Franklin Covey (FC) Stock Forecast & Price Target

Franklin Covey Co is projecting revenue for FY/26 in the range of $265 million to $275 million, reflecting a modest year-over-year increase of 1.0% at the midpoint, which aligns closely with market consensus expectations. The company’s Education Division, contributing 34% of Q4/25 revenue, has shown growth with a slight increase to $24.5 million due to heightened training and membership subscription revenue. Additionally, expected adjusted EBITDA of $28 million to $33 million indicates a year-over-year growth of 6.1% at the midpoint, driven by successful cost reduction and restructuring initiatives, enhancing financial stability and operational efficiency.

Franklin Covey Co. reported a significant decline in revenue during the fourth quarter, decreasing 15.3% to $71.2 million compared to $84.1 million the previous year, primarily attributed to macroeconomic uncertainties and geopolitical trade tensions. This decline was mirrored in adjusted EBITDA, which dropped 47.5% to $7.3 million, reflecting a substantial margin reduction and overall weakening financial position. Additionally, gross income fell 18.2% to $53.8 million, alongside a decrease in gross margins by 150 bps year-over-year, indicating a challenging environment that is likely to hinder the company's future growth prospects.