\nFranklin Covey Co. (NYSE: FC), a global leadership and organizational performance partner that gives strategy the human edge, announced today its financial results for the fourth quarter and fiscal year ended August 31, 2026.<\/p>\n
\nFiscal 2026 results reflect growing traction from the Company\u2019s investments in its Enterprise North America go-to-market model, where full-year invoiced amounts increased 4% and deferred revenue increased 17%, supporting the Company\u2019s outlook for revenue and Adjusted EBITDA growth in fiscal 2027.<\/p>\n
Fourth Quarter Fiscal 2026 Financial Overview<\/span><\/b><\/p>\n \nThe Company\u2019s consolidated revenue for Q4 FY2026 was within its updated guidance range at $70.0 million compared with $71.2 million in Q4 FY2025. The Company\u2019s financial results for Q4 FY2026 include the following:<\/p>\n Fiscal 2026 Financial Overview<\/span><\/b><\/p>\n \nThe Company\u2019s consolidated revenue for FY2026 was within updated guidance at $261.5 million compared with $267.1 million in FY2025. The Company\u2019s financial results for FY2026 include the following:<\/p>\n \nPaul Walker, President and Chief Executive Officer, commented, \u201cIn fiscal 2026, the investments we made to build a stronger, faster-growing company gained traction and delivered measurable results. In Enterprise North America, our largest business and the primary focus of these investments, invoiced amounts grew 4% to $151.4 million, and deferred revenue grew 17% to $59.2 million. These increases reflect growing client commitments and give us greater visibility into revenue we expect to recognize in fiscal 2027.<\/p>\n \n\u201cOur go-to-market model is working, and we are seeing increasingly clear evidence of its potential. Compared with fiscal 2024, the year before we launched the new model, invoiced amounts per new-client sales professional have more than doubled, and existing clients are expanding their work with us. Our Education business remains strong, with school retention at its highest level since 2022 and Leader in Me<\/i> now serving more than 8,000 schools worldwide. With larger client commitments and a more productive sales engine, we believe we are well positioned to deliver renewed revenue growth and improved profitability in fiscal 2027 and beyond.\u201d<\/p>\n \nJessi Betjemann, Chief Financial Officer, said, \u201cWe delivered fourth-quarter and fiscal 2026 revenue within our updated guidance range and full-year Adjusted EBITDA within both our original and narrowed guidance ranges, while strengthening our cost structure and continuing to invest in growth. We grew fourth-quarter Adjusted EBITDA 9% despite lower revenue, reflecting the operating discipline we have built into our business. As a larger base of contracted commitments translates into reported revenue, we expect to benefit from operating leverage, with fiscal 2027 Adjusted EBITDA growing faster than revenue.\u201d<\/p>\n Fiscal 2027 Guidance<\/span><\/b><\/p>\n \nThe Company expects revenue and Adjusted EBITDA to grow in FY2027, supported by the growing volume of client commitments, increased invoiced amounts in Enterprise North America, and services bookings generated during FY2026. As this activity converts into reported revenue over time, the Company expects improved profitability.<\/p>\n \nAs previously announced, the Company entered into a definitive agreement to transition its direct operations in China to a locally owned licensee partner, with closing expected by the end of the second quarter of fiscal 2027. Because China revenue will shift from direct-office revenue to licensee royalties after closing, the Company expects FY2027 reported revenue to be approximately $2.0 million lower than it otherwise would have been, and this impact is reflected in the Company\u2019s FY2027 guidance, as shown in the table below. The transaction is not expected to have a material impact on the Company\u2019s Adjusted EBITDA.<\/p>\n \nBased on current expectations, the Company provides the following guidance, in constant currency:<\/p>\n\n
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