Franklin Covey (FC) Stock Forecast & Price Target

Franklin Covey is projecting revenue growth for FY/26 in a range of $265-275 million, which represents a year-over-year increase of 1.0% at the midpoint. The company has also reported a 2.1% year-over-year increase in deferred and unbilled deferred revenue, totaling $172.3 million, indicating strong underlying demand for its services. Additionally, with robust growth in international licensee revenue and a notable 7% increase in deferred subscription revenue for the Enterprise Division, Franklin Covey is positioned for positive revenue momentum moving into the latter half of FY/26 and beyond.

Franklin Covey Co experienced a 7.3% decline in revenue in the first quarter, falling to $64.0 million, primarily due to macroeconomic uncertainties and geopolitical trade tensions that impacted invoiced amounts. Gross margins deteriorated by 160 basis points year-over-year to 61.6%, while adjusted EBITDA shifted to a loss of $1.0 million compared to a profit of $0.3 million in the previous year, highlighting operational challenges within the company. Additionally, revenue declines in both its Enterprise and Education Divisions, coupled with increased costs and lower gross margins, contribute to a negative outlook for the company's financial performance.