Universal Technical Institute — Fiscal 2026 Third Quarter Earnings Summary

Financial Performance

• Revenue for the three months ended June 30, 2026, was $218.9 million, an increase of 7.2% year-over-year compared to $204.3 million.
• Net income for the three months ended June 30, 2026, was $2.3 million, a decrease of $8.4 million compared to $10.7 million in the prior year period.
• Adjusted EBITDA for the three months ended June 30, 2026, was $18.2 million, a decrease of 27.8% compared to $25.3 million, driven by $9.0 million in strategic growth expenses.
• Operating expenses for the three months ended June 30, 2026, increased 13.4% to $215.7 million from $190.1 million, primarily due to student growth and strategic growth expenses.
• Operating income for the three months ended June 30, 2026, was $3.2 million, down from $14.2 million in the prior year period.
• Basic and diluted EPS for the three months ended June 30, 2026, were $0.04, compared to $0.20 and $0.19, respectively, in the prior year period.
• For the nine months ended June 30, 2026, revenue was $661.2 million, an increase of 7.8% compared to $613.2 million.
• Net income for the nine months ended June 30, 2026, was $15.5 million, a decrease of 64.9% compared to $44.3 million in the prior year period.
• Adjusted EBITDA for the nine months ended June 30, 2026, was $59.5 million, a decrease of 33.6% compared to $89.7 million, due to approximately $27.6 million in strategic growth investments.
• Total debt at June 30, 2026, was $160.0 million, including $95.0 million drawn on the revolving credit facility.
• Total available liquidity at June 30, 2026, was $180.5 million, including cash, short-term investments, and credit facility capacity.
• Cash capital expenditures for the nine months ended June 30, 2026, were $85.4 million.
• Deferred revenue at June 30, 2026, was $70.7 million, down from $91.5 million at September 30, 2025.

Guidance and Future Outlook

• Fiscal 2026 revenue guidance was revised to $893 million to $900 million, down from the previous $905 million to $915 million.
• Baseline Adjusted EBITDA for fiscal 2026 is expected to exceed $135 million.
• Reported Adjusted EBITDA for fiscal 2026 is expected to be $100 million to $103 million, reflecting approximately $35 million in growth investments.
• Fiscal 2026 total new student starts guidance was tightened to 31,900 to 32,300, down from the previous 31,500 to 33,000.
• Fiscal 2026 net income guidance was revised to $32 million to $36 million, down from $40 million to $45 million.
• Fiscal 2026 diluted EPS guidance was revised to $0.57 to $0.64, down from $0.71 to $0.80.
• Fiscal 2026 Adjusted Free Cash Flow guidance was revised to $(20) million to $0, down from $20 million to $25 million.
• Management expects approximately $110 million of cash capex for fiscal 2026, including new campus launches and maintenance.
• Management attributes the guidance adjustments to timing and mix considerations rather than a change in the underlying demand environment.

Business Segments and Product Lines

• The Company operates in two reportable segments: Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde).
• Average full-time active students increased 5.8% to 25,131 for the three months ended June 30, 2026.
• Total new student starts for the three months ended June 30, 2026, were 6,342, an increase of 10.9% compared to 5,721 in the prior year period.
• UTI segment new student starts grew 23.4% year-over-year to 3,491, while Concorde segment starts decreased 1.4% to 2,851.
• The UTI-Atlanta campus opened in July 2026 with initial student starts approximately 30% ahead of expectations.
• Newer campuses, including UTI-San Antonio and UTI-Atlanta, are tracking well ahead of launch models.
• Demand is shifting toward skilled trades faster than anticipated, driving outperformance across newer campuses and capacity expansions.
• Fourth-quarter high school starts in Auto and Diesel are tracking below plan, creating an opportunity to strengthen engagement and conversion.
• A multi-year transition to a simplified and unified operating model is beginning under the "Optimization" pillar of the North Star strategy.
• Corporate operations for accounting, finance, IT, HR, and real estate were centralized as of October 1, 2025, with costs allocated to UTI and Concorde based on revenue percentage.

Market and Competitive Landscape

• Employer demand remains strong.
• Student interest continues to be healthy.
• The Company is executing a diversification strategy to meet ever-evolving student demand.
• The Company operates 35 campuses nationwide and online under the UTI and Concorde brands.

Risks and Challenges

• Strategic growth expenses related to new campus launches and program expansions have reduced operating income and net income.
• Fourth-quarter high school starts in Auto and Diesel are tracking below plan.
• The Company faces risks related to regulatory compliance, changes in higher education laws, and federal student financial assistance eligibility.
• Risks include potential reductions in Title IV funding, legislative initiatives regarding veterans' benefits, and regulatory investigations.
• Risks include failure to execute growth strategy, failure to realize acquisition benefits, and inability to improve underutilized capacity.
• Risks include enrollment declines, student employment challenges due to macroeconomic conditions, and loss of senior management.
• Risks include failure to comply with credit agreement covenants and the influence of a principal stockholder.

Management Commentary and Tone

• Jerome Grant, CEO, stated that results reinforce confidence in the demand environment and the North Star strategy.
• Management noted that new student starts grew 11%, exceeding expectations, driven by robust UTI division performance.
• Bruce Schuman, CFO, described the results as reflecting continued operational strength with solid enrollment growth and disciplined execution.
• Management expressed confidence that investments are strengthening the platform to deliver on long-term financial targets.
• Management indicated that the fourth-quarter outlook reflects timing considerations rather than a fundamental change in demand.

Other Key Points

• The Company initiated a multi-phase restructuring plan in May 2026 to simplify operations and align resources, with additional phases rolling out over the next three years.
• The MIAT Houston campus began a phased teach-out in May 2024 and began operating under the UTI brand.
• The Company announced a key milestone in the "Optimization" pillar of North Star involving a transition to a unified operating model.
• A conference call to discuss results was held on August 5, 2026, at 4:30 p.m. ET.
• The Company uses social media channels (website, LinkedIn, X) as channels of distribution for material information.