Franklin Covey Co reported a flat-to-low-single-digit revenue trajectory in Q2 F2026 (quarter ended Feb 28, 2026) with continued momentum in invoiced growth and a strategically important shift in go-to-market execution. Total revenue was $59.6 million, essentially flat versus the prior-year period, while invoiced amounts rose 5% year over year, supported by a 7% lift in Enterprise North America (NA) and a 7% increase in Enterprise International. Excluding government-related projects in NA, invoiced growth was 10%, underscoring the underlying demand strength for Franklin Covey’s blended services and advisory model. Education division accelerated, with revenue up 16% in the quarter and Education subscription revenue up 19%, illustrating meaningful demand for Leader in Me and related programs.
Management highlighted the firm’s “year of execution” for fiscal 2026 and reiterated confidence in delivering revenue and adjusted EBITDA guidance for the year, with an eye toward accelerated growth in fiscal 2027. Notably, the company generated free cash flow of $13.2 million in the quarter (two quarters year-to-date CFO of $16.4 million), supported by a stronger working capital profile (AR collections improved) and ongoing share repurchases (922k shares for $16.5 million in the quarter; ~1.6 million shares year-to-date for $28.1 million). The balance sheet remains solid with modest current liabilities, a net debt position of negative $12.88 million, and liquidity exceeding $76 million including a fully available $62.5 million revolver. Management reaffirmed guidance: 2026 revenue of $265–$275 million and adjusted EBITDA of $28–$33 million, with back-half revenue and EBITDA skewed toward Q4 as seasonality and the Education cycle drive a larger fourth quarter contribution. The company also emphasized AI-driven transformation as a growth vector, underscoring the lasting value of leadership, trust, and disciplined execution in an AI-enabled environment.