Franklin Covey Company · NYSE:FC
Franklin Covey — Q4 2025 Earnings Presentation
24 slides from Franklin Covey's earnings presentation, Nov 5, 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: Fourth Quarter and Fiscal 2025
INVESTOR UPDATE Fourth Quarter and 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: What We Are Playing For
What We Are Playing For To be the partner of choice for leaders pursuing breakthrough results—results that depend not only on great strategy, but on how people work together to deliver it. Strategic Priority #1 Strategic Priority #2 Combine the world’s best content, Transform and accelerate our tech
Slide 5: Generating Durable Breakthrough Performance
Generating Durable Breakthrough Performance Learning Libraries Behavior Change Organizational Outcomes Teaching concepts or skills Experiences that include sustainment Systems for collective action against a result FranklinCovey’s Solutions © FranklinCovey Co. All rights reserved. 5
Slide 6: FY2025 Results vs. Guidance
FY2025 Results vs. Guidance (in Millions and Unaudited) FY2025 Guidance Results (in constant currency) $267.1M Revenue $265M - $275M Within Range $267.3M in CC $28.8M EBITDA $28M - $33M Within Range $29.0M in CC © FranklinCovey Co. All rights reserved. 6
Slide 7: Franklin Covey FY25 Results Highlights
Franklin Covey (in Millions and Unaudited) $267.1M $71.2M $28.8M FY25 Revenue Q4FY25 Revenue FY25 Adjusted EBITDA $287.2M FY24 $84.1M Q4FY24 $55.3M FY24 $11.7M $111.7M $12.1M Q4FY25 Adjusted EBITDA * Q4FY25 Deferred Subscription FY25 Free Cash Flows Revenue Balance $22.9M Q4FY24 $107.9M Q4FY24 $48.9
Slide 8: Enterprise Division – North America
Enterprise Division – North America (in Millions and Unaudited) $147.6M FY25 Revenue $83.9M $131.1M FY25 Subscription & FY25 Subscription Revenue Subscription Services Revenue $35.9M in Q4FY25 $20.7M in Q4FY24 $32.9M in Q4FY25 $46.7M $67.6M 60% Q4FY25 Billed Deferred Q4FY25 Unbilled Deferred FY25 AA
Slide 9: Enterprise Division – International
Enterprise Division - International (in Millions and Unaudited) $29.3M $11.1M FY25 Revenue – International Direct FY25 Revenue - International Licensee Partners $7.4M in Q4FY25 $2.4M in Q4FY25 © FranklinCovey Co. All rights reserved. 9
Slide 10: Education Division
Education Division (in Millions and Unaudited) $74.6M $80.7M FY25 Revenue FY25 Invoiced Amounts $24.4M in Q4FY25 $44.9M in Q4FY25 $69.4M $54.6M FY25 Subscription & FY25 Deferred Subscription Subscription Service Revenue Revenue Balance $23.3M in Q4FY25 $48.5M Q4FY24 © FranklinCovey Co. All rights re
Slide 11: FY2026 Guidance
FY2026 Guidance Expect approximately 45% to 50% of Revenue will be recognized in the first half, reflecting normal FY2026 Guidance seasonality, especially in the Education Division, (in constant currency) and the timing of client delivery. Revenue $265M - $275M Expect approximately 30% to 35% of
Slide 12: Appendix
Appendix
Slide 13: Franklin Covey Financial Headlines
APPENDIX Franklin Covey Financial Headlines (in Millions and Unaudited) Q4 FY 25 Q4 FY 24 Chg % Fiscal 2025 Fiscal 2024 Chg % Revenue $ 71.2 $ 84.1 ($12.9) -15.3% $ 267.1 $ 287.2 ($20.2) -7.0% Cost of Sales 17.5 18.4 (0.9) -5.1% 63.5 66.2 (2.7) -4.0% Gross Profit 53.8 65.7 (11.9) -18.2% 203.6 221.1
Slide 14: Revenue Information
APPENDIX Revenue Information (in Millions and Unaudited) FY 2024 FY 2025 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 FY2025 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 89.3 107.9 Subscription Invoiced
Slide 15: Franklin Covey Revenue Analysis
APPENDIX Franklin Covey Revenue Analysis (in Millions and Unaudited) Enterprise Division Education Division Corporate Total Company Fourth Quarter FY25 FY24 Change % FY25 FY24 Change % FY25 FY24 Change FY25 FY24 Change % Revenue Subscription Revenue 25.6 26.9 (1 .3) -4.9% 1 3.5 1 1 .9 1 .6 1 3.2% -
Slide 16: Reconciliation of Net Income (Loss) to Adjusted EBITDA
APPENDIX Reconciliation of Net Income (Loss) to Adjusted EBITDA (in Thousands and Unaudited) Quarter Ended Fiscal Year Ended August 31, August 31, August 31, August 31, 2025 2024 2025 2024 Reconciliation of net income to Adjusted EBITDA: Net income $ 4,372 $ 11,956 $ 3,068 $ 23,402 Adjustments: Inte
Slide 17: Free Cash Flow
APPENDIX Free Cash Flow (in Thousands and Unaudited) Fiscal Year Ended August 31, August 31, 2025 2024 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 3,068 $ 23,402 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,458 8,
Slide 18: Enterprise Division Financial Summary
APPENDIX Enterprise Division Financial Summary (in Millions and Unaudited) Q4 FY 25 Q4 FY 24 Chg % Fiscal 2025 Fiscal 2024 Chg % Revenue $ 45.7 $ 58.2 ($12.6) -21.6% $ 188.1 $ 208.1 ($20.1) -9.6% Cost of Sales 8.2 9.0 (0.8) -9.0% 34.2 36.1 (2.0) -5.4% Gross Profit 37.5 49.2 (11.7) -23.9% 153.9 172.0
Slide 19: Enterprise Division AAP & Related Revenue
APPENDIX Enterprise Division AAP & Related Revenue (in Millions and Unaudited) Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Fiscal 2024 Fiscal 2025 Subscription Revenue $26.9 $26.4 $25.1 $25.0 $25.6 $106.3 $102.1 Subscription Service Revenue 16.3 14.6 11.0 14.9 14.0 58.5 54.5 Total Subscription and Subscripti
Slide 20: Education Division Financial Summary
APPENDIX Education Division Financial Summary (in Millions and Unaudited) Q4 FY 25 Q4 FY 24 Chg % Fiscal 2025 Fiscal 2024 Chg % Revenue $ 24.4 $ 24.4 $ 0.1 0.2% $ 74.6 $ 74.2 $ 0.4 0.5% Cost of Sales 8.7 8.3 0.4 4.8% 26.9 26.7 0.2 0.8% Gross Profit 15.8 16.1 (0.3) -2.1% 47.7 47.5 0.2 0.4% Gross Prof
Slide 21: Other Information
APPENDIX Other Information OTHER INCOME STATEMENT INFORMATION: • Depreciation: $4.1M in FY2025, expected to total approximately $4.5M in FY2026. • Amortization: $4.4M in FY2025, expected to total approximately $3.0M in FY2026. • Net Interest Income: $0.4M in FY2025 and Net Interest Income expected t
Slide 22: 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 23: 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 24: franklincovey.com
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Franklin Covey Company — Q4 2025 Earnings Presentation on 6ix