UTI Stock Forecast & Price Target

Universal Technical Institute Inc. reported a notable revenue increase of 19.3% year-over-year, achieving $293.8 million, driven by strong demand for its educational programs and effective marketing strategies. The company experienced a substantial growth in adjusted EBITDA, which rose by 49.6% to $12.4 million, reflecting improved operational efficiencies and margin expansion across its segments. Additionally, average full-time active student enrollment increased by 8.1% to 15,207, contributing to a 2.5% rise in revenue per student, which underscores the positive trajectory of the institution's core business.

Universal Technical Institute Inc. reported a mixed financial performance, with diluted EPS flat year-over-year at $0.34, while adjusted EBITDA decreased by 1.4% to $36.8 million, reflecting a contraction in margin from 19.0% to 16.5%. The company's free cash flow experienced a notable decline of 10.1%, dropping to $55.4 million in FY/25, coupled with an operating income decrease of 4.0% to $25.0 million. Despite initial FY/26 guidance indicating revenue above expectations, the lower-than-expected GAAP EPS and overall financial pressures have contributed to a significant sell-off in the stock, resulting in a year-to-date decline of 5% amidst valuation concerns compared to peers.