Franklin Covey Company · NYSE:FC

Franklin Covey — Q2 2025 Earnings Presentation

32 slides from Franklin Covey's earnings presentation, Apr 2, 2025

Slide 2: Investor Update Second Quarter Fiscal 2025
INVESTOR UPDATE Second Quarter Fiscal 2025
Slide 13: Appendix
Appendix
Slide 15: Q2 FY25 Revenue and Adjusted EBITDA Summary
Q2 FY 25 Q2 FY 24 Chg % YTD Q2 FY 25 YTD Q2 FY 24 Chg % LTM Q2 FY 25 LTM Q2 FY 24 Chg % Revenue $ 59.6 $ 61.3 ($1.7) -2.8% $ 128.7 $ 129.7 ($1.0) -0.8% $ 286.2 $ 279.1 $ 7.0 2.5% Cost of Sales 13.9 14.5 (0.6) -4.3% 30.2 30.6 (0.4) -1.2% 65.8 66.5 (0.7) -1.0% Gross Profit 45.7 46.9 (1.1) -2.4% 98.5 9
Slide 18: Roll-Forward of Deferred Subscription Revenue and Unbilled Contracts
FY 2023 FY 2024 FY 2025 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 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 Subscription Invoiced 150.0 24.7 34.6 34.5 62.9 156.8 24.7 33.9 Amounts Recorded to Revenue (139.0)
Slide 19: Enterprise Division Second Quarter Revenue
Enterprise Division Education Division Corporate Total Company Second Quarter FY25 FY24 Change % FY25 FY24 Change % FY25 FY24 Change FY25 FY24 Change % Revenue Subscription Revenue 25.1 26.3 (1.2) -4.5% 10.1 9.5 0.6 6.1% - 35.2 35.8 (0.6) -1.7% Subscription Services 11.0 11.2 (0.2) -1.9% 3.4 3.4 0.0
Slide 20: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Quarter Ended Two Quarters Ended February 28, February 29, February 28, February 29, 2025 2024 2025 2024 Reconciliation of net income (loss) to Adjusted EBITDA: Net income (loss) $ (1,076) $ 874 $ 105 $ 5,725 Adjustments: Interest expense (income), net (107) 27 (220) 80 Income tax provision (benefit
Slide 21: Revenue, Gross Profit and Adjusted EBITDA by Division
Quarter Ended Two Quarters Ended February 28, February 29, February 28, February 29, 2025 2024 2025 2024 Revenue by Division/Segment: Enterprise Division: North America $ 34,520 $ 35,554 $ 74,657 $ 75,847 International direct offices 6,201 7,263 14,440 15,993 International licensees 2,830 2,781 6,03
Slide 22: Consolidated Balance Sheets
February 28, August 31, February 28, August 31, 2025 2024 2025 2024 Assets Liabilities and Shareholders' Equity Current assets: Current liabilities: Cash and cash equivalents $ 40,393 $ 48,663 Current portion of notes payable $ 835 $ 835 Accounts receivable, less allowance for Current portion of fin
Slide 23: Income Statement and Adjusted EBITDA
Quarter Ended Two Quarters Ended February 28, February 29, February 28, February 29, 2025 2024 2025 2024 Revenue $ 59,612 $ 61,336 $ 128,698 $ 129,736 Cost of revenue 13,866 14,485 30,241 30,607 Gross profit 45,746 46,851 98,457 99,129 Selling, general, and administrative 45,087 40,771 92,291 84,976
Slide 24: Cash Flows and Free Cash Flow
Two Quarters Ended February 28, February 29, 2025 2024 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 105 $ 5,725 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,163 4,146 Amortization of capitalized curriculum costs 2,
Slide 25: Adjusted EBITDA Note
Note: • The term Adjusted EBITDA (earnings before interest, income taxes, depreciation, 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. For a reconciliation of this non-GAAP m
Slide 27: Enterprise Revenue by Quarter
Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 YTD Q2FY24 YTD Q2FY25 LTM Q2FY24 LTM Q2 FY 25 Subscription Revenue $26.3 $26.3 $26.9 $26.4 $25.1 $53.1 $51.5 $104.5 $104.7 Subscription Service Revenue 11.2 16.2 16.3 14.6 11.0 26.0 25.6 57.6 58.1 Total Subscription and Subscription Service Revenue 37.5 42.6 43.2 4
Slide 28: Education Division Results
Q2 FY 25 Q2 FY 24 Chg % YTD Q2 FY 25 YTD Q2 FY 24 Chg % LTM Q2 FY 25 LTM Q2 FY 24 Chg % Revenue $ 15.1 $ 14.7 $ 0.4 2.6% $ 31.5 $ 29.6 $ 1.9 6.6% $ 76.2 $ 71.0 $ 5.1 7.2% Cost of Sales 5.7 6.0 (0.3) -4.7% 11.8 11.4 0.4 3.1% 27.0 25.9 1.1 4.4% Gross Profit 9.3 8.7 0.7 7.6% 19.7 18.1 1.6 8.8% 49.1 45.
Slide 32: FranklinCovey
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Franklin Covey Company — Q2 2025 Earnings Presentation on 6ix

Franklin Covey — Q2 2025 Earnings Presentation

Slide 1: FranklinCovey Investor Update

Slide 2: Investor Update Second Quarter Fiscal 2025

Slide 3: © FranklinCovey Co. All rights reserved.

Slide 4: © FranklinCovey Co. All rights reserved.

Slide 5: © FranklinCovey Co. All rights reserved.

Slide 6: © FranklinCovey Co. All rights reserved.

Slide 7: © FranklinCovey Co. All rights reserved.

Slide 8: © FranklinCovey Co. All rights reserved.

Slide 9: © FranklinCovey Co. All rights reserved.

Slide 10: © FranklinCovey Co. All rights reserved.

Slide 11: © FranklinCovey Co. All rights reserved.

Slide 12: © FranklinCovey Co. All rights reserved.

Slide 13: Appendix

Slide 14: © FranklinCovey Co. All rights reserved.

Slide 15: Q2 FY25 Revenue and Adjusted EBITDA Summary

Slide 16: © FranklinCovey Co. All rights reserved.

Slide 17: © FranklinCovey Co. All rights reserved.

Slide 18: Roll-Forward of Deferred Subscription Revenue and Unbilled Contracts

Slide 19: Enterprise Division Second Quarter Revenue

Slide 20: Reconciliation of Net Income (Loss) to Adjusted EBITDA

Slide 21: Revenue, Gross Profit and Adjusted EBITDA by Division

Slide 22: Consolidated Balance Sheets

Slide 23: Income Statement and Adjusted EBITDA

Slide 24: Cash Flows and Free Cash Flow

Slide 25: Adjusted EBITDA Note

Slide 26: © FranklinCovey Co. All rights reserved.

Slide 27: Enterprise Revenue by Quarter

Slide 28: Education Division Results

Slide 29: © FranklinCovey Co. All rights reserved.

Slide 30: © FranklinCovey Co. All rights reserved.

Slide 31: © FranklinCovey Co. All rights reserved.

Slide 32: FranklinCovey