Greatness Starts Here We transform organizations by building exceptional leaders, teams, and cultures that get results. INVESTOR UPDATE First Quarter Fiscal 2026 This presentation contains forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . Forward -looking statements are based upon management's current expectations and are subject to various risks and uncertainties including, but not limited to : The ability of the Company to grow revenues; The acceptanc ...

Revenue Performance - Consolidated revenue for Q1 FY2026 was $64.0 million, down from $69.1 million in Q1 FY2025, reflecting a decrease of approximately 4% year-over-year[5] - Enterprise Division revenue totaled $47.5 million, a decline from $51.6 million in the prior year, impacted by a $3.9 million decrease in North America segment revenue[5] - Consolidated revenue for the quarter ended November 30, 2025, was $64,045 million, a decrease of 7.4% from $69,086 million in the same quarter of 2024[23] Profitability - The company reported a net loss of $3.3 million, or $(0.27) per share, compared to a net income of $1.2 million, or $0.09 per diluted share, in Q1 FY2025[5] - Adjusted EBITDA for Q1 FY2026 was $3.7 million, down from $7.7 million in the prior year, reflecting a margin of 5.7% compared to 11.1%[5][21] - Adjusted EBITDA for the consolidated segment was $3,682 million, a significant decline of 52.0% compared to $7,674 million in the prior year[23] - Net income for the quarter was a loss of $3,289 million, compared to a profit of $1,181 million in the same quarter of 2024[27] Cash and Liquidity - Cash and cash equivalents totaled $17.5 million, a decrease from $53.3 million as of November 30, 2024[10] - Free cash flow for the quarter was negative at $(3,652) million, compared to positive $11,391 million in the same quarter of 2024[27] - Cash and cash equivalents decreased to $17,525 million from $31,698 million, a decline of 44.5%[25] Deferred Revenue and Customer Deposits - Deferred subscription revenue rose to $100.2 million, up 5% year-over-year[5] - Deferred revenue decreased to $96,010 million from $106,534 million, a decrease of 9.9%[25] - The company reported a significant increase in customer deposits, rising to $24,971 million from $16,327 million, an increase of 53.5%[25] Guidance and Future Outlook - Fiscal 2026 guidance includes total revenue expected in the range of $265 million to $275 million and Adjusted EBITDA in the range of $28 million to $33 million[11] - The company anticipates a return to growth in both revenue and Adjusted EBITDA in FY2026, driven by its go-to-market transformation and cost reduction actions[7] Assets and Liabilities - Total current assets decreased to $109,024 million from $129,477 million, reflecting a decline of 15.9%[25] - Total liabilities decreased to $167,251 million from $176,001 million, a reduction of 5.0%[25]

Franklin Covey Co. (NYSE:FC) will release earnings results for its first quarter after the closing bell on Wednesday, Jan. 7, 2025.Analysts expect the Draper, Utah-based company to report quarterly earnings at 13 cents per share, down from 20 cents per share in the year-ago period. The consensus estimate for Franklin Covey's quarterly revenue is $64.77 million, up from $69.09 million a year earlier, according to Benzinga Pro data.On Nov. 5, Franklin Covey posted mixed results for the fourth quarter.Shares o ...

Core Insights - Franklin Covey Co. is set to release its first-quarter earnings results on January 7, 2025, after market close [1] - Analysts predict earnings of 13 cents per share, a decrease from 20 cents per share in the same quarter last year [1] - The expected quarterly revenue is $64.77 million, down from $69.09 million year-over-year [1] - The company reported mixed results for the fourth quarter on November 5 [1] Stock Performance - Franklin Covey's shares fell by 0.8%, closing at $16.64 on the previous Friday [2] Analyst Ratings - Barrington Research analyst Alexander Paris maintains an Outperform rating with a price target of $22, reflecting an 80% accuracy rate [3] - Roth Capital analyst Jeff Martin has a Buy rating but reduced the price target from $30 to $27, with a 68% accuracy rate [3]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Franklin Covey, with a consensus outlook indicating a significant drop in revenues and earnings per share (EPS) for the quarter ending November 2025 [1][3]. Earnings Expectations - Franklin Covey is expected to report quarterly earnings of $0.03 per share, reflecting a year-over-year decrease of 66.7% [3]. - Revenues are projected to be $64.66 million, down 6.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 8% higher in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +50.00% suggests that analysts have recently become more optimistic about the company's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Franklin Covey currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Franklin Covey was expected to post earnings of $0.43 per share but delivered only $0.34, resulting in a surprise of -20.93% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - While Franklin Covey is positioned as a potential earnings-beat candidate, investors should consider other factors that may influence stock performance beyond just earnings results [15][17].

Core Viewpoint - Franklin Covey Co. will hold a conference call to discuss its first quarter 2026 financial results on January 7, 2026, at 5:00 p.m. ET [1] Financial Results Announcement - The financial results are expected to be released after the market closes on January 7, 2026 [1] - Interested parties can access a live webcast of the conference call [1]

Company Overview - Franklin Covey Co. (FC) is currently experiencing significant activity in the options market, particularly with the Jan 16, 2026 $15.00 Call option showing high implied volatility, indicating potential for a major price movement [1] Implied Volatility Insights - Implied volatility reflects market expectations for future price movements, suggesting that investors anticipate a significant change in Franklin Covey's stock price, possibly due to an upcoming event [2] Analyst Sentiment - Franklin Covey holds a Zacks Rank of 3 (Hold) within the Consulting Services industry, which is in the top 19% of the Zacks Industry Rank. Over the past 60 days, there have been no increases in earnings estimates for the current quarter, with two analysts lowering their estimates, resulting in a drop in the Zacks Consensus Estimate from 18 cents to 3 cents per share [3] Trading Strategy Implications - The high implied volatility surrounding Franklin Covey may indicate a developing trading opportunity. Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the stock does not move as much as anticipated [4]

Core Points - Firm Capital Mortgage Investment Corporation announced a special year-end cash dividend of $0.084 per share for 2025, bringing total dividends declared and paid for the year to $1.02 per share [2] - The monthly cash dividend for December 2025 is set at $0.078 per share, and combined with the special dividend, total cash dividends will amount to approximately $0.162 per share, payable on or about January 15, 2026 [3] - The board of directors has approved monthly cash dividends of $0.078 per share for Q1 2026, with specific payment dates outlined [4] Company Overview - Firm Capital Mortgage Investment Corporation operates as an investor in mortgages through Firm Capital Corporation, a non-bank lender that provides various financing options including residential and commercial real estate financing [5] - The company's investment objective focuses on preserving shareholders' equity while providing a stable stream of monthly dividends from investments in niche markets underserved by larger lending institutions [5] - The corporation aims to develop a diversified mortgage portfolio to produce stable returns for shareholders [5]

Franklin Covey FY Conference Summary Company Overview - **Company Name**: Franklin Covey (NYSE: FC) - **Business Model**: Transitioned from paper planners to a subscription-based model focused on leadership development and organizational performance improvement [1][2][3] Core Business Areas 1. **Leadership Development**: Partnering with organizations to enhance leadership skills at all levels [3][4] 2. **Interpersonal Effectiveness**: Improving team communication, collaboration, and accountability [3] 3. **Culture and Trust**: Enhancing organizational culture and trust levels [3] 4. **Strategy Execution**: Assisting organizations in aligning and executing their strategies [4] Financial Performance - **Revenue**: Reported $267 million in revenue, with $225 million from subscriptions and services [5][6] - **Gross Margin**: Approximately 82-83% overall, with near 100% margin on subscription revenue and about 65% on services [6] - **Adjusted EBITDA**: $29 million, down from $56 million the previous year [19] - **Free Cash Flow**: Generated about $250 million over the last 10 years, with 80-83% used for share buybacks [21] Strategic Changes - **Sales Transformation**: Invested $16 million to restructure the salesforce into dedicated hunters and farmers to improve account management and new client acquisition [17][19] - **Market Challenges**: Faced revenue decline due to external factors like DOGE and internal transitions, leading to a flattening of subscription growth [18][19] - **Future Expectations**: Anticipated growth in invoiced amounts and deferred revenue, expecting a return to higher revenue growth rates in fiscal 2027 [20][27] Subscription Model - **All Access Pass**: Subscription model sold on a per-head basis, with a one-year minimum commitment [4] - **Service Attach Rate**: For every dollar of subscription revenue, approximately $0.50 comes from professional services [5][40] - **Retention Rates**: Education division has an 85% retention rate, while enterprise client retention historically above 90% [50][51] Investment in Content and Technology - **Annual Investment**: Approximately 9-10% of prior year's revenue invested in content and technology development [4][44] - **New Solutions**: Recently launched solutions focused on AI leadership and cultural adaptation to AI [46][48] Market Position and Client Base - **Client Examples**: Notable clients include Marriott, which utilizes Franklin Covey's subscription for improving guest satisfaction [9][10] - **Education Market**: The Leader in Me program is used in about 8,000 schools, focusing on personal leadership skills for students [11][12] Conclusion - **Outlook**: The company is optimistic about future growth driven by recent strategic changes and investments in content and technology, with expectations for improved financial performance in the coming years [20][27]

Financial Performance - Consolidated net revenue for the fiscal year ended August 31, 2025, totaled $267.1 million[13] - Consolidated revenue for fiscal 2025 totaled $267.1 million, a decrease of 7% from $287.2 million in fiscal 2024[163] - Enterprise Division revenue in fiscal 2025 was $188.1 million, down 10% from $208.1 million in the prior year, primarily due to macroeconomic uncertainties[163] - Education Division revenue increased to $74.6 million, a growth of 1% compared to $74.2 million in fiscal 2024, driven by increased coaching and consulting revenue[163] - Consolidated subscription and subscription services revenues for fiscal 2025 totaled $225.9 million, a decrease of 2% from $231.8 million in fiscal 2024[163] - Net income for the year ended August 31, 2025, was $3.1 million, or $0.24 per diluted share, compared to $23.4 million, or $1.74 per diluted share, in fiscal 2024[167] - Adjusted EBITDA for fiscal 2025 was $28.8 million, down from $55.3 million in fiscal 2024, reflecting the impact of macroeconomic challenges[167] - Operating expenses in fiscal 2025 totaled $197.9 million, an increase of $9.8 million compared to $188.0 million in the prior year, primarily due to higher SG&A expenses[165] - The effective income tax rate for fiscal 2025 was approximately 49%, significantly higher than the 29% rate in fiscal 2024, due to increased valuation allowances and non-deductible executive compensation[166] Market and Growth Opportunities - The addressable market for U.S. corporate training expenditures is estimated at approximately $188 billion, with global spending around $400 billion[28] - A new direct office in France was opened in early fiscal 2025, transitioning from a licensee partnership to direct ownership, expected to boost revenue and operating income[26] - Significant investments in content and delivery platforms have been made, including revisions to flagship offerings and acquiring new content licenses[26] - The Company aims to continue investments in technology, content, and consulting expertise in fiscal 2026 and beyond[24] - Franklin Covey's AAP subscription service and Leader in Me membership have been consistently improved to enhance client experience and growth in subscription revenue[23] Employee Engagement and Culture - In fiscal 2025, FranklinCovey achieved a 77% favorable engagement score among associates, with 90% expressing pride in working for the company and 84% recommending it as a great workplace[45] - FranklinCovey's Winning Culture Survey indicated that the company's culture remains a significant competitive advantage, reinforcing employee engagement and performance[44] - The company conducted a comprehensive competitive compensation review for all executives in fiscal 2025 to align with market benchmarks and shareholder expectations[46] - FranklinCovey's Total Rewards approach emphasizes competitive compensation, benefits, and development opportunities to enhance engagement and retention[49] - The company implemented a Global Job Framework and market-based pay ranges for all roles, ensuring internal equity and external competitiveness[54] Risks and Challenges - The company faced adverse impacts on operations in fiscal 2025 due to governmental contracting actions, including contract postponements and cancellations[59] - The company is exposed to risks related to cybersecurity and information technology, which could have a material adverse effect on its business[91] - The company may face reputational damage due to negative claims or publicity, which could undermine consumer confidence and reduce long-term demand for its products[78] - The company has limited ability to protect its intellectual property rights, which are critical to its financial success[79] - Compliance with evolving global data protection laws, such as GDPR, poses risks that could lead to significant penalties and affect the company's operations[98] - The company faces intense competition in the training and consulting services industry, which may adversely affect its ability to attract new clients and retain existing ones[73] - The loss of governmental funding and contributions from charitable organizations could negatively impact the company's Education Division's growth and expansion into new schools[83] - Rising inflation may impact the company's operating results if it cannot pass increased costs onto clients[116] - Global operations expose the company to complex management and regulatory risks, which could adversely affect financial performance[117] - The company is subject to various legal proceedings that could materially harm its business and financial condition[113] - Operating in China presents political, legal, and economic risks that could adversely affect the company's operations and financial results[120] - Ineffective internal controls could lead to misstatements in financial reporting, negatively impacting business and operating results[123] Cash Flow and Financing - Cash at August 31, 2025, was $31.7 million, with no borrowings on the $62.5 million revolving credit facility, despite significant stock repurchases and capital expenditures[169] - Cash provided by operating activities decreased to $29.0 million in fiscal 2025 from $60.3 million in fiscal 2024, primarily due to lower operating income and a $5.9 million decrease in taxes payable[198][200] - Cash used for investing activities totaled $16.9 million in fiscal 2025, with $8.3 million spent on property and equipment and $7.6 million on content development[201][203] - Net cash used for financing activities in fiscal 2025 was $28.8 million, primarily for purchasing common stock totaling $26.4 million[205] - The company purchased $22.1 million of its common stock under a Board-approved plan through May 31, 2025, with a replenishment plan approved for an additional $50.0 million[206] - Total cash and cash equivalents, along with future cash flows, are expected to be sufficient for operations over the next 12 months[210] Strategic Initiatives - FranklinCovey is committed to continuous learning, providing associates with unlimited access to the All Access Pass for transformative learning experiences[57] - The company plans to launch the FC Leadership Academy to drive consistent development of individual contributors and leaders, ensuring long-term organizational capability[55] - The company's strategic recommendations from the Executive Design Session (EDS) process will guide its strategic direction for fiscal 2026 and beyond[53] - The company is focused on enhancing transparency and alignment through ongoing strategic dialogue campaigns across its operations[61] Technology and Innovation - The company has increased its dependence on sophisticated technologies and information systems, necessitating ongoing cash investments for service expansion and improvement[101] - Integration of AI technologies is a priority, but it poses business, compliance, and reputational risks, with potential costs for development and maintenance[102] - The company’s cybersecurity strategy is aligned with the NIST 800 Cybersecurity Framework, utilizing a layered approach to safeguard systems and client data[131] - The Audit Committee of the Board of Directors oversees cybersecurity risk management, receiving regular reports from the Chief Information Officer[135] Sustainability and Compliance - The company emphasizes the importance of sustainability and recognizes inherent climate-related risks that could impact operations and financial condition[126] - The company anticipates increasing regulations related to climate change, which may require significant resources and impact operational results[126]