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© FranklinCovey Co. All rights reserved. PROPRIETARY AND CONFIDENTIAL Greatness Starts Here We transform organizations by building exceptional leaders, teams, and cultures that get results. INVESTOR UPDATE First Quarter Fiscal 2026
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2© FranklinCovey Co. All rights reserved. Forward - Looking Statements/Non - GAAP This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . Forward - looking statements are based upon management’s current expectations and are subject to various risks and uncertainties including, but not limited to : T he ability of the Company to grow revenues; The acceptance of, and renewal rates for our subscription offerings, including the All Access Pass and Leader in Me me mberships; The ability of the Company to hire productive sales and other client - facing professionals; General economic conditions; Competition in the Company’ s targeted marketplace; Market acceptance of new offerings or services and marketing strategies; Changes in the Company’s market share; Changes in the size of the overall market for the Company’s products; Changes in the training and spending policies of the Company’s clients, and other factors identified and dis cussed in the Company’s most recent Annual Report on Form 10 - K and other periodic reports filed with the Securities and Exchange Commission. Many of these c onditions are beyond our control or influence, any one of which may cause future results to differ materially from the Company’s current expectations, and the re can be no assurance the Company’s actual future performance will meet management’s expectations. These forward - looking statements are based on management’s curre nt expectations, and we undertake no obligation to update or revise these forward - looking statements to reflect events or circumstances after the date o f today’s presentation, except as required by law. The Securities and Exchange Commission’s Regulation G applies to any public disclosure or release of material information tha t i ncludes a non - GAAP financial measure. In the event of such a disclosure or release, Regulation G requires: (i) the presentation of the most directly com par able financial measure calculated and presented in accordance with GAAP and (ii) a reconciliation of the differences between the non - GAAP financial measure presented and the most directly comparable financial measure calculated and presented in accordance with GAAP. The required presentations and reconciliations are conta ine d herein and can be found at our website at www.franklincovey.com. This presentation uses the non - GAAP financial measures of Adjusted EBITDA, Free Cash Flow, and “constant currency.” The Company defines Adjusted EBITDA as net income excluding the impact of interest, income taxes, intangible asset amortization, depreciation, stock - based compensation expense, and certain other infrequently occurring items such as restructuring and headquarters moving costs. Free Cash Flow is defined as GAAP calculat ed cash flows from operating activities less capitalized expenditures for purchases of property and equipment, curriculum development, and content or lice nse rights. Constant currency is a non - GAAP financial measure that removes the impact of fluctuations in foreign currency exchange rates and is calculated by transl ati ng the current period’s financial results at the same average exchange rates in effect during the prior year and then comparing this amount to the prior year. Th ese non - GAAP financial measures may not be comparable to similar measures used by other companies and should not be used as a substitute for revenue, net inc ome , or other GAAP operating measures.
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3© FranklinCovey Co. All rights reserved. Franklin Covey $3.7M Q1FY26 Adjusted EBITDA $7.7M Q1FY25 $262.0M LTM Q1FY26 Revenue $287.9M LTM Q1FY25 $64.0M Q1FY26 Revenue $69.1 Q1FY25 $100.2 M* Q1FY26 Deferred Subscription Revenue Balance $95.7M Q1FY25 $ - 3.7M Q1FY26 Free Cash Flows $11.4M Q1FY25 Note: Adjusted EBITDA is non - GAAP, please see Appendix for additional information. Deferred Subscription revenue balance is comprised of $96.0M in current liabilities and $4.2M in long term liabilities. $24.8M LTM Q1FY26 Adjusted EBITDA $52.0M LTM Q1FY25 (in Millions and Unaudited)
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4© FranklinCovey Co. All rights reserved. Enterprise Division – North America $49.1M Q4FY25 Billed Deferred Subscription Revenue Balance $45.5M Q1FY25 61% Q1FY26 AAP Multi - Year Contract Value $22.3M Q1FY26 Subscription Revenue $23.5M Q1FY25 $36.3M Q1FY 26 $40.1M Q1FY25 $66.6M Q4FY25 Unbilled Deferred Revenue Balance $66.5M Q1FY25 $32.2M Q1FY26 Subscription & Subscription Services Revenue $36.0M Q1FY25 (in Millions and Unaudited)
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5© FranklinCovey Co. All rights reserved. Enterprise Division - International $40.2M LTM Q1FY26 Revenue $44.1M LTM Q1FY25 $11.2M Q1FY26 Revenue $11.4M Q1FY25 (in Millions and Unaudited) $6.1M LTM Q1FY26 Adjusted EBITDA $7.4M LTM Q1FY25 $2.4M Q1FY26 Adjusted EBITDA $1.4M Q1FY25
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6© FranklinCovey Co. All rights reserved. Education Division $6.6M Q1FY26 Invoiced Amounts $12.2M Q1FY25 $14.6M Q1FY26 Subscription & Subscription Service Revenue $14.9M Q1 FY25 $16.1M Q1FY26 Revenue $16.5M Q1FY26 $45.1M FY25 Deferred Subscription Revenue Balance $44.2M Q4FY24 (in Millions and Unaudited)
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7© FranklinCovey Co. All rights reserved. FY2026 Guidance FY2026 Guidance (in constant currency) Revenue $265M - $275M EBITDA $28M - $33M ▪ Company affirms guidance provided in November 2025. ▪ Expect approximately 45% to 50% of Revenue will be recognized in the first half, reflecting normal seasonality, especially in the Education Division, and the timing of client delivery. ▪ Expect approximately 25% to 30% of Adjusted EBITDA to be generated in the first half, with margin expansion expected as cost savings and operating leverage build through the back half of the year.
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Appendix
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9© FranklinCovey Co. All rights reserved. (in Millions and Unaudited) Note : • Adjusted EBITDA and Operating SG&A are non - GAAP financial measures; please see Appendix for additional information. Amounts may not total due to rounding. Franklin Covey Financial Headlines APPENDIX Franklin Covey Q1 FY26 Q1 FY25 $ Δ % Δ LTM Q1 FY 26 LTM Q1 FY 25 $ Δ % Δ Revenue 64.0 69.1 (5.0) -7.3% 262.0 287.9 (25.9) -9.0% Gross Profit % 48.4 52.7 (4.3) -8.2% 199.2 221.5 (22.3) -10.1% Gross Profit % 75.5% 76.3% (77) bps 76.0% 76.9% (90) bps Operating SG&A 44.7 45.0 0.4 0.8% 174.5 169.5 (4.9) -2.9% Operating SG&A % 69.8% 65.2% 460 bps 66.6% 58.9% 770 bps Adjusted EBITDA 3.7 7.7 (4.0) -52.1% 24.8 52.0 (27.2) -52.4% Adjusted EBITDA % 5.7% 11.1% (536) bps 9.5% 18.1% (860) bps
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10© FranklinCovey Co. All rights reserved. Notes: • Subscription & Committed Services Invoiced includes AAP Subscriptions, Education Memberships and associated prepaid days, Exe cut ive Coaching, Committed Services and Other Invoiced Subscriptions. Unbilled portions of multi - year agreements are not included. • Committed Services are non - cancellable and non - refundable contracts for training or materials in which payment is due in accorda nce with our normal terms from the signing of the contract rather than from the delivery of the services or materials • Education Subscription Contracts consists of membership subscriptions which is recognized as Revenue over the course of the c ont ract and Consulting which is recognized as Revenue upon delivery. These combined performance obligations are contracted, invoiced and paid toget her . See Deferred Subscription Revenue in the Definitions. • Deferred Revenue is primarily a current liability. However, a small portion is long - term and recorded as a part of Other Liabil ities.. Revenue Information APPENDIX (in Millions and Unaudited) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 FY2025 Q1 Balance Sheet Roll-Forward of Deferred Revenue Beginning Balance 99.0 87.2 86.1 83.8 99.0 107.9 95.7 94.4 89.3 107.9 111.7 Subscription & Committed Services Invoiced 24.7 34.6 34.5 62.9 156.8 24.7 33.9 31.7 61.4 151.7 26.0 (36.6) (35.7) (36.7) (38.8) (147.9) (36.9) (35.2) (36.8) (39.1) (147.9) (37.5) Change in Deferred Revenue (11.9) (1.1) (2.3) 24.1 8.9 (12.2) (1.3) (5.1) 22.3 3.8 (11.5) Ending Balance 87.2 86.1 83.8 107.9 107.9 95.7 94.4 89.3 111.7 111.7 100.2 Unbilled Deferred Contracts Beginning Balance (off balance sheet) 87.4 82.5 72.7 69.4 87.4 75.2 73.0 64.5 62.0 75.2 72.8 New Unbilled Contracts 7.2 8.8 8.9 20.5 45.4 7.8 9.8 7.3 23.5 48.4 8.5 Amounts Invoiced (11.7) (18.5) (12.2) (14.8) (57.1) (10.0) (18.3) (9.8) (12.7) (50.8) (9.1) Ending Balance (off balance sheet) 82.5 72.7 69.4 75.2 75.2 73.0 64.5 62.0 72.8 72.8 72.1 Breakout of Deferred Sales (above) Deferred Invoiced Amounts Enterprise Subscription & Committed Services 21.4 29.9 25.3 30.7 107.3 18.5 30.2 23.6 27.4 99.7 23.7 Education Subscription Contracts 3.4 4.7 9.2 32.3 49.5 6.2 3.6 8.1 34.0 51.9 2.3 Total Additions to balance sheet 24.7 34.6 34.5 62.9 156.8 24.7 33.9 31.7 61.4 151.7 26.0 Amounts Recorded to Revenue from Subscription & Committed Servcies FY 2024 FY 2025 FY 2026
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11© FranklinCovey Co. All rights reserved. Notes: • Please compare this information to the Segment Information footnote in Form 10 -K. • Please refer to Definitions in the Appendix for the definition of Deferred Revenue and Unbilled Deferred Revenue. • May not total due to rounding. Franklin Covey Revenue Analysis APPENDIX (in Millions and Unaudited) FY26 FY25 Change % FY26 FY25 Change % FY26 FY25 Change FY26 FY25 Change % Revenue Subscription Revenue 25.2 26.4 (1.1) -4.3% 11.8 10.5 1.3 12.4% - 37.0 36.9 0.2 0.4% Subscription Services 12.2 14.6 (2.4) -16.6% 2.8 4.4 (1.6) -36.4% - 15.0 19.0 (4.0) -21.2% Other Revenue 10.0 10.6 (0.5) -5.2% 1.5 1.6 (0.1) -4.8% 0.5 1.0 (0.5) 12.1 13.2 (1.2) -8.9% Total Revenue Recorded 47.5 51.6 (4.1) -8.0% 16.1 16.5 (0.4) -2.3% 47.5 51.6 (4.1) 64.0 69.1 (5.0) -7.3% Invoiced Amounts 45.4 43.7 1.7 4.0% 6.6 12.2 (5.6) -45.8% 0.5 1.0 (0.5) 52.5 56.9 (4.4) -7.7% Total Contracts Signed 44.8 41.5 3.2 7.8% 6.6 12.1 (5.5) -45.6% 0.5 1.0 - 51.9 54.7 (2.8) -5.2% FY26 FY25 Change % FY26 FY25 Change % FY26 FY25 Change FY26 FY25 Change % Revenue Subscription Revenue 100.9 105.9 (5.0) -4.7% 47.2 42.3 4.8 11.4% - 148.1 148.2 (0.1) -0.1% Subscription Services 52.1 58.3 (6.2) -10.7% 21.9 26.3 (4.4) -16.6% - 74.0 84.6 (10.6) -12.5% Other Revenue 30.9 43.1 (12.1) -28.2% 5.2 7.2 (2.0) -28.0% 3.8 4.9 (1.0) 40.0 55.1 (15.2) -27.5% Total Revenue Recorded 183.9 207.3 (23.3) -11.3% 74.2 75.8 (1.5) -2.0% 183.9 207.3 (23.3) 262.0 287.9 (25.9) -9.0% Invoiced Amounts 187.5 205.8 (18.3) -8.9% 74.2 85.7 (11.5) -13.4% 4.7 4.9 (0.1) 266.5 296.4 (30.0) -10.1% Total Contracts Signed 186.7 196.3 (9.6) -4.9% 75.1 85.8 (10.7) -12.5% 3.8 4.9 - 265.6 287.0 (21.4) -7.4% FY26 FY25 Change % FY26 FY25 Change % FY26 FY25 Change FY26 FY25 Change % Deferred Subscription Revenue Balance 55.0 51.5 3.6 6.9% 45.1 44.2 0.9 2.0% - 100.2 95.7 4.5 4.6% Unbilled Deferred Revenue Balance 71.4 72.2 (0.8) -1.2% 0.7 0.8 (0.0) -4.0% - 72.1 73.0 (0.9) -1.2% Enterprise Division Education Division Corporate Total Company As of November 30 Last 12 Months First Quarter Enterprise Division Education Division Corporate Total Company First Quarter Enterprise Division Education Division Corporate Total Company
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12© FranklinCovey Co. All rights reserved. Note: • The term Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock-based compensation, and certain other items) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP measure to the most comparable GAAP equivalent, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA. Reconciliation of Net Income (Loss) to Adjusted EBITDA APPENDIX (in Thousands and Unaudited) November 30, November 30, 2025 2024 Reconciliation of net income (loss) to Adjusted EBITDA: Net income (loss) (3,289)$ 1,181$ Adjustments: Interest income, net (19) (112) Income tax provision (benefit) (343) 406 Amortization 687 1,098 Depreciation 1,099 950 Stock-based compensation 1,429 2,167 Restructuring costs 3,444 1,984 Building exit costs 674 - Adjusted EBITDA 3,682$ 7,674$ Adjusted EBITDA margin 5.7% 11.1% Quarter Ended
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13© FranklinCovey Co. All rights reserved. Free Cash Flow APPENDIX (in Thousands and Unaudited)
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14© FranklinCovey Co. All rights reserved. Note: • The term Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock-based compensation, and certain other items) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP measure to the most comparable GAAP equivalent, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA. Enterprise Division Financial Summary APPENDIX Enterprise Q1 FY26 Q1 FY25 $ Δ % Δ LTM Q1 FY 26 LTM Q1 FY 25 $ Δ % Δ Revenue 47.5 51.6 (4.1) -8.0% 183.9 207.3 (23.3) -11.3% Gross Profit % 38.2 41.8 (3.6) -8.5% 150.3 171.4 (21.0) -12.3% Gross Profit % 80.5% 81.0% (49) bps 81.7% 82.7% (95) bps Operating SG&A 30.5 31.6 1.1 3.5% 120.3 119.0 (1.3) -1.1% Operating SG&A % 64.3% 61.3% 299 bps 65.4% 57.4% 802 bps Adjusted EBITDA 7.7 10.2 (2.5) -24.2% 30.0 52.4 (22.4) -42.7% Adjusted EBITDA % 16.2% 19.7% (347) bps 16.3% 25.3% (896) bps (in Millions and Unaudited)
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15© FranklinCovey Co. All rights reserved. Enterprise Division Subscription & Related Revenue APPENDIX (in Millions and Unaudited) Note: Amounts might not total due to rounding Q1FY26 contains $1.6M of services revenue included in non - subscription revenue that historically would have been recorded in subscription services revenue. This is related to a large IP contract that converted from a subscription to non - subscription in Q4FY24 but continues to be a large strategic client. On a normalized basis, if this client would have remained a subscription account, the attach rate in Q1FY26 would have been 55%. Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 LTM Q1 FY 25 LTM Q1 FY 26 Subscription Revenue $26.4 $25.1 $25.0 $25.6 $25.2 $105.9 $100.9 Subscription Service Revenue 14.6 11.0 14.9 14.0 12.2 58.3 52.1 Total Subscription and Subscription Service Revenue 41.0 36.1 39.9 39.6 37.4 164.2 153.0 Subscription Related Services Attach Rate 55% 44% 60% 55% 48% 55% 52% Non-Subscription Revenue 10.6 7.5 7.3 6.1 10.0 43.1 30.9 Total Enterprise Revenue $51.6 $43.6 $47.3 $45.7 $47.5 $207.3 $183.9 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 LTM Q1 FY 25 LTM Q1 FY 26 North America Sales $40.1 $34.5 $37.1 $35.9 $36.3 163.2 143.7 International Sales $11.4 $9.0 $10.2 $9.8 $11.2 44.1 40.2 Total Enterprise Division $51.6 $43.6 $47.3 $45.7 $47.5 207.3 183.9
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16© FranklinCovey Co. All rights reserved. Note: • The term Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock-based compensation, and certain other items) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP measure to the most comparable GAAP equivalent, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA. Education Division Financial Summary APPENDIX (in Millions and Unaudited) Education Q1 FY26 Q1 FY25 $ Δ % Δ LTM Q1 FY 26 LTM Q1 FY 25 $ Δ % Δ Revenue 16.1 16.5 (0.4) -2.2% 74.2 75.8 (1.5) -2.0% Gross Profit % 9.9 10.4 (0.5) -4.8% 47.2 48.5 (1.2) -2.6% Gross Profit % 61.6% 63.2% (167) bps 63.6% 64.0% (34) bps Operating SG&A 10.8 10.1 (0.7) -6.9% 40.2 38.5 (1.8) -4.5% Operating SG&A % 67.4% 61.6% 576 bps 54.2% 50.8% 341 bps Adjusted EBITDA (0.9) 0.3 (1.2) -455.7% 7.0 10.0 (3.0) -30.0% Adjusted EBITDA % -5.8% 1.6% (743) bps 9.4% 13.2% (375) bps
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17© FranklinCovey Co. All rights reserved. O THER I NCOME S TATEMENT I NFORMATION : • Depreciation: $4.1M in FY2025, expected to total approximately $4.5M in FY2026. • Amortization: $4.4M in FY2025, expected to total approximately $3.0M in FY2026. • Net Interest Income: $0.4M in FY2025 and Net Interest Income expected to total approximately $0.3M in FY2026. • Effective Tax Rate: Our normalized future effective tax rate is expected to eventually be 28% to 32%, before unusual permanen t b ook/tax differences. Our current estimate of the effective tax rate for fiscal 2026 is approximately 35%. O THER I NFORMATION : • Capital Expenditures: $8.3M in FY2025, expected to total approximately $5M to $7M in FY2026. • Capitalized Curriculum excluding acquired content: $7.6M in FY2025, expected to total approximately $8M to $10M in FY2026. • Share Count: 11,990k shares outstanding as of November 30, 2025. The Company’s share count may increase due to the vesting a nd exercise of share - based awards and purchases by Employees under our Employee Stock Purchase Plan and decrease due to the company buying back shares. • The impact of FX on Revenue in the first quarter of 2026 was a $0.1M increase to Revenue and had no impact on Adjusted EBITDA . All the above - mentioned estimates are subject to change, perhaps materially, based on actual events and circumstances in the yea r. Other Information APPENDIX
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18© FranklinCovey Co. All rights reserved. • “Deferred Revenue” primarily consists of billings or payments received in advance of revenue being recognized from subscripti on and services. Deferred revenue is recognized as revenue as the recognition criteria are met. AAP contracts are generally invoiced in annual installments upon execution of a co ntract and are recognized over the term of the contract as subscription revenue. Executive coaching contracts are also invoiced in installments, the length depending upon t he nature of the contract, and is recognized over the term of the contracts also as subscription revenue. Committed Services contracts are non - cancellable and non - refundable contract s for training or materials in which payment is due in accordance with our normal terms from the signing of the contracts rather from the delivery of the services and materi als and is recognized as the performance obligations are satisfied as subscription service revenue. With the Leader in Me offering, the contract includes both membership and Onsi te consulting which can be invoiced to the client in one lump sum. In this circumstance, the entire lump sum is included in Deferred Revenue. The Education Deferred Revenue related to the LIM is recognized as revenue over the life of the contract whereas the consulting is recognized when the consulting takes place. As these obligations are satisfied , t he revenue is classified as subscription revenue in the tables included in this presentation. The deferred revenue balance is influenced by several factors, including seasonality, t he compounding effects of renewals, contract duration, invoice timing and contract size. ` • “Unbilled Deferred Revenue” is an operational measure that represents future billings under our non - cancelable subscription agre ements that have not been invoiced and accordingly are not recorded in our recognized revenue or deferred revenue. • “Invoiced” is the sum of reported Net Revenue plus the change in Deferred Revenue reported on the balance sheet (a portion of wh ich is recorded as a current liability and a portion as a long - term liability and represents the amount of billings during the period). We typically invoice our customers annually upon execution of the contract or subscription renewals. Our clients frequently prepay for products and services, which prepayment is included in amounts invoiced and corre spo nding Deferred Revenue. Invoiced amounts does not include items such as deposits that are generally refundable at the client’s request prior to the satisfaction of th e p erformance obligation. • “Contracted” is the sum of Invoiced Amounts plus the Change in Unbilled Deferred Revenue (not recorded on the balance sheet) and , as the term reflects represents, the total amount of contracts with customers that were entered into during the period. • “Subscription Services Revenue” is a sale which has been recognized from a client that has purchased training or materials in co nnection with or subsequently to entering into a subscription arrangement. This is in contrast to a Legacy sale which is generally training or materials for a client which h as not entered into a subscription arrangement. • “Operating SG&A” is non - GAAP financial measure. It generally excludes stock - based compensation, building exit costs related to vacating our prior corporate offices, and unusual or one - time charges. See the Reconciliation of Net Income or Loss to Adjusted EBITDA in additional financial information. Definitions APPENDIX
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19© FranklinCovey Co. All rights reserved. • “Adjusted EBITDA” (earnings before interest, income taxes, depreciation, intangible asset amortization, stock - based compensation , and certain other items) is a non - GAAP financial measure that the Company believes is useful to investors in evaluating its results. A reconciliation of “Adjusted E BIT DA,” to consolidated net income (loss), the most comparable GAAP financial measure is provided within this presentation. • “Free Cash Flow” is defined as GAAP calculated cash flows from operating activities less capitalized expenditures for purchas es of property and equipment, curriculum development, and content or license rights. • The Company references Adjusted EBITDA and Free Cash Flow in its decision making because it provides supplemental information th at facilitates consistent internal comparisons to the historical operating performance of prior periods and the Company believes it provides investors with grea ter transparency to evaluate operational activities and financial results. We are unable to provide a reconciliation of forward - looking estimates of non - GAAP Adjusted EBITDA or Fr ee Cash Flow to GAAP measures because certain information needed to make a reasonable forward - looking estimate is difficult to estimate and dependent on future events which m ay be uncertain or out of our control, including the amount of AAP contracts invoiced, the number of AAP contracts that are renewed, necessary costs to deliver our offerings suc h as unanticipated content development costs, and other potential variables. Accordingly, a reconciliation is not available without unreasonable effort. • “North America Revenue” consists of revenue generated by our direct offices in the United States and Canada, including govern men t Revenue. • “Constant Currency” Franklin Covey presents constant currency information to provide a framework for assessing how our underlyi ng business performed excluding the effect of foreign currency rate fluctuations. There are several approaches that an entity can take to calculate constant currency informa tion and Franklin Covey’s method may not be consistent with another entity’s constant currency calculation. To calculate this measure, Franklin Covey converts the actual m onthly results of our foreign operations, including the results of our International Licenses, into $USD at the respective prior year monthly exchange rate. The non - GAAP measure s hould not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with generally accepted accounting principles (GAAP ). Definitions continued APPENDIX
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