Consolidated Third Quarter Revenue Increases 1% to $67.8 Million
Invoiced Amounts in Enterprise North America Increase 4% to $36.7 Million
Deferred Revenue Increases 7% to $96.0 Million
Net Income for the Third Quarter Increases to $3.1 Million
Adjusted EBITDA Increases 14% to $8.3 Million
Liquidity Remains Strong at Over $74 Million, with $12.0 Million of Cash and the Company's $62.5 Million Credit Facility Fully Available
Company Updates Guidance for Fiscal 2026
SALT LAKE CITY, July 01, 2026--(BUSINESS WIRE)--Franklin Covey Co. (NYSE: FC), a global leadership and organizational performance partner that gives strategy the human edge, announced today its financial results for the third quarter of fiscal 2026, which ended on May 31, 2026.
Third Quarter Fiscal 2026 Financial Overview
The Company's consolidated revenue for Q3 FY2026 increased to $67.8 million compared with $67.1 million in Q3 FY2025. The Company's financial results for Q3 FY2026 include the following:
Enterprise Division revenue for Q3 FY2026 increased to $48.1 million compared with $47.3 million in the prior year.
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Enterprise Division revenue reflected a $1.0 million increase in North America segment revenue partially offset by a $0.2 million decrease in International segment revenue. The North America segment was favorably affected by higher service revenue, partially offset by lower recognized subscription revenue.
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Enterprise North America invoiced amounts grew 4% year-over-year.
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Deferred revenue for the Enterprise Division increased 15% year-over-year.
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Education Division revenue in Q3 FY2026 increased to $19.0 million compared with $18.6 million in the prior year.
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The increase was driven by higher subscription revenue, primarily due to the delivery of more training and coaching days, partially offset by decreased materials revenue during the quarter.
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Consolidated subscription and subscription services revenue for Q3 FY2026 was $57.5 million compared with $57.7 million in Q3 FY2025. Subscription and contractually committed services invoiced for Q3 FY2026 totaled $37.0 million, growth of 17%, compared with $31.7 million in Q3 FY2025.
The Company recognized net income for Q3 FY2026 of $3.1 million, or $0.27 per diluted share, compared with a net loss of $(1.4) million, or $(0.11) per share, in Q3 FY2025.
Adjusted EBITDA for Q3 FY2026 increased 14% to $8.3 million compared with $7.3 million in the prior year.
Consolidated deferred revenue at May 31, 2026 increased 7% to $96.0 million compared with $89.3 million at May 31, 2025.
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At May 31, 2026, 59% of the Company's AAP contracts in North America were for at least two years, compared with 58% at May 31, 2025, and the percentage of contracted amounts represented by multi-year contracts was 60% compared with 62% on May 31, 2025.
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Unbilled deferred revenue totaled $61.1 million at May 31, 2026, compared with $62.0 million at May 31, 2025.
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Cash provided by operating activities for Q3 FY2026 was $1.1 million compared with $6.3 million in the prior year.
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Free cash flow for Q3 FY2026 was $(1.0) million compared with $2.8 million in Q3 FY2025.
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Cash and cash equivalents totaled $12.0 million compared with $33.7 million as of May 31, 2025.
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