0000886206-25-000004 | 10-Q | XBRL Viewer

Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Segment Reporting Information [Line Items]
Sales to External Customers	$ 69,086	$ 68,399
Gross Profit	52,711	52,277
Adjusted EBITDA	7,674	10,969
Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	10,430	13,625
Operating Segments [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	51,579	52,446
Gross Profit	41,798	42,458
Adjusted EBITDA	10,164	13,515
Operating Segments [Member] \| Education Practice [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	16,464	14,891
Gross Profit	10,410	9,475
Adjusted EBITDA	266	110
Operating Segments [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	8,239	8,730
Gross Profit	6,113	6,613
Adjusted EBITDA	(224)	1,158
Operating Segments [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	3,203	3,423
Gross Profit	2,864	3,081
Adjusted EBITDA	1,644	1,916
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	1,043	1,062
Gross Profit	503	344
Adjusted EBITDA	(2,756)	(2,656)
North America [Member] \| Operating Segments [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	40,137	40,293
Gross Profit	32,821	32,764
Adjusted EBITDA	$ 8,744	$ 10,441

Segment Information (Reconciliation Of Adjusted EBITDA) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ 7,674	$ 10,969
Stock-based compensation	(2,167)	(2,897)
Restructuring costs	(1,984)	(581)
Depreciation	(950)	(1,091)
Amortization	(1,098)	(1,071)
Income from operations	1,475	5,329
Interest income	290	288
Interest expense	(178)	(341)
Income before income taxes	1,587	5,276
Income tax provision	(406)	(425)
Net income	1,181	4,851
Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	10,430	13,625
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ (2,756)	$ (2,656)

Basis Of Presentation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Basis Of Presentation [Abstract]
Restructuring charges	$ 1,984	$ 581

Revenue

3 Months Ended

Nov. 30, 2024

Revenue [Abstract]

Revenue

NOTE 3 – REVENUE

Contract Balances

Our deferred subscription revenue totaled $95.7 million at November 30, 2024, and $107.9 million at August 31, 2024, of which $6.8 million and $6.7 million were classified as components of other long-term liabilities at November 30, 2024 and August 31, 2024, respectively. During the quarter ended November 30, 2024, we recognized $36.9 million of previously deferred subscription revenue.

Deferred subscription revenue primarily consists of billings or payments received in advance of revenue being recognized from subscription services. Deferred revenue is recognized in revenue as the applicable revenue recognition criteria are met. We generally invoice customers in annual installments upon execution of a contract. The Leader in Me membership offering is bifurcated into a portal membership obligation and a coaching delivery obligation. We have determined that it is appropriate to recognize revenue related to the portal membership over the term of the underlying contract and to recognize revenue from coaching as those services are performed. The combined contract amount is recorded in deferred subscription revenue until the performance obligations are satisfied. Any additional coaching or training days which are contracted independent of The Leader in Me membership are recorded as revenue in accordance with our general policy for services and products as described in our Annual Report on Form 10-K for the fiscal year ended August 31, 2024.

Remaining Performance Obligations

Whenever possible, we enter into multi-year non-cancellable contracts which are invoiced either upon execution of the contract or at the beginning of each annual contract period. Remaining transaction price represents contracted revenue that has not yet been recognized, including unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price is influenced by factors such as inflation, the average length of the contract term, and the ability of the Company to continue to enter into multi-year non-cancellable contracts. At November 30, 2024, we had $168.7 million of remaining performance obligations, including our deferred subscription revenue. The remaining performance obligation does not include customer deposits, as these amounts are generally refundable at the client’s request prior to the satisfaction of the obligation.

‎

Disaggregated Revenue Information

Refer to Note 7, Segment Information, to these unaudited condensed consolidated financial statements for our disaggregated revenue information.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

Restructuring Costs

3 Months Ended

Nov. 30, 2024

Restructuring Costs Abstract]

Restructuring Costs

NOTE 5 – RESTRUCTURING COSTS

First quarter fiscal 2025 restructuring costs, which totaled $2.0 million, were for severance to approximately 35 associates who were impacted by sales force restructuring activities that started in fiscal 2024. In fiscal 2024, we began restructuring certain areas of our North America sales force to a more focused structure that is designed to drive additional sales growth in the future. In the first quarter of fiscal 2025, we started to expand this restructuring effort to certain areas of our International Direct Office segment. Approximately $1.6 million of the first quarter fiscal 2025 restructuring expense was attributable to the North America segment and $0.4 million was attributable to the International Direct Office segment. The remaining restructuring liability at November 30, 2024 totaled $1.1 million and is included in accrued liabilities on our consolidated balance sheet. The remaining accrued restructuring liabilities are expected to be paid in the second and third quarters of fiscal 2025.

Stock-Based Compensation

3 Months Ended

Nov. 30, 2024

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE 4 – STOCK-BASED COMPENSATION

Our stock-based compensation was comprised of the following for the periods presented (in thousands):



		Quarter Ended
		November 30,		November 30,
		2024		2023
Long-term incentive awards	$	1,679	$	2,464
Strive acquisition compensation		185		195
Unvested stock awards		240		180
Employee stock purchase plan		63		58
	$	2,167	$	2,897

During the quarter ended November 30, 2024, we issued 362,867 shares of our common stock under various stock-based compensation arrangements, including our employee stock purchase plan (ESPP). Our stock-based compensation plans allow shares to be withheld from the award to pay the participants’ statutory income tax liabilities. We withheld 145,768 shares of our common stock, with a fair value of $6.0 million, for statutory income taxes during the first quarter of fiscal 2025.

Annual Long-Term Incentive Performance and Retention Plan

We have a long-term equity incentive plan for client partners, managing directors, and certain other associates that we believe are critical to our long-term success. The number of shares granted to sales-related roles is generally based on the achievement of specified annual revenue goals while other awards are for an amount determined by the Organization and Compensation Committee of the Board of Directors. These awards are granted after the completion of each fiscal year and vest over a three-year service period, with one-third of the shares vesting on August 31 of each year following the grant. The number of shares awarded does not fluctuate and does not have any future performance metrics, only a three-year time-based service period. We granted a total of 92,930 unvested share units in the first quarter of fiscal 2025 to participants under the terms of this long-term incentive plan. The compensation cost of these awards is included in the long-term incentive awards category in the preceding table.

Employee Stock Purchase Plan

We have an ESPP that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85% of the average fair market value of our common stock on the last trading day of each fiscal quarter. During the quarter ended November 30, 2024, we sold 9,403 shares of our common stock to participants in the ESPP.

Stock-Based Compensation (Narrative) (Details) $ in Millions	3 Months Ended
	Nov. 30, 2024 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued from treasury stock	362,867
Shares withheld for tax	145,768
Shares withheld for tax, fair value \| $	$ 6.0
Annual Long Term Incentive Performance And Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards	3 years
Shares issued under terms of the award	92,930
Annual Long Term Incentive Performance And Retention Plan [Member] \| Vest August 31 Of Each Year Following Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of award shares vest	33.30%
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price of common stock as a percent of the average fair market value	85.00%
Shares issued to employee stock purchase plan participants	9,403
Time Based Award [Member] \| Annual Long Term Incentive Performance And Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards	3 years

Condensed Consolidated Income Statements And Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Condensed Consolidated Income Statements And Statements Of Comprehensive Income [Abstract]
Revenue	$ 69,086	$ 68,399
Cost of revenue	16,375	16,122
Gross profit	52,711	52,277
Selling, general, and administrative	47,204	44,205
Restructuring costs	1,984	581
Depreciation	950	1,091
Amortization	1,098	1,071
Income from operations	1,475	5,329
Interest income	290	288
Interest expense	(178)	(341)
Income before income taxes	1,587	5,276
Income tax provision	(406)	(425)
Net income	$ 1,181	$ 4,851
Net income per share:
Basic	$ 0.09	$ 0.37
Diluted	$ 0.09	$ 0.36
Weighted average number of common shares:
Basic	13,092	13,244
Diluted	13,271	13,636
COMPREHENSIVE INCOME
Net income	$ 1,181	$ 4,851
Foreign currency translation adjustments, net of income taxes of $0, and $0	(202)	51
Comprehensive income	$ 979	$ 4,902

Inventories

3 Months Ended

Nov. 30, 2024

Inventories [Abstract]

Inventories

NOTE 2 – INVENTORIES

Inventories are stated at the lower of cost or net realizable value, cost being determined using the first-in, first-out method, and were comprised of the following (in thousands):



		November 30,		August 31,
		2024		2024
Finished goods	$	3,828	$	4,002
Raw materials		-		-
	$	3,828	$	4,002

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Nov. 30, 2024	Dec. 31, 2024
Document And Entity Information [Abstract]
Document Type	10-Q
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2025
Document Quarterly Report	true
Document Period End Date	Nov. 30, 2024
Document Transition Report	false
Entity File Number	001-11107
Entity Registrant Name	FRANKLIN COVEY CO.
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	87-0401551
Entity Address, Address Line One	2200 West Parkway Boulevard
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84119-2099
City Area Code	801
Local Phone Number	817-1776
Title of 12(b) Security	Common Stock, $0.05 Par Value
Trading Symbol	FC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,195,664
Amendment Flag	false
Entity Central Index Key	0000886206

Stock-Based Compensation (Tables)

3 Months Ended

Nov. 30, 2024

Stock-Based Compensation [Abstract]

Total Cost Of Stock-Based Compensation



		Quarter Ended
		November 30,		November 30,
		2024		2023
Long-term incentive awards	$	1,679	$	2,464
Strive acquisition compensation		185		195
Unvested stock awards		240		180
Employee stock purchase plan		63		58
	$	2,167	$	2,897

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,181	$ 4,851
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,048	2,162
Amortization of capitalized curriculum costs	1,033	691
Stock-based compensation	2,167	2,897
Deferred income taxes	(216)	(1,048)
Amortization of right-of-use operating lease assets	162	199
Changes in assets and liabilities:
Decrease in accounts receivable, net	24,190	22,097
Decrease in inventories	161	100
Decrease in prepaid expenses and other assets	1,781	996
Decrease in accounts payable and accrued liabilities	(10,912)	(7,984)
Decrease in deferred revenue and customer deposits	(7,079)	(7,981)
Increase (decrease) in income taxes payable	(143)	557
Decrease in other long-term liabilities	(228)	(99)
Net cash provided by operating activities	14,145	17,438
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(998)	(1,072)
Curriculum development costs	(1,432)	(2,668)
Reacquisition of license rights	(324)
Net cash used for investing activities	(2,754)	(3,740)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes payable		(1,250)
Principal payments on financing obligation	(945)	(855)
Purchases of common stock for treasury	(5,954)	(16,308)
Proceeds from sales of common stock held in treasury	320	356
Net cash used for financing activities	(6,579)	(18,057)
Effect of foreign currency exchange rates on cash and cash equivalents	(181)	88
Net increase (decrease) in cash and cash equivalents	4,631	(4,271)
Cash and cash equivalents at the beginning of the period	48,663	38,230
Cash and cash equivalents at the end of the period	53,294	33,959
Supplemental disclosure of cash flow information:
Cash paid for income taxes	745	822
Cash paid for interest	143	337
Non-cash investing and financing activities:
Acquisition of property and equipment and capitalized curriculum financed by accounts payable	305	45
Consideration for reacquired license rights from liabilities of seller	$ 168
Acquisition of right-of-use operating lease assets for operating lease liabilities		$ 121

Revenue (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
Revenue (Narrative) (Details) - USD ($) $ in Millions	Nov. 30, 2024	Aug. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 95.7	$ 107.9
Other long-term liabilities	6.8	$ 6.7
Remaining performance obligations	168.7
Subscription [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue recognized	$ 36.9

Segment Information (Schedule Of Revenue Disaggregated By Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 69,086	$ 68,399
Americas [Member]
Disaggregation of Revenue [Line Items]
Revenue	57,730	56,357
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenue	6,563	7,221
Europe/Middle East/Africa [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 4,793	$ 4,821

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Condensed Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total
Beginning balance, shares at Aug. 31, 2023	27,056,000
Beginning balance at Aug. 31, 2023	$ 1,353	$ 232,373	$ 99,802	$ (987)	$ (253,887)
Beginning balance, shares, Treasury at Aug. 31, 2023					(13,974,000)
Issuance of common stock from treasury, shares					601,000
Issuance of common stock from treasury		(10,569)			$ 10,925
Purchases of common shares for treasury, shares					(409,000)
Purchases of common shares for treasury					$ (16,308)
Stock-based compensation		2,897
Cumulative translation adjustments				51		$ 51
Net income			4,851			4,851
Ending balance, shares at Nov. 30, 2023	27,056,000
Ending balance at Nov. 30, 2023	$ 1,353	224,701	104,653	(936)	$ (259,270)
Ending balance, shares, Treasury at Nov. 30, 2023					(13,782,000)
Beginning balance, shares at Aug. 31, 2024	27,056,000
Beginning balance at Aug. 31, 2024	$ 1,353	231,813	123,204	(768)	$ (272,467)	$ 83,135
Beginning balance, shares, Treasury at Aug. 31, 2024					(14,084,000)	(14,084,000)
Issuance of common stock from treasury, shares					363,000	362,867
Issuance of common stock from treasury		(6,707)			$ 7,027
Purchases of common shares for treasury, shares					(146,000)
Purchases of common shares for treasury					$ (5,954)
Stock-based compensation		2,167
Cumulative translation adjustments				(202)		$ (202)
Net income			1,181			1,181
Ending balance, shares at Nov. 30, 2024	27,056,000
Ending balance at Nov. 30, 2024	$ 1,353	$ 227,273	$ 124,385	$ (970)	$ (271,394)	$ 80,647
Ending balance, shares, Treasury at Nov. 30, 2024					(13,867,000)	(13,867,000)

Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands	Nov. 30, 2024	Aug. 31, 2024
Inventories [Abstract]
Finished goods	$ 3,828	$ 4,002
Raw materials
Inventories	$ 3,828	$ 4,002

Basis Of Presentation (Policy)	3 Months Ended
Basis Of Presentation (Policy)	Nov. 30, 2024
Basis Of Presentation [Abstract]
General	Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our global structure is designed to help individuals and organizations achieve sustained superior performance through changes in human behavior. We are fundamentally a content and solutions company, and we believe that our offerings and services create the connection between capabilities and results. We have a wide range of content delivery options, including: the All Access Pass (AAP) subscription, The Leader in Me membership, and other intellectual property licenses; digital online learning; onsite training; training led through certified facilitators; blended learning; and organization-wide transformational processes, including consulting and coaching. We believe our investments in digital delivery modalities over the past few years have enabled us to deliver our content to clients in a high-quality learning environment whether those clients are working remotely or meeting in a centralized location. We believe that our clients are able to utilize our content to create cultures which produce high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders. We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training content based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, The Leader in Me, The 4 Disciplines of Execution, and Multipliers, and proprietary content in the areas of Leadership, Execution, Productivity, Educational Improvement, and Sales Performance. Our offerings are described in further detail at www.franklincovey.com. The information posted on our website is not incorporated into this report. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2024. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The results of operations for the quarter ended November 30, 2024, are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2025, or for any future periods.
Reclassifications	Reclassifications Certain reclassifications have been made in our prior period financial statements to conform with the current period presentation. On our consolidated income statement and statement of comprehensive income for the quarter ended November 30, 2023, we have separately presented $0.6 million of restructuring costs which were previously included with selling, general, and administrative expenses.
Accounting Pronouncement Issued And Not Adopted	Accounting Pronouncement Issued and Not Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU is intended to improve reportable segment disclosure primarily by requiring entities to provide more disaggregated expense information about their reportable segments. The new guidance also improves interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. ASU 2023-07 is effective for public entities in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently assessing the anticipated impact of this standard on our consolidated financial statements. On December 14, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 provides guidance to enhance transparency about income tax information through improvements to income tax disclosures primarily related to the effective income tax rate reconciliation and income taxes paid. This new guidance also includes certain other amendments to improve the effectiveness of income tax disclosures. For public companies, the guidance in ASU 2023-09 is effective for annual periods beginning after December 15, 2024. We are currently assessing the anticipated impact of this standard on our consolidated financial statements.

Segment Information (Schedule Of Revenue Disaggregated By Type Of Service) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 69,086	$ 68,399
Services And Products [Member]
Disaggregation of Revenue [Line Items]
Revenue	26,701	26,091
Subscriptions [Member]
Disaggregation of Revenue [Line Items]
Revenue	36,857	36,587
Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenue	4,798	4,972
Leases And Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	730	749
Operating Segments [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	51,579	52,446
Operating Segments [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	16,464	14,891
Operating Segments [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	8,239	8,730
Operating Segments [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,203	3,423
Operating Segments [Member] \| Services And Products [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	21,954	22,357
Operating Segments [Member] \| Services And Products [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	4,747	3,734
Operating Segments [Member] \| Services And Products [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	5,626	6,330
Operating Segments [Member] \| Services And Products [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	62	231
Operating Segments [Member] \| Subscriptions [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	26,387	26,830
Operating Segments [Member] \| Subscriptions [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	10,470	9,757
Operating Segments [Member] \| Subscriptions [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,571	2,356
Operating Segments [Member] \| Subscriptions [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	279	332
Operating Segments [Member] \| Royalties [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,238	3,259
Operating Segments [Member] \| Royalties [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,247	1,400
Operating Segments [Member] \| Royalties [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	42	44
Operating Segments [Member] \| Royalties [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,862	2,860
Corporate And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,043	1,062
Corporate And Eliminations [Member] \| Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenue	313	313
Corporate And Eliminations [Member] \| Leases And Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	730	749
North America [Member] \| Operating Segments [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	40,137	40,293
North America [Member] \| Operating Segments [Member] \| Services And Products [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	16,266	15,796
North America [Member] \| Operating Segments [Member] \| Subscriptions [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	23,537	24,142
North America [Member] \| Operating Segments [Member] \| Royalties [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 334	$ 355

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Nov. 30, 2024	Aug. 31, 2024
Condensed Consolidated Balance Sheets [Abstract]
Allowance for credit losses	$ 2,141	$ 3,015
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	40,000	40,000
Common stock, shares issued	27,056	27,056
Treasury stock, shares	13,867	14,084

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 30, 2024	Aug. 31, 2024
Current assets:
Cash and cash equivalents	$ 53,294	$ 48,663
Accounts receivable, less allowance for credit losses of $2,141 and $3,015	61,419	86,002
Inventories	3,828	4,002
Prepaid expenses and other current assets	20,247	21,586
Total current assets	138,788	160,253
Property and equipment, net	8,733	8,736
Intangible assets, net	37,163	37,766
Goodwill	31,220	31,220
Deferred income tax assets	834	870
Other long-term assets	23,168	22,694
Total assets	239,906	261,539
Current liabilities:
Current portion of notes payable	835	835
Current portion of financing obligation	2,166	3,112
Accounts payable	5,961	7,862
Deferred subscription revenue	88,868	101,218
Customer deposits	21,815	16,972
Accrued liabilities	23,893	32,454
Total current liabilities	143,538	162,453
Notes payable, less current portion	789	775
Financing obligation, less current portion	1,312	1,312
Other liabilities	10,707	10,732
Deferred income tax liabilities	2,913	3,132
Total liabilities	159,259	178,404
Shareholders’ equity:
Common stock, $0.05 par value; 40,000 shares authorized, 27,056 shares issued	1,353	1,353
Additional paid-in capital	227,273	231,813
Retained earnings	124,385	123,204
Accumulated other comprehensive loss	(970)	(768)
Treasury stock at cost, 13,867 shares and 14,084 shares	(271,394)	(272,467)
Total shareholders’ equity	80,647	83,135
Total liabilities and shareholders' equity	$ 239,906	$ 261,539

Earnings Per Share (Tables)

3 Months Ended

Nov. 30, 2024

Earnings Per Share [Abstract]

Computation Of Net Income Per Share



	Quarter Ended
		November 30,		November 30,
		2024		2023
Numerator for basic and
diluted income per share:
Net income	$	1,181	$	4,851

Denominator for basic and
diluted income per share:
Basic weighted average shares
outstanding		13,092		13,244
Effect of dilutive securities:
Stock-based compensation awards		179		392
Diluted weighted average
shares outstanding		13,271		13,636

EPS Calculations:
Net income per share:
Basic	$	0.09	$	0.37
Diluted		0.09		0.36

Segment Information (Narrative) (Details)	3 Months Ended
Segment Information (Narrative) (Details)	Nov. 30, 2024 segment item
Segment Information [Abstract]
Number of divisions \| item	2
Number of operating reportable segments \| segment	5

Restructuring Costs (Narrative) (Details) $ in Thousands	3 Months Ended
Restructuring Costs (Narrative) (Details) $ in Thousands	Nov. 30, 2024 USD ($) item	Nov. 30, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 1,984	$ 581
Restructuring liability	$ 1,100
Number of workforce reduced \| item	35
North America [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 1,600
Direct Offices [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 400

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Segment Information (Tables)

3 Months Ended

Nov. 30, 2024

Segment Information [Abstract]

Schedule Of Segment Operations



		Revenue From
Quarter Ended		External				Adjusted
November 30, 2024		Customers		Gross Profit		EBITDA

Enterprise Division:
North America	$	40,137	$	32,821	$	8,744
International direct offices		8,239		6,113		(224)
International licensees		3,203		2,864		1,644
		51,579		41,798		10,164
Education practice		16,464		10,410		266
Corporate and eliminations		1,043		503		(2,756)
Consolidated	$	69,086	$	52,711	$	7,674

Quarter Ended
November 30, 2023

Enterprise Division:
North America	$	40,293	$	32,764	$	10,441
International direct offices		8,730		6,613		1,158
International licensees		3,423		3,081		1,916
		52,446		42,458		13,515
Education practice		14,891		9,475		110
Corporate and eliminations		1,062		344		(2,656)
Consolidated	$	68,399	$	52,277	$	10,969

Reconciliation Of Adjusted EBITDA



	Quarter Ended
		November 30,		November 30,
		2024		2023
Segment Adjusted EBITDA	$	10,430	$	13,625
Corporate expenses		(2,756)		(2,656)
Consolidated Adjusted EBITDA		7,674		10,969
Stock-based compensation		(2,167)		(2,897)
Restructuring costs		(1,984)		(581)
Depreciation		(950)		(1,091)
Amortization		(1,098)		(1,071)
Income from operations		1,475		5,329
Interest income		290		288
Interest expense		(178)		(341)
Income before income taxes		1,587		5,276
Income tax provision		(406)		(425)
Net income	$	1,181	$	4,851

Schedule Of Revenue Disaggregated By Category

The following table presents our revenue disaggregated by geographic region (in thousands).



	Quarter Ended
		November 30,		November 30,
		2024		2023

Americas	$	57,730	$	56,357
Asia Pacific		6,563		7,221
Europe/Middle East/Africa		4,793		4,821
	$	69,086	$	68,399

‎

The following table presents our revenue disaggregated by type of service (in thousands).



Quarter Ended		Services and						Leases and
November 30, 2024		Products		Subscriptions		Royalties		Other		Consolidated

Enterprise Division:
North America	$	16,266	$	23,537	$	334	$	-	$	40,137
International direct offices		5,626		2,571		42		-		8,239
International licensees		62		279		2,862		-		3,203
		21,954		26,387		3,238		-		51,579
Education practice		4,747		10,470		1,247		-		16,464
Corporate and eliminations		-		-		313		730		1,043
Consolidated	$	26,701	$	36,857	$	4,798	$	730	$	69,086

Quarter Ended
November 30, 2023

Enterprise Division:
North America	$	15,796	$	24,142	$	355	$	-	$	40,293
International direct offices		6,330		2,356		44		-		8,730
International licensees		231		332		2,860		-		3,423
		22,357		26,830		3,259		-		52,446
Education practice		3,734		9,757		1,400		-		14,891
Corporate and eliminations		-		-		313		749		1,062
Consolidated	$	26,091	$	36,587	$	4,972	$	749	$	68,399

Earnings Per Share (Computation Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Numerator for basic and diluted income per share:
Net income	$ 1,181	$ 4,851
Denominator for basic and diluted income per share:
Basic weighted average shares outstanding	13,092	13,244
Effect of dilutive securities:
Stock-based compensation awards	179	392
Diluted weighted average shares outstanding	13,271	13,636
EPS Calculations:
Net income per share: Basic	$ 0.09	$ 0.37
Net income per share: Diluted	$ 0.09	$ 0.36

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Nov. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Condensed Consolidated Income Statements And Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Condensed Consolidated Income Statements And Statements Of Comprehensive Income [Abstract]
Foreign currency translation adjustments, income taxes	$ 0	$ 0

Earnings Per Share

3 Months Ended

Nov. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 6 – EARNINGS PER SHARE

The following schedule shows the calculation of net income per share for the periods presented (in thousands, except per-share amounts).



	Quarter Ended
		November 30,		November 30,
		2024		2023
Numerator for basic and
diluted income per share:
Net income	$	1,181	$	4,851

Denominator for basic and
diluted income per share:
Basic weighted average shares
outstanding		13,092		13,244
Effect of dilutive securities:
Stock-based compensation awards		179		392
Diluted weighted average
shares outstanding		13,271		13,636

EPS Calculations:
Net income per share:
Basic	$	0.09	$	0.37
Diluted		0.09		0.36

Inventories (Tables)

3 Months Ended

Nov. 30, 2024

Inventories [Abstract]

Components Of Inventories



		November 30,		August 31,
		2024		2024
Finished goods	$	3,828	$	4,002
Raw materials		-		-
	$	3,828	$	4,002

Segment Information

3 Months Ended

Nov. 30, 2024

Segment Information [Abstract]

Segment Information

NOTE 7 – SEGMENT INFORMATION

Segments

Our sales are primarily comprised of training and consulting services and our internal reporting and operating structure is currently organized around two divisions: the Enterprise Division, which consists of our North America, International Direct Office, and International Licensee segments, and the Education Division, which is comprised of our Education practice. Beginning with the first quarter of fiscal 2025, our chief operating decision maker (CODM) began to manage our business, allocate resources, and evaluate performance based on changes that were made in the Company’s management and reporting structure in connection with the restructuring activities discussed in Note 5. As a result, we realigned our reportable segments to those shown below.

Our operations consist of five reportable segments as described below:

North America – Our North America segment has a depth of expertise in helping organizations solve problems that require changes in human behavior, including leadership, productivity, execution, trust, and sales performance. We have a variety of principle-based offerings that help build winning and profitable cultures. This segment includes our sales personnel and operations that serve the United States and Canada.

International Direct Offices – Our international direct offices provide the same offerings and content in countries outside of North America where we have a directly owned office, which includes Australia, Austria, China, France, Germany, Ireland, Japan, New Zealand, Switzerland, and the United Kingdom.

International Licensees – Our independently owned international licensees provide our offerings and services in countries where we do not have a directly-owned office. These licensee partners allow us to expand the reach of

our services to large multinational organizations as well as smaller organizations in their countries. This segment’s sales are primarily comprised of royalty revenues received from the licensees.

Education Practice – Centered around the principles found in The Leader in Me, the Education practice is dedicated to helping educational institutions build a culture that will produce great results. We believe these results are manifested by increases in student performance, improved school culture, decreased disciplinary issues, and increased teacher engagement and parental involvement. This segment includes our domestic and international Education practice operations, which are focused on sales to educational institutions such as elementary schools, high schools, and colleges and universities.

Corporate and Other – Our corporate and other information includes leasing operations, shipping and handling revenues, royalty revenues from Franklin Planner Corp., and the cost of certain administrative functions.

We have determined that the Company’s CODM continues to be the Chief Executive Officer, and the primary measurement tool used in business unit performance analysis is Adjusted EBITDA, which may not be calculated as similarly titled amounts disclosed by other companies. Adjusted EBITDA is a non-GAAP financial measure. For reporting purposes, our consolidated Adjusted EBITDA may be calculated as net income excluding interest, income taxes, depreciation expense, intangible asset amortization expense, stock-based compensation, and certain other charges such as restructuring costs. We reference this non-GAAP financial measure in our decision making because it provides supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and we believe it provides investors with greater transparency to evaluate operational activities and financial results.

Our operations are not capital intensive and we do not own any manufacturing facilities or equipment. Accordingly, we do not allocate assets to the reportable segments for analysis purposes. Interest expense and interest income are primarily generated at the corporate level and are not allocated. Income taxes are likewise calculated and paid on a corporate level (except for entities that operate in foreign jurisdictions) and are not allocated for analysis purposes.

We account for the following segment information on the same basis as the accompanying unaudited condensed consolidated financial statements (in thousands). The prior period segment information has been recast to conform with the new reporting segment presentation described above.



		Revenue From
Quarter Ended		External				Adjusted
November 30, 2024		Customers		Gross Profit		EBITDA

Enterprise Division:
North America	$	40,137	$	32,821	$	8,744
International direct offices		8,239		6,113		(224)
International licensees		3,203		2,864		1,644
		51,579		41,798		10,164
Education practice		16,464		10,410		266
Corporate and eliminations		1,043		503		(2,756)
Consolidated	$	69,086	$	52,711	$	7,674

Quarter Ended
November 30, 2023

Enterprise Division:
North America	$	40,293	$	32,764	$	10,441
International direct offices		8,730		6,613		1,158
International licensees		3,423		3,081		1,916
		52,446		42,458		13,515
Education practice		14,891		9,475		110
Corporate and eliminations		1,062		344		(2,656)
Consolidated	$	68,399	$	52,277	$	10,969

‎

A reconciliation of our consolidated Adjusted EBITDA to consolidated net income is provided below (in thousands).



	Quarter Ended
		November 30,		November 30,
		2024		2023
Segment Adjusted EBITDA	$	10,430	$	13,625
Corporate expenses		(2,756)		(2,656)
Consolidated Adjusted EBITDA		7,674		10,969
Stock-based compensation		(2,167)		(2,897)
Restructuring costs		(1,984)		(581)
Depreciation		(950)		(1,091)
Amortization		(1,098)		(1,071)
Income from operations		1,475		5,329
Interest income		290		288
Interest expense		(178)		(341)
Income before income taxes		1,587		5,276
Income tax provision		(406)		(425)
Net income	$	1,181	$	4,851

Disaggregated Revenue

The following table presents our revenue disaggregated by geographic region (in thousands).



	Quarter Ended
		November 30,		November 30,
		2024		2023

Americas	$	57,730	$	56,357
Asia Pacific		6,563		7,221
Europe/Middle East/Africa		4,793		4,821
	$	69,086	$	68,399

‎

The following table presents our revenue disaggregated by type of service (in thousands).



Quarter Ended		Services and						Leases and
November 30, 2024		Products		Subscriptions		Royalties		Other		Consolidated

Enterprise Division:
North America	$	16,266	$	23,537	$	334	$	-	$	40,137
International direct offices		5,626		2,571		42		-		8,239
International licensees		62		279		2,862		-		3,203
		21,954		26,387		3,238		-		51,579
Education practice		4,747		10,470		1,247		-		16,464
Corporate and eliminations		-		-		313		730		1,043
Consolidated	$	26,701	$	36,857	$	4,798	$	730	$	69,086

Quarter Ended
November 30, 2023

Enterprise Division:
North America	$	15,796	$	24,142	$	355	$	-	$	40,293
International direct offices		6,330		2,356		44		-		8,730
International licensees		231		332		2,860		-		3,423
		22,357		26,830		3,259		-		52,446
Education practice		3,734		9,757		1,400		-		14,891
Corporate and eliminations		-		-		313		749		1,062
Consolidated	$	26,091	$	36,587	$	4,972	$	749	$	68,399

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Stock-Based Compensation (Total Cost Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2024	Nov. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 2,167	$ 2,897
Long-Term Incentive Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	1,679	2,464
Strive Acquisition Compensation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	185	195
Unvested Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	240	180
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 63	$ 58

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Basis Of Presentation

3 Months Ended

Nov. 30, 2024

Basis Of Presentation [Abstract]

Basis Of Presentation

NOTE 1 – BASIS OF PRESENTATION

Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our global structure is designed to help individuals and organizations achieve sustained superior performance through changes in human behavior. We are fundamentally a content and solutions company, and we believe that our offerings and services create the connection between capabilities and results. We have a wide range of content delivery options, including: the All Access Pass (AAP) subscription, The Leader in Me membership, and other intellectual property licenses; digital online learning; onsite training; training led through certified facilitators; blended learning; and organization-wide transformational processes, including consulting and coaching. We believe our investments in digital delivery modalities over the past few years have enabled us to deliver our content to clients in a high-quality learning environment whether those clients are working remotely or meeting in a centralized location. We believe that our clients are able to utilize our content to create cultures which produce high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders.

We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training content based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, The Leader in Me, The 4 Disciplines of Execution, and Multipliers, and proprietary content in the areas of Leadership, Execution, Productivity, Educational Improvement, and Sales Performance. Our offerings are described in further detail at www.franklincovey.com. The information posted on our website is not incorporated into this report.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2024.

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

The results of operations for the quarter ended November 30, 2024, are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2025, or for any future periods.

Reclassifications

Certain reclassifications have been made in our prior period financial statements to conform with the current period presentation. On our consolidated income statement and statement of comprehensive income for the quarter ended November 30, 2023, we have separately presented $0.6 million of restructuring costs which were previously included with selling, general, and administrative expenses.

Accounting Pronouncement Issued and Not Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU is intended to improve reportable segment disclosure primarily by requiring entities to provide more disaggregated expense information about their reportable segments. The new guidance also improves interim disclosure requirements, clarifies circumstances

in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. ASU 2023-07 is effective for public entities in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently assessing the anticipated impact of this standard on our consolidated financial statements.

On December 14, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. ASU 2023-09 provides guidance to enhance transparency about income tax information through improvements to income tax disclosures primarily related to the effective income tax rate reconciliation and income taxes paid. This new guidance also includes certain other amendments to improve the effectiveness of income tax disclosures. For public companies, the guidance in ASU 2023-09 is effective for annual periods beginning after December 15, 2024. We are currently assessing the anticipated impact of this standard on our consolidated financial statements.