Franklin Covey Company · NYSE:FC
Franklin Covey — Q1 2026 Earnings Presentation
20 slides from Franklin Covey's earnings presentation, Jan 7, 2026
Slide 1: Greatness Starts Here
Greatness Starts Here We transform organizations by building exceptional INVESTOR UPDATE leaders, teams, and cultures that get results. First Quarter Fiscal 2026 © FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL
Slide 2: 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 in
Slide 3: Franklin Covey
Franklin Covey (in Millions and Unaudited) $64.0M $262.0M $3.7M Q1FY26 Revenue LTM Q1FY26 Revenue Q1FY26 Adjusted EBITDA $69.1 Q1FY25 $287.9M LTM Q1FY25 $7.7M Q1FY25 $24.8M $100.2 $-3.7M LTM Q1FY26 Adjusted EBITDA M* Q1FY26 Deferred Subscription Q1FY26 Free Cash Flows Revenue Balance $52.0M LTM Q1FY
Slide 4: Enterprise Division – North America
Enterprise Division – North America (in Millions and Unaudited) $36.3M $22.3M $32.2M Q1FY 26 Q1FY26 Subscription Revenue Q1FY26 Subscription & Subscription Services Revenue $40.1M Q1FY25 $23.5M Q1FY25 $36.0M Q1FY25 $49.1M $66.6M 61% Q4FY25 Billed Deferred Q4FY25 Unbilled Deferred Q1FY26 AAP Multi -Y
Slide 5: Enterprise Division – International
Enterprise Division - International (in Millions and Unaudited) $11.2M $40.2M Q1FY26 Revenue LTM Q1FY26 Revenue $11.4M Q1FY25 $44.1M LTM Q1FY25 $2.4M $6.1M Q1FY26 Adjusted EBITDA LTM Q1FY26 Adjusted EBITDA $1.4M Q1FY25 $7.4M LTM Q1FY25 © FranklinCovey Co. All rights reserved. 5
Slide 6: Education Division
Education Division (in Millions and Unaudited) $16.1M $6.6M Q1FY26 Revenue Q1FY26 Invoiced Amounts $16.5M Q1FY26 $12.2M Q1FY25 $14.6M $45.1M Q1FY26 Subscription & FY25 Deferred Subscription Subscription Service Revenue Revenue Balance $14.9M Q1 FY25 $44.2M Q4FY24 © FranklinCovey Co. All rights reser
Slide 7: FY2026 Guidance
FY2026 Guidance ▪ Company affirms guidance provided in November 2025. FY2026 Guidance ▪ Expect approximately 45% to 50% of Revenue will be (in constant currency) recognized in the first half, reflecting normal seasonality, especially in the Education Division, and the timing of client Revenue $265M
Slide 8: Appendix
Appendix
Slide 9: Franklin Covey Financial Headlines
APPENDIX Franklin Covey Financial Headlines (in Millions and Unaudited) Franklin Covey Q1 FY26 Q1 FY25 $Δ %Δ LTM Q1 FY 26 LTM Q1 FY 25 $Δ %Δ Revenue 64.0 69.1 (5.0) -7.3% 262.0 287.9 (25.9) -9.0% Gross Profit % 48.4 52.7 (4.3) -8.2% 199.2 221.5 (22.3) -10.1% Gross Profit % 75.5% 76.3% (77) bps 76.0%
Slide 10: Revenue Information
APPENDIX Revenue Information (in Millions and Unaudited) FY 2024 FY 2025 FY 2026 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 FY2025 Q1 Balance Sheet Roll-Forward of Deferred Revenue Beginning Balance 99.0 87.2 86.1 83.8 99.0 107.9 95.7 94.4 89.3 107.9 111.7 Subscription & Committed Services Invoiced 24.7 34.6
Slide 11: Franklin Covey Revenue Analysis
APPENDIX Franklin Covey Revenue Analysis (in Millions and Unaudited) Notes: • Please compare this information to the Segment Information footnote in Form 10-K. • Please refer to Definitions in the Appendix for the definition of Deferred Revenue and Unbilled Deferred Revenue. • May not total due to r
Slide 12: Reconciliation of Net Income (Loss) to Adjusted EBITDA
APPENDIX Reconciliation of Net Income (Loss) to Adjusted EBITDA (in Thousands and Unaudited) Quarter Ended November 30, November 30, 2025 2024 Reconciliation of net income (loss) to Adjusted EBITDA: Net income (loss) $ (3,289) $ 1,181 Adjustments: Interest income, net (19) (112) Income tax provision
Slide 13: Free Cash Flow
APPENDIX Free Cash Flow (in Thousands and Unaudited) © FranklinCovey Co. All rights reserved. 13
Slide 14: Enterprise Division Financial Summary
APPENDIX Enterprise Division Financial Summary (in Millions and Unaudited) Enterprise Q1 FY26 Q1 FY25 $Δ %Δ LTM Q1 FY 26 LTM Q1 FY 25 $Δ %Δ Revenue 47.5 51.6 (4.1) -8.0% 183.9 207.3 (23.3) -11.3% Gross Profit % 38.2 41.8 (3.6) -8.5% 150.3 171.4 (21.0) -12.3% Gross Profit % 80.5% 81.0% (49) bps 81.7%
Slide 15: Enterprise Division Subscription & Related Revenue
APPENDIX Enterprise Division Subscription & Related Revenue (in Millions and Unaudited) Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 LTM Q1 FY 25 LTM Q1 FY 26 Subscription Revenue $26.4 $25.1 $25.0 $25.6 $25.2 $105.9 $100.9 Subscription Service Revenue 14.6 11.0 14.9 14.0 12.2 58.3 52.1 Total Subscription and
Slide 16: Education Division Financial Summary
APPENDIX Education Division Financial Summary (in Millions and Unaudited) Education Q1 FY26 Q1 FY25 $Δ %Δ LTM Q1 FY 26 LTM Q1 FY 25 $Δ %Δ Revenue 16.1 16.5 (0.4) -2.2% 74.2 75.8 (1.5) -2.0% Gross Profit % 9.9 10.4 (0.5) -4.8% 47.2 48.5 (1.2) -2.6% Gross Profit % 61.6% 63.2% (167) bps 63.6% 64.0% (34
Slide 17: Other Information
APPENDIX Other Information O THER I NCOME S TATEMENT I NFORMATION : • 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 expec
Slide 18: Definitions
APPENDIX Definitions • “Deferred Revenue” primarily consists of billings or payments received in advance of revenue being recognized from subscripti on and services. Deferred revenue is recognized as revenue as the recognition criteria are met. AAP contracts are generally invoiced in annual installm
Slide 19: 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
Slide 20: franklincovey.com
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