Franklin Covey Reports Mixed Q3 Results, Lowers FY26 Revenue Guidance Amid Cash Decline
FC sits 78% above its 52-week low of $11.16 on elevated volume (2.0× avg).
Summary
Franklin Covey announced Q3 FY2026 financial results with increased profitability but reduced its full-year revenue outlook and reported a notable decrease in cash and negative free cash flow.
Key Events · Earnings and Guidance · FC
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Q3 Net Income and Adjusted EBITDA Increase
Net income rose to $3.1 million ($0.27/share) from a loss of $(1.4) million in the prior year, and Adjusted EBITDA increased 14% to $8.3 million for the third quarter of fiscal 2026.
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FY2026 Revenue Guidance Lowered
Full-year revenue guidance was revised down to a range of $260-$267 million from the prior $265-$275 million, citing timing shifts in services delivery, state budget reductions affecting a large education contract, and geopolitical tensions.
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Adjusted EBITDA Guidance Maintained
Despite the revenue revision, the company affirmed its Adjusted EBITDA guidance within a narrower range of $28-$31 million, reflecting continued cost discipline.
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Significant Cash Decline and Negative Free Cash Flow
Cash and cash equivalents decreased to $12.0 million from $33.7 million year-over-year, and free cash flow for Q3 FY2026 was negative $(1.0) million compared to $2.8 million in the prior year.
Analysis · FC · Trade & Services
Franklin Covey reported improved net income and Adjusted EBITDA for Q3 FY2026, but lowered its full-year revenue guidance due to timing shifts and external factors. The company's cash position significantly declined, and free cash flow was negative for the quarter, raising concerns about liquidity despite maintained Adjusted EBITDA guidance.
At the time of this filing, FC was trading at $19.83 on NYSE in the Trade & Services sector, with a market capitalization of approximately $281.7M. The 52-week trading range was $11.16 to $26.81. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.