Franklin Covey (FC) Stock Forecast & Price Target

Franklin Covey is projecting FY/26 revenue in the range of $265-275 million, reflecting a 1.0% year-over-year increase at the midpoint. Deferred and unbilled deferred revenue as of November 30 stands at $172.3 million, marking a 2.1% year-over-year rise, indicating potential revenue stability and growth. Internationally, excluding China, revenue from licensees increased by 8% year-over-year, alongside a 7% rise in deferred subscription revenue for the Enterprise Division, suggesting strong demand for the company's training and consulting services.

Franklin Covey Co reported a 7.3% decline in first-quarter revenue, dropping to $64.0 million, attributed largely to macroeconomic uncertainties and geopolitical trade tensions, negatively impacting invoiced amounts. Gross margins decreased by 160 basis points year-over-year to 61.6%, while adjusted EBITDA showed a significant loss of $1.0 million compared to a positive $0.3 million in the prior year, reflecting increased costs and operational challenges. Additionally, lower revenue performance and higher selling, general, and administrative expenses contributed to the company's financial weakness, fostering a negative outlook on the stock.