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- **Phase 2 Success**: 2025 revenue of $836 million (+14% YoY) and adjusted EBITDA of $126.5 million exceeded expectations, driven by 10.8% growth in new student starts.
- **2026 Growth Plan**: $905-915 million revenue target (+9% YoY) with 3 new campuses and 20+ programs, despite $40 million in growth investments.
- **Long-Term Vision**: $1.2 billion revenue and $220 million EBITDA by 2029, fueled by campus replication and program expansion.
- **Operational Discipline**: 2026 free cash flow of $20-25 million and 2-3% tuition increases balanced against student funding trends.

**【Management Opening Remarks】**
- CEO Jerome Grant highlighted the success of the "North Star" strategy Phase 2, with revenue exceeding twice-raised guidance to $836 million (14% YoY growth) and adjusted EBITDA of $126.5 million.
- CFO Bruce Schuman emphasized disciplined execution, with average full-time active students up 10.5% to 24,688 and new student starts increasing 10.8% to 29,793.
- The company raised 2026 revenue guidance to $905-915 million (9% YoY growth) and expects to open 3 new campuses in 2026, launching 20+ new programs across UTI and Concorde.

**【CEO Commentary】**
- Fiscal 2025 marked the first year of Phase 2, with strategic investments of $6 million in growth initiatives, netting $126.5 million in adjusted EBITDA.
- 2026 priorities include opening 3 new campuses (Fort Myers, Atlanta, San Antonio) and launching 20+ programs, with revenue growth of 9% YoY and new student starts of 31,500-33,000.
- Long-term vision targets $1.2 billion in revenue and $220 million in adjusted EBITDA by 2029, driven by campus replication and program expansion.

**【CFO Financial Commentary】**
- Q4 2025 revenue was $222.4 million (13.3% YoY growth), with full-year net income of $63 million ($1.13 EPS) and adjusted EBITDA of $126.5 million.
- 2026 guidance includes $905-915 million in revenue, $40 million in growth investments, and adjusted EBITDA of $114-119 million.
- Free cash flow for 2026 is projected at $20-25 million, with $100 million in CapEx for campus expansion and modernization.

**【Q&A Highlights】**
- **Student Growth Distribution**: 2026 new student starts will be evenly split between UTI and Concorde, with 8-9% YoY growth.
- **Campus Expansion**: 2-5 new campuses annually starting 2026, with Salt Lake City UTI campus expected to generate $40-45 million in revenue at scale.
- **DOE Impact**: No front-end delays in student admissions, with cash collection delays resolved by Q1 2026.
- **Tuition Pricing**: 2-3% YoY increases, balanced against student funding availability.
- **Employment Trends**: Graduation placement rates remain strong, with demand for skilled trades and healthcare programs outpacing supply.

Universal Technical Institute, Inc. (UTI) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

UTI

UTI fundamentals

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