Franklin Covey Co. reported a consolidated revenue of $64.0 million for the quarter ended November 30, 2025, a decrease of 7.4% from $69.1 million in the same quarter of the previous year. The company's net loss for the quarter was $3.3 million, or $(0.27) per share, compared to a net income of $1.2 million, or $0.09 per share, in the prior year. The decline in revenue and profitability was attributed to various macroeconomic factors, including reduced U.S. federal government spending and geopolitical tensions, which adversely impacted invoiced amounts and net revenue.
In terms of operational performance, Franklin Covey's Enterprise Division generated revenues of $47.5 million, down from $51.6 million in the prior year, primarily due to a $3.9 million decrease in the North America segment. The Education Division's revenues also saw a slight decline to $16.1 million from $16.5 million, driven by reduced classroom and training materials sales. However, the Education Division did experience an increase in training and coaching revenue, delivering over 100 more training days than in the previous year.
The company reported a significant restructuring cost of $3.4 million during the quarter, aimed at streamlining operations and reducing costs. This restructuring involved severance costs for approximately 45 associates and was part of a broader strategy to enhance operational efficiency. Additionally, Franklin Covey's deferred revenue increased to $100.2 million, reflecting a 5% rise compared to the previous year, indicating a solid pipeline of future revenue.
Franklin Covey's liquidity position remained strong, with $17.5 million in cash and an undrawn $62.5 million line of credit as of November 30, 2025. The company has initiated a new stock repurchase plan, allowing for the purchase of up to $20 million of its common stock, which is expected to be completed in the second quarter of fiscal 2026. Looking ahead, Franklin Covey anticipates that the investments made in its North America go-to-market strategy will yield positive results, with expectations for a return to growth in fiscal 2026 and continued momentum into fiscal 2027.
About FRANKLIN COVEY CO
Franklin Covey Co. is a global provider of leadership, productivity, and organizational performance solutions. Its core offerings include content-based training, coaching, and subscription services like the All Access Pass and Leader in Me programs. Serving corporate, educational, and government markets worldwide, the company emphasizes behavioral change, high-quality content, and scalable delivery methods to help organizations develop effective leaders and cultures.
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