Franklin Covey (FC) Stock Forecast & Price Target

Franklin Covey Co is projecting fiscal year 2026 revenues between $265 million and $275 million, reflecting a modest year-over-year growth of 1.0% at the midpoint. The company’s deferred and unbilled deferred revenue stood at $184.5 million as of August 31, marking a 0.8% increase year-over-year, indicating a solid pipeline of future income. Additionally, adjusted EBITDA is anticipated to be in the range of $28 million to $33 million, representing a year-over-year increase of 6.1% at the midpoint, driven by effective cost reduction initiatives and restructuring efforts.

Franklin Covey experienced a significant decline in its financial performance during the fourth quarter, with revenue falling 15.3% to $71.2 million, primarily attributed to macroeconomic uncertainties and geopolitical trade tensions. Adjusted EBITDA saw a dramatic decrease of 47.5% to $7.3 million, indicating a worrying trend in profitability margins which dropped substantially from the previous year. Additionally, gross income decreased by 18.2% to $53.8 million, combined with a reduction in gross margins, suggesting that the company is struggling to maintain its financial stability in a challenging economic environment.