FRANKLIN COVEY CO

Capital Structure and Liquidity Franklin Covey's liquidity position is high, with a current ratio of 0.63, indicating that current liabilities exceed current assets. The company has $13.72 million in cash and equivalents, and a free cash flow of $13.59 million in Q2 2026. The market cap is $282.76 million, with a market price of $23.93 per share. The enterprise value to revenue ratio is 2.18, suggesting a relatively low valuation compared to revenue. ## Profitability and Returns Franklin Covey reported a net loss of $5.27 million in Q2 2026, with an operating loss of $5.65 million. The return on equity is -13.85%, and the return on assets is -2.55%, indicating poor profitability. The company's debt-to-equity ratio is 0.0, suggesting no leverage, but this also implies a lack of financial leverage to boost returns. ## Segments and Geographic Exposure Franklin Covey operates in multiple segments, including North America, International Licensees, International Direct Office, and Education Practice. The company's geographic exposure is not explicitly detailed, but it operates in the Americas, Asia-Pacific, and Europe, Middle East, and Africa. The revenue concentration across these regions is not specified, but the company's offerings are described as being available globally. ## Growth Trajectory The company's growth trajectory is not explicitly detailed in the provided data. However, the operating loss and net loss suggest a challenging period. The company has implemented restructuring plans in FY 2025, which may impact future growth. The outlook for the current and next fiscal years is not provided, but the company's focus on improving human behavior and organizational results may drive long-term growth. ## Risk Factors Franklin Covey faces medium dilution risk, with source documents mentioning dilution or offering risk. The company's liquidity is high, but the current liabilities exceeding current assets pose a risk. The restructuring plans and potential dilution from equity offerings are key risk factors. The company's reliance on a few key products and geographic regions may also pose concentration risks. ## Recent Events Recent events include the implementation of restructuring plans in FY 2025, which involved cost-cutting measures across segments. The company also adopted new accounting standards, including ASU 2023-09 and ASU 2024-03, to enhance financial disclosures. These changes may affect the company's financial reporting and transparency.