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Revenue: $835.6 million for fiscal 2025, a 14% increase year over year.

Adjusted EBITDA: $126.5 million for fiscal 2025.

Net Income: $63 million for fiscal 2025, or $1.13 per diluted share.

Average Full-Time Active Students: Increased 10.5% to 24,618 for fiscal 2025.

New Student Starts: Increased 10.8% to 29,793 for fiscal 2025.

Concord Division Revenue: $293.8 million for fiscal 2025, a 19.3% increase year over year.

UTI Division Revenue: $541.8 million for fiscal 2025, an 11.4% increase year over year.

Cash Flow from Operating Activities: $97.3 million for fiscal 2025.

Capital Expenditures: $42 million for fiscal 2025.

Free Cash Flow: Adjusted free cash flow of $56 million for fiscal 2025.

Fiscal 2026 Revenue Guidance: Expected between $905 million and $915 million.

Fiscal 2026 Adjusted EBITDA Guidance: Expected between $114 million and $119 million.

Fiscal 2026 Net Income Guidance: Expected between $40 million and $45 million.

Fiscal 2026 New Student Starts Guidance: Expected between 31,500 and 33,000.

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Release Date: November 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Universal Technical Institute Inc (NYSE:UTI) reported a 14% year-over-year revenue growth, reaching $836 million, surpassing their twice-raised guidance range.

The company successfully launched 19 new programs across its divisions, expanding into fast-growing sectors and increasing access for students nationwide.

Average full-time active students rose more than 10%, with new student starts increasing nearly 11% year over year, indicating strong demand for skilled trades and healthcare careers.

UTI plans to open three new campuses in fiscal 2026, expanding its footprint and capacity to meet growing demand.

The company expects to generate between $905 million and $915 million in revenue for fiscal 2026, representing approximately 9% year-over-year growth at the midpoint.

UTI's planned growth investments of approximately $40 million in fiscal 2026 will temporarily moderate reported margins, impacting net income growth negatively in the first two quarters.

The Department of Education's intensified verification process temporarily delayed cash disbursements, affecting free cash flow in fiscal 2025.

Despite strong revenue growth, the company's adjusted EBITDA for fiscal 2026 is expected to be between $114 and $119 million, lower than the baseline due to growth investments.

The company faces challenges in balancing high school and adult recruitment efforts, with a need to add more resources to high school channels as new campuses open.

UTI's tuition increases are limited to 2-3% due to constraints in student funding, limiting pricing power despite strong demand.

Q: Can you provide more detail on the expected start growth for 2026 between the UTI and Concord segments? A: Bruce Schuman, CFO, explained that they expect an 8% to 9% start growth for 2026, similar to the profile seen in 2025. The growth is anticipated to be consistent across both segments.

Q: Is the plan to open up to 5 campuses annually between the two divisions, or is it a combined total? A: Jerome Grant, CEO, clarified that the plan is to open between 2 and 5 campuses annually across both divisions, not 10. This is an increase from the previous plan of 2 to 3 campuses per year.

Q: Have the Department of Education's ID verification measures impacted the process of bringing on new students? A: Bruce Schuman stated that there has been no impact on the front end. The verification process caused a temporary slowdown in cash collection, but it is returning to normal and should not affect free cash flow long-term.

Q: How did high school recruiting efforts compare to expectations, and what are the plans for 2026? A: Jerome Grant noted that high school recruiting met expectations, but they plan to add more resources in 2026, especially with new campus openings. The focus will also be on marketing to adults, as skilled trades appeal more to this demographic.

Q: What are the expectations for tuition increases in 2026, and how does demand affect pricing power? A: Jerome Grant mentioned that they anticipate a 2% to 3% tuition increase, varying by program and market. While demand is strong, pricing is constrained by student funding levels, such as Pell grants and student loans.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.