Franklin Covey Co delivered a mixed QQ2 2025 operational performance: revenue declined modestly year over year as government-related disruptions and international headwinds weighed on top-line growth, while the company pressed forward with its North America enterprise go-to-market transformation and education services momentum. Management reaffirmed that the core engines of the business – North America enterprise and Education – remain durable, and emphasized that the growth investments (the $16 million incremental spend in North America) are intended to accelerate long‑term revenue growth and cash flow. The quarter highlighted meaningful progress in new logo acquisition and client expansion, even as near-term headwinds constrain EBITDA and net income. The company also signaled a one-year step back in near-term profitability with a path to substantial EBITDA and cash flow expansion in 2026 as the growth investments compound and revenue accelerates. Guidance was updated to revenue of $275–$285 million and adjusted EBITDA of $30–$33 million for the year, with third-quarter revenue/EBITDA guidance of $67–$71 million and $4–$6.5 million respectively, reflecting government-related revenue disruption and continuing investments. The long‑term thesis remains intact: a durable demand backdrop for leadership, execution, and productivity solutions, supported by multi-year contracts and a refreshed go-to-market engine. Investors should monitor pipeline momentum, new logo conversion, services attach rates to new logos, education demand trajectory, and the evolution of the cost structure as government-related headwinds abate or shift timing.