Franklin Covey Co is a company focused on organizational performance improvement... Show more
Franklin Covey Co. (FC) is a global leader in organizational performance improvement, offering training and consulting services focused on leadership, execution, productivity, sales performance, customer loyalty, and educational solutions. The company's core business model revolves around subscription-based content delivery, live coaching, and digital tools like the All Access Pass, serving enterprise clients, government entities, and educational institutions.
Operating in the competitive professional services and education training industry, FC differentiates through its renowned methodologies, such as "The 7 Habits of Highly Effective People," and a scalable subscription model that builds recurring revenue. Its exposure to corporate training demand ties closely to economic cycles, with recent stock behavior reflecting sensitivity to invoicing trends and restructuring efforts amid softer enterprise demand.
Over the last 30 days, FC stock rose +26%, climbing from a close of $12.76 to $16.12. The movement was volatile but trend-driven upward, accelerating in late March with high volume on March 23-25 amid pre-earnings momentum, peaking near recent highs.
For the past quarter, shares fell -3%, from $16.64 to $16.12, in a range-bound pattern after an initial January peak above $21, followed by steady declines through February and early March lows near $11.50 before recovering. Trading volume spiked during downturns, indicating seller exhaustion.
The 30-day rally stemmed primarily from building anticipation for Q2 fiscal 2026 earnings, released April 1 after market close, which showed revenue of $59.65 million beating estimates by 2% despite a $0.17 per share loss (GAAP). Adjusted EBITDA nearly doubled to $4.1 million (+99%), fueled by Education revenue growth (+16%) and cost controls, boosting investor confidence.
Enterprise North America invoiced amounts rose 7%, with deferred revenue up 7% to $101.5 million, signaling a strong backlog. Free cash flow swung positive to $13.2 million in Q2, supporting share repurchases ($28.1 million YTD). These metrics, alongside reaffirmed guidance, shifted sentiment from caution to optimism, driving steady gains and post-earnings after-hours strength.
The quarterly decline reflected broader challenges, including Q1 fiscal 2026 results in early January with revenue down 7% to $64 million and a net loss of $3.3 million, missing EPS estimates amid restructuring costs ($3.4 million) and lower prior-year invoicing. Enterprise revenue fell 8%, pressuring subscription recognition.
Macroeconomic caution in corporate spending, combined with building exit costs and softer demand, led to a 38% four-week drop in February, hitting lows near $11.50. Institutional selling and negative EPS revisions amplified the range-bound weakness, though stable deferred revenue growth provided a floor.
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Investors should monitor Q3 fiscal 2026 earnings for sustained invoicing growth in Enterprise North America and Education division expansion. Upcoming guidance updates on FY2026 revenue ($265M-$275M) and adjusted EBITDA ($28M-$33M) will be key amid subscription backlog trends.
Industry shifts toward digital training and AI integration in performance tools could influence competitive positioning. Macro factors like corporate training budgets, interest rates, and economic demand recovery remain critical.
Strategic developments, including share repurchases (remaining $20M authorization) and restructuring completion, alongside risks from client concentration or spending delays, warrant attention for sentiment shifts.
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The 10-day RSI Indicator for FC moved out of overbought territory on April 23, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 instances where the indicator moved out of the overbought zone. In of the 28 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The Momentum Indicator moved below the 0 level on May 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FC as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for FC turned negative on April 23, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 50-day moving average for FC moved above the 200-day moving average on May 11, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FC advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 179 cases where FC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.200) is normal, around the industry mean (20.852). FC has a moderately high P/E Ratio (74.917) as compared to the industry average of (25.528). Projected Growth (PEG Ratio) (0.978) is also within normal values, averaging (2.159). Dividend Yield (0.000) settles around the average of (0.042) among similar stocks. P/S Ratio (0.986) is also within normal values, averaging (4.825).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of training and consulting solutions
Industry OtherConsumerSpecialties