Franklin Covey Co. reported its financial results for the third quarter of fiscal 2025, ended May 31, 2025. Consolidated revenue for the quarter was $67.1 million, compared with $73.4 million in the third quarter of fiscal 2024, falling within the company's guidance range. Adjusted EBITDA for the quarter was $7.3 million, exceeding the high end of the company's internal expectations of $4 million to $6.5 million.
Despite the Adjusted EBITDA beat, the company reported a net loss of $1.4 million for the quarter, after accounting for $4.7 million in restructuring costs. Deferred subscription revenue increased 7% year-over-year to $89.3 million, and the company maintained strong client retention and a 60% Enterprise Division attachment rate, with multi-year contracts increasing to 62% of subscription revenue.
Franklin Covey updated its fiscal 2025 guidance, now expecting revenue in the range of $265 million to $275 million and Adjusted EBITDA between $28 million and $33 million. This revision reflects continued uncertainty impacting client decision-making and potential timing risks for service delivery. However, the company noted proactive cost reduction actions, which resulted in $3 million of savings in Q3 and are expected to yield $4 million in Q4, contributing to an annualized run rate savings of $8 million in fiscal 2026.
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