📊 FC Key Takeaways
Is Franklin Covey Co (FC) a Good Investment?
Franklin Covey faces significant operational distress with operating income negative and net income deteriorating 86.9% YoY, while revenue remains flat. Although exceptional 75.1% gross margins and positive free cash flow demonstrate business model viability, the company's inability to convert strong unit economics into profitability, combined with a liquidity crisis (0.66x current ratio), signals urgent operational restructuring is needed.
Franklin Covey shows strong gross profitability, but that strength is not translating into operating earnings, net income, or free cash flow in the latest period. Flat revenue, a sharp drop in net income and EPS, weak liquidity, and negative interest coverage point to deteriorating earnings quality and limited financial flexibility unless margins and cash generation recover.
Franklin Covey Co Key Strengths (FC)
- Exceptional gross margin of 75.1% indicates strong pricing power, product quality, and competitive positioning in management services
- Positive free cash flow of $13.6M despite negative net income suggests working capital discipline and non-cash charges masking operational health
- Moderate debt-to-equity ratio of 0.44x provides restructuring flexibility without overleveraging concerns
- High gross margin of 75.5% indicates a strong underlying service and product mix
- Moderate balance sheet leverage with debt/equity of 0.35x limits long-term solvency risk
- Positive equity base of $54.01M provides some balance sheet support despite current losses
FC Stock Risks: Franklin Covey Co Investment Risks
- Profitability deterioration with net income down 86.9% YoY, operating income negative at -$1.5M, and negative interest coverage ratio of -6.0x creating debt service vulnerability
- Revenue stagnation at 0% YoY growth combined with inability to achieve profitability suggests structural business challenges, market saturation, or execution failure
- Severe liquidity crisis with current ratio of 0.66x and quick ratio of 0.61x indicating working capital deficit and potential covenant violations or debt refinancing risk
- Operating margin of -5.7% and net margin of -5.1% show the business is currently unprofitable
- Current ratio of 0.73x and quick ratio of 0.70x signal tight near-term liquidity
- Operating cash flow of only $98.00K and negative free cash flow indicate weak cash conversion and reduced financial flexibility
Key Metrics to Watch
- Operating margin trajectory toward profitability and quarterly improvement rates
- Revenue growth stabilization and return to positive YoY growth
- Current ratio and cash conversion cycle to assess liquidity crisis resolution
- Operating margin and net income recovery
- Operating cash flow and current ratio
Franklin Covey Co (FC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FC Profit Margin, ROE & Profitability Analysis
FC vs Services Sector: How Franklin Covey Co Compares
How Franklin Covey Co compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Franklin Covey Co Stock Overvalued? FC Valuation Analysis 2026
Based on fundamental analysis, Franklin Covey Co has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Franklin Covey Co Balance Sheet: FC Debt, Cash & Liquidity
FC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Franklin Covey Co's revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.24 reflects profitable operations.
FC Revenue Growth, EPS Growth & YoY Performance
FC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $67.1M | -$1.3M | $-0.10 |
| Q2 2026 | $59.6M | $105.0K | $0.01 |
| Q3 2025 | $67.1M | -$1.3M | $-0.10 |
| Q2 2025 | $59.6M | $105.0K | $0.01 |
| Q1 2025 | $64.0M | $1.2M | $0.09 |
| Q3 2024 | $71.4M | $4.6M | $0.32 |
| Q2 2024 | $61.3M | $874.0K | $0.06 |
| Q1 2024 | $68.4M | $4.7M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Franklin Covey Co Dividends, Buybacks & Capital Allocation
FC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Franklin Covey Co (CIK: 0000886206)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FC
What is the AI rating for FC?
Franklin Covey Co (FC) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FC's key strengths?
Claude: Exceptional gross margin of 75.1% indicates strong pricing power, product quality, and competitive positioning in management services. Positive free cash flow of $13.6M despite negative net income suggests working capital discipline and non-cash charges masking operational health. ChatGPT: High gross margin of 75.5% indicates a strong underlying service and product mix. Moderate balance sheet leverage with debt/equity of 0.35x limits long-term solvency risk.
What are the risks of investing in FC?
Claude: Profitability deterioration with net income down 86.9% YoY, operating income negative at -$1.5M, and negative interest coverage ratio of -6.0x creating debt service vulnerability. Revenue stagnation at 0% YoY growth combined with inability to achieve profitability suggests structural business challenges, market saturation, or execution failure. ChatGPT: Operating margin of -5.7% and net margin of -5.1% show the business is currently unprofitable. Current ratio of 0.73x and quick ratio of 0.70x signal tight near-term liquidity.
What is FC's revenue and growth?
Franklin Covey Co reported revenue of $191.5M.
Does FC pay dividends?
Franklin Covey Co does not currently pay dividends.
Where can I find FC SEC filings?
Official SEC filings for Franklin Covey Co (CIK: 0000886206) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FC's EPS?
Franklin Covey Co has a diluted EPS of $-0.19.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FC's fundamental grade?
Based on our AI fundamental analysis in August 2026, Franklin Covey Co has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FC stock overvalued or undervalued?
Valuation metrics for FC: ROE of -5.1% (sector avg: 16%), net margin of -1.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is FC's AI grade for 2026?
Our dual AI analysis gives Franklin Covey Co a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FC's free cash flow?
Franklin Covey Co's operating cash flow is $17.5M, with capital expenditures of $3.9M. FCF margin is 7.1%.
How does FC compare to other Services stocks?
Vs Services sector averages: Net margin -1.1% (avg: 10%), ROE -5.1% (avg: 16%), current ratio 0.66 (avg: 1.5).