Franklin Covey Surges Ahead in Q2 2026: Revenue and Adjusted EBITDA Growth Fuel Expectations for Accelerated Growth
Franklin Covey, a leading provider of leadership development solutions, reported strong revenue and adjusted EBITDA growth in its second quarter 2026 earnings call. The company's CEO, Paul Walker, highlighted the momentum in Enterprise North America, which makes up more than 50% of total company sales.
Invoiced amounts in the quarter grew 5%, driven by 7% growth in Enterprise North America, with 10% growth when excluding government business. This was largely due to a reduction in federal spending. The company also saw 7% growth in Enterprise International and expects invoice growth to remain strong through the balance of the year.
The growth in Enterprise North America was broad-based, with strong sales of subscription and services to new logos, continued retention, and meaningful client expansion. Services bookings also continue to be strong, up 9% for the year as of this week. This reinforces the importance clients place on the business outcomes Franklin Covey helps them achieve.
Deferred subscription revenue grew 16% year-over-year, and the percentage of revenue under multiyear contracts increased to 62%, reflecting client confidence in Franklin Covey's long-term partnerships.
In a rapidly changing business environment, leaders are working to accelerate results while navigating uncertainty and disruption. Franklin Covey continues to be sought out as a key partner in addressing the human side of strategy, execution, change management, including related to clients' implementation of AI and achieving measurable performance transformation.
The company's international business delivered strong performance, with invoiced amounts growing 7%, particularly in direct offices where invoiced amounts grew 14%. Education revenue also grew 16% in the quarter, driven by demand for Leader in Me services and materials.
Franklin Covey remains confident in achieving its full-year revenue and Adjusted EBITDA guidance and in the strength of the foundation being built for accelerated growth in fiscal 2027. The company's CEO emphasized that this momentum is expected to continue through the second half of the fiscal year.
