Universal Technical Institute (UTI) Q3 2024 earnings summary

Executive summary

• Revenue grew 15.8% year-over-year to $177.5 million in Q3, with net income of $5.0 million and diluted EPS of $0.09, driven by higher student enrollment in both UTI and Concorde segments.

• Adjusted EBITDA rose 61% to $18.4 million, reflecting improved operating leverage and margin expansion.

• Average undergraduate full-time active students increased 13.4% year-over-year; new student starts up 5.0%, with Concorde outperforming and UTI expecting a Q4 rebound.

• The company completed the repurchase and conversion of all Series A Preferred Stock, eliminating future preferred dividends and increasing common shares outstanding.

• Strategic program expansions, new partnerships, and ongoing integration of Concorde and MIAT support long-term growth and operational momentum.

Financial highlights

• Q3 2024 revenue: $177.5 million, up 15.8% year-over-year; nine-month revenue: $536.3 million, up 22.7%.

• Net income for Q3 was $5.0 million, reversing a prior year net loss; diluted EPS was $0.09.

• Adjusted EBITDA for Q3 was $18.4 million, up 60.9% year-over-year; nine-month adjusted EBITDA was $65.5 million, up 45.4%.

• Cash and liquidity at quarter-end totaled $148.5 million, with $33.0 million available from the revolving credit facility.

• Year-to-date capital expenditures were $16.8 million, with full-year CapEx expected at ~$30 million.

Outlook and guidance

• Full-year 2024 guidance reaffirmed, with revenue expected at $720M–$730M, net income of $37M–$41M, and adjusted EBITDA of $102M–$104M.

• Fiscal 2025 revenue projected near $800M, with at least 100 basis points of adjusted EBITDA margin expansion.

• Long-term plan targets 10% average annual revenue growth and adjusted EBITDA margin approaching 20% by 2029.

• Plans to add at least six new programs annually from fiscal 2025 and open two new campuses per year starting fiscal 2026.

• Strategic focus includes organic growth, program expansions, and disciplined acquisitions to drive scale and margin expansion.