Franklin Covey Co. (FC)
NYSEConsumer StaplesEducation & Training ServicesSnapshot 2026-09-09
$18.20-3.24%
Close 2026-09-09 · 1-day change
NYSEConsumer StaplesEducation & Training ServicesSnapshot 2026-09-09
Intact: The reason to own it still holds.
Franklin Covey keeps revenue near $260 million to $267 million. Adjusted EBITDA stays close to $28 million to $31 million. The company beat Q3 earnings with EPS of $0.27 despite a guidance cut. Management remains stable and focused on these financial targets.
Revenue guidance was lowered from $265-$275 million to $260-$267 million. The company is loss-making with a high price-to-earnings ratio of 39.44. Recent earnings misses and a 15% stock selloff show weak momentum and risk to recovery.
The price is about 18% above our fair value near $18. Analysts expect about 4% revenue growth, but recent guidance cuts and earnings misses suggest risks. The market prices in a durable premium, but the company faces headwinds.
Breaks if: adjusted EBITDA falls below $28 million in FY26
Breaks if: EPS falls below $0.67 in next quarter
Breaks if: revenue falls below $260 million or above $267 million in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on improving profitability. The current thesis state is cautious, as recent performance has been neutral and the stock has reacted negatively to recent financial results.
The market appears to be pricing in a stretched valuation compared to peers, with a durable premium. There is a moderate expectations gap, suggesting that some challenges may already be reflected in the stock's current valuation.
Management has reaffirmed revenue and adjusted EBITDA guidance, indicating a stable outlook despite slight downward revisions. Recent financial performance shows improvement in operating income and net income, but overall results remain below industry peers.
Key factors for the future include the potential for inflation to reaccelerate and the performance of sector bellwethers like EDU, MH, and UTI. Additionally, any cuts to guidance in upcoming calls could negatively impact sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Maintain fiscal 2026 total revenue guidance in the range of $265 million to $275 million.
Over the next 1 to 3 years, FC's performance will depend on its ability to navigate sector challenges and improve profitability. Not investment advice.