Franklin Covey(US:FC)2026-01-07 21:16Revenue 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]