The stock fell to $19, a jarring reversal for investors who had enjoyed a 50% rise in the company’s share price year-to-date. Franklin Covey now anticipates annual revenue between $260 million and $267 million, a downward shift from its previous guidance of $265 million to $275 million. The firm also lowered the upper bound of its adjusted Ebitda forecast to $31 million, holding the low end steady at $28 million.

Chief Executive Paul Walker attributed the shortfall to an unexpected state budget cut that derailed a significant education contract. While the company reported a profit of $3.09 million for the quarter ending May 31—an improvement over the $1.41 million loss recorded during the same period last year—its revenue of $67.8 million narrowly missed analyst projections of $68.3 million.