Universal Technical Institute Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did UTI Beat Earnings? Q2 2026 Results
Universal Technical Institute delivered a modest but telling fiscal second quarter, posting revenue of $221.40 million, up 6.7% year over year and just ahead of the $221.16 million consensus, while earnings of $0.01 per diluted share edged past the $0.00 estimate even as net income fell sharply to $433,000 from $11.45 million a year ago. The story behind the numbers is deliberate: roughly $11.00 million in strategic growth expenses tied to new campus launches and program expansions under the company's North Star Phase II initiative drove operating expenses up 16.0% to $221.06 million, compressing consolidated adjusted EBITDA by 51.0% to $14.15 million. Those investments are already showing early returns, with the UTI-San Antonio campus opening in March with initial student starts running approximately 60% above plan. Analysts at B. Riley Securities raised their price target to $49, reflecting confidence in the longer-term buildout. Management reaffirmed full-year fiscal 2026 guidance, including revenue of $905.00 million to $915.00 million and diluted EPS of $0.71 to $0.80, with North Star Phase II targeting revenue above $1.20 billion by fiscal 2029.
- Average full-time active students increased 7.2% year-over-year to 26,385
- Total new student starts increased 13.8% year-over-year to 7,569
- UTI division new student starts grew 14.5% YoY; Concorde grew 13.1% YoY
- Revenue per student for UTI was $9,200 (up 1.1% YoY); Concorde was $7,300 (down 1.4% YoY)
- Baseline adjusted EBITDA of $25.1 million before $11 million in growth investments
“Our performance throughout the first half of the year continued to meet and exceed expectations, driven by sustained demand across both divisions and progress on our North Star initiatives, further reinforcing our confidence in the trajectory of the business.”
Universal Technical Institute CEO, on the earnings call
Forward Guidance & Outlook
The company reaffirmed its full-year fiscal 2026 guidance: revenue of $905-$915 million, net income of $40-$45 million, diluted EPS of $0.71-$0.80, adjusted EBITDA of $114-$119 million, adjusted free cash flow of $20-$25 million, and new student starts of 31,500-33,000. Management expressed confidence in the full-year outlook based on first-half performance and visibility into the remainder of fiscal 2026. The company's North Star Phase II strategy targets revenue exceeding $1.2 billion and adjusted EBITDA approaching $220 million by fiscal 2029, supported by 12-16 new campuses and 50-70 new program expansions. The company also expects fiscal 2026 growth investments will create incremental enrollment and earnings upside in fiscal 2027 and beyond.
UTI YoY Financials
UTI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.