FRANKLIN COVEY CO SEC 10-Q Report

Franklin Covey Co., a global company specializing in organizational performance improvement, has released its Form 10-Q report for the third quarter of fiscal 2025. The report provides a comprehensive overview of the company's financial and operational performance amidst ongoing macroeconomic uncertainties and strategic business initiatives.

Financial Highlights

• Revenue: $67.1 million, reflecting a decrease from $73.4 million in the prior year due to macroeconomic uncertainties and canceled government contracts.
• Gross Profit: $51.3 million, down from $56.2 million in the prior year, primarily due to decreased revenue.
• Income (loss) from operations: $(2.2) million, compared to $8.3 million in the prior year, impacted by increased restructuring charges and SG&A expenses.
• Net income (loss): $(1.4) million, compared to $5.7 million in the prior year, reflecting the factors previously discussed.
• Net income (loss) per share: $(0.11), compared to $0.43 in the prior year, due to the aforementioned decrease in net income.

Business Highlights

• Revenue Segments: The Enterprise Division, which includes North America, International Direct Offices, and International Licensees, reported a total revenue of $47.3 million for the third quarter of fiscal 2025. The Education Division, focused on The Leader in Me program, reported $18.6 million in revenue for the same period.
• Geographical Performance: North America segment revenue decreased to $37.1 million due to macroeconomic uncertainties and canceled government contracts. International Direct Office revenues were adversely affected by economic uncertainty and geopolitical tensions, with significant decreases in Japan, the United Kingdom, and China. The Education Division saw a decrease in revenue primarily due to reduced classroom materials sales.
• Sales Units: The Education Division delivered approximately 70 more training and coaching days in the first three quarters of fiscal 2025 compared to the prior year, indicating strong demand for training services.
• New Product Launches: A significantly refurbished The 7 Habits of Highly Effective People offering was launched in the first quarter of fiscal 2025, contributing to increased advertising and promotional costs.
• Future Outlook: The company remains optimistic about the expected results of its new North America go-to-market strategy and sales force restructuring, despite ongoing economic uncertainties. The Education Division is expected to continue its momentum, with nearly 8,000 schools using The Leader in Me program as of May 31, 2025.

SEC Filing: FRANKLIN COVEY CO [ FC ] - 10-Q - Jul. 08, 2025