On this page of StockholderLetter.com we present the latest annual shareholder letter from FRANKLIN COVEY CO — ticker symbol FC. Reading current and past FC letters to shareholders can bring important insights into the investment thesis.

 •  12/19/2025 Letter Continued (Full PDF)
 •  12/19/2023 FC Stockholder Letter
 •  12/20/2024 FC Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  FC Benford's Law Stock Score = 68

FC Shareholder/Stockholder Letter Transcript:

Deep roots.
Bold future.
Annual Report 2025

Mission Statement
We enable greatness in people and
organizations everywhere.
Vision
Our vision is to profoundly impact the way
billions of people throughout the world live,
work, and achieve their own great purposes.
To Be the Workplace of Choice
for Achievers With Heart, We Value:
The Whole Person
Lasting Client Impact
We embrace the uniqueness and diversity
of each individual and cultivate a culture
of belonging.
We care deeply about our clients and helping
them achieve their own great purposes.
The Principles We Teach
The Pursuit of Growth
We believe in universal principles of
effectiveness and strive to model what
we teach.
We are committed to meaningful growth   
as individuals and as an organization.

TABLE OF CONTENTS
Letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page
2
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Proxy Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65
Management   s Discussion and Analysis . . . . . . . . . . . . . . . . .
92
Report of Independent Registered Public Accounting Firm . .
109
Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . .
112
Notes to Consolidated Financial Statements . . . . . . . . . . . . .
116
Corporate Information . . . . . . . . . . . . . . . . . . . . .
Inside Back Cover

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Letter to Shareholders
Franklin Covey 2025 Annual Report
Paul S. Walker
Chief Executive Officer
Jessica G. Betjemann
Chief Financial Officer
Dear Fellow Shareholders,
At FranklinCovey, our work centers on a simple but vital truth: the greatest determinant of organizational
performance is how people work together. Even as technology transforms the world of work     and AI accelerates that
change     leaders everywhere continue to face challenges that ultimately depend on human behavior: aligning teams,
building trust, driving execution, navigating disruption, and scaling what works across entire organizations.
This is the space where FranklinCovey excels. We are a breakthrough-results partner to leaders who must achieve
outcomes through the collective action of their people. Leaders in organizations of all sizes and across every industry
rely on our solutions to help them build the capabilities necessary to deliver on their most important goals. That
relevance has grown even stronger amid today   s uncertainty, where our clients tell us that high trust, focused
execution, collaboration, and accountability are more essential than ever.
Our solutions, including The 4 Disciplines of Execution, Speed of Trust, 7 Habits of Highly Effective People, Leader in
Me, and our leadership frameworks deliver enduring impact. They generate measurable results at scale, supported by
our technology-enabled Impact Platform, our global teams of expert delivery consultants, and our expanding use of
AI-enabled coaching and reinforcement. This combination differentiates us as one of the few true performance
partners in our industry.
As AI reshapes how work gets done, its rise has only elevated the importance of the human capabilities at the center of
our work. AI can automate processes and surface insights, but it cannot replace the judgment and collaboration
required for organizations to achieve breakthrough performance. Many of the world   s most advanced companies,
including those leading the AI revolution, are turning to FranklinCovey for this very reason: they recognize that even
with cutting-edge AI capabilities, their speed and success ultimately depend on how effectively their people work
together. We view AI not as a threat, but as an enabler that amplifies the impact of our solutions.
A Business Model Built for Resilience and Long-Term Growth
Even in this past year   s more difficult environment, the fundamentals of our business remained notably strong.
Our subscription-based model continues to anchor dependable recurring revenue. Client retention across both the
Enterprise and Education divisions remains high. Subscription services attachment remained strong, particularly in
North America. And our Education business, with a growing base of more than 8,000 schools, continues to
demonstrate resilience and demand for the outcomes Leader in Me creates.
These strong fundamentals give us confidence that the strategic path we are on will create meaningful long-term
value. The transformation investments we made in our Enterprise North America go-to-market plus our continued
investments in content and technology position us for meaningful growth in invoiced amounts this year, and sustained
growth in revenue, Adjusted EBITDA, and Free Cash Flow in the years ahead.
A Year of Transition Amid Unexpected External Factors
Fiscal 2025 was a year of transition and transformation. As we executed the final phase of our North America
go-to-market transformation     a planned initiative designed to accelerate growth for many years to come     a series of
unforeseen external factors created an unusually challenging environment for our clients and our business. These

Franklin Covey 2025 Annual Report
Letter to Shareholders
included tariff-related uncertainty, reductions in U.S. federal government spending, geopolitical pressures, and broad
economic caution across industries. These factors led many clients to slow decision-making, reduce spending, or delay
expansions particularly during the middle portion of our fiscal year.
As a result, fiscal 2025 revenue was $267.1 million, and Adjusted EBITDA was $28.8 million, both in line with the
guidance we provided in the third quarter. Subscription revenue remained stable, deferred revenue increased, and the
vast majority of our clients remained with us     a testament to the durable outcomes we help them achieve.
While the year   s results were below our original expectations, we exited fiscal 2025 with the transformation
completed, our teams aligned and fully ramped for the year ahead, and the conditions in place to return to growth in
fiscal 2026. We expect to generate meaningful growth in our invoiced amounts in fiscal 2026, with a portion of those
invoiced amounts building deferred revenue setting us up for even greater reported revenue growth in fiscal 2027 and
beyond. And as revenue grows, we expect to achieve strong operating leverage as we have in previous years with
strong flow through of incremental revenue to Adjusted EBITDA and Free Cash Flow.
Positioned for a Strong Future
The purpose that drives FranklinCovey and the impact we help our clients achieve has never been more relevant. Our
strategic foundation is solid: differentiated solutions, durable client partnerships, a resilient subscription model, and a
global delivery platform supported by technology and AI. We have a clear path to accelerating top-line growth,
increasing profitability, and expanding Free Cash Flow.
Most importantly, we have a team deeply committed to helping leaders around the world achieve breakthrough
results. Their expertise and dedication to our clients gives us tremendous conviction about our future.
To our shareholders, thank you for your continued trust and support. We remain committed to delivering exceptional
value for the clients we serve, the people we employ, and for you, our owners.
With gratitude and appreciation,
Paul S. Walker
Chief Executive Officer
Jessica G. Betjemann
Chief Financial Officer
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 12/19/2025 Letter Continued (Full PDF)