Universal Technical Institute, Inc. Q1 FY2026 earnings call

Performance

• First quarter revenue grew 10% to $221 million, baseline adjusted EBITDA nearly $35 million, reported adjusted EBITDA $27 million. Average full-time active students increased 7%, new student starts grew ~3%.

Strategic Execution

• North Star strategy in progress; new campuses like UTI Austin, Miramar performing well. UTI Austin has over a thousand average full-time active students, 70% higher than modeled. Fort Myers, San Antonio, and Atlanta campuses in various stages of launch. Over 20 programs launched in 2026, focusing on skilled trades and aligned with employer demand.

Regulatory and Inorganic Opportunities

• Engaged in regulatory dialogues with the federal government, seeing progress in title four funding approvals. Evaluating inorganic opportunities to enhance healthcare portfolio.

In the first quarter, consolidated revenue increased 9.6% to $220.8 million. The Concord division contributed $78 million, a 11.5% increase year-over-year, and the UTI division contributed $142.8 million, an 8.6% increase year-over-year. Average full-time active students grew 7.2% year over year to 26,858. The Concord division saw a 9.5% increase in average full-time active students, driven by demand for nursing and allied health programs. The UTI division grew average full-time active students 5.7% year over year, reflecting strength in its program suite and optimized campus utilization.

Fiscal 2026

• Expected revenue $905M-$915M (9% y-o-y growth midpoint). Baseline adjusted EBITDA $156M with ~$40M growth investments, reported adjusted EBITDA $114M-$119M. New student starts 31,500-33,000.

Long-Term

• Target revenue over $1.2B by 2029, adjusted EBITDA approaching $220M by 2029, with revenue growth accelerating from 2027.

• Regulatory uncertainties, including state-level bureaucracy and potential changes in federal regulations. - Timing variability in campus launches and program expansions affecting financial results.

Q: About Heartland Fort Myers campus funding A: It operates like other campuses with options for government loans, Pell grants, etc.

Q: Margin pressure at Concord A: Due to growth investments, profitability dip is temporary Q: Reacceleration of starts A: Due to new programs, campus launches, and marketing efficiency