Franklin Covey (FC) Stock Forecast & Price Target

Franklin Covey Co. is projected to achieve revenue in the range of $265-275 million for FY/26, reflecting a modest 1.0% year-over-year increase at the midpoint, which aligns closely with market consensus. The company has also shown resilience in its deferred and unbilled deferred revenue, which stood at $172.3 million as of November 30, marking a 2.1% annual growth, and a notable increase in subscription revenue within its Enterprise Division, rising 7% year-over-year. Furthermore, the Education Division, which accounts for a significant portion of revenue, demonstrated stability with a slight increase in revenues, driven by training and subscription services, indicating a positive trend in organizational performance improvement initiatives.

Franklin Covey Co experienced a revenue decrease of 7.3% in the first quarter, totaling $64.0 million, which reflects persistent macroeconomic uncertainties and geopolitical trade tensions. Gross margins fell by 160 basis points year-over-year to 61.6%, alongside an adjusted EBITDA loss of $1.0 million, indicating deteriorating profitability relative to the prior year. Additionally, revenue from the Enterprise Division, which constitutes a significant portion of total revenue, saw an 8.0% decline, further underscoring the challenges the company faces in a volatile economic environment.