 1 cent of every revenue dollar as net income in FY2025 and turned 8 cents into free cash flow.

Operating income, FY2025

2% of revenue

▼ −83% vs FY2024 ($33M, 12%)

Net income, FY2025

1% of revenue

▼ −87% vs FY2024 ($23.4M, 8%)

Free cash flow, FY2025

8% of revenue

▼ −63% vs FY2024 ($56.6M, 20%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q3 FY2026, the three months to May 31, 2026

Revenue: ▲ +1%; vs $67.1M in Q3 FY2025
Net income: ▲ Now profitable; vs −$1.4M in Q3 FY2025

Jul 1, 2026 Cuts revenue guidance Revenue guidance fell to $260 million–$267 million from $265 million–$275 million; adjusted EBITDA guidance narrowed to $28 million–$31 million.
Apr 1, 2026 Affirms annual guidance Revenue guidance was $265 million–$275 million, with adjusted EBITDA guidance of $28 million–$33 million.

Growing. Revenue grew 19% in 4 years, from $224.2M in FY2021 to $267.1M in FY2025, about 4% a year.

Revenue over time

Services And Products Subscriptions Royalties Leases And Other

$500M$250M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with McKinsey &, Deloitte, Accenture, Korn Ferry, Heidrick & Struggles, Development Dimensions International, LHH, Blanchard, BetterUp, CoachHub, Ezra, RAIN Group, Sandler, Challenger, Workboard, Amplify, Cornerstone, Udemy Business, LinkedIn Learning, and 7 Mindsets

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