Franklin Covey(FC) - 2025 Q4 - Annual Results

Financial Performance - Consolidated revenue for Q4 FY2025 was $71.2 million, down from $84.1 million in Q4 FY2024, and FY2025 revenue totaled $267.1 million compared to $287.2 million in FY2024[3][4] - Net income for Q4 FY2025 was $4.4 million, or $0.34 per diluted share, a decrease from $12.0 million, or $0.89 per diluted share, in Q4 FY2024; FY2025 net income was $3.1 million, or $0.24 per diluted share, down from $23.4 million, or $1.74 per diluted share, in FY2024[4][5] - Adjusted EBITDA for Q4 FY2025 was $11.7 million, down from $22.9 million in Q4 FY2024, and for FY2025 it totaled $28.8 million compared to $55.3 million in FY2024[4][5] - Revenue for the quarter ended August 31, 2025, was $71,248,000, a decrease of 15.3% compared to $84,124,000 for the same quarter in 2024[17] - Net income for the fiscal year ended August 31, 2025, was $3,068,000, down 87.8% from $23,402,000 in 2024[17] - Adjusted EBITDA for the quarter ended August 31, 2025, was $11,717,000, representing a 48.9% decrease from $22,933,000 in the same quarter of 2024[19] - The Adjusted EBITDA margin for the quarter ended August 31, 2025, was 16.4%, down from 27.3% in the prior year quarter[19] Revenue Breakdown - Enterprise Division revenue for FY2025 was $188.1 million, down from $208.1 million in FY2024, impacted by a $15.8 million decrease in North America segment revenue[4][5] - Education Division revenue for FY2025 slightly increased to $74.6 million from $74.2 million in FY2024, driven by increased training and coaching revenue[4] - Revenue from the Enterprise Division for the quarter was $45,668,000, a decline of 21.5% from $58,225,000 in the same quarter of 2024[21] - North America revenue within the Enterprise Division decreased to $35,898,000 from $46,945,000, a drop of 23.5% year-over-year[21] Cash Flow and Assets - Cash and cash equivalents totaled $31.7 million as of August 31, 2025, down from $48.7 million a year earlier, with free cash flow for Q4 FY2025 at $1.5 million compared to $18.4 million in Q4 FY2024[4][5] - Free Cash Flow for the fiscal year ended August 31, 2025, was $12,089,000, a decrease of 75.7% compared to $48,947,000 in 2024[26] - Total current assets as of August 31, 2025, were $129,477,000, down from $160,253,000 in 2024, reflecting a decrease of 19.2%[24] - Total liabilities as of August 31, 2025, were $176,001,000, slightly down from $178,404,000 in 2024[24] - The company reported a decrease in cash and cash equivalents to $31,698,000 from $48,663,000, a decline of 34.8% year-over-year[24] Future Guidance - Guidance for FY2026 anticipates total revenue in the range of $265 million to $275 million and Adjusted EBITDA between $28 million and $33 million[6][9] - The company expects strong invoiced growth in FY2026, which will translate into meaningful revenue growth in FY2027[6] - The company completed $10 million in common stock repurchases during Q4 FY2025 and Q1 FY2026, purchasing approximately 168,000 shares for $3.3 million in Q4 FY2025[4][5]