Jul. 2 at 8:18 PM
$FC Franklin Covey reports Q3 EPS (11c) vs 43c last year
Reports Q3 revenue
$67.1M, consensus
$67.49M. Paul Walker, President and Chief Executive Officer commented, "We are pleased that our third quarter revenue was in line with our expectation and that Adjusted EBITDA exceeded the high end of our range. We are now 180 days into the sales transformation of our Enterprise North America business, and despite an environment where uncertainty is prompting organizations to scrutinize costs, we continue to be confident in the actions we are undertaking to accelerate future growth.
In the third quarter we landed more new clients than we did a year ago. We also achieved robust expansion across a significant portion of our client base. Our client retention remained strong and consistent with previous quarters and historical trends. Our clients continue to find value and impact from our subscription services and our Enterprise Division attachment rate remained high at 60%.
Additionally, the percentage of our subscription revenue that is for multi-year periods increased to 62% in the third quarter. Our Education business also continues to be strong and we expect to achieve top and bottom-line growth for the full-year. As a result, we expect to accelerate future revenue growth and in turn achieve significant growth in Adjusted EBITDA and Free Cash Flow in fiscal 2026 and beyond."
