Franklin Covey Plunges 10.22% on Earnings Miss

On July 3, 2025, Franklin Covey's stock experienced a significant drop of 10.22% in pre-market trading, reflecting a challenging quarter for the company.

Franklin Covey reported a net loss of $1.4 million for its fiscal third quarter, equivalent to a loss of 11 cents per share. This financial setback was driven by increased operating expenses, which rose by $5.7 million compared to the previous year. The rise in expenses was attributed to restructuring charges and higher selling, general, and administrative (SG&A) costs.

The company's revenue for the third quarter of fiscal 2025 was $67.1 million, marking an 8.6% decrease from the $73.4 million reported in the same period last year. This decline in revenue was further highlighted by a 7.9% drop in subscription revenue, which fell to $31.7 million from $34.5 million in the previous year.

Despite the financial challenges, Franklin Covey's adjusted EBITDA for the quarter exceeded guidance, indicating some resilience in the company's operational efficiency. However, the overall performance was marred by a significant shortfall in earnings and revenue, which contributed to the stock's decline.