Executive Summary

Q1 FY2025 delivered broad outperformance: revenue $201.4M (+15.3% YoY), diluted EPS $0.40, adjusted EBITDA $35.5M (+44.8% YoY), and new student starts +22.3% YoY, driven by higher average full‑time active students across both divisions and timing of UTI starts deferring from Q4 due to FAFSA delays .
Management raised FY2025 guidance across ALL key metrics: revenue to $810–$820M, adjusted EBITDA to $122–$126M, net income to $54–$58M, diluted EPS to $0.96–$1.04, adjusted FCF to $60–$65M, and new student starts to 28,500–29,500 .
Strategic catalysts strengthened: UTI-Atlanta greenfield campus announced for 2026 (150k sq. ft. optimized site) and Tesla START Collision Repair program added to MSAT portfolio at Long Beach (spring 2025), enhancing brand, partner network, and enrollment funnel .
Near-term setup: Q2 revenue growth guided to “upper single digits” YoY and “a little bit lower” than ~8% (~7% in the “neighborhood”), with operating expenses expected to rise ~$10–$15M sequentially as deferred initiative spend lands in Q2; EBITDA margins low-double-digits in Q2/Q3, seasonal step-up to upper teens in Q4 .

What Went Well and What Went Wrong

What Went Well
- Broad beat on internal expectations with strong volume: “outperformance across our key financial and operational metrics,” revenue +15%, starts +22%, adjusted EBITDA +45% YoY; UTI starts benefitted from FAFSA-related deferrals; Concorde growth supported by increased marketing/admissions investments .
- Guidance raised across all metrics (“we are raising our guidance ranges for fiscal 2025”) on enrollment momentum and operating leverage; FY25 revenue $810–$820M and adjusted EBITDA $122–$126M .
- Strategic expansion and partnerships: UTI-Atlanta campus for 2026 (greenfield, optimized footprint) and Tesla START Collision Repair MSAT (UTI exclusive, spring 2025 start) deepen competitive moat and employer pipeline .
What Went Wrong
- Spend timing tailwind reverses near-term: Q1 beat partially driven by shifting initiative spend into Q2; management expects ~$10–$15M higher sequential OpEx in Q2 (only ~$5–$6M of that was deferred), implying near-term EBITDA normalization .
- Concorde short-course starts declined 19% YoY in Q1 (mix/timing), a reminder that local-market constraints and program caps can create diminishing returns even as core and clinical programs grew strongly .
- Regulatory constraints persist: Concorde campus openings remain restricted until likely 2027 (non‑Title IV Heartland campus excluded), tempering near-term campus-led growth on the healthcare side .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$177.46	$196.36	$201.43
Diluted EPS ($)	$0.09	$0.34	$0.40
Net Income ($M)	$4.99	$18.84	$22.15
EBITDA Margin (%)	8.4%	17.3%	17.6%
Income from Operations Margin (%)	4.2%	13.3%	13.6%

Segment revenue and adjusted EBITDA (Q1 YoY):

Segment	Q1 2024 Revenue ($M)	Q1 2025 Revenue ($M)	Q1 2024 Adj. EBITDA ($M)	Q1 2025 Adj. EBITDA ($M)
UTI	$115.37	$131.48	$21.61	$31.86
Concorde	$59.32	$69.95	$8.75	$12.98
Consolidated	$174.70	$201.43	$24.53	$35.51

KPIs:

KPI	Q1 2024	Q1 2025
Total New Student Starts	4,346	5,313
Avg Full-Time Active Students (Total)	22,565	25,062
UTI New Student Starts	2,314	2,753
UTI Avg FT Active Students	14,321	15,464
Concorde New Student Starts	2,032	2,560
Concorde Avg FT Active Students	8,244	9,598

Balance Sheet/Liquidity (Q1 FY25):

Total available liquidity $246.0M; cash and equivalents $172.0M; revolver availability $74.0M; YTD capex $3.3M .
Operating cash flow $23.0M (+112% YoY); adjusted FCF $18.9M (+85% YoY) .

Non-GAAP notes:

Q1 adjusted EBITDA adds back stock comp, small restructuring, and integration-related items (including a $0.7M escrow settlement); FY25 guidance no longer adds back ongoing growth investments in programs/campuses for Adjusted EBITDA/FCF comparability going forward .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
New Student Starts	FY 2025	28,000 – 29,000	28,500 – 29,500	Raised
Revenue ($M)	FY 2025	$800 – $815	$810 – $820	Raised
Net Income ($M)	FY 2025	$52 – $56	$54 – $58	Raised
Diluted EPS ($)	FY 2025	$0.93 – $1.01	$0.96 – $1.04	Raised
Adjusted EBITDA ($M)	FY 2025	$120 – $124	$122 – $126	Raised
Adjusted FCF ($M)	FY 2025	$58 – $62	$60 – $65	Raised

Additional cadence commentary: Q2 revenue growth “upper single digits” (below ~8%); starts double-digit in Q2; EBITDA margins expected low-double-digits in Q2/Q3, upper teens in Q4; sequential OpEx +$10–$15M in Q2 with ~$5–$6M of Q1-deferred spend included .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Enrollment/Starts	UTI starts timing shift (June→July); Concorde strong clinical/core; reaffirmed FY24 top-end revenue/starts	Starts +22% YoY; UTI benefitted from FAFSA deferrals; Concorde lift from marketing/admissions	Improving volume; normalization expected post-deferrals
Guidance/Outlook	Introduced FY25 guide; Phase II targets (10% CAGR to ~$1.1B; adj. EBITDA margin approaching 20% by FY2029)	Raised FY25 ranges across all metrics; Q2 growth upper single digits; margins seasonality detailed	Constructive; near-term spend normalization
Program/Campus Expansion	Plan: ≥6 new programs annually and ≥2 campuses per year starting FY2026; Heartland co‑branded campus model	Announced UTI‑Atlanta (greenfield, 2026); Tesla START MSAT at Long Beach (spring’25)	Execution progressing; footprint broadening
Regulatory	DOE growth restrictions limit Concorde expansion until ~2027; using non‑Title IV models (Heartland)	Management sees prospect of reduced regulatory burden; focus on outcomes	Slightly easing tone; constraints remain
M&A	Active pipeline; focus on healthcare, especially nursing; FY25 organic plan excludes M&A	Post‑election pickup; valuations “more reasonable”; priority on outcomes (grad/employment rates)	Activity rising; disciplined stance

Management Commentary

CEO: “We continued to deliver on our growth, diversification, and optimization strategy, leading to outperformance across our key financial and operational metrics…we are increasing our guidance ranges for fiscal 2025.” .
CEO on drivers: “UTI’s first 2 starts for the quarter were exceptionally strong…primarily the result of deferrals from the fourth quarter due to FAFSA delays…we did not spend as much as we initially expected…shifting some of these into the second quarter.” .
CFO: “Adjusted EBITDA…a year-over-year increase of nearly 45%…we shifted some of our strategic initiatives planned for the first quarter into the second quarter…we do still expect to spend those investment dollars throughout the remainder of the fiscal year.” .
CEO on expansion: “We have added Tesla to our successful manufacturer-specific advanced training programs…Long Beach will offer Tesla’s START program for collision repair.” .
CEO on campuses: “We plan to open 3 campuses in 2026…announced the second location…an optimized UTI campus in the northern suburbs of Atlanta, pending regulatory approval.” .

Q&A Highlights

Revenue cadence: Q2 revenue growth guided to upper single digits YoY and “a little bit lower” than ~8% (~7% “in the neighborhood”) .
Expense timing: Q2 OpEx +$10–$15M sequential; only ~$5–$6M was deferred from Q1—Q2 was already planned higher .
Margin seasonality: EBITDA margins low double digits in Q2 & Q3; upper teens in Q4 .
Campus plans: UTI-Atlanta ~150k sq. ft. (optimized model typically ~110–115k sq. ft.); greenfield entry into Georgia .
M&A: Pipeline more active; focus on nursing to round out Concorde; valuations more “reasonable”; insistence on strong outcomes (70%+ grad, 85% employment) .
Marketing elasticity: Concorde growth led by marketing/admissions; management expects eventual diminishing returns in some local markets and cap constraints, but continues to “turn the dial” .

Estimates Context

Wall Street consensus from S&P Global: Not available due to access limits at time of drafting. Management indicated Q2 revenue growth “upper single digits” YoY and slightly below 8% (analyst math suggested ~$199M at 8% YoY; management guided a bit lower and said ~7% is “in the neighborhood”), implying potential near‑term consensus recalibration lower for Q2 while FY25 consensus likely needs to move up following raised full‑year guidance .
Where estimates may need to adjust: FY2025 revenue, adjusted EBITDA, EPS, and adjusted FCF should step higher to reflect raised guidance and Q1 outperformance .

Key Takeaways for Investors

Raised FY2025 guidance across all metrics with strong Q1 execution supports above‑prior consensus trajectory for revenue, EBITDA, EPS, and FCF for the year .
Near-term margin cadence: expect EBITDA normalization in Q2/Q3 as initiative spend lands, with seasonal step‑up in Q4; this timing dynamic is important for quarterly modeling and trading setups .
Enrollment momentum is broad-based (starts +22% YoY) with sustainable drivers (marketing yield, added programs), though FAFSA deferral tailwinds at UTI should normalize .
Strategic expansion (UTI‑Atlanta 2026) and Tesla START partnership add differentiated capacity and employer linkage, likely supporting medium‑term start growth and pricing power .
Regulatory backdrop appears incrementally constructive (focus on outcomes); Concorde campus expansion remains restricted until likely 2027, but non‑Title IV models (Heartland) bridge growth .
M&A optionality skewed to healthcare (nursing), with more reasonable seller expectations, but management disciplined on valuation and outcomes—potential upside not embedded in current organic plan .
Trading implication: Watch Q2 expense catch‑up and revenue growth cadence relative to “upper single digits” guide; any upside surprise on spend timing or starts could be incremental catalysts, while confirmation of FY25 full‑year trajectory underpins the multi‑year margin expansion narrative .

Additional Context (Prior Quarters)

Q4 FY2024 revenue $196.4M (+15.3% YoY), adjusted EBITDA $37.3M; FY2024 revenue $732.7M (+20.6% YoY), adjusted EBITDA $102.9M (+60.1% YoY) with FY2025 formal guidance introduced then .
Q3 FY2024 revenue $177.5M (+15.8% YoY), adjusted EBITDA $18.4M (+60.9% YoY), groundwork for Phase II (≥6 programs/year, ≥2 campuses/year starting FY2026) laid out .

UNIVERSAL TECHNICAL INSTITUTE INC (UTI)·Q1 2025 Earnings Summary