Universal Technical Institute (UTI) Q2 2026 earnings summary

Executive summary

• Revenue grew 6.7% year-over-year to $221.4 million for Q2 and 8.2% to $442.2 million for the first half, driven by robust demand, increased student enrollment, and new program launches in both UTI and Concorde divisions.

• Net income declined sharply to $0.4 million for Q2 and $13.3 million for the first half, primarily due to $11 million in strategic growth expenses for new campuses and programs.

• Average full-time active students increased 7.2% year-over-year, with new student starts up 13.8% in Q2 and 8.8% for the first half; both divisions contributed double-digit growth.

• Confidence in the repeatability and scalability of the business model, with new campuses outperforming projections and a strategic focus on organic growth, program expansion, and operational optimization.

• Multi-year transformation includes new campuses, acquisitions, program expansions, blended learning, and industry partnerships, driving revenue and profitability growth.

Financial highlights

• Q2 consolidated revenue increased 6.7% year-over-year to $221.4 million; first half revenue was $442.2 million, up 8.2% year-over-year.

• Q2 net income was $0.4 million (down from $11.4 million YoY); first half net income was $13.3 million (down from $33.6 million YoY).

• Q2 Adjusted EBITDA was $14.1 million (down 51.0% YoY); first half Adjusted EBITDA was $41.3 million (down 35.9% YoY).

• Baseline Adjusted EBITDA for Q2 was $25.1 million; reported Adjusted EBITDA after $11 million in growth investments was $14.1 million.

• Total available liquidity at quarter-end was $202.4 million, with $87.2 million in cash and $74.8 million in short-term investments; year-to-date capital expenditures were $52.7 million.

Outlook and guidance

• Fiscal 2026 consolidated revenue expected between $905 million and $915 million, about 9% year-over-year growth at midpoint; net income guidance of $40–$45 million, with diluted EPS of $0.71–$0.80.

• Baseline Adjusted EBITDA anticipated to exceed $150 million; reported Adjusted EBITDA expected between $114 million and $119 million.

• Total new student starts projected at 31,500–33,000 for the year.

• Long-term targets include $1.2 billion revenue and Adjusted EBITDA approaching $220 million by fiscal 2029.

• Guidance reflects ongoing investments in new campuses and programs, impacting year-over-year comparability.