Universal Technical Institute Reports Fiscal Year 2026 Second Quarter Results | UTI Stock News

Company Delivers Another Strong Quarter Driven by Robust Demand and Consistent Execution, Reaffirming Full-Year Outlook, /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, reported financial results for the fiscal 2026 second quarter ended March 31, 2026. Universal Technical Institute, Inc. operates in two reportable segments, Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde), and together with its segments and subsidiaries is referred to as the "Company," "we," "us" or "our."Financial HighlightsRevenue of $221.4 million, an increase of 6.7% over the comparable period.Net income of $0.4 million, a decrease of $11.0 million over the comparable period due to strategic growth expenses.Adjusted EBITDA(1) of $14.1 million, a decrease of 51.0% over the comparable period due to $11 million in strategic growth expenses.Operational Highlights and North Star Strategy DevelopmentsAverage full-time active students of 26,385, an increase of 7.2% versus the comparable period, with total new student starts of 7,569, an increase of 13.8% over the comparable period.UTI-San Antonio campus opened in March, with initial student starts approximately 60% above plan.UTI-Atlanta campus has strong interest with early enrollments pacing well in preparation for the planned July start."Our performance throughout the first half of the year continued to meet and exceed expectations, driven by sustained demand across both divisions and progress on our North Star initiatives, further reinforcing our confidence in the trajectory of the business," said Jerome Grant, CEO of Universal Technical Institute, Inc. "Our new campus launches are providing further validation that our growth model is both repeatable and scalable. UTI San Antonio outperformed our initial start expectations while UTI Atlanta is on track with enrollments ahead of the July opening. Combined with continued strength across our existing campus network, these early indicators give us increasing confidence as we move deeper into full implementation of North Star."In conjunction, the opportunity in front of us is expanding as the world enters a generational shift in the labor market. Advancements in artificial intelligence are accelerating demand for the skilled workforce required to build, maintain, and operate the infrastructure behind this new economy. From data centers and energy systems to advanced manufacturing and healthcare delivery, we are well positioned at the center of these evolving needs. We are not only training students for today's jobs but also preparing them for the AI-enabled workforce of the future. As we continue capitalizing on this demand, we believe the actions we are taking in fiscal 2026 will not only support near term growth but will also create incremental enrollment and earnings upside in fiscal 2027 and beyond."Financial Results for the Three-Month Period Ended March 31, 2026 Compared to March 31, 2025Revenues increased 6.7% to $221.4 million compared to $207.4 million.Operating expenses increased 16.0% to $221.1 million, compared to $190.6 million primarily due to the growth in both UTI and Concorde average full-time active students and strategic growth expenses associated with new campus launches and program expansions currently underway or completed over the last year.Operating income of $0.3 million compared to operating income of $16.9 million primarily due to strategic growth expenses.Net income decreased to $0.4 million compared to $11.4 million primarily due to strategic growth expenses.Basic and diluted earnings per share (EPS) were $0.01, compared to $0.21.Adjusted EBITDA(1) decreased 51.0% to $14.1 million compared to $28.9 million due to $11 million in strategic growth investments.Average full-time active students increased 7.2%, with total new student starts of 7,569 compared to 6,650."With a strong second quarter, we delivered a robust first half of fiscal 2026, supported by continued enrollment momentum, healthy growth in average full-time active students, double-digit growth in new student starts, and solid revenue expansion across both divisions," said Bruce Schuman, CFO of Universal Technical Institute, Inc. "These results reflect sustained demand across the business, the success of recently launched campuses and programs as well as disciplined execution against the North Star strategy."Based on our performance through the first six months of the year and the visibility we have into the remainder of fiscal 2026, we are reaffirming our full-year guidance across all metrics. With our strategic growth investments progressing on schedule, we remain confident in our ability to deliver against our North Star objectives while also supporting faster scaling, improved utilization, and stronger long-term returns including predictable and sustainable cash flows and increasing profits for years to come."Financial Results for the Six-Month Period Ended March 31, 2026 Compared to March 31, 2025Revenues increased 8.2% to $442.2 million compared to $408.9 million.Operating expenses increased by 16.9% to $426.2 million compared to $364.5 million primarily due to the growth in both UTI and Concorde average full-time active students and costs associated with new campus launches and program expansions currently underway or completed over the last year.Operating income decreased 63.8% to $16.0 million compared to $44.3 million primarily due to strategic growth expenses.Net income decreased 60.5% to $13.3 million compared to $33.6 million primarily due to strategic growth expenses.Basic and diluted EPS were $0.24 and $0.24, respectively, compared to $0.62 and $0.61, respectively.Adjusted EBITDA(1) decreased 35.9% to $41.3 million compared to $64.4 million due to approximately $19 million in strategic growth investments.Average full-time active students increased 7.2%, with total new student starts of 13,018 compared to 11,963.(1)See the "Use of Non-GAAP Financial Information" below. For a detailed reconciliation of the non-GAAP measures, see the tables following the earnings release.Balance Sheet and LiquidityAt March 31, 2026, total available liquidity was $202.4 million consisting of $87.2 million of cash and cash equivalents, $74.8 million of short-term investments, and $40.4 million available from the revolving credit facility. Total debt at March 31, 2026 was $130.7 million, including $65.0 million drawn on the revolving credit facility. As of March 31, 2026, the Company incurred $52.7 million of cash capital expenditures ("capex") driven primarily by investments in new campus and program expansions for both UTI and Concorde, along with spending associated with curriculum and equipment refresh and upgrades, facility and leasehold improvements, and IT investments.Conference CallManagement will hold a conference call to discuss the financial results for the fiscal 2026 second quarter ended March 31, 2026, on Wednesday, May 6, 2026, at 4:30 p.m. ET.To participate in the live call, investors are invited to dial (844) 881-0138 (domestic) or (412) 317-6790 (international). A live webcast of the call will be available via the Universal Technical Institute, Inc. investor relations website at https://investor.uti.edu. Please go to the website at least 10 minutes early to register, download and install any necessary audio software. The conference call webcast will be archived for fourteen days at https://investor.uti.edu. Alternatively, the telephone replay can be accessed through May 20, 2026, by dialing (855) 669-9658 (domestic) or (412) 317-0088 (international) and entering passcode 6455050.Use of Non-GAAP Financial InformationIn addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also discloses certain non-GAAP financial information in this press release and may similarly disclose non-GAAP financial information on the related conference call. These financial measures are not recognized measures under GAAP and are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company discloses these non-GAAP financial measures because it believes that they provide investors an additional analytical tool to clarify its results of operations and identify underlying trends. Additionally, the Company believes that these measures may also help investors compare its performance on a consistent basis across time periods. Additional details on our non-GAAP measures and the tables reconciling these measures to the most directly comparable GAAP measure are provided below.Adjusted EBITDA: The Company defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for stock-based compensation expense and items not considered normal recurring operations. Adjusted Free Cash Flow: The Company defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered normal recurring operations.Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, our adjustments for items that management does not consider to be normal recurring operations include:Acquisition-related costs: We have excluded costs associated with both potential and announced acquisitions to allow for comparable financial results to historical operations and forward-looking guidance.Integration-related costs for completed acquisitions: We have excluded integration costs related to business structure realignment and new programs for recent acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the referenced expenses from our non-GAAP financial measures, our management is able to further evaluate our ability to utilize existing assets and estimate their long-term value. Furthermore, our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance.Restructuring costs: In December 2023, we announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT Houston campus, acquired in November 2021, began a phased teach-out in May 2024, and such campus began operating under the UTI brand. Both facilities will remain in use post-consolidation.To obtain a complete understanding of our performance, these measures should be examined in connection with net income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the Securities and Exchange Commission ("SEC"). Because the items excluded from these non-GAAP measures are significant components in understanding and assessing our financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or net cash provided by (used in) operating activities as a measure of our operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is provided below and investors are encouraged to review the reconciliations.Forward Looking StatementsAll statements contained in this press release and the related conference call, other than statements of historical fact, are "forward-looking" statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements which address our expected future business and financial performance, may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. Examples of forward-looking statements include, among others, statements regarding (1) the Company's expectation that it will meet its fiscal year 2026 guidance for new student start growth, revenue growth, net income, diluted earnings per share, Adjusted EBITDA and Adjusted Free Cash Flow; (2) the Company's expectation that it will continue to expand its value proposition and build a business that can grow in double digits with potential upside, regardless of the economic environment; and (3) the Company's expectation that it will succeed in new program launches next year. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could affect our actual results include, among other things, failure of our schools to comply with the extensive regulatory requirements for school operations; shifts in higher education laws, regulation and policy at the federal and state levels; our failure to maintain eligibility for or our ability to process federal student financial assistance funds; the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs; the effect of future legislative or regulatory initiatives related to veterans' benefit programs; continued Congressional examination of the for-profit education sector; regulatory investigations of, or actions commenced against, us or other companies in our industry; our failure to execute on our growth and diversification strategy, including effectively identifying, establishing and operating additional schools, programs or campuses; our failure to realize the expected benefits of our acquisitions, or our failure to successfully integrate our acquisitions.; our failure to improve underutilized capacity at certain of our campuses; enrollment declines or challenges in our students' ability to find employment as a result of macroeconomic conditions; our failure to maintain and expand existing industry relationships and develop new industry relationships; our ability to update and expand the content of existing programs and develop and integrate new programs in a timely and cost-effective manner while maintaining positive student outcomes; a loss of our senior management or other key employees; failure to comply with the restrictive covenants and our ability to pay the amounts when due under the credit agreement; the effect of our principal stockholder owning a significant percentage of our capital stock, and thus being able to influence certain corporate matters and the potential in the future to gain substantial control over our company; the effect of public health pandemics, epidemics or outbreak, including COVID-19, and other risks that are described from time to time in our public filings. Further information on these and other potential factors that could affect the financial results or condition may be found in the company's filings with the SEC. Any forward-looking statements made by us in this press release and the related conference call are based only on information currently available to us and speak only as of the date on which it is made. We expressly disclaim any obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, changes in expectations, any changes in events, conditions or circumstances, or otherwise.Social Media DisclosureUniversal Technical Institute, Inc uses its websites (https://www.uti.edu/, https://concorde.edu, and https://investor.uti.edu/) and LinkedIn pages (https://www.linkedin.com/school/universal-technical-institute/ and https://www.linkedin.com/school/concorde-career-colleges/) as channels of distribution of information about its programs, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and the Company may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the company's website and its social media accounts in addition to following the company's press releases, SEC filings, public conference calls, and webcasts.About Universal Technical Institute, Inc.Universal Technical Institute, Inc. (NYSE: UTI) was founded in 1965 and is a leading workforce solutions provider serving students, partners and communities nationwide. The company offers high-quality education and support services for in-demand careers via its two divisions: UTI and Concorde Career Colleges. The UTI division operates 16 campuses located in nine states, with more announced, and offers a wide range of transportation, skilled trades, electrical and energy training programs. Concorde operates across 18 campuses in eight states and online, with more announced, offering programs in the allied health, dental, nursing, patient care and diagnostic fields. For more information, visit www.uti.edu or www.concorde.edu; LinkedIn at @UniversalTechnicalInstitute and @Concorde Career Colleges; or X at @news_UTI and @ConcordeCareer.Company Contact: Matt Kempton VP Corporate Finance & Investor Relations Universal Technical Institute, Inc. (623) 445-9392 mkempton@uti.eduMedia Contact: Susan Aspey Vice President, Corporate Affairs & External Communications Universal Technical Institute, Inc. (202) 549-0534 saspey@uti.eduInvestor Relations Contact: Matt Glover or Ralf Esper Gateway Group, Inc. (949) 574-3860 UTI@gateway-grp.com(Tables Follow)UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)(Unaudited)Three Months Ended March 31,Six Months Ended March 31,2026202520262025Revenues$ 221,402$ 207,447$ 442,246$ 408,876Operating expenses:Educational services and facilities117,429102,488227,877202,629Selling, general and administrative103,63488,106198,343161,916Total operating expenses221,063190,594426,220364,545Income from operations33916,85316,02644,331Other income (expense):Interest income1,0601,6292,6063,388Interest expense(993)(1,657)(1,964)(3,330)Other (expense) income, net(23)9(73)(26)Total other income (expense), net44(19)56932Income before income taxes38316,83416,59544,363Income tax benefit (expense)50(5,388)(3,335)(10,764)Net income$ 433$ 11,446$ 13,260$ 33,599Earnings per share: Net income per share - basic$ 0.01$ 0.21$ 0.24$ 0.62Net income per share - diluted$ 0.01$ 0.21$ 0.24$ 0.61Weighted average number of shares outstanding:Basic55,03354,38354,79954,183Diluted55,73055,44255,73555,415UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except par value and per share amounts)(Unaudited)March 31, 2026September 30, 2025AssetsCash and cash equivalents$ 87,233$ 127,361Restricted cash6,3746,769Short-term investments74,75041,784Receivables, net44,61946,078Notes receivable, current portion6,7356,597Prepaid expenses18,50612,526Other current assets5,5685,517Total current assets243,785246,632Property and equipment, net324,812285,852Goodwill28,45928,459Intangible assets, net21,40717,352Notes receivable, less current portion45,20541,109Right-of-use assets for operating leases168,880178,861Deferred tax assets, net2,7444,283Other assets16,89323,591Total assets$ 852,185$ 826,139Liabilities and Shareholders' EquityAccounts payable and accrued expenses$ 106,359$ 104,644Deferred revenue74,03391,525Operating lease liabilities, current portion20,70416,967Long-term debt, current portion2,9532,865Other current liabilities3,88313,670Total current liabilities207,932229,671Deferred tax liabilities, net4,1444,144Operating lease liabilities164,780174,838Long-term debt127,78184,234Other liabilities7,6435,142Total liabilities512,280498,029Commitments and contingencies Shareholders' equity:Common stock, $0.0001 par value, 100,000 shares authorized, 55,144 and 54,512 shares issued, 55,061 and 54,430 shares outstanding as of March 31, 2026 and September 30, 2025, respectively.65Paid-in capital224,752226,031Treasury stock, at cost, 82 shares as of March 31, 2026 and September 30, 2025.(365)(365)Retained earnings114,787101,527Accumulated other comprehensive income 725912Total shareholders' equity339,905328,110Total liabilities and shareholders' equity$ 852,185$ 826,139UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)Six Months Ended March 31,20262025Cash flows from operating activities:Net income $ 13,260$ 33,599Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization17,95016,137Amortization of right-of-use assets for operating leases12,95611,316Provision for credit losses15,2329,554Stock-based compensation6,4563,744Deferred income taxes1,536(476)Training equipment credits earned, net370(124)Unrealized (loss) gain on interest rate swaps, net of taxes8159Other gains (losses), net393171Changes in assets and liabilities:Receivables(14,212)(11,258)Prepaid expenses and other current assets(8,060)(4,269)Other assets2,909(3,430)Notes receivable(4,234)(3,839)Accounts payable, accrued expenses and other current liabilities(926)(3,293)Deferred revenue(17,492)(17,594)Income tax payable/receivable(8,353)3,873Operating lease liabilities(9,296)(11,185)Other liabilities(1,428)(912)Net cash provided by operating activities7,06922,173Cash flows from investing activities:Purchase of property and equipment(52,661)(14,292)Purchase of investments(53,236)(39,691)Proceeds received upon maturity of investments23,668—Proceeds from insurance policy36—Capitalized costs for intangible assets(1,253)—Net cash used in investing activities(83,446)(53,983)Cash flows from financing activities:Proceeds from revolving credit facility100,000—Payments on revolving credit facility(55,000)(30,000)Payment of term loans and finance leases(1,411)(1,329)Proceeds from stock option exercises—659Payment of payroll taxes on stock-based compensation through shares withheld(7,735)(4,479)Net cash provided by (used in) financing activities35,854(35,149)Change in cash, cash equivalents and restricted cash(40,523)(66,959)Cash and cash equivalents, beginning of period127,361161,900Restricted cash, beginning of period6,7695,572Cash, cash equivalents and restricted cash, beginning of period134,130167,472Cash and cash equivalents, end of period87,23395,998Restricted cash, end of period6,3744,515Cash, cash equivalents and restricted cash, end of period$ 93,607$ 100,513UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESSELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT(In thousands, except for Student Metrics)(Unaudited)Student MetricsThree Months Ended March 31, 2026Three Months Ended March 31, 2025UTIConcordeTotalUTIConcordeTotalTotal new student starts4,1103,4597,5693,5913,0596,650Year-over-year growth14.5 %13.1 %13.8 %26.4 %15.9 %21.4 %Average full-time active students15,55610,82926,38514,7779,82724,604Year-over-year growth5.3 %10.2 %7.2 %7.0 %15.5 %10.3 %End of period full-time active students15,52610,87926,40514,9599,89224,851Year-over-year growth3.8 %10.0 %6.3 %10.1 %16.6 %12.6 %Six Months Ended March 31, 2026Six Months Ended March 31, 2025UTIConcordeTotalUTIConcordeTotalTotal new student starts7,0036,01513,0186,3445,61911,963Year-over-year growth10.4 %7.0 %8.8 %23.1 %20.3 %(1)21.7 %(1)Average full-time active students15,95210,67026,62215,1219,71324,834Year-over-year growth5.5 %9.9 %7.2 %7.5 %16.0 %10.7 %End of period full-time active students15,52610,87926,40514,9599,89224,851Year-over-year growth3.8 %10.0 %6.3 %10.1 %16.6 %12.6 %UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESSELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT(In thousands)(Unaudited)Financial Summary by Segment and Consolidated As part of Phase II of our North Star growth strategy and to support our new campus growth initiatives, we have further refined our operating model to best pursue future growth goals and support the business. In furtherance of the foregoing, we have centralized the operations of our accounting, finance, information technology, human resources, and real estate departments to leverage economies of scale and create efficiencies to support our continued growth. Due to this centralization, as of October 1, 2025, we have adjusted our allocation methodology to allocate the majority of the Corporate segment's costs to the UTI and Concorde segments based upon a percentage of revenue. Due to these changes in allocation methodology, the prior year segment disclosures have been recast for comparability to the current year presentation.Three Months Ended March 31, 2026Three Months Ended March 31, 2025UTIConcordeCorporateConsolidatedUTIConcordeCorporateConsolidatedRevenue$ 142,719$ 78,683$ —$ 221,402$ 134,228$ 73,219$ —$ 207,447Total operating expenses138,53478,8843,645221,063116,50169,4494,644190,594Net income (loss)3,399(245)(2,721)43316,4683,725(8,747)11,446Six Months Ended March 31, 2026Six Months Ended March 31, 2025UTIConcordeCorporateConsolidatedUTIConcordeCorporateConsolidatedRevenue$ 285,562$ 156,684$ —$ 442,246$ 265,706$ 143,170$ —$ 408,876Total operating expenses265,525153,0937,602426,220225,445132,5876,513364,545Net income (loss)18,4043,554(8,698)13,26037,87610,508(14,785)33,599UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESSELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT(In thousands)(Unaudited)Major Expense Categories by Segment and ConsolidatedThree Months Ended March 31, 2026UTIConcordeCorporateConsolidatedOperating ExpensesCompensation and Benefits$ 57,138$ 37,585$ 19,722$ 114,445Advertising21,20010,04521031,455Occupancy10,5846,35093617,870Student Related11,9655,945—17,910General Operations7,7374,4765,69517,908Depreciation and amortization6,6422,0733309,045Professional and Contract Services2,6081,2804,5858,473Other Expenses2,0428471,0683,957Corporate Support18,61810,283(28,901)—Total Operating Expenses$ 138,534$ 78,884$ 3,645$ 221,063Three Months Ended March 31, 2025UTIConcordeCorporateConsolidatedOperating ExpensesCompensation and Benefits$ 52,496$ 32,788$ 18,001$ 103,285Advertising15,8507,89520923,954Occupancy9,2425,89121515,348Student Related8,7995,583—14,382General Operations5,0255,3163,20213,543Depreciation and amortization5,9491,8503398,138Professional and Contract Services2,5531,2784,7968,627Other Expenses1,6336841,0003,317Corporate Support14,9548,164(23,118)—Total Operating Expenses$ 116,501$ 69,449$ 4,644$ 190,594UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESSELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT(In thousands)(Unaudited)Major Expense Categories by Segment and ConsolidatedSix Months Ended March 31, 2026UTIConcordeCorporateConsolidatedOperating ExpensesCompensation and Benefits$ 111,429$ 72,950$ 38,512$ 222,891Advertising36,96419,29240556,661Occupancy21,15212,5991,89235,643Student Related22,32211,094—33,416General Operations15,6648,92910,64435,237Depreciation and amortization13,0424,24066817,950Professional and Contract Services5,1972,5608,95516,712Other Expenses3,8921,6342,1847,710Corporate Support35,86319,795(55,658)—Total Operating Expenses$ 265,525$ 153,093$ 7,602$ 426,220Six Months Ended March 31, 2025UTIConcordeCorporateConsolidatedOperating ExpensesCompensation and Benefits$ 101,894$ 64,006$ 32,151$ 198,051Advertising29,52715,25839845,183Occupancy18,32611,71244130,479Student Related18,84010,888—29,728General Operations8,9467,8615,17421,981Depreciation and amortization11,9003,55967816,137Professional and Contract Services4,9692,6048,86816,441Other Expenses3,2101,5981,7376,545Corporate Support27,83315,101(42,934)—Total Operating Expenses$ 225,445$ 132,587$ 6,513$ 364,545UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESRECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION(In thousands)(Unaudited)Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDAThree Months Ended March 31, 2026UTIConcordeCorporateConsolidatedNet income (loss)$ 3,399$ (245)$ (2,721)$ 433Interest expense (income), net78545(897)(67)Income tax expense——(50)(50)Depreciation and amortization6,6422,0733309,045EBITDA10,8261,873(3,338)9,361Stock-based compensation expense4952833,1233,901Integration-related costs for completed acquisitions——884884Adjusted EBITDA, non-GAAP$ 11,321$ 2,156$ 669$ 14,146Three Months Ended March 31, 2025UTIConcordeCorporateConsolidatedNet income (loss)$ 16,468$ 3,725$ (8,747)$ 11,446Interest expense (income), net1,26245(1,279)28Income tax expense——5,3885,388Depreciation and amortization5,9711,8503178,138EBITDA23,7015,620(4,321)25,000Stock-based compensation expense5031892,3323,024Acquisition-related costs——873873Adjusted EBITDA, non-GAAP$ 24,204$ 5,809$ (1,116)$ 28,897UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESRECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION(In thousands)(Unaudited)Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDASix Months Ended March 31, 2026UTIConcordeCorporateConsolidatedNet income (loss)$ 18,404$ 3,554$ (8,698)$ 13,260Interest expense (income), net1,63437(2,313)(642)Income tax expense——3,3353,335Depreciation and amortization13,0424,24066817,950EBITDA33,0807,831(7,008)33,903Stock-based compensation expense9794994,9786,456Integration-related costs for completed acquisitions——935935Adjusted EBITDA, non-GAAP$ 34,059$ 8,330$ (1,095)$ 41,294Six Months Ended March 31, 2025UTIConcordeCorporateConsolidatedNet income (loss)$ 37,876$ 10,508$ (14,785)$ 33,599Interest expense (income), net2,39475(2,527)(58)Income tax expense——10,76410,764Depreciation and amortization11,9423,55963616,137EBITDA52,21214,142(5,912)60,442Stock-based compensation expense9062682,5703,744Acquisition-related costs——873873Integration-related costs for completed acquisitions(1)——(700)(700)Restructuring costs43——43Adjusted EBITDA, non-GAAP$ 53,161$ 14,410$ (3,169)$ 64,402(1)During the six months ended March 31, 2025, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022.UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIESRECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION(In thousands)(Unaudited)Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash FlowSix Months Ended March 31,20262025Net cash provided by operating activities, as reported$ 7,069$ 22,173Purchase of property and equipment(52,661)(14,292)Free cash flow, non-GAAP(45,592)7,881Adjustments:Cash outflow (inflow) for integration-related costs for completed acquisitions(1)1,440(700)Cash outflow for acquisition-related costs—761Cash outflow for restructuring costs and property and equipment—55Adjusted free cash flow, non-GAAP$ (44,152)$ 7,997(1)During the six months ended March 31, 2025, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022.SOURCE Universal Technical Institute, Inc.