Franklin Covey Company

Pomerantz LLP is investigating claims on behalf of investors of Franklin Covey Co. concerning potential securities fraud or unlawful business practices. The investigation follows Franklin Covey's July 1, 2026, financial results for the third quarter of its 2026 fiscal year, where the company reported revenue of $67.81 million, missing the consensus estimate of $68.33 million, and lowered its revenue guidance to a range of $260 million to $267 million, down from prior guidance of $265 million to $275 million. Management cited ongoing geopolitical tensions impacting international and China operations, along with execution risk around delivery timing of contracted services. On this news, Franklin Covey's stock price fell $3.21 per share, or 12.85%, to close at $21.78 per share on July 2, 2026.

Franklin Covey shares fell 12.9% on Thursday after the company reported weaker-than-expected quarterly results and lowered its full-year outlook. For the third quarter of fiscal 2026, the company posted earnings of $0.27 per share on revenue of $67.8 million, missing analyst estimates of $0.31 per share and roughly $68.3 million in revenue. Franklin Covey also cut its full-year revenue guidance to a range of $260 million to $267 million, down from its prior forecast of $265 million to $275 million, and narrowed its adjusted EBITDA target to $28 million to $31 million from $28 million to $33 million. The S&P 500 ended the day roughly flat, while the Nasdaq Composite slipped 0.8%.

Franklin Covey has revised its full-year fiscal 2026 revenue guidance to between $260 million and $267 million, down from the prior range of $265 million to $275 million, while maintaining its adjusted EBITDA outlook within a narrower range of $28 million to $31 million. The revision reflects a $2 million timing shift in delivery of previously invoiced services, a $2 million impact from a new school contract affected by state budget reductions, and approximately $2 million in pressure from a challenging international environment due to ongoing geopolitical tensions. Third-quarter revenue was $67.8 million, up 1% year-over-year, with gross margin of 73.9% and adjusted EBITDA of $8.3 million. Deferred revenue rose 7% to $96 million, and Enterprise North America billed deferred revenue increased 18% to $58 million. Management emphasized that invoiced growth and deferred revenue build a base for fiscal 2027, while cost reductions and restructuring actions support the maintained EBITDA guidance.