Franklin Covey Hits $267.1M Revenue, Boosts AI & Global Reach

TL;DR

**FC is making smart moves with AI and global expansion, but they need to prove these investments will translate into significant bottom-line growth against fierce competition.**

AI Summary

Franklin Covey Co. (FC) reported consolidated net revenue of $267.1 million for the fiscal year ended August 31, 2025, driven by its organizational performance improvement solutions. The company's business is structured into two divisions: the Enterprise Division, which sells solutions like the All Access Pass (AAP) to corporations and governments, and the Education Division, focused on the Leader in Me membership for educational institutions. Key strategic initiatives included significant investments in content and delivery platforms, such as revisions to "The 7 Habits of Highly Effective People" and new Leader in Me content, along with the acquisition of a license for "The Teacher Believed in Me" content in fiscal 2024. Franklin Covey also opened a new direct office in France in early fiscal 2025, converting from a licensee partnership to enhance growth. The company is actively integrating Artificial Intelligence (AI) into its platforms to improve solutions and client engagement, anticipating increased scale and impact. Risks include evolving competition from major consulting firms and HR tech providers, and the need for continuous innovation in content and delivery models.

Why It Matters

Franklin Covey's strategic pivot towards subscription-based offerings like the All Access Pass and Leader in Me membership, coupled with significant AI integration, positions it to capture a larger share of the estimated $400 billion global corporate training market. For investors, this indicates a focus on recurring revenue and scalable growth, potentially enhancing long-term value. Employees and customers benefit from enhanced digital tools and content, including the new AI Coach, which deepens learning and application. The move to direct operations in France also signals a commitment to expanding global market presence, intensifying competition with established players like McKinsey & Company and Deloitte in the organizational performance sector.

Risk Assessment

Risk Level: medium — The company faces significant competition from large consulting firms like McKinsey & Company and Deloitte, as well as specialized leadership development organizations and HR-technology providers. The rapid evolution of AI also presents both opportunities and risks, requiring continuous investment and adaptation to maintain a competitive edge, as highlighted by the filing's discussion of 'novel technologies—particularly artificial intelligence (AI)—reshape delivery models.'

Analyst Insight

Investors should monitor FC's subscription growth rates and the tangible impact of its AI investments on client engagement and revenue per client. Evaluate the success of the new France direct office and future international expansions as indicators of effective global strategy execution.

Financial Highlights

debt To Equity

N/A

revenue

$267.1 million

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $267.1 million — Consolidated Net Revenue (For the fiscal year ended August 31, 2025)
• $349.5 million — Aggregate Market Value of Common Stock (Held by non-affiliates as of February 28, 2025)
• 12,155,832 — Shares of Common Stock Outstanding (As of October 31, 2025)
• 1,120 — Associates Worldwide (Mostly full-time employees)
• $188 billion — Estimated U.S. Corporate Training Expenditures (According to Training Industry's 2025 State of the Industry Report)
• $400 billion — Estimated Global Corporate Training Expenditures (According to Training Industry's 2025 State of the Industry Report)
• $39 billion — Estimated U.S. Spending on Human Resource Consulting (According to IBIS World)
• $2 billion — Estimated U.S. External Curriculum Budgets (Addressable market for Education solutions)
• 706 — Trademarks (Claimed in the United States and foreign countries)
• 265 — Registered Copyrights (Owned by the company)

Key Players & Entities

• FRANKLIN COVEY CO (company) — Registrant
• FC (company) — Ticker symbol
• New York Stock Exchange (regulator) — Exchange where common stock is traded
• Dr. Stephen R. Covey (person) — Founder of Covey Leadership Center
• Hyrum W. Smith (person) — Co-founder in productivity and time management
• McKinsey & Company (company) — Competitor in Enterprise Division
• Deloitte (company) — Competitor in Enterprise Division
• Accenture (company) — Competitor in Enterprise Division
• The 7 Habits of Highly Effective People (company) — Flagship content offering
• The Teacher Believed in Me (company) — Content license acquired in fiscal 2024

FAQ

Risk Factors

• Evolving Competition [medium — market]: Competition from major consulting firms and HR tech providers poses a risk. The company needs to continuously innovate its content and delivery models to stay competitive in the evolving market.
• Need for Continuous Innovation [medium — operational]: The company's success depends on its ability to continuously innovate in content and delivery models. Failure to adapt to changing client needs and technological advancements could impact growth.
• Integration of AI [medium — operational]: While AI integration is a strategic initiative, the successful and effective implementation of AI into platforms to improve solutions and client engagement is critical. Challenges in integration could hinder anticipated scale and impact.

Industry Context

Franklin Covey operates in the large and growing corporate training and human resource consulting markets, estimated at $188 billion and $39 billion in the U.S., respectively. The company's Education Division also addresses an estimated $2 billion U.S. market for external curriculum budgets. Key competitors include major consulting firms and HR technology providers, necessitating continuous innovation in content and delivery models.

Regulatory Implications

The company's operations are subject to general business regulations. While no specific regulatory risks are detailed in this section, maintaining compliance with data privacy laws and intellectual property rights is crucial given the nature of its content and client data.

What Investors Should Do

1. Monitor AI integration progress
2. Evaluate competitive landscape impact
3. Assess growth from France expansion

Key Dates

• 2025-08-31: Fiscal Year End — Reported consolidated net revenue of $267.1 million for the fiscal year.
• 2025-02-28: Stock Market Value Date — Aggregate market value of common stock held by non-affiliates was $349.5 million.
• 2025-10-31: Shares Outstanding Date — 12,155,832 shares of common stock were outstanding.
• 2025-01-01: France Office Opening — Opened a new direct office in France, converting from a licensee partnership to enhance growth.
• 2024-01-01: License Acquisition — Acquired a license for 'The Teacher Believed in Me' content.

Glossary

All Access Pass (AAP)

A subscription-based offering providing access to Franklin Covey's proprietary content, implementation tools, and assessments, primarily sold through the Enterprise Division. (A key revenue driver for the Enterprise Division, enabling clients to scale solutions.)

Leader in Me membership

A subscription membership designed specifically for educational institutions, offering Franklin Covey's solutions. (A core offering within the Education Division, targeting the education market.)

Enterprise Division

The division of Franklin Covey that sells organizational performance improvement solutions, including the All Access Pass, to corporations and governments. (Represents a significant portion of the company's business, serving corporate and government clients.)

Education Division

The division of Franklin Covey focused on providing solutions, such as the Leader in Me membership, to educational institutions. (Targets the education sector with specialized offerings.)

Year-Over-Year Comparison

The provided text focuses on the fiscal year ended August 31, 2025, and does not contain comparative data from the previous fiscal year. Therefore, a direct comparison of key metrics like revenue growth, margin changes, or the introduction of new risks cannot be made based on this excerpt.

Key Financial Figures

• $31.98 — ich was based upon the closing price of $31.98 per share as reported by the New York S
• $267.1 million — scal year ended August 31, 2025 totaled $267.1 million and our shares of common stock are trad
• $188 billion — nditures are estimated at approximately $188 billion (about $400 billion globally). IBIS Wor
• $400 billion — ed at approximately $188 billion (about $400 billion globally). IBIS World estimates U.S. sp
• $39 billion — an Resource Consulting at approximately $39 billion. In addition, our offerings address ope
• $2 billion — curriculum budgets (estimated at around $2 billion in the U.S.) as well as funding from st

Filing Documents

• fc-20250831x10k.htm (10-K) — 6260KB
• fc-20250831xex21.htm (EX-21) — 6KB
• fc-20250831xex23.htm (EX-23) — 3KB
• fc-20250831xex31_1.htm (EX-31.1) — 16KB
• fc-20250831xex31_2.htm (EX-31.2) — 18KB
• fc-20250831xex32.htm (EX-32) — 13KB
• fc-20250831x10kg001.jpg (GRAPHIC) — 24KB
• 0000886206-25-000085.txt ( ) — 24727KB
• fc-20250831.xsd (EX-101.SCH) — 80KB
• fc-20250831_cal.xml (EX-101.CAL) — 93KB
• fc-20250831_def.xml (EX-101.DEF) — 271KB
• fc-20250831_lab.xml (EX-101.LAB) — 629KB
• fc-20250831_pre.xml (EX-101.PRE) — 575KB
• fc-20250831x10k_htm.xml (XML) — 6986KB

Business

Business 4 Item 1A

Risk Factors

Risk Factors 13 Item 1B Unresolved Staff Comments 23 Item 1C Cybersecurity 23 Item 2

Properties

Properties 24 Item 3

Legal Proceedings

Legal Proceedings 24 Item 4 Mine Safety Disclosures 26 PART II 26 Item 5 Market for the Registrant's Common Equity, Related Shareholder Maters, and Issuer Purchases of Equity Securities 26 Item 6 Reserved 27 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 45 Report of Independent Registered Public Accounting Firm PCAOB ID No. 34 45 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 83 Item 9A

Controls and Procedures

Controls and Procedures 83 Item 9B Other Information 84 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84 PART III 84 Item 10 Directors, Executive Officers and Corporate Governance 84 Item 11

Executive Compensation

Executive Compensation 85 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85 Item 13 Certain Relationships and Related Transactions, and Director Independence 85 Item 14 Principal Accountant Fees and Services 86 PART IV 86 Item 15 Exhibits and Financial Statement Schedules 86 Item 16 Form 10-K Summary 88

Signatures

Signatures 89 3 Table of Contents PART I Disclosure Regarding Forward-Looking Statements This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and such forward-looking statements involve risks and uncertainties. Statements about future revenues, costs, margins, cost savings, foreign currency exchange rates, earnings, cash flows, initiatives, strategy, objectives, targets, expectations, growth, or profitability are forward-looking statements based on management's estimates, assumptions, and projections. Words such as "could," "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," and variations on such words, including similar expressions, are used to identify these forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed in this, and other reports, filed by us with the Securities and Exchange Commission (SEC) and elsewhere. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Risks, uncertainties, and other factors that might cause such differences, some of which could be material, include, but are not limited to, the factors discussed under the section of this report entitled "Risk Factors." Forward-looking statements in this report are based on management's current views and assumptions regarding future events and speak only as of the date when made. Franklin Covey Co. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. In t

. BUSINESS

ITEM 1 . BUSINESS General Information Franklin Covey is a global company focused on organizational performance improvement. Our mission is to "enable greatness in people and organizations everywhere," and our global structure is designed to help individuals and organizations achieve results that require collective behavior change. From the foundational work of Dr. Stephen R. Covey in leadership and personal effectiveness, and Hyrum W. Smith in productivity and time management, we have developed deep expertise that extends to helping organizations and individuals achieve desired results through lasting behavioral change. We believe that our clients are able to utilize our content and offerings to create cultures which include high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders. The Company was incorporated in 1983 under the laws of the state of Utah, and we merged with the Covey Leadership Center in 1997 to form Franklin Covey Co. Our consolidated net revenue for the fiscal year ended August 31, 2025 totaled $267.1 million and our shares of common stock are traded on the New York Stock Exchange (NYSE) under the ticker symbol "FC." Our fiscal year ends on August 31 of each year. Unless otherwise noted, references to fiscal years apply to the 12 months ended August 31 of the specified year. The Company's principal executive offices are located at 13907 South Minuteman Dr., Suite 500, Draper, Utah 84020, and our telephone number is (801) 817 - 1776. Our website, where you can find information about us, is www.franklincovey.com . 4 Table of Contents Franklin Covey Services and Offerings Our mission is to "enable greatness in people and organizations everywhere." To accomplish this mission, we partner with senior executives and talent leaders to achieve breakthrough performance by engaging leaders and teams throughout an

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