UTI Stock Forecast & Price Target

Universal Technical Institute Inc. demonstrated significant financial growth, with total revenue for the year increasing by 19.3% year-over-year to $293.8 million, driven by a robust demand for its educational programs. The company also reported an impressive 49.6% increase in adjusted EBITDA, reaching $12.4 million, indicative of effective margin expansion strategies. Furthermore, the average number of full-time active students rose 8.1% to 15,207, contributing to an increase in revenue per student by 2.5%, which highlights the institution's strong enrollment growth and operational efficiency.

Universal Technical Institute Inc. has experienced a decline in key financial metrics, including a 1.4% decrease in adjusted EBITDA to $36.8 million, resulting in a reduced margin of 16.5%. Free cash flow also decreased significantly by 10.1% to $55.4 million compared to the previous fiscal year, signaling concerns about the company's cash-generating capabilities. Initial guidance for FY/26 presented mixed results, leading to a notable stock decline, compounded by the company's valuation trading at a premium compared to its peers despite these financial setbacks.