Universal Technical Institute Reports Fiscal Year 2025 Second Quarter Results

Delivers Financial and Operational Outperformance in Fiscal Q2; Raises FY 2025 Guidance , /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 KemptonVP Corporate Finance & Investor RelationsUniversal Technical Institute, Inc.(623)445-9392[email protected] Media Contact:Susan AspeyVice President, Corporate Affairs & External CommunicationsUniversal Technical Institute, Inc.(202) 549-0534[email protected] Investor Relations Contact:Matt Glover or Ralf EsperGateway 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 and53,899 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-yeargrowth 8.8 % 20.3 % — % 12.6 % 14.7 % 8.2 % — % 12.4 % Educationalservices andfacilities 60,866 41,622 — 102,488 60,100 37,388 — 97,488 Selling,general andadministrative 51,923 22,715 13,468 88,106 45,137 20,219 10,140 75,496 Total operatingexpenses 112,789 64,337 13,468 190,594 105,237 57,607 10,140 172,984 Year-over-yeargrowth 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-yeargrowth 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-yeargrowth 11.3 % 19.1 % — % 13.9 % 12.0 % 70.0 % — % 26.4 % Educationalservices andfacilities 120,588 82,041 — 202,629 117,468 72,429 — 189,897 Selling,general andadministrative 98,226 41,052 22,638 161,916 88,053 37,371 18,127 143,551 Total operatingexpenses 218,814 123,093 22,638 364,545 205,521 109,800 18,127 333,448 Year-over-yeargrowth 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-yeargrowth 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. SOURCE Universal Technical Institute, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Universal Technical Institute Reports Fiscal Year 2025 Second Quarter Results

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