Core Insights - Allogene Therapeutics has selected standard fludarabine and cyclophosphamide (FC) as the lymphodepletion regimen for its ALPHA3 study evaluating cemacabtagene ansegedleucel (cema-cel) in first-line consolidation for large B-cell lymphoma (LBCL) [1][6] - The ALPHA3 trial has shifted to a randomized study design comparing cema-cel after standard FC lymphodepletion to observation, with a futility analysis expected in the first half of 2026 [4][6] Company Developments - The decision to close the arm testing FC plus ALLO-647 was made due to a Grade 5 adverse event attributed to ALLO-647, leading to a review of trial data and a shift in clinical strategy [2][3] - Allogene is advancing next-generation AlloCAR T product candidates using the proprietary Dagger® Platform Technology, which aims to minimize or eliminate the need for standard lymphodepletion [3][6] Clinical Trial Details - The ALPHA3 study is designed to treat over 60,000 patients annually for LBCL in the US, EU, and UK, with cema-cel positioned as a potential standard "7th cycle" treatment following initial chemotherapy [8] - The trial has over 50 clinical sites activated across the US and Canada, including community cancer centers and major academic institutions [4][6] Product Information - Cemacabtagene ansegedleucel (cema-cel) is an investigational anti-CD19 AlloCAR T™ product for LBCL, with oncology rights held by Allogene in the US, EU, and UK, and options for rights in China and Japan [7][9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2025 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-11107 FRANKLIN COVEY CO. (Exact name of registrant as specified in its charter) Utah 87-0401551 (I.R.S. ...

Core Insights - The article highlights that Franklin Covey Co. is experiencing a near-term earnings challenge as indicated in its Q3 financial report, but the company's strategic shift towards a subscription-based, data-rich learning ecosystem is expected to enhance its market position [1] Company Strategy - Franklin Covey Co. is realigning its sales strategy to support its transition to a subscription-driven model, which is anticipated to provide a more sustainable revenue stream and improve customer engagement [1] Market Position - The shift towards a data-rich learning ecosystem positions Franklin Covey Co. favorably in the market, potentially attracting more investors and customers who are looking for innovative learning solutions [1]

Group 1 - U.S. stock futures showed slight increases, with Dow futures up approximately 0.1% [1] - Franklin Covey Co. reported disappointing third-quarter results, leading to a significant drop in its stock price [1][2] - The company posted a quarterly loss of $0.11 per share, missing the analyst consensus estimate of a loss of $0.04 per share [2] - Quarterly sales for Franklin Covey were $67.121 million, which also fell short of the analyst consensus estimate of $67.491 million [2] - Following the earnings report, Franklin Covey shares fell by 10.1% to $21.72 in pre-market trading [2] Group 2 - Noah Holdings Limited saw its shares decline by 7.3% to $11.69 in pre-market trading [4] - Scage Future American Depositary Shares experienced a drop of 6.3% to $5.20 after a previous surge of over 34% [4] - Borr Drilling Ltd. shares fell by 4.7% to $2.01 following the announcement of a $100 million offering of approximately 50 million shares [4] - Lithium Argentina AG shares decreased by 4.7% to $2.23 after an 11% gain the previous day [4] - Bitmine Immersion Technologies, Inc. saw a decline of 4.6% to $55.81 after a 27% increase on Wednesday [4] - Northern Dynasty Minerals Ltd. shares dropped by 4.2% to $1.36 after a 4% decline the day before [4]

Financial Performance - Q3 FY25 - Revenue for Q3 FY25 was $67.1 million, within the guided range of $67 million to $71 million[9] - Adjusted EBITDA for Q3 FY25 was $7.3 million, beating the constant currency guidance by $0.3 million[9] - Q3 FY25 Adjusted EBITDA was $7.3 million, a decrease of 47.5% compared to $13.9 million in Q3 FY24[15, 27] - Q3 FY25 revenue was $67.1 million, a decrease of 8.5% compared to $73.4 million in Q3 FY24[15, 27] Financial Performance - YTD Q3 FY25 - Revenue for YTD Q3 FY25 was $195.8 million, a decrease of 3.6% compared to $203.1 million in YTD Q3 FY24[15, 27] - Adjusted EBITDA for YTD Q3 FY25 was $17.0 million, a decrease of 47.3% compared to $32.3 million in YTD Q3 FY24[15, 27] - YTD Q3 FY25 Free Cash Flows were $10.6 million, compared to $30.6 million in Q3 FY24 YTD[15] Guidance Update for FY25 - Updated revenue guidance for FY25 is $265 million to $275 million, a decrease of $10 million from the previous guidance[9] - EBITDA guidance for FY25 is $28 million to $33 million, a decrease of $2 million at the low end from the previous guidance[9] Enterprise Division - North America - Billed Deferred subscription Revenue Balance was $45.0 million, compared to $47.2 million in Q3 FY24[16] - Subscription Revenue was $20.9 million, compared to $22.0 million in Q3 FY24[16] - Revenue was $37.1 million, compared to $40.6 million in Q3 FY24[16] - Unbilled Deferred Revenue Balance was $56.4 million, compared to $64.4 million in Q3 FY24[16] - Subscription & Subscription Services Revenue was $33.7 million, compared to $35.9 million in Q3 FY24[16] Education Division - Invoiced Amounts were $15.0 million, compared to $19.0 million in Q3 FY24[23] - Subscription & Subscription Service Revenue was $17.8 million, compared to $18.2 million in Q3 FY24[23] - Revenue was $18.6 million, compared to $20.2 million in Q3 FY24[23] - Deferred Subscription Revenue Balance was $34.1 million, compared to $28.2 million in Q3 FY24[23] - Subscription revenue increased 13% and Deferred Revenue balance grew 21% in Q3[14]

Core Viewpoint - Franklin Covey reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of a loss of $0.08 per share, but down from $0.43 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +325.00%, with the company previously expected to post a loss of $0.11 per share but actually reporting a loss of $0.08, resulting in a surprise of +27.27% [2] - Revenues for the quarter ended May 2025 were $67.12 million, missing the Zacks Consensus Estimate by 0.34%, and down from $73.37 million year-over-year [3] - Over the last four quarters, the company has surpassed consensus EPS estimates three times but has topped consensus revenue estimates only once [2][3] Stock Performance - Franklin Covey shares have declined approximately 35.8% since the beginning of the year, contrasting with the S&P 500's gain of 5.4% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $79.88 million, and for the current fiscal year, it is $0.48 on revenues of $275.93 million [8] - The outlook for the consulting services industry, where Franklin Covey operates, is currently in the bottom 31% of over 250 Zacks industries, which may impact stock performance [9]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $67.1 million, down 9% year-over-year and 4% year-to-date, but up 13% sequentially [29] - Adjusted EBITDA was $7.3 million, exceeding expectations and higher than the top end of the guidance range of $4 million to $6.5 million [6][33] - Operating expenses increased to $53.5 million, primarily due to restructuring charges and increased selling, general, and administrative expenses [30] Business Line Data and Key Metrics Changes - The Enterprise Division generated 70% of total revenue, with revenue of $47.3 million, down from $51.9 million in the prior year [34] - The Education Division's revenue was $18.6 million, down 8% compared to the prior year, but subscription revenue grew 13% [39] - Adjusted EBITDA for the Education Division decreased to $2.1 million from $3.1 million last year due to lower revenue [39] Market Data and Key Metrics Changes - North America segment revenue was $37.1 million, a decrease of $3.5 million from the prior year, with subscription and subscription services revenue down 4% year-to-date [35] - International direct operations revenue was $7.5 million, a decrease of $1 million, primarily due to challenging business conditions in Asia and the UK [36] - The balance of billed deferred subscription revenue in North America was $45 million, down from $47.2 million in the prior year [36] Company Strategy and Development Direction - The company is focused on cost reductions while maintaining investments in growth initiatives, particularly in the Enterprise North America business [6][32] - A new Chief Marketing Officer has been appointed to accelerate marketing efforts and penetrate the total addressable market [22] - The company expects to grow its education business year-over-year despite uncertainties, with strong demand for its "Leader in Me" program [25][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and continue winning large deals [8][46] - The revised revenue guidance for the fiscal year is now between $265 million and $275 million, reflecting ongoing uncertainties and timing risks [9][42] - Management anticipates a meaningful increase in adjusted EBITDA and free cash flow in fiscal year 2026 due to cost reduction actions [43] Other Important Information - The company has completed cost reduction initiatives that are expected to yield annualized savings of $8 million in fiscal year 2026 [32] - The percentage of clients in multi-year contracts increased from 55% to 58%, indicating a strong client retention strategy [21] Q&A Session Summary Question: Can you share milestones regarding the enterprise division's performance? - Management highlighted the increase in new logos and expansion within existing clients, emphasizing the separation of sales teams for better focus [51][53] Question: What are the expectations for new school additions in the education division? - Management expects to meet or exceed the previous year's new school additions, citing the effectiveness of the "Leader in Me" solution [62][63] Question: Can you break down the guidance reduction by segment? - The reduction primarily stems from timing issues in service delivery and ongoing uncertainties affecting enterprise clients [65][68] Question: How does the company foresee the current environment impacting fiscal year 2026? - Management is planning for continued scrutiny of budgets and tariffs, but remains committed to navigating through these challenges [74][75] Question: What is the current adoption rate of AI service delivery? - Approximately 43% of clients are using the AI sales coach, with expectations for increased adoption as the technology evolves [85]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $67.1 million, down 9% year-over-year and 4% year-to-date, but up 13% sequentially [27] - Adjusted EBITDA was $7.3 million, exceeding expectations and down from $13.9 million in the prior year [30][31] - Gross margin remained strong at approximately 76.5% of revenue, flat year-over-year [27] - Operating expenses increased to $53.5 million, primarily due to restructuring charges and increased selling, general, and administrative expenses [28] Business Line Data and Key Metrics Changes - The Enterprise Division generated 70% of total revenue, with Q3 revenue at $47.3 million, down from $51.9 million in the prior year [32] - The Education Division's revenue was $18.6 million, down 8% year-over-year but grew 1% year-to-date [36] - Subscription revenue in the Education Division increased by 13% to $11.8 million [36] Market Data and Key Metrics Changes - The North America segment revenue was $37.1 million, a decrease of $3.5 million from the prior year, affected by government actions [33] - International direct operations revenue was $7.5 million, down $1 million due to challenging business conditions [34] - The number of multi-year contracts in North America increased from 55% to 58% [34] Company Strategy and Development Direction - The company is focused on cost reductions while maintaining investments in growth initiatives [5][6] - A new Chief Marketing Officer has been appointed to accelerate marketing efforts and penetrate the total addressable market [21] - The company expects to grow its education business year-over-year despite uncertainties [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain external environment affecting investment decisions and cost scrutiny [5] - Revised revenue guidance for the fiscal year is now between $265 million and $275 million, with adjusted EBITDA guidance widened to $28 million to $33 million [7][40] - Confidence remains in the fundamental strengths of the business and the potential for future growth [7] Other Important Information - The company has completed cost reduction initiatives that are expected to yield significant savings in the coming fiscal year [6][29] - Deferred subscription revenue increased by 7% year-over-year, indicating a strong foundation for future growth [31] Q&A Session Summary Question: Can you share milestones regarding the enterprise division's performance? - Management noted improvements in new logo sales and expansion within existing clients, with a focus on off-cycle expansion opportunities [50][52] Question: What are the expectations for new school additions in the education division? - Management expects to meet or exceed the previous year's new school additions, citing strong demand for their solutions [60][61] Question: Can you break down the guidance reduction by segment? - The reduction primarily stems from timing issues in service delivery and ongoing uncertainty affecting enterprise clients [63][66] Question: How do you foresee the current environment impacting fiscal 2026? - Management is planning for continued scrutiny of budgets and uncertainty in the enterprise level due to tariffs and other factors [70][71] Question: What is the current status of deferred revenue growth relative to total revenue growth? - Management explained that deferred revenue growth is driven by invoiced amounts from prior years, and they expect future growth to translate into reported revenue [73][78] Question: What is the adoption rate of AI service delivery among clients? - Approximately 43% of clients are using the AI sales coach, with expectations for continued growth in this area [81]

13907 S. Minuteman Drive, Suite 500 Draper, Utah 84020 www.franklincovey.com Exhibit 99.1 Press Release FRANKLIN COVEY REPORTS THIRD QUARTER FISCAL 2025 FINANCIAL RESULTS Consolidated Revenue for the Third Quarter of $67.1 Million within Guidance Range Adjusted EBITDA of $7.3 Million Exceeds Guidance; After $4.7 Million of Restructuring Costs Net Loss Totals $1.4 Million Deferred Subscription Revenue of $89.3 Million, up 7% Year-over-Year Liquidity Remains Strong at over $95 Million, with $33.7 Million of C ...

Group 1 - Franklin Covey Co. is set to release its third-quarter earnings results on July 2, with analysts expecting earnings of 13 cents per share, a decrease from 46 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $67.49 million, down from $73.37 million a year earlier [1] - Dariusz Paczuski has been appointed as the Chief Marketing Officer of Franklin Covey as of June 10 [1] Group 2 - Franklin Covey shares increased by 0.3%, closing at $23.38 [2] - Barrington Research analyst Alexander Paris has maintained an Outperform rating with a price target of $35, while Roth MKM analyst Jeff Martin reiterated a Buy rating with a price target of $50 [4]