Key Highlights

  • Fourth-quarter fiscal 2026 profit was USD 7.1 million, or USD 0.62 a diluted share, a step up from USD 4.4 million (USD 0.34 a share) a year earlier.
  • Fiscal 2026 Revenue came in at USD 261.5 million, down from USD 267.1 million, and Q4 revenue of USD 70.0 million trailed USD 71.2 million a year earlier.
  • Management's fiscal 2027 targets are USD 263 million to USD 273 million of revenue and USD 29 million to USD 34 million of adjusted EBITDA, measured in constant currency.
  • Deferred revenue on a consolidated basis grew 4% to USD 116.1 million by August 31, 2026, but cash sank to USD 13.3 million from USD 31.7 million.

Quarterly Profit Climbs as the Top Line Dips

The company released fourth-quarter and full-year results for the period ended August 31, 2026 on November 4, 2026. Profit moved up to USD 7.1 million from USD 4.4 million, even as sales eased to USD 70.0 million. The Enterprise Division produced USD 45.5 million and the Education Division USD 23.6 million. Adjusted EBITDA, a non-GAAP figure, grew 9% to USD 12.8 million. Franklin Covey provides Leadership and organizational performance training, and the Leader in Me program reaches more than 8,000 schools globally. Full-year Net Income totaled USD 4.9 million, or USD 0.42 per diluted share, versus USD 3.1 million, or USD 0.24 one year earlier.

Forward Bookings Support the Fiscal 2027 Plan

Forward indicators are central to management's case. Enterprise North America invoiced USD 151.4 million for the year, up 4%, and deferred revenue in that segment increased 17% to USD 59.2 million, which gives the chief executive more confidence in fiscal 2027 revenue visibility. Subscription and contractually committed services billed USD 165.1 million, compared with USD 151.7 million. The guidance midpoint implies USD 268.0 million of revenue, which is 2.5% above fiscal 2026, and adjusted EBITDA of USD 31.5 million, a 9.1% rise. The planned handover of direct China operations to a licensee should wrap up by the end of the second quarter of fiscal 2027 and trims reported revenue by about USD 2.0 million.

Buybacks Drain Cash While Liquidity Holds

Cash and equivalents dropped to USD 13.3 million from USD 31.7 million on August 31, 2025. Over fiscal 2026 the company repurchased about 1,573,000 shares for USD 28.1 million, and roughly 1,504,000 of those came from open-market purchases under trading plans. Operating cash generation was USD 21.6 million, against USD 29.0 million, and free Cash Flow (a non-GAAP metric) was USD 9.2 million, down from USD 12.1 million. Liquidity topped USD 75 million, supported by the fully available USD 62.5 million Credit facility. Management flagged contract renewals, Demand for add-on services and geopolitical trade tensions as risks. A conference call had been scheduled for November 4, 2026.

Where Things Stand

Growth is penciled in, though the cushion is thin. Franklin Covey (NYSE:FC) is aiming for fiscal 2027 revenue between USD 263 million and USD 273 million, and the bottom of that band is just 0.6% above fiscal 2026, which itself fell 2.1%. Bookings-related indicators such as deferred revenue and North America invoicing back the plan, but reduced cash after Buybacks means less slack. Watch invoiced amounts, the China transition, and whether adjusted EBITDA can outpace revenue, as the plan assumes.