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Franklin Covey Co. (NYSE: FC) is a global leadership company dedicated to improving individual and organizational performance through behavior change. The company provides world-class content, tools, and services designed to help clients achieve sustained superior results. Its offerings include subscription-based services, training programs, and educational solutions, delivered through scalable and flexible platforms to clients in over 160 countries.
- Direct Offices - Provides sales and services to clients in the United States and Canada, international direct sales offices, government services, and book and audio sales.
- Education Practice - Focuses on improving performance and culture in educational institutions, including elementary schools, high schools, and colleges.
- International Licensees - Generates royalty revenues from independently owned international licensees operating in approximately 150 countries and territories.
- Corporate and Other - Includes leasing operations, shipping and handling revenues, royalty revenues from Franklin Planner Corp., and administrative functions.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Paul S. Walker ExecutiveBoard | President and CEO | None | Began at FC in 2000; held various leadership roles, including EVP of Global Sales and Delivery; became CEO on July 1, 2023. Led digital transformation initiatives like the All Access Pass. | View Report → |
Stephen D. Young Executive | Chief Financial Officer | None | Joined FC in 2001; became CFO in 2002. Over 40 years of accounting experience; CPA with a degree in Accounting from BYU. | |
Anne H. Chow Board | Lead Independent Director | Board Member at 3M and CSX; Founder/CEO of The Rewired CEO; Adjunct Professor | Former CEO of AT&T Business; recognized as one of Fortune's Most Powerful Women in Business. Expertise in leadership and strategy. | |
Craig Cuffie Board | Independent Director | Group Chief Procurement Officer at HSBC; Board Member at Emburse | Former EVP/Chief Procurement Officer at Salesforce; expertise in supply chain and procurement. Member of FC's Audit and Growth Committees. | |
Derek C.M. van Bever Board | Independent Director | Faculty at Harvard; Director of Forum for Growth and Innovation | Senior Lecturer at Harvard Business School; co-authored "Stall Points"; expertise in business growth and innovation. | |
Donald J. McNamara Board | Independent Director | Founder/Chairman of The Hampstead Group; Senior Advisor to TPG Real Estate | Over 35 years of investment experience; financial expert on FC's Audit Committee. Founder of The Hampstead Group. | |
Efrain Rivera Board | Independent Director | Board Member at Jones Lang LaSalle | Former CFO at Paychex; expertise in finance, accounting, and corporate governance. Member of FC's Audit Committee. | |
Joel C. Peterson Board | Independent Director | Faculty at Stanford; Founding Partner of Peterson Partners; Board Member at Packsize | Co-founded The Advisory Board Company; former Chairman of JetBlue Airways; teaches at Stanford Business School. Expertise in entrepreneurship and strategy. | |
Nancy Phillips Board | Independent Director | EVP/Chief People Officer at Paramount | Former CHRO at Nielsen and Broadcom; expertise in HR strategy and diversity. Chair of FC's Organization and Compensation Committee. | |
Robert A. Whitman Board | Chairman of the Board | None | Former CEO (2000–2021); transitioned to Executive Chairman (2021–2023); now solely Chairman. Extensive experience in finance and private equity. |
- Considering the $16 million incremental growth investments leading to a projected decline in adjusted EBITDA for fiscal 2025, what specific risks do you foresee that could prevent these investments from yielding the anticipated double-digit revenue growth in the following years?
- With the reorganization of your sales force into "expanders" and "hunters," how will you mitigate potential disruptions during this transition, and what strategies are in place to ensure that both teams can achieve their goals without negatively impacting existing customer relationships or new client acquisitions?
- Despite increasing average revenue per client from $39,000 to $85,000, you mentioned that you're only about 10% penetrated within most clients; what challenges have hindered deeper penetration, and how will your new investments specifically address these obstacles to drive further growth?
- Given the end of ESSER funding in September and its impact on your Education division, how confident are you in replacing this funding to prevent revenue declines, and what specific initiatives beyond grants and corporate partnerships are you implementing to sustain or grow revenue in this segment?
- Despite significant investments and a strong fourth-quarter performance, your revenue guidance for fiscal 2025 is only a midpoint growth of approximately 4.5%; can you explain why growth isn't expected to be higher and what factors might affect your ability to achieve the future revenue targets of 10%, 12%, and 14% growth in subsequent years?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Strive Talent, Inc. | 2021 | Deal Value & Structure: Completed on April 26, 2021, the acquisition had an aggregate consideration potentially reaching $20.0 million with a mix of immediate cash, deferred and contingent earn-out payments. Strategic Rationale & Business Fit: Franklin Covey acquired the San Francisco-based technology company to enhance its All Access Pass subscription by integrating advanced learning deployment capabilities. Key Capabilities/Assets: The deal secured a platform generating $7.0 million in goodwill and $8.0 million in intangible assets from its technology. |
Recent press releases and 8-K filings for FC.
- Stephen D. Young steps down as CFO effective May 1, 2025 after 24 years of service, continuing as a senior advisor through August 31, 2025.
- Jessica Betjemann is appointed as CFO effective May 1, 2025, with a base salary of $450,000 and eligibility for performance-based incentives.
- A. Derek Hatch is named Chief Accounting Officer, Controller, and Treasurer effective May 1, 2025, with a base salary of $280,000 and corresponding bonus opportunities.
- On April 2, 2025, Franklin Covey released its Q2 Fiscal 2025 results, reporting $59.6M in revenue (or $60.1M constant currency) and adjusted EBITDA of $2.1M, compared to $61.3M in Q2 FY24 .
- Revised fiscal guidance now projects annual revenue between $275–285M and adjusted EBITDA between $30–33M, driven by government-related contract cancellations and international headwinds .
- External challenges impacted performance with revenue effects of $5M in Government, $4M in International, $3M in Education, plus an additional $3M impact for the year .
- Deferred subscription revenue increased by 10% to $94.4M, while liquidity remained strong with over $100M available (including $40.4M in cash) and Free Cash Flow was approximately $7.8M .
- A new go-to-market strategy in North America is driving record new logo wins and high multi-year contract renewals, supporting long-term growth .
- Franklin Covey executed a share repurchase program, buying 250,772 shares for $8.7M in Q2 and 396,540 shares for $14.7M year-to-date; an earnings conference call is scheduled for April 2, 2025 .