$FC

FRANKLIN COVEY CO

CIK:0000886206|SEC Filings

Condensed Consolidated Statements of Operations and Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2026	May 31, 2025	May 31, 2026	May 31, 2025
Condensed Consolidated Statements of Operations and Statements of Comprehensive Income (Loss) [Abstract]
Revenue	$ 67,807	$ 67,121	$ 191,499	$ 195,819
Cost of revenue	17,710	15,799	47,755	46,040
Gross profit	50,097	51,322	143,744	149,779
Selling, general, and administrative	43,263	46,232	132,882	138,468
Restructuring costs	696	4,739	5,650	6,723
Building exit costs	143	444	1,272	498
Depreciation	1,185	1,012	3,424	2,979
Amortization	614	1,098	1,971	3,294
Income (loss) from operations	4,196	(2,203)	(1,455)	(2,183)
Interest income	24	211	169	765
Interest expense	(54)	(135)	(241)	(470)
Income (loss) before income taxes	4,166	(2,127)	(1,527)	(1,888)
Income tax benefit (provision)	(1,081)	718	(659)	584
Net income (loss)	$ 3,085	$ (1,409)	$ (2,186)	$ (1,304)
Net income (loss) per share:
Basic	$ 0.27	$ (0.11)	$ (0.19)	$ (0.1)
Diluted	$ 0.27	$ (0.11)	$ (0.19)	$ (0.1)
Weighted average number of common shares:
Basic	11,260	12,891	11,630	13,028
Diluted	11,451	12,891	11,630	13,028
COMPREHENSIVE LOSS
Net income (loss)	$ 3,085	$ (1,409)	$ (2,186)	$ (1,304)
Foreign currency translation adjustments, net of income taxes of $0, $0, $0, and $0	(8)	149	(138)	(95)
Comprehensive loss	$ 3,077	$ (1,260)	$ (2,324)	$ (1,399)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 31, 2026	May 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (2,186)	$ (1,304)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,395	6,273
Amortization of capitalized curriculum costs	4,078	3,269
Stock-based compensation	5,591	5,730
Deferred income taxes	33	12
Amortization of right-of-use operating lease assets	640	392
Gain on license obligation restructuring	(338)	0
Changes in assets and liabilities:
Decrease in accounts receivable, net	18,096	36,253
Increase in inventories	(640)	(42)
Decrease in prepaid expenses and other assets	4,329	2,429
Decrease in accounts payable and accrued liabilities	(4,105)	(9,931)
Decrease in deferred revenue and customer deposits	(12,022)	(15,756)
Decrease in income taxes payable/receivable	(734)	(7,662)
Decrease in other long-term liabilities	(661)	(624)
Net cash provided by operating activities	17,476	19,039
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(3,920)	(4,050)
Curriculum development costs	(5,079)	(4,095)
Reacquisition of license rights	0	(324)
Net cash used for investing activities	(8,999)	(8,469)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit borrowings	11,677	0
Payments on line of credit borrowings	(11,677)	0
Payments on notes payable	(835)	(835)
Principal payments on financing obligation	0	(2,890)
Purchases of common stock for treasury	(28,118)	(22,991)
Proceeds from sales of common stock held in treasury	876	1,103
Net cash used for financing activities	(28,077)	(25,613)
Effect of foreign currency exchange rates on cash and cash equivalents	(126)	87
Net decrease in cash and cash equivalents	(19,726)	(14,956)
Cash and cash equivalents at the beginning of the period	31,698	48,663
Cash and cash equivalents at the end of the period	11,972	33,707
Supplemental disclosure of cash flow information:
Cash paid for income taxes	429	7,050
Cash paid for interest	202	428
Non-cash investing and financing activities:
Acquisition of property and equipment and capitalized curriculum financed by accounts payable	1,079	751
Consideration for reacquired license rights from liabilities of seller	0	168
Acquisition of right-of-use operating lease assets for operating lease liabilities	310	6,256
Acquisition of content rights financed by accrued liabilities and other liabilities	$ 0	$ 678

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2026	Aug. 31, 2025
Current assets:
Cash and cash equivalents	$ 11,972	$ 31,698
Accounts receivable, less allowance for credit losses of $2,091 and $2,929	50,285	68,415
Inventories	5,804	5,165
Prepaid expenses and other current assets	23,745	24,199
Total current assets	91,806	129,477
Property and equipment, net	12,557	14,324
Intangible assets, net	31,843	34,551
Goodwill	31,220	31,220
Deferred income tax assets	242	231
Other long-term assets	30,342	33,109
Total assets	198,010	242,912
Current liabilities:
Current portion of notes payable	0	823
Accounts payable	6,424	8,780
Deferred revenue	92,950	106,534
Customer deposits	20,027	16,327
Accrued liabilities	20,728	24,828
Total current liabilities	140,129	157,292
Other liabilities	10,921	14,718
Deferred income tax liabilities	4,024	3,991
Total liabilities	155,074	176,001
Shareholders’ equity:
ommon stock, $0.05 par value; 40,000 shares authorized, 27,056 shares issued	1,353	1,353
Additional paid-in capital	229,260	230,251
Retained earnings	124,086	126,272
Accumulated other comprehensive loss	(1,170)	(1,032)
Treasury stock at cost, 15,756 shares and 14,565 shares	(310,593)	(289,933)
Total shareholders’ equity	42,936	66,911
Total liabilities and shareholders' equity	$ 198,010	$ 242,912