Franklin Covey Company · NYSE:FC
Franklin Covey — Q3 2025 Earnings Presentation
25 slides from Franklin Covey's earnings presentation, Jul 2, 2025
Slide 1: Greatness Starts Here
Greatness Starts Here We transform organizations by building exceptional leaders, teams, and cultures that get results. © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL
Slide 2: Investor Update Third Quarter Fiscal 2025
INVESTOR UPDATE Third Quarter Fiscal 2025
Slide 3: Forward-Looking Statements/Non-GAAP
Forward-Looking Statements/Non-GAAP This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management’s current expectations and are subject to various risks and uncertainties includi
Slide 4: Guidance
Guidance Q3 FY 2025 Guidance Actual Performance (in constant currency) Revenue $67M - $71M $67.1M Within Range ($67.0M constant currency) At low end EBITDA $4M – $6.5M $7.3M Beat ($6.8M constant currency) $0.3M in CC FY 2025 Previous Guidance Updated Guidance Difference (in constant currency) (in co
Slide 5: Today's Topics
Today’s Topics ADDRESSING ENTERPRISE EDUCATION MISSION AREAS OF AREAS OF CRITICAL STRENGTH AND STRENGTH AND CHALLENGES TRACTION TRACTION © FranklinCovey Co. All rights reserved. 5
Slide 6: Trusted Partner to Leaders
Trusted Partner to Leaders Franklin Covey is a trusted partner to leaders whose critical strategic priorities and organizational performance require ADDRESSING the collective action of large numbers of people. MISSION CRITICAL CHALLENGES © FranklinCovey Co. All rights reserved. 6
Slide 7: Enterprise Strengths
Enterprise Strengths We are achieving strong traction in the implementation of our ENTERPRISE go-to-market transformation and acceleration in our Enterprise North America business. AREAS OF STRENGTH AND Increase in new logo clients in Q3 vs PY TRACTION Client retention remains strong and consist
Slide 8: Education Strengths
Education Strengths Education continues to be strong. EDUCATION Expecting top and bottom-line growth YOY AREAS OF STRENGTH AND Subscription revenue increased 13% and Deferred TRACTION Revenue balance grew 21% in Q3 Key metrics (new schools and retained schools pacing at or above PY levels) A
Slide 9: Franklin Covey Q3FY25 and YTD Unaudited
Franklin Covey Q3FY25 and Q3FY25 YTD Unaudited $67.1M $195.8M $7.3M Q3FY25 Revenue Q3FY25 YTD Revenue Q3FY25 Adjusted EBITDA $73.4M Q3FY24 $203.1M Q3FY24 YTD $13.9M Q3FY24 $17.0M $89.3M $10.6M Q3FY25 YTD Adjusted EBITDA * Deferred Subscription YTD Q3FY25 Free Cash Flows Revenue Balance $32.3M Q3FY24
Slide 10: Enterprise Division – North America
Enterprise Division – North America Q3FY25 Unaudited $37.1M Revenue $20.9M $33.7M Subscription Revenue Subscription & Subscription Services Revenue $40.6M Q3FY24 $22.0M Q3FY24 $35.9M Q3FY24 $45.0M $56.4M 62% Billed Deferred subscription Unbilled Deferred Revenue AAP Multi-Year Contract Value Revenue
Slide 11: Enterprise Division - International
Enterprise Division - International Q3FY25 Unaudited $7.5M $2.7M Revenue – International Direct Revenue - International Licensee Partners $8.5M Q3FY24 $2.7M Q3FY24 © FranklinCovey Co. All rights reserved. 11
Slide 12: Education Division
Education Division Q3FY25 Unaudited $18.6M $15.0M Revenue Invoiced Amounts $20.2M Q3FY24 $19.0M Q3FY24 $17.8M $34.1M Subscription & Subscription Deferred Subscription Revenue Service Revenue Balance $18.2M Q3FY24 $28.2M Q3FY24 © FranklinCovey Co. All rights reserved. 12
Slide 13: Business Model Strength
Business Model Strength The key elements of our business model remain strong and are expected to drive growth in revenue, Adjusted EBITDA and Cash Flow over time. BUSINESS MODEL Increasing revenue per client STRENGTH High revenue and customer retention High gross margins Upfront invoicing
Slide 14: Appendix
Appendix
Slide 15: Franklin Covey Financial Headlines
APPENDIX Franklin Covey Financial Headlines (in Millions and Unaudited) Q3 FY 25 Q3 FY 24 Chg % YTD Q3 FY 25 YTD Q3 FY 24 Chg % LTM Q3 FY 25 LTM Q3 FY 24 Chg % Revenue $ 67.1 $ 73.4 ($6.3) -8.5% $ 195.8 $ 203.1 ($7.3) -3.6% $ 279.9 $ 281.1 ($1.1) -0.4% Cost of Sales 15.8 17.2 (1.4) -8.0% 46.0 47.8 (
Slide 16: Revenue Information
APPENDIX Revenue Information (in Millions and Unaudited) FY 2024 FY 2025 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Balance Sheet Roll-Forward of Deferred Subscription Revenue Beginning Balance (deferred revenue) 88.1 99.0 87.2 86.1 83.8 99.0 107.9 95.7 94.4 Subscription Invoiced 150.0 24.7 34.6 34.5
Slide 17: Franklin Covey Revenue Analysis
APPENDIX Franklin Covey Revenue Analysis (in Millions and Unaudited) Enterprise Division Education Division Corporate Total Company Third Quarter FY25 FY24 Change % FY25 FY24 Change % FY25 FY24 Change FY25 FY24 Change % Revenue Subscription Revenue 25.0 26.3 (1 .3) -5.0% 1 1 .8 1 0.4 1 .4 1 3.2% - 3
Slide 18: Reconciliation of Net Income (Loss) to Adjusted EBITDA
APPENDIX Reconciliation of Net Income (Loss) to Adjusted EBITDA (in Thousands and Unaudited) Quarter Ended Three Quarters Ended May 31, May 31, May 31, May 31, 2025 2024 2025 2024 Reconciliation of net income (loss) to Adjusted EBITDA: Net income (loss) $ (1,409) $ 5,721 $ (1,304) $ 11,446 Adjustmen
Slide 19: Enterprise Division Financial Summary
APPENDIX Enterprise Division Financial Summary (in Millions and Unaudited) Q3 FY 25 Q3 FY 24 Chg % YTD Q3 FY 25 YTD Q3 FY 24 Chg % LTM Q3 FY 25 LTM Q3 FY 24 Chg % Revenue $ 47.3 $ 51.9 ($4.6) -8.9% $ 142.4 $ 149.9 ($7.5) -5.0% $ 200.6 $ 202.2 ($1.6) -0.8% Cost of Sales 8.7 9.4 (0.7) -7.2% 26.0 27.1
Slide 20: Enterprise Division AAP & Related Revenue
APPENDIX Enterprise Division AAP & Related Revenue (in Millions and Unaudited) Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 YTD Q3FY24 YTD Q3FY25 LTM Q3FY24 LTM Q3 FY 25 Subscription Revenue $26.3 $26.9 $26.4 $25.1 $25.0 $79.4 $76.5 $105.5 $103.4 Subscription Service Revenue 16.2 16.3 14.6 11.0 14.9 42.2 40.5
Slide 21: Education Division Financial Summary
APPENDIX Education Division Financial Summary (in Millions and Unaudited) Q3 FY 25 Q3 FY 24 Chg % YTD Q3 FY 25 YTD Q3 FY 24 Chg % LTM Q3 FY 25 LTM Q3 FY 24 Chg % Revenue $ 18.6 $ 20.2 ($1.6) -7.9% $ 50.2 $ 49.8 $ 0.4 0.7% $ 74.6 $ 74.0 $ 0.5 0.7% Cost of Sales 6.4 7.0 (0.6) -7.9% 18.2 18.4 (0.2) -1.
Slide 22: Other Information
APPENDIX Other Information OTHER INCOME STATEMENT INFORMATION: • Depreciation: $3.9M in FY2024, expected to total approximately $4M in FY2025. • Amortization: $4.2M in FY2024, expected to total approximately $4.5 in FY2025. • Net Interest Expense: $0.0M in FY2024 and Net Interest Income expected to
Slide 23: Definitions
APPENDIX Definitions • “Deferred Subscription Revenue” primarily consists of billings or payments received in advance of revenue being recognized from subscription services. Deferred revenue is recognized as revenue as the revenue recognition criteria are met. The Company generally invoices customer
Slide 24: Definitions continued
APPENDIX Definitions continued • “Adjusted EBITDA” (earnings before interest, income taxes, depreciation, intangible asset amortization, stock-based compensation, and certain other items) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. A re
Slide 25: franklincovey.com
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Franklin Covey Company — Q3 2025 Earnings Presentation on 6ix