Franklin Covey Co., trading as FranklinCovey and based in Salt Lake City, Utah, is a coaching company which provides training and assessment services in the areas of leadership, individual effectiveness, and business execution for organizations and individuals. The company was formed on May 30, 1997, as a result of merger between Hyrum W. Smith's Franklin Quest and Stephen R. Covey's Covey Leadership Center.3 Its shares trade on NYSE under the symbol FC.1Wikipedia text CC BY-SA 4.0
Franklin Covey Co., trading as FranklinCovey and based in Salt Lake City, Utah, is a coaching company which provides training and assessment services in the areas of leadership, individual effectiveness, and business execution for organizations and individuals. The company was formed on May 30, 1997, as a result of merger between Hyrum W. Smith's Franklin Quest and Stephen R. Covey's Covey Leadership Center. Among other products, the company has marketed the FranklinCovey planning system, modeled in part on the writings of Benjamin Franklin, and The 7 Habits of Highly Effective People, based on Covey's research into leadership ethics.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Where each dollar of operating cash went, fiscal 2025
Capital spendingShare buybacks
Capital spending24¢$8.3M
Share buybacks76¢$26.4M
Out of $29.0M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.5
Financial statements
Revenue9101112135$267.1M in 2025+27% since 2018Gross profit9101112135$203.6M in 2025+37% since 2018Operating income9101112135$5.7M in 2025Net income9101112135$3.1M in 2025
Revenue141516$67.8M in Q3 FY2026+6% since Q1 FY2025Gross profit141516$50.1M in Q3 FY2026+4% since Q1 FY2025Operating income141516$4.2M in Q3 FY2026Net income141516$3.1M in Q3 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.5
Period ending
2025-08-31
2024-08-31
2023-08-31
Revenue
$267.1M
$287.2M
$280.5M
Cost of revenue
$63.5M
$66.2M
$67.0M
Gross profit
$203.6M
$221.1M
$213.5M
Selling, general, and administrative
$182.7M
$175.9M
$178.0M
Restructuring costs
$6.7M
$3.0M
$565.0K
Impaired asset
$928.0K
Depreciation
$4.1M
$3.9M
$4.3M
Amortization
$4.4M
$4.2M
$4.3M
Income from operations
$5.7M
$33.0M
$26.4M
Interest income
$928.0K
$1.1M
$1.1M
Interest expense
-$565.0K
-$1.1M
-$1.6M
Income before income taxes
$6.1M
$33.0M
$25.9M
Income tax provision
-$3.0M
-$9.6M
-$8.1M
Net income
$3.1M
$23.4M
$17.8M
Basic
$0.24
$1.78
$1.30
Diluted
$0.24
$1.74
$1.24
Basic
12.9M shares
13.2M shares
13.6M shares
Diluted
13.1M shares
13.5M shares
14.3M shares
Foreign currency translation adjustments, net of income tax provision of $(21), $(11), and $(80)
-$264.0K
$219.0K
-$445.0K
Comprehensive income
$2.8M
$23.6M
$17.3M
Foreign currency translation adjustments, income taxes
-$21.0K
-$11.0K
-$80.0K
No quarter-by-quarter statement was filed.
Total assets179101112135$242.9M in 2025+14% since 2018Total liabilities179101112135$176.0M in 2025+32% since 2018Shareholders’ equity179101112135$66.9M in 2025−17% since 2018Cash18111012135$31.7M in 2025+212% since 2018
Total assets151614$198.0M in Q3 FY2026−18% since Q2 FY2025Total liabilities151614$155.1M in Q3 FY2026−12% since Q2 FY2025Shareholders’ equity151614$42.9M in Q3 FY2026−36% since Q2 FY2025Cash151614$12.0M in Q3 FY2026−62% since Q2 FY2025
Every line of the balance sheet as filed: the last 4 fiscal years (annual) or 4 quarters (quarterly), latest first.5
Period ending
2025-08-31
2024-08-31
2023-08-31
2022-08-31
Cash and cash equivalents
$31.7M
$48.7M
Accounts receivable, less allowance for credit losses of $2,929 and $3,015
$68.4M
$86.0M
Inventories
$5.2M
$4.0M
Prepaid expenses
$5.1M
$5.1M
Other current assets
$19.1M
$16.5M
Total current assets
$129.5M
$160.3M
Property and equipment, net
$14.3M
$8.7M
Intangible assets, net
$34.6M
$37.8M
Goodwill
$31.2M
$31.2M
Deferred income tax assets
$231.0K
$870.0K
Other long-term assets
$33.1M
$22.7M
Total assets
$242.9M
$261.5M
Current portion of notes payable
$823.0K
$835.0K
Current portion of financing obligation
$3.1M
Accounts payable
$8.8M
$7.9M
Deferred subscription revenue
$106.5M
$101.2M
Customer deposits
$16.3M
$17.0M
Accrued liabilities
$24.8M
$32.5M
Total current liabilities
$157.3M
$162.5M
Notes payable, less current portion
$775.0K
Financing obligation, less current portion
$1.3M
Other liabilities
$14.7M
$10.7M
Deferred income tax liabilities
$4.0M
$3.1M
Total liabilities
$176.0M
$178.4M
Common stock, $0.05 par value; 40,000 shares authorized, 27,056 shares issued
$1.4M
$1.4M
Additional paid-in capital
$230.3M
$231.8M
Retained earnings
$126.3M
$123.2M
Accumulated other comprehensive loss
-$1.0M
-$768.0K
Treasury stock at cost, 14,565 shares and 14,084 shares
-$289.9M
-$272.5M
Total shareholders equity
$66.9M
$83.1M
Total liabilities and shareholders' equity
$242.9M
$261.5M
Allowance for credit losses
$2.9M
$3.0M
$3.8M
$4.5M
Common stock, par value
$0.05
$0.05
Common stock, shares authorized
40.0M shares
40.0M shares
Common stock, shares issued
27.1M shares
27.1M shares
Treasury stock, shares
14.6K shares
14.1K shares
Period ending
2025-08-31
2024-08-31
2023-08-31
2022-08-31
Cash and cash equivalents
$31.7M
$48.7M
Accounts receivable, less allowance for credit losses of $2,929 and $3,015
$68.4M
$86.0M
Inventories
$5.2M
$4.0M
Prepaid expenses
$5.1M
$5.1M
Other current assets
$19.1M
$16.5M
Total current assets
$129.5M
$160.3M
Property and equipment, net
$14.3M
$8.7M
Intangible assets, net
$34.6M
$37.8M
Goodwill
$31.2M
$31.2M
Deferred income tax assets
$231.0K
$870.0K
Other long-term assets
$33.1M
$22.7M
Total assets
$242.9M
$261.5M
Current portion of notes payable
$823.0K
$835.0K
Current portion of financing obligation
$3.1M
Accounts payable
$8.8M
$7.9M
Deferred subscription revenue
$106.5M
$101.2M
Customer deposits
$16.3M
$17.0M
Accrued liabilities
$24.8M
$32.5M
Total current liabilities
$157.3M
$162.5M
Notes payable, less current portion
$775.0K
Financing obligation, less current portion
$1.3M
Other liabilities
$14.7M
$10.7M
Deferred income tax liabilities
$4.0M
$3.1M
Total liabilities
$176.0M
$178.4M
Common stock, $0.05 par value; 40,000 shares authorized, 27,056 shares issued
$1.4M
$1.4M
Additional paid-in capital
$230.3M
$231.8M
Retained earnings
$126.3M
$123.2M
Accumulated other comprehensive loss
-$1.0M
-$768.0K
Treasury stock at cost, 14,565 shares and 14,084 shares
-$289.9M
-$272.5M
Total shareholders equity
$66.9M
$83.1M
Total liabilities and shareholders' equity
$242.9M
$261.5M
Allowance for credit losses
$2.9M
$3.0M
$3.8M
$4.5M
Common stock, par value
$0.05
$0.05
Common stock, shares authorized
40.0M shares
40.0M shares
Common stock, shares issued
27.1M shares
27.1M shares
Treasury stock, shares
14.6K shares
14.1K shares
Cash from operations9101112135$29.0M in 2025+72% since 2018Capital spending9101112135$8.3M in 2025+26% since 2018Free cash flow9101112135$20.7M in 2025+101% since 2018Share buybacks9101112135$26.4M in 2025+1215% since 2018
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.5
Period ending
2025-08-31
2024-08-31
2023-08-31
Net income
$3.1M
$23.4M
$17.8M
Depreciation and amortization
$8.5M
$8.2M
$8.6M
Amortization of capitalized curriculum development costs
$4.4M
$3.2M
$3.1M
Deferred income taxes
$1.5M
$1.9M
$4.7M
Stock-based compensation expense
$5.8M
$10.1M
$12.5M
Impaired asset
$928.0K
Change in the fair value of contingent consideration liabilities
$7.0K
Amortization of right-of-use operating lease assets
$610.0K
$760.0K
$834.0K
Decrease (increase) in accounts receivable, net
$17.5M
-$3.8M
-$9.5M
Decrease (increase) in inventories
-$1.2M
$228.0K
-$692.0K
Increase in prepaid expenses and other assets
-$1.4M
-$1.4M
-$88.0K
Increase (decrease) in accounts payable and accrued liabilities
-$5.8M
$403.0K
-$9.5M
Increase in deferred revenue and customer deposits
$3.2M
$13.5M
$8.8M
Increase (decrease) in income taxes payable/receivable
-$5.9M
$3.5M
-$195.0K
Decrease in other liabilities
-$1.2M
-$554.0K
-$687.0K
Net cash provided by operating activities
$29.0M
$60.3M
$35.7M
Purchases of property and equipment
-$8.3M
-$3.7M
-$4.5M
Capitalized curriculum development costs
-$7.6M
-$6.9M
-$9.0M
Acquisition of license/content rights
-$1.1M
-$750.0K
Net cash used for investing activities
-$16.9M
-$11.3M
-$13.6M
Proceeds from term notes payable financing
$7.5M
Principal payments on notes payable
-$835.0K
-$5.8M
-$13.3M
Principal payments on financing obligation
-$3.1M
-$3.5M
-$3.2M
Purchases of common stock for treasury
-$26.4M
-$30.7M
-$35.6M
Payment of contingent consideration liabilities
-$736.0K
Cash paid for new secured credit agreement
-$393.0K
Proceeds from sales of common stock held in treasury
$1.5M
$1.5M
$1.5M
Net cash used for financing activities
-$28.8M
-$38.7M
-$44.2M
Effect of foreign currency exchange rates on cash and cash equivalents
-$273.0K
$141.0K
-$296.0K
Net increase (decrease) in cash and cash equivalents
-$17.0M
$10.4M
-$22.3M
Cash paid for income taxes
$7.7M
$4.2M
$3.3M
Cash paid for interest
$496.0K
$1.1M
$1.5M
Acquisition of property and equipment and capitalized curriculum financed by accounts payable and accrued liabilities
$3.3M
$1.0M
$548.0K
Consideration for reacquired license rights from liabilities of seller
$168.0K
Acquisition of content rights financed by accounts payable and other liabilities
FranklinCovey sits at the top of its group. 14 entities, 11 countries on record. Switch between the flow chart and the network, and select any entity to see its details.
Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What FranklinCovey reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
During the fourth quarter of fiscal 2025, we relocated our principal executive offices to a new site in Draper, Utah. The new executive office occupies approximately 26,000 square feet of leased space that is accounted for as an operating lease. The lease on the new headquarters expires in March 2036 and includes two five-year renewal options that may be exercised at our discretion. This facility accommodates our executive team and corporate administration, as well as other professionals and is utilized by personnel in both our Enterprise and Education Divisions. We also occupy leased sales and administrative offices in various countries around the world, which are accounted for as operating leases:
Banbury, England
The rest of Item 2
Tokyo, Japan
China: Beijing and Shanghai
We consider our existing facilities to be in good condition and suitable for our current and expected level of operations in the upcoming fiscal year and in future periods.
Franklin Quest and the Covey Leadership Center operated independently until January 22, 1997, when the two companies jointly announced a merger and public offering valued at $160 million.
After the merger, the company had 117 retail stores in 37 states and an international presence with stores in Canada (3) Mexico (1), and Hong Kong (1). The stores were renamed Franklin Covey 7 Habits Stores, redesigned, and stocked with 300 new products, including software and devices.
The company held naming rights to a minor league baseball stadium in Salt Lake City, Utah from 1994 to 2009, when the name changed from Franklin Covey Field to Smith's Ballpark.
In 1998, the company's chairman Hyrum W. Smith was appointed to a two-year term on the board of directors of the United States Chamber of Commerce.
By 2005, the company had closed its chain of 185 retail stores and its products division. After redefining itself as a "performance improvement company," it had 590 employees in the U.S., Canada, Britain, Australia, and Japan, while also operating through licensees in over 130 other countries.
Now operating as a training and consulting company, Franklin Covey reported revenues of $280.5 million U.S. dollars for (FY2023).
In 2008, FranklinCovey's CEO, Bob Whitman, changed the company's direction by selling off its paper products business and shifting focus to in-person training sessions and live-online training through the internet. The spinoff of the paper planner business became known as FC Organizational Products and maintains a contract with FranklinCovey as the authorized licensee of the brand name. Together the two companies still maintain one retail location, located at FranklinCovey's corporate campus in Salt Lake City.
FranklinCovey has more recently focused on various in-person and live-online training for individuals and organizations, ranging from leadership development training, business execution planning, sales performance, and individual effectiveness training. Typically, the company will correspond their products with book launches written by FranklinCovey consultants or industry thought leaders. The company's core training products it remains known for is The 7 Habits of Highly Effective People, Leading at the Speed of Trust, and The 4 Disciplines of Execution.
The LeaderInMe program is a "whole school transformation model and process" based around Covey's work. As of 2024, there were LeaderInMe schools in the Guatemala, Jordan, Malaysia, Mexico, the Philippines, the Netherlands, Qatar, Taiwan, Vietnam, the United Kingdom and every state in the United States. According to the Center for Research and Reform in Education at Johns Hopkins University, students at schools using the program reported that teachers were "nicer" and that discipline problems had declined.
The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.
Acquisitions
Hyrum W. Smith, then the CEO of Franklin Quest, expected that the 1997 acquisition would increase market value through the synergistic combination of Covey's 7 Habits book with the Franklin Planner system and with the company's associated training courses. However, after the merger FranklinCovey's stock price dropped from around $20 per share to a low of under $1 per share by early 2003. As of June 1, 2006, it traded around $7 per share which has increased their purchase rate. From late 2009 to mid-2010, the stock price moved in the range $5.5 to $8. The merger was criticized in the business press for "bloated bureaucracy, poor planning, and internal bickering."
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
239 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 52 major events, 134 insider forms, 21 large holders, 12 other. The latest 20:
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed Nov 12, 2025 (Section 12(b) of the Exchange Act).19
Risk factors and legal proceedings
The risks FranklinCovey names in Item 1A of its 10-K filed Nov 12, 2025: 29 risks under these headings, as written.19
Training Industry and Strategic Risks
We operate in an intensely competitive industry and our competitors may develop programs, services, or courses that adversely affect our ability to sell our offerings.
Our business depends on renewals of subscription-based offerings and sales of new subscription-based services for a significant portion of our revenue, and our failure to renew at historical rates or generate new sales of such offerings will lead to a decrease in our revenues.
Failure to maintain our reputation, brand image, and culture could negatively impact our business.
We have only a limited ability to protect our intellectual property rights, which are important to our success.
The loss of governmental funding and contributions from charitable organizations could harm our Education Division’s ability to grow and expand into new schools in the future.
We depend on key personnel, the loss of whom could harm our business.
If we are unable to attract, retain, and motivate high-quality employees, including sales personnel and training consultants, we may not be able to grow our business as projected or may not be able to compete effectively.
Our work with governmental clients exposes us to additional risks that are inherent in the government contracting process.
Some terminology, language, or content in our offerings may be deemed offensive by certain individuals due to rapidly changing societal norms, which may cause damage to our brand or reputation.
Cybersecurity and Information Technology Risks
The All Access Pass and Leader in Me subscription services are internet-based platforms, and as such we are subject to increased risks of cyber-attacks and other security breaches that could have a material adverse effect on our business.
The other 19 risks
We could incur additional liabilities and our reputation could be damaged if we do not protect client data or if our information systems are breached.
Technology is rapidly evolving, and if we do not continue to develop and improve our offerings and technology platforms, in response to these changes, our business could suffer.
Our use of AI technologies may not be successful and may present business, compliance, and reputational risks.
Public Company Risks
We may fail to meet analyst expectations, which could cause the price of our stock to decline.
Our business performance may not be sufficient for us to meet the financial guidance that we provide publicly.
Our future quarterly operating results are subject to factors that can cause fluctuations in our stock price.
Liquidity and Capital Resource Risks
We may need additional capital in the future, and this capital may not be available to us on favorable terms or at all.
Failure to comply with the terms and conditions of our credit facility may have an adverse effect upon our business and operations.
We may not be able to generate sufficient cash to service our indebtedness, and we may be forced to take other actions to satisfy our payment obligations under our indebtedness, which may not be successful.
General Business Risks
Adverse resolution of litigation may harm our operating results or financial condition.
Unstable market and economic conditions may have serious adverse consequences on our business, financial condition, and operations.
Our results of operations may be adversely impacted by the costs of persistent and rising inflation if we are unable to pass these costs on to our clients.
Our global operations pose complex management, foreign currency, legal, tax, and economic risks, which we may not adequately address.
Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business.
We have operations in China, which exposes us to risks inherent in doing business in that country.
The Company’s use of accounting estimates involves judgment and could impact our financial results.
Ineffective internal controls could impact our business and operating results.
Extreme weather conditions and natural disasters could negatively impact our operating results and financial condition.
The impacts of climate change and related regulatory responses could adversely affect our business.
Legal proceedings
From time to time, we are the subject of certain legal actions, which we consider routine to our business activities. Information regarding material legal proceedings can be found in Note 9, Commitments and Contingencies, of the Notes to the Consolidated Financial Statements, included in Item 8 of this report and is incorporated herein by reference.
