Franklin Covey Q3 Revenue Up 1% to $67.8M, EBITDA Rises 14%
FC•Franklin Covey’s Q3 revenue rose 1% to $67.8M, while adjusted EBITDA increased 14% to $8.3M and net income swung to $3.1M from a $1.4M loss. The company lowered fiscal 2026 revenue guidance to $260M-$267M, citing timing shifts in large contracts and state budget cuts.
1. Third Quarter Financial Results
Consolidated revenue for Q3 FY2026 increased 1% year-over-year to $67.8 million, led by Enterprise Division growth to $48.1 million and Education revenue of $19.0 million. Subscription and contractually committed services invoiced rose 17% to $37.0 million.
2. Profitability Turnaround
The company reported net income of $3.1 million, or $0.27 per share, reversing a $1.4 million loss in Q3 FY2025. Adjusted EBITDA climbed 14% to $8.3 million, reflecting higher operating discipline and margin expansion.
3. Guidance Revision
Management narrowed fiscal 2026 revenue guidance to $260 million–$267 million (from $265 million–$275 million) due to timing shifts in service delivery for a large Enterprise North America contract and state budget reductions affecting a key Education agreement.
4. Balance Sheet Highlights
Cash and cash equivalents stood at $12.0 million versus $33.7 million a year ago, while total liquidity remained strong at over $74 million with a fully available $62.5 million credit facility. Deferred revenue climbed 7% to $96.0 million.
