Universal Technical Institute delivered a quarter that met market expectations, highlighted by steady revenue growth and disciplined execution of its expansion strategy. Management attributed the strong operational start to increased new student enrollments and positive early momentum at newly opened campuses, such as Austin and Miramar. CEO Jerome Grant emphasized, “Our most recent campus launches... are excellent representations of this strategy’s success,” underscoring the company’s focus on scaling efficiently while maintaining attractive student outcomes. Investments in marketing and program development were also noted as contributors to the quarter’s performance.
Is now the time to buy UTI? Find out in our full research report (it’s free for active Edge members).
Universal Technical Institute (UTI) Q4 CY2025 Highlights:
- Revenue: $220.8 million vs analyst estimates of $217.5 million (9.6% year-on-year growth, 1.6% beat)
- EPS (GAAP): $0.23 vs analyst estimates of $0.14 (66.3% beat)
- Adjusted EBITDA: $27.15 million vs analyst estimates of $23.94 million (12.3% margin, 13.4% beat)
- The company reconfirmed its revenue guidance for the full year of $910 million at the midpoint
- EBITDA guidance for the full year is $116.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 7.1%, down from 13.6% in the same quarter last year
- New Students: 5,449, up 136 year on year
- Market Capitalization: $1.49 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Universal Technical Institute’s Q4 Earnings Call
- Alex Paris (Barrington Research): Asked for more detail on the drivers behind new student starts, specifically the impact of marketing allocation between UTI and Concord divisions. CEO Jerome Grant explained that increased investment in UTI adult and high school channels is beginning to show results, especially with upcoming campus launches.
- Steve Frankel (Rosenblatt): Inquired about funding mechanisms for the Heartland Fort Myers campus and regulatory approval timelines. Grant clarified that the campus now operates like others with access to government loans and praised improved federal approval speed.
- Jasper Bibb (Truist): Sought clarification on the expected acceleration in student starts and the factors supporting improved performance in upcoming quarters. Grant pointed to the cumulative impact of new campus and program launches driving momentum, with each individual addition contributing incrementally.
- Griffin Boss (B. Riley Securities): Questioned free cash flow guidance and capital expenditure plans. CFO Bruce Schuman reiterated the $20–$25 million adjusted free cash flow target, linking it to continued heavy investment in growth initiatives.
- Raj Sharma (Texas Capital Bank): Asked about margin declines and future regulatory risks. Schuman attributed margin compression to growth investments and Grant expressed confidence that regulatory processes would remain consistent regardless of political changes.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will watch (1) the enrollment ramp and program fill rates at new campuses in San Antonio and Atlanta, (2) the timing and execution of over 20 new program launches, and (3) the impact of continued marketing investments on student acquisition costs and conversion efficiency. Progress in regulatory approvals for planned campus expansions will also be a key milestone.
Universal Technical Institute currently trades at $27.10, down from $27.86 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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