Franklin Covey (FC) Stock Forecast & Price Target

Franklin Covey Co. is projecting revenue for FY/26 to be in the range of $265-275 million, reflecting a 1.0% year-over-year increase at the midpoint. The company has demonstrated strong growth potential, as indicated by a 2.1% year-over-year increase in deferred and unbilled deferred revenue, which stood at $172.3 million as of November 30. Additionally, the increase in subscription revenue for the Enterprise Division by 7% year-over-year, along with a 5.3% rise in invoiced contractually committed services, suggests robust demand for Franklin Covey's offerings.

Franklin Covey Co reported a revenue decline of 7.3% in the first quarter, totaling $64.0 million, primarily attributed to ongoing macroeconomic uncertainties and geopolitical trade tensions. Gross margins also decreased by 160 basis points to 61.6%, alongside an adjusted EBITDA loss of $1.0 million, contrasting with an adjusted EBITDA of $0.3 million in the previous year. The significant downturn in revenue from its Enterprise Division, which constitutes 74% of total revenue, and higher SG&A expenses further contribute to a negative financial outlook for the company.