UNIVERSAL TECHNICAL INSTITUTE INC Q3 FY26 Results

Our third quarter results reinforce our confidence in both the demand environment for our students and the strength of the North Star strategy we've been executing. New student starts grew 11%, exceeding our expectations, driven by a robust performance from our UTI division. Additionally, our newer campuses continue to outperform, with UTI-San Antonio and UTI-Atlanta both tracking well ahead of their launch models, validating the diversification strategy we've been pursuing. We have unified all programs under one corporate structure, enabling us to better align resources with demand, improve execution and advance the optimization pillar of North Star while preserving the strength of the UTI and Concorde brands. Over the past several years, we have successfully executed the growth and diversification pillars of North Star, building the programs, campuses and employer relationships needed to meet ever-evolving student demand. That demand is now shifting toward skilled trades faster than anticipated, driving outperformance across newer campuses, capacity expansions and recently launched programs. At the same time, our fourth-quarter high school starts in Auto and Diesel are tracking below plan, as we missed the opportunity to reach every prospective student who expressed interest, creating a clear opportunity to strengthen engagement and improve conversion as we start to look at fiscal 2027.

Our third quarter results reflect continued operational strength across the business, with solid enrollment growth, revenue expansion, and disciplined execution against our North Star strategy. Average full-time active students increased 5.8% year-over-year, while new student starts increased 10.9%, driven by continued momentum across recently launched campuses, new programs and sustained demand across both divisions. Based on the timing of fourth-quarter enrollment trends, we are updating our fiscal 2026 outlook to reflect a more measured fourth-quarter expectation. We now expect fiscal 2026 revenue of $893 million to $900 million, baseline Adjusted EBITDA to exceed $135 million and reported Adjusted EBITDA of $100 million to $103 million, giving effect to approximately $35 million of growth investments. We are also tightening our total new student starts outlook, which is now expected to be between 31,900 and 32,300. Importantly, these adjustments reflect largely timing and, to a lesser degree, mix considerations, rather than a change in the underlying demand environment. Employer demand remains strong, student interest continues to be healthy, and our newer campuses and programs continue to perform well. We believe the investments we are making today are strengthening our platform and positioning Universal Technical Institute, Inc. to deliver on the long-term financial targets outlined in our North Star Phase II strategy.