Universal Technical Institute, Inc.

Third-quarter revenue increased 7.2% year over year to $218.9 million, with Concorde revenue of $80.9 million up 11.1% and UTI revenue of $138 million up 5%. Average full-time active students grew 5.8% to 25,131, and new student starts increased 10.9% to 6,342. Net income was $2.3 million, or $0.04 per diluted share. Baseline adjusted EBITDA was $27.2 million, including $9 million of growth investments, and reported adjusted EBITDA was $18.2 million. For fiscal 2026, management now expects revenue of $893 million to $900 million, net income of $32 million to $36 million, diluted EPS of $0.57 to $0.64, baseline adjusted EBITDA above $135 million, reported adjusted EBITDA of $100 million to $103 million, and new student starts of 31,900 to 32,300.

Jerome Grant framed the quarter as validation of the North Star strategy, emphasizing strong demand for skilled workers, growth in skilled trades and healthcare, and the success of new campuses and program launches. He repeatedly stressed that the business is benefiting from durable employer demand and that the company’s diversification beyond transportation is working. His tone was confident, but he acknowledged near-term execution issues in the UTI high school channel and said the company is taking corrective steps, including adding about 20% more admissions staffing.

Bruce Schuman said the quarter reflected strong operating execution alongside higher strategic investment, with $9 million of growth investments flowing through baseline versus reported EBITDA. He detailed liquidity of $181 million at quarter-end and said year-to-date capex was $85.4 million, with full-year capex now expected to be about $110 million. On guidance, he tied the lower fiscal 2026 outlook primarily to softer UTI high school starts in Q4 and, to a lesser extent, the revenue mix impact from stronger skilled-trades enrollment; he also reiterated confidence in fiscal 2029 targets of more than $1.2 billion in revenue and adjusted EBITDA approaching $220 million.

Analysts focused heavily on whether the UTI high school shortfall reflected capacity, conversion, or broader demand weakness. Management said it was mainly an execution problem: not enough admissions reps in the field to work the lead flow, plus a faster-than-expected shift toward skilled trades instead of auto/diesel. They said they have already added staffing, are now at a little over 170 field reps, and expect to recover more non-converted leads in early fiscal 2027. Questions also covered AI search disruption, but management said AI was not the cause of the high school miss and that inquiries remain healthy across channels, with UTI inquiries up 18% and Concorde leads up 22%.