Universal Technical Institute (UTI) Q3 2026 earnings summary

Executive summary

• Revenue grew 7.2% year-over-year to $218.9 million for the quarter, driven by strong new student starts, robust demand for skilled trades, and new campus/program launches, with average full-time active students up 5.8% to 25,131.

• Net income declined to $2.3 million for the quarter, primarily due to $9 million in strategic growth investments, with nine-month net income at $15.5 million.

• Adjusted EBITDA for the quarter was $18.2 million, down 27.8% year-over-year, reflecting significant investments in campus launches and program expansions.

• The company operates 35 campuses nationwide, with 4 more announced, and offers over 35 programs across transportation, energy, skilled trades, and healthcare.

• Multi-year transformation includes new campuses, acquisitions, program expansions, and a unified operating model to drive efficiency and synergies.

Financial highlights

• Q3 2026 revenue was $218.9 million (+7.2% YoY); nine-month revenue reached $661.2 million (+7.8% YoY).

• Q3 net income was $2.3 million (down from $10.7 million YoY); nine-month net income was $15.5 million (down from $44.3 million YoY).

• Adjusted EBITDA for Q3 was $18.2 million (down 27.8% YoY); nine-month Adjusted EBITDA was $59.5 million (down 33.6% YoY).

• Capex for nine months was $85.4 million, with full-year expected at $110 million.

• Liquidity at quarter-end was $180.5 million, with total debt at $160.0 million.

Outlook and guidance

• Fiscal 2026 revenue guidance revised to $893–900 million, with net income expected at $32–36 million and diluted EPS of $0.57–0.64.

• Adjusted EBITDA guidance for FY2026 is $100–103 million, reflecting ~$35 million in growth investments; baseline adjusted EBITDA expected to exceed $135 million.

• Adjusted free cash flow guidance for FY2026 is $(20)–0 million, reflecting higher capex.

• New student starts for FY2026 expected between 31,900 and 32,300.

• Long-term targets reaffirmed: $1.2 billion+ revenue and ~$220 million adjusted EBITDA by 2029, with 12–16 new campuses and 50–70 new programs/expansions planned.