Universal Technical Institute Reports Fiscal Year 2025 Second Quarter Results

PR Newswire

Delivers Financial and Operational Outperformance in Fiscal Q2; Raises FY 2025 Guidance


PHOENIX
, May 7, 2025 /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 2025 second quarter ended March 31, 2025. 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.”

  • Revenue of $207.4 million representing 12.6% growth versus the comparable period.
  • Total new student starts grew 21.4% while average full-time active students grew 10.3% versus the comparable period.
  • Net income of $11.4 million, an increase of 47.0% over the comparable period.
  • Adjusted EBITDA(1) of $28.9 million, an increase of 27.8% over the comparable period. 
  • Full year guidance raised for all key metrics.  

“We delivered another strong quarter in Q2 as we continued to advance our North Star Strategy and build on our operational momentum,” said Jerome Grant, CEO of Universal Technical Institute, Inc. “We exceeded expectations across all key metrics, with revenue growing 13% year-over-year, average full-time active students increasing 10%, and new student starts rising over 21%. These results reflect disciplined execution across the organization and the strength of our growth, diversification, and optimization strategy, bolstered by favorable macroeconomic trends and rising demand for skilled trades and healthcare professionals. As a result, I’m pleased to announce we have raised our guidance across all metrics for fiscal 2025.

“As we look ahead, we are driving Phase II of our North Star strategy with precision. Our leadership team is now fully in place, and we’ve already announced nine new programs for 2025 and three new campuses for 2026—placing us ahead of our growth targets. We are taking advantage of favorable tailwinds, new and expanding partnerships, and our investments over the next several years are designed to drive long-term scalability.”

Financial Results for the Three-Month Period Ended March 31, 2025 Compared to 2024

  • Revenues increased 12.6% to $207.4 million compared to $184.2 million primarily due to the growth in average full-time active students at both UTI and Concorde.
  • Operating expenses increased by 10.2% to $190.6 million, compared to $173.0 million primarily due to the growth in average full-time active students at both UTI and Concorde and costs associated with program expansions.
  • Operating income increased to $16.9 million compared to $11.2 million.
  • Net income increased to $11.4 million compared to $7.8 million.
  • Basic and diluted earnings per share (“EPS”) were $0.21, compared to $0.14.
  • Adjusted EBITDA(1) increased 27.8% to $28.9 million compared to $22.6 million.
  • New student starts of 6,650 compared to 5,480, with average full-time active students increasing 10.3%. 


UTI

  • Revenues of $134.2 million, an increase of 8.8% from the comparable period revenues of $123.3 million due primarily to growth in average full-time active students. 
  • Operating expenses were $112.8 million compared to $105.2 million. The increase was primarily due to growth in average full-time active students and additional expenses incurred related to new program launches.
  • Adjusted EBITDA(1) was $28.0 million compared to $24.4 million.
  • New student starts increased 26.4% to 3,591, while average full-time active students increased 7.0%.


Concorde

  • Revenues of $73.2 million, an increase of 20.3% over the comparable period revenues of $60.9 million due primarily to growth in average full-time active students.
  • Operating expenses were $64.3 million compared to $57.6 million. The increase was primarily due to growth in average full-time active students and additional expenses incurred related to new program launches.
  • Adjusted EBITDA(1) was $10.9 million compared to $5.4 million.
  • New student starts increased 15.9% to 3,059, while average full-time active students increased 15.5%.

“Our financial performance in the second quarter of 2025 highlights UTI’s disciplined approach and strong operational foundation, as we exceeded expectations across key metrics,” said Bruce Schuman, CFO of Universal Technical Institute, Inc. “The Concorde division continued to outperform, driven by increased investments in marketing that led to strong lead conversion and enrollment growth. The UTI division delivered year-over-year growth in average full-time active students, supported by robust demand for skilled trades education and continued momentum from recently launched programs across multiple campuses.

“Based on our performance and ongoing strategic initiatives, we are raising our fiscal 2025 guidance ranges for all key metrics. We now expect to deliver $825 million to $835 million in revenue, $124 million to $128 million in adjusted EBITDA, and 29,000 to 30,000 in new student starts. As we continue to advance Phase II of our North Star strategy, we remain committed to balancing near-term operational excellence with long-term investments that position UTI for accelerated growth and enhanced profitability in the years ahead.”

Financial Results for the Six-Month Period Ended March 31, 2025 Compared to 2024

  • Revenues increased 13.9% to $408.9 million compared to $358.9 million primarily due to the growth in both UTI and Concorde average full-time active students.
  • Operating expenses increased by 9.3% to $364.5 million compared to $333.4 million primarily due to the growth in both UTI and Concorde average full-time active students and costs associated with program expansions.
  • Operating income increased 74.4% to $44.3 million compared to $25.4 million.
  • Net income increased 84.9% to $33.6 million compared to $18.2 million.
  • Basic and diluted EPS were $0.62 and $0.61, respectively, compared to $0.32 and $0.31, respectively.
  • Adjusted EBITDA(1) increased 36.6% to $64.4 million compared to $47.1 million.
  • Net cash provided by operating activities increased by 165.7% to $22.2 million.
  • Adjusted free cash flow increased 116.0% to $8.0 million.
  • New student starts increased 21.7% to 11,963, while average full-time active students increased 10.7%.


UTI

  • Revenues of $265.7 million, an increase of $27.0 million, or 11.3%, from the prior year revenues of $238.7 million due to the growth in average full-time active students.
  • Operating expenses were $218.8 million compared to $205.5 million. The increase was primarily due to the growth in average full-time active students and expenses incurred during the current year for new program launches currently underway and completed over the past year.
  • Adjusted EBITDA(1) was $59.8 million compared to $46.0 million.
  • Average full-time active students increased by 7.5%, while new student starts increased by 23.1%.


Concorde

  • Revenues of $143.2 million, an increase of $23.0 million, or 19.1%, from the prior year revenues of $120.2 million due to growth in average full-time active students.
  • Operating expenses were $123.1 million compared to $109.8 million. The increase was due to additional expenses related to higher average students and program launches. 
  • Adjusted EBITDA(1) was $23.9 million compared to $14.2 million.
  • Average full-time active students increased by 16.0%, while new student starts increased by 20.3%.

(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 Liquidity

At March 31, 2025, the Company’s total available liquidity was $234.7 million consisting of $96.0 million of cash and cash equivalents, $39.7 million of short-term investments, and $99.0 million available from its revolving credit facility. Capital expenditures (“capex”) for the year-to date period were $14.3 million. The primary driver of capex for the quarter was the program expansions at both UTI and Concorde.

Updated Fiscal 2025 Financial Outlook


Previous


Updated


FY 2025


FY 2025


($ in millions, except EPS)


Guidance


Guidance

New student starts

28,500 – 29,500

29,000 – 30,000

Revenue

$810 – 820

$825 – 835

Net Income

$54 – 58

$56 – 60

Diluted EPS

$0.96 – 1.04

$1.00 – 1.08

Adjusted EBITDA(1)

$122 – 126

$124 – 128

Adjusted free cash flow(1)(2)

$60 – 65

$62 – 68

(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.

(2)

For FY 2025, assumes approximately $55M of total capex, including investments for new campus launches and program expansions, and maintenance capex.  

For the Company’s most recent investor presentation and quarterly financial supplement, please see its investor relations website at https://investor.uti.edu

Conference Call

Management will hold a conference call to discuss the financial results for the fiscal 2025 second quarter ended March 31, 2025, on Wednesday, May 7, 2025, 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 21, 2025, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and entering passcode 9261056.

Use of Non-GAAP Financial Information

In 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 Statements

All 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 2025 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; 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; changes in the state regulatory environment or budgetary constraints; 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 Disclosure

Universal 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 of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand careers across a number of highly-skilled fields. The Company is comprised of two divisions: Universal Technical Institute (“UTI”) and Concorde Career Colleges (“Concorde”). UTI operates 15 campuses located in 9 states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute and NASCAR Technical Institute. Concorde operates across 17 campuses in 8 states and online, offering programs in the Allied Health, Dental, Nursing, Patient Care and Diagnostic fields. For more information, visit www.uti.edu or www.concorde.edu, or visit us on LinkedIn at @UniversalTechnicalInstitute and @Concorde Career Colleges or on X (formerly Twitter) @news_UTI or @ConcordeCareer.

Company Contact:

Matt Kempton

VP Corporate Finance & Investor Relations
Universal Technical Institute, Inc.
(623)445-9392
[email protected]

Media Contact:

Susan Aspey

Vice President, Corporate Affairs & External Communications
Universal Technical Institute, Inc.
(202) 549-0534
[email protected]

Investor Relations Contact:

Matt Glover or Ralf Esper
Gateway Group, Inc.
(949) 574-3860
[email protected]

(Tables Follow)

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)


Three Months Ended March 31,


Six Months Ended March 31,


2025


2024


2025


2024


Revenues

$           207,447

$           184,176

$           408,876

$          358,871


Operating expenses:

Educational services and facilities

102,488

97,488

202,629

189,897

Selling, general and administrative

88,106

75,496

161,916

143,551


Total operating expenses

190,594

172,984

364,545

333,448


Income from operations

16,853

11,192

44,331

25,423


Other (expense) income:

Interest income

1,629

1,427

3,388

3,402

Interest expense

(1,657)

(2,184)

(3,330)

(5,055)

Other income (expense), net

9

119

(26)

333


Total other (expense) income, net

(19)

(638)

32

(1,320)


Income before income taxes

16,834

10,554

44,363

24,103

Income tax expense

(5,388)

(2,767)

(10,764)

(5,927)


Net income

$             11,446

$               7,787

$             33,599

$            18,176

Preferred stock dividends

(1,097)

Income available for distribution

$             11,446

$               7,787

33,599

17,079

Income allocated to participating securities

(2,855)


Net income available to common shareholders

$             11,446

$               7,787

$             33,599

$            14,224


Earnings per share:

Net income per share – basic

$                 0.21

$                 0.14

$                 0.62

$                0.32

Net income per share – diluted

$                 0.21

$                 0.14

$                 0.61

$                0.31


Weighted average number of shares outstanding(1):

Basic

54,383

53,757

54,183

45,048

Diluted

55,442

54,770

55,415

46,050

 

(1)

On December 18, 2023, the Company exercised in full its right of conversion of the Company’s Series A Preferred Stock which resulted in the conversion of all outstanding Series A Preferred shares into 19,296,843 shares of Common Stock. As of March 31, 2025 there were 54,406,215 shares of Common Stock outstanding.

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and per share amounts)

(Unaudited)


March 31, 2025


September 30, 2024


Assets

Cash and cash equivalents

$                       95,998

$                    161,900

Restricted cash

4,515

5,572

Held-to-maturity investments

39,691

Receivables, net

31,240

31,096

Notes receivable, current portion

6,334

6,200

Prepaid expenses

14,058

11,945

Other current assets

6,616

5,238

Total current assets

198,452

221,951

Property and equipment, net

263,716

264,797

Goodwill

28,459

28,459

Intangible assets, net

17,782

18,229

Notes receivable, less current portion

39,972

36,267

Right-of-use assets for operating leases

152,118

158,778

Deferred tax assets, net

4,091

3,563

Other assets

15,853

12,531

Total assets

$                    720,443

$                    744,575


Liabilities and Shareholders’ Equity

Accounts payable and accrued expenses

$                       79,757

$                       83,866

Deferred revenue

74,943

92,538

Operating lease liabilities, current portion

21,927

22,210

Long-term debt, current portion

2,779

2,697

Other current liabilities

5,694

3,652

Total current liabilities

185,100

204,963

Deferred tax liabilities, net

4,696

4,696

Operating lease liabilities

140,586

146,831

Long-term debt

91,642

123,007

Other liabilities

4,506

4,847

Total liabilities

426,530

484,344

Commitments and contingencies

Shareholders’ equity:

Common stock, $0.0001 par value, 100,000 shares authorized, 54,489 and
53,899 shares issued, 54,406 and 53,817 shares outstanding as of March 31,
2025 and September 30, 2024, respectively

5

5

Paid-in capital – common

220,900

220,976

Treasury stock, at cost, 82 shares as of March 31, 2025 and September 30, 2024

(365)

(365)

Retained earnings

72,108

38,509

Accumulated other comprehensive income

1,265

1,106

Total shareholders’ equity

293,913

260,231

Total liabilities and shareholders’ equity

$                    720,443

$                    744,575

 


 UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


Six Months Ended March 31,


2025


2024


Cash flows from operating activities:

Net income

$                33,599

$                 18,176

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

16,137

14,186

Amortization of right-of-use assets for operating leases

11,316

10,952

Provision for credit losses

9,554

3,189

Stock-based compensation

3,744

3,835

Deferred income taxes

(476)

(314)

Training equipment credits earned, net

(124)

962

Unrealized gain (loss) on interest rate swaps, net of taxes

159

(533)

Other (gains) losses, net

171

83

Changes in assets and liabilities:

Receivables

(11,258)

(1,641)

Prepaid expenses and other current assets

(4,269)

(4,469)

Other assets

(3,430)

(1,088)

Notes receivable

(3,839)

(4,409)

Accounts payable, accrued expenses and other current liabilities

(3,293)

(1,682)

Deferred revenue

(17,594)

(18,139)

Income tax payable/receivable

3,873

(350)

Operating lease liabilities

(11,185)

(10,139)

Other liabilities

(912)

(274)

Net cash provided by operating activities

22,173

8,345


Cash flows from investing activities:

Purchase of property and equipment

(14,292)

(9,759)

Purchase of held-to-maturity securities

(39,691)

Net cash used in investing activities

(53,983)

(9,759)


Cash flows from financing activities:

Proceeds from revolving credit facility

20,000

Payments on revolving credit facility

(30,000)

(39,000)

Payment of term loans and finance leases

(1,329)

(1,246)

Preferred share repurchase

(11,503)

Payments of preferred stock cash dividend

(1,097)

Proceeds from stock option exercises

659

Payment of payroll taxes on stock-based compensation through shares withheld

(4,479)

(2,119)

Net cash used in financing activities

(35,149)

(34,965)

Change in cash, cash equivalents and restricted cash

(66,959)

(36,379)

Cash and cash equivalents, beginning of period

161,900

151,547

Restricted cash, beginning of period

5,572

5,377

Cash, cash equivalents and restricted cash, beginning of period

167,472

156,924

Cash and cash equivalents, end of period

95,998

116,099

Restricted cash, end of period

4,515

4,446

Cash, cash equivalents and restricted cash, end of period

$              100,513

$               120,545

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT

(In thousands, except for Student Metrics)

(Unaudited)

 


Student Metrics


Three Months Ended March 31, 2025


Three Months Ended March 31, 2024


UTI


Concorde


Total


UTI


Concorde


Total

Total new student starts

3,591

3,059

6,650

2,840

2,640

5,480


Year-over-year growth


26.4 %


15.9 %


21.4 %


19.6 %


17.2 %


18.5 %

Average full-time active students

14,777

9,827

24,604

13,810

8,506

22,316


Year-over-year growth


7.0 %


15.5 %


10.3 %


10.3 %


8.9 %


9.8 %

End of period full-time active students

14,959

9,892

24,851

13,590

8,487

22,077


Year-over-year growth


10.1 %


16.6 %


12.6 %


12.3 %


10.1 %


11.4 %



Six Months Ended March 31, 2025



Six Months Ended March 31, 2024



UTI



Concorde



Total



UTI



Concorde



Total

Total new student starts

6,344

5,619

11,963

5,154

4,672

9,826



Year-over-year growth


23.1 %


20.3 %


21.7 %


18.5 %


81.6 %(1)


42.0 %(1)

Average full-time active students

15,121

9,713

24,834

14,065

8,375

22,440



Year-over-year growth


7.5 %


16.0 %


10.7 %


8.1 %


7.7 %


8.0 %

End of period full-time active students

14,959

9,892

24,851

13,590

8,487

22,077



Year-over-year growth


10.1 %


16.6 %


12.6 %


12.3 %


10.1 %


11.4 %

 

(1)

Total company year-over-year comparisons are shown on an “as-reported basis.” First quarter fiscal 2023 reflects UTI results for the full quarter and Concorde results beginning December 1, 2022.

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT

(In thousands, except for Student Metrics)

(Unaudited)

 


Financial Summary by Segment and Consolidated


Three Months Ended March 31, 2025


Three Months Ended March 31, 2024


UTI


Concorde


Corporate


Consolidated


UTI


Concorde


Corporate


Consolidated

Revenue

$  134,228

$ 73,219

$          —

$     207,447

$  123,323

$ 60,853

$          —

$     184,176


Year-over-year
growth


8.8 %


20.3 %

— %


12.6 %


14.7 %


8.2 %


— %


12.4 %

Educational
services and
facilities

60,866

41,622

102,488

60,100

37,388

97,488

Selling,
general and
administrative

51,923

22,715

13,468

88,106

45,137

20,219

10,140

75,496

Total operating
expenses

112,789

64,337

13,468

190,594

105,237

57,607

10,140

172,984


Year-over-year
growth


7.2 %


11.7 %


32.8 %


10.2 %


7.6 %


15.1 %


1.1 %


9.6 %

Net income
(loss)

20,179

8,837

(17,570)

11,446

16,616

3,320

(12,149)

7,787


Year-over-year
growth


21.4 %


166.2 %


(44.6) %


47.0 %


69.8 %


(46.4) %


(21.1) %


123.8 %



Six Months Ended March 31, 2025



Six Months Ended March 31, 2024



UTI



Concorde



Corporate



Consolidated



UTI



Concorde(1)



Corporate



Consolidated(1)

Revenue

$ 265,706

$ 143,170

$         —

$    408,876

$ 238,697

$ 120,174

$         —

$    358,871



Year-over-year
growth



11.3 %


19.1 %

— %


13.9 %


12.0 %


70.0 %


— %


26.4 %

Educational
services and
facilities

120,588

82,041

202,629

117,468

72,429

189,897

Selling,
general and
administrative

98,226

41,052

22,638

161,916

88,053

37,371

18,127

143,551

Total operating
expenses

218,814

123,093

22,638

364,545

205,521

109,800

18,127

333,448



Year-over-year
growth



6.5 %


12.1 %


24.9 %


9.3 %


8.2 %


68.3 %


(0.8) %


22.0 %

Net income (loss)

44,507

20,002

(30,910)

33,599

30,213

10,493

(22,530)

18,176



Year-over-year
growth



47.3 %


90.6 %


(37.2) %


84.9 %


40.2 %


90.7 %


(7.7) %


196.6 %

 

(1)

Total company year-over-year comparisons are shown on an “as-reported basis.” The six months ended fiscal 2023 included UTI results for the full period and Concorde results beginning December 1, 2022.

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT

(In thousands)

(Unaudited)

 


Major Expense Categories by Segment and Consolidated


Three Months Ended March 31, 2025


UTI


Concorde


Corporate


Consolidated

Salaries, benefits and tax expense

$          53,308

$          33,297

$             5,945

$          92,550

Bonus expense

4,042

1,238

2,430

7,710

Stock-based compensation expense

567

189

2,268

3,024

Total compensation and related costs

$          57,917

$          34,724

$          10,643

$        103,284

Advertising expense

$          15,849

$             7,895

$                211

$          23,955

Occupancy expense, net of subleases

7,923

5,630

169

13,722

Depreciation and amortization

5,971

1,850

317

8,138

Professional and contract services expense

3,119

1,326

4,126

8,571


Three Months Ended March 31, 2024


UTI


Concorde


Corporate


Consolidated

Salaries, benefits and tax expense

$          50,760

$          30,941

$             3,862

$          85,563

Bonus expense

3,423

829

1,128

5,380

Stock-based compensation expense

313

68

1,972

2,353

Total compensation and related costs

$          54,496

$          31,838

$             6,962

$          93,296

Advertising expense

$          13,900

$             7,040

$                211

$          21,151

Occupancy expense, net of subleases

7,735

5,626

172

13,533

Depreciation and amortization

5,684

1,217

301

7,202

Professional and contract services expense

2,771

2,758

3,014

8,543

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT

(In thousands)

(Unaudited)

 


Major Expense Categories by Segment and Consolidated


Six Months Ended March 31, 2025


UTI


Concorde


Corporate


Consolidated

Salaries, benefits and tax expense

$        104,424

$          65,271

$          11,041

$        180,736

Bonus expense

7,609

2,196

3,767

13,572

Stock-based compensation expense

949

268

2,527

3,744

Total compensation and related costs

$        112,982

$          67,735

$          17,335

$        198,052

Advertising expense

$          29,526

$          15,257

$                400

$          45,183

Occupancy expense, net of subleases

15,663

11,216

339

27,218

Depreciation and amortization

11,942

3,559

636

16,137

Professional and contract services expense

5,817

2,665

7,853

16,335


Six Months Ended March 31, 2024


UTI


Concorde


Corporate


Consolidated

Salaries, benefits and tax expense

$          96,129

$          59,133

$             7,425

$        162,687

Bonus expense

6,917

1,686

2,150

10,753

Stock-based compensation expense

783

77

2,975

3,835

Total compensation and related costs

$        103,829

$          60,896

$          12,550

$        177,275

Advertising expense

$          27,253

$          13,132

$                211

$          40,596

Occupancy expense, net of subleases

15,342

11,424

322

27,088

Depreciation and amortization

11,178

2,371

637

14,186

Professional and contract services expense

5,358

4,628

5,521

15,507

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION

(In thousands)

(Unaudited)

 


Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA


Three Months Ended March 31, 2025


UTI


Concorde


Corporate


Consolidated

Net income (loss)

$          20,179

$             8,837

$         (17,570)

$          11,446

Interest income

(4)

(20)

(1,605)

(1,629)

Interest expense

1,266

65

326

1,657

Income tax expense

5,388

5,388

Depreciation and amortization

5,971

1,850

317

8,138

EBITDA

27,412

10,732

(13,144)

25,000

Stock-based compensation expense

567

189

2,268

3,024

Acquisition related costs

873

873

Adjusted EBITDA, non-GAAP

$          27,979

$          10,921

$         (10,003)

$          28,897


Three Months Ended March 31, 2024


UTI


Concorde


Corporate


Consolidated

Net income (loss)

$          16,616

$             3,320

$         (12,149)

$             7,787

Interest income

(4)

(154)

(1,269)

(1,427)

Interest expense

1,475

80

629

2,184

Income tax expense

2,767

2,767

Depreciation and amortization

5,684

1,217

301

7,202

EBITDA

23,771

4,463

(9,721)

18,513

Stock-based compensation expense

313

68

1,972

2,353

Integration-related costs for completed acquisitions

226

884

586

1,696

Restructuring costs

45

45

Adjusted EBITDA, non-GAAP

$          24,355

$             5,415

$           (7,163)

$          22,607

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION

(In thousands)

(Unaudited)

 


Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA


Six Months Ended March 31, 2025


UTI


Concorde


Corporate


Consolidated

Net income (loss)

$          44,507

$          20,002

$         (30,910)

$          33,599

Interest income

(11)

(60)

(3,317)

(3,388)

Interest expense

2,405

135

790

3,330

Income tax expense

10,764

10,764

Depreciation and amortization

11,942

3,559

636

16,137

EBITDA

58,843

23,636

(22,037)

60,442

Stock-based compensation expense

949

268

2,527

3,744

Acquisition related costs

873

873

Integration-related costs for completed acquisitions(1)

(700)

(700)

Restructuring costs

43

43

Adjusted EBITDA, non-GAAP

$          59,835

$          23,904

$         (19,337)

$          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.

 


Six Months Ended March 31, 2024


UTI


Concorde


Corporate


Consolidated

Net income (loss)

$          30,213

$          10,493

$         (22,530)

$          18,176

Interest income

(10)

(282)

(3,110)

(3,402)

Interest expense

2,987

163

1,905

5,055

Income tax expense

5,927

5,927

Depreciation and amortization

11,178

2,371

637

14,186

EBITDA

44,368

12,745

(17,171)

39,942

Stock-based compensation expense

783

77

2,975

3,835

Integration-related costs for completed acquisitions

726

1,347

1,198

3,271

Restructuring costs

88

88

Adjusted EBITDA, non-GAAP

$          45,965

$          14,169

$         (12,998)

$          47,136

 


UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES


RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION

(In thousands)

(Unaudited)

 


Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow


Six Months Ended March 31,


2025


2024

Net cash provided by operating activities, as reported

$                 22,173

$                   8,345

Purchase of property and equipment

(14,292)

(9,759)

Free cash flow, non-GAAP

7,881

(1,414)

Adjustments:

Cash outflow for acquisition-related costs

761

Cash (inflow) outflow for integration-related costs for completed acquisitions(1)

(700)

2,622

Cash outflow for integration-related property and equipment

2,331

Cash outflow for restructuring costs and property and equipment

55

164

Adjusted free cash flow, non-GAAP

$                   7,997

$                   3,703

 

(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 SUBSIDIARIES


RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL


INFORMATION FOR UPDATED FISCAL 2025 GUIDANCE

(In thousands)

(Unaudited)

For each of the non-GAAP reconciliations provided for updated fiscal 2025 guidance, we are reconciling to the midpoint of the guidance range. The adjustments reflected below for updated fiscal 2025 are illustrative only and may change throughout the year, both in amount or the adjustments themselves. 


Reconciliation of Net Income to EBITDA and Adjusted EBITDA for Fiscal 2025 Guidance


Updated


Twelve Months Ended


September 30,


2025

Net income

~ $58,000

Interest expense (income), net

~ 1,000

Income tax expense

~ 20,600

Depreciation and amortization

~ 33,500

EBITDA

~ 113,100

Stock-based compensation expense

~ 9,000

Acquisition related costs(1)

~ 4,000

Integration-related costs for completed acquisitions(2)

(700)

Restructuring costs(3)

~ 600

Adjusted EBITDA, non-GAAP

~126,000


FY 2025 Guidance Range


$124,000 – 128,000

 


Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow for Fiscal 2025 Guidance


Updated


Twelve Months Ended


September 30,


2025

Net cash provided by operating activities

~ $116,100

Purchase of property and equipment

~ (55,000)

Free cash flow, non-GAAP

~ 61,100

Adjustments:

Cash outflow for acquisition related costs(1)

~ 4,000

Cash inflow for integration-related costs for completed acquisitions(2)

(700)

Cash outflow for restructuring costs and property and equipment(3)

~ 600

Adjusted free cash flow, non-GAAP

~ 65,000


FY 2025 Guidance Range


$62,000 – 68,000

 

(1)

FY25 projected spend on acquisition related costs is an estimate and is fully contingent on whether the Company pursues an acquisition this year.

(2)

During the three months ended December 31, 2024, 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.

(3)

In December 2023, the Company announced plans to consolidate its MIAT-Houston and UTI-Houston operations beginning in fiscal 2024 which was completed in Q1 fiscal 2025. As of March 31, 2025, the only remaining cost related to this restructuring is the potential for federal loan discharges.

 

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SOURCE Universal Technical Institute, Inc.