FRANKLIN COVEY CO
For the period ended May 31, 2026. Filed Jul 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 31, 2026 · Filed Jul 7, 2026
FC$14.83-4.3%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Condensed Consolidated Statements of Cash Flows
(in thousands)
| Three Quarters Ended | ||||
|---|---|---|---|---|
| May 31, · May 31, | ||||
| 2026 · 2025 | ||||
| (unaudited) | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net 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) | - | ||
| 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 | - | (324) | ||
| Net cash used for investing activities | (8,999) | (8,469) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Proceeds from line of credit borrowings | 11,677 | - | ||
| Payments on line of credit borrowings | (11,677) | - | ||
| Payments on notes payable | (835) | (835) | ||
| Principal payments on financing obligation | - | (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 | - | 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 | - | 678 | ||
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