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Item 7. Management’s Discussion and Analysis

2025-11-26 compared with 2024-12-05 · 255 added, 189 removed, 268 unchanged (62% of the section changed)

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Company Overview

Universal Technical Institute, Inc., which together with its subsidiaries is referred to as the “Company,” “we,” “us” or “our,” was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand careers across a number of highly-skilled fields.

We offer the majority of our programs in a blended learning model that combines instructor-facilitated online teaching and demonstrations with hands-on labs.

Our reporting structure includes two reportable segments as follows:

Universal Technical Institute, Inc., which together with its subsidiaries is referred to as the “Company,” “we,” “us” or “our,” was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades, energy and healthcare programs serving students, partners, and communities nationwide.

We offer high-quality training programs and support services for in-demand careers through two reportable segments (also referred to as “divisions”):

Universal Technical Institute and Concorde Career Colleges.

We offer the majority of our programs in a hands-on learnings model through labs and clinical placements, as well as classroom delivery and blended delivery models.

Our reporting structure is as follows:

Universal Technical Institute (“UTI”):

UTI operates 16 campuses located in nine states and offers a wide range of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute (collectively, “MMI”), NASCAR Technical Institute, and MIAT College of Technology (“MIAT”).

UTI also offers manufacturer specific advanced training programs (“MSAT”), which include student-paid electives, at our campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers.

UTI operates 15 campuses located in nine states and offers a wide range of degree and non-degree transportation and skilled trades technical training programs.

UTI also offers manufacturer specific advanced training programs, which include student-paid electives, at our campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers.

Lastly, UTI provides dealer technician training or instructor staffing services to manufacturers.

UTI works closely with multiple original equipment manufacturers and industry brand partners to understand their needs for qualified service professionals.

Concorde Career Colleges (“Concorde”):

On December 1, 2022, we acquired Concorde which operates 17 campuses located in eight states and online, offering degree, non-degree, and continuing education programs in the allied health, dental, nursing, patient care and diagnostic fields.

The Company has designated campuses that offer degree granting programs “Concorde Career College;” where allowed by State regulation.

The remaining campuses are designated as “Concorde Career Institute.” Concorde believes in preparing students for their healthcare careers with practical, hands-on experiences including opportunities to learn while providing care to real patients.

Prior to graduation, students will complete a number of hours in a clinical setting or externship, depending upon their program of study.

Concorde operates 17 campuses located in eight states and online, offering degree, non-degree, and continuing education programs in the allied health, dental, nursing, patient care and diagnostic fields.

The Company has designated certain campuses as “Concorde Career College;” where allowed by State regulation.

Prior to graduation, students must complete a certain number of hours in a clinical setting or externship, depending upon their program of study.

We acquired Concorde on December 1, 2022.

“ Corporate ” includes corporate related expenses that are not allocated to the UTI or Concorde reportable segments.

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All of our campuses are accredited and are eligible for federal student financial assistance funds under the Higher Education Act of 1965, as amended, commonly referred to as Title IV Programs, which are administered by the U.S.

Department of Education.

Department of Education (“ED”).

Our programs are also eligible for financial aid from federal sources other than Title IV Programs, such as the programs administered by the U.S.

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Tuition revenue and fees generally vary based on the average number of students enrolled and average tuition charged per program.

For students at our UTI schools, we offer a proprietary loan program, where we provide the students who participate in this program with extended payment terms for a portion of their tuition for up to ten years.

UTI also provides dealer technician training or instructor staffing services to manufacturers where revenue is recognized as the transfer of services occurs.

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The introduction of additional program offerings at existing campuses and the opening of additional campuses is expected to influence our average full-time enrollment.

UTI currently offers start dates at its campuses that range from every three to eleven weeks throughout the year in the core programs.

UTI currently offers start dates at its campuses that range from every three to twelve weeks throughout the year in the core programs.

The number of start dates of UTI advanced training programs varies by the duration of those programs and the needs of the manufacturers that sponsor them.

Concorde enrolls students throughout the year with core terms starting every month and clinical terms starting every ten weeks.

Concorde’s new short courses are starting three to five times a year, depending on the campus.

Concorde enrolls students throughout the year with core terms starting every month and clinical terms starting every ten or sixteen weeks.

Concorde’s short courses start three to five times a year, depending on the campus.

Although Concorde operates year-round with lower seasonality than UTI, Concorde experiences population fluctuations dictated by its clinical programmatic accreditors and how many student starts are allowed and the time required between those starts.

Our tuition charges vary by type, length and level of the programs, such as core or advanced training.

The UTI segment implemented average tuition rate increases of up to 3.0%, 6.0% and 2.5% for each of the years ended September 30, 2024, 2023 and 2022, respectively, and the Concorde segment implemented average tuition rate increases of approximately 2.5% and 3.0% for the years ended September 30, 2024 and 2023, respectively.

The UTI segment implemented average tuition rate increases of approximately 1.9%, 3.0% and 6.0% for each of the years ended September 30, 2025, 2024 and 2023, respectively, and the Concorde segment implemented average tuition rate increases of approximately 2.5%, 2.5% and 3.0% for the years ended September 30, 2025, 2024 and 2023, respectively.

We regularly evaluate our tuition pricing based on individual campus markets, the competitive environment and ED regulations.

Our ability to start new students can be influenced by various factors including:

the state of the general macro-economic environment and its impact on price sensitivity and the ability and willingness of students and their families to incur debt to fund their education;

unemployment rates;

adverse media coverage;

legislative, or regulatory actions and investigations by attorneys general and various agencies related to allegations of wrongdoing on the part of other companies within the education and training services industry, which can cast the aggregate “for-profit” education industry in a negative light;

and pandemics and or other national, state or local emergencies as declared by various government authorities.

For more information, see Item 1A.

“Risk Factors.”

Financial Aid

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2025 Overview

Student Metrics

September 30, 2024 September 30, 2023 (1)

Total new student starts 15,138 14,181 6.7 %

Average full-time active students 13,810 12,614 9.5 %

End of period full-time active students 15,873 14,833 7.0 %

Total new student starts 11,747 8,432 39.3 %

Average full-time active students 8,475 7,654 10.7 %

End of period full-time active students 9,747 8,369 16.5 %

Total new student starts 26,885 22,613 18.9 %

Average full-time active students 22,285 20,268 10.0 %

End of period full-time active students 25,620 23,202 10.4 %

(1) New student starts and average student data for Concorde presented in the year ended September 30, 2023 column represents the period of UTI’s ownership, or December 1, 2022 through September 30, 2023.

The increase in consolidated total and segment new student starts, average full-time active students and end of period full-time active students was primarily due to new program rollouts and increased student demand for existing programs across both segments.

In the UTI segment, our student population was positively impacted during the current year by the successful launch of 14 new programs across nine campuses during fiscal 2023, and three new HVAC and refrigeration programs launched in the back half of 2024.

The Concorde segment benefited from the roll out seven new programs at three campuses during the current and prior year, and also introduced new cash pay “short programs” at a number of campuses.

Concorde’s short programs offer an affordable, fast-track pathway into the workforce and provide essential foundational skills that prepare students for entry-level roles in healthcare.

Additionally, Concorde benefited from two additional months during fiscal 2024 due the December 1, 2022 close of the acquisition.

Our ability to start new students can be influenced by various factors including:

the state of the general macro-economic environment and its impact on price sensitivity and the ability and willingness of students and their families to incur debt to fund their education;

unemployment rates;

adverse media coverage;

legislative, or regulatory actions and investigations by attorneys general and various agencies related to allegations of wrongdoing on the part of other companies

within the education and training services industry, which can cast the aggregate “for-profit” education industry in a negative light;

and pandemics and or other national, state or local emergencies as declared by various government authorities.

For more information, see Item 1A.

“Risk Factors.”

Our revenues for the year ended September 30, 2025 were $835.6 million, an increase of $102.9 million, or 14.0%, from the prior year.

UTI revenues increased by $57.1 million, or 13.3%, driven primarily by the higher average full-time active students compared to the prior year.

Concorde revenues increased by $68.2 million, or 38.3%, primarily due to the inclusion of two extra months of revenue compared to the prior year period, along with higher average full-time active students.

Our operating expenses for fiscal 2024 were $673.8 million, a 15.0% increase over the prior year .

UTI revenues increased by $55.4 million, or 11.4%.

Concorde revenues increased by $47.5 million, or 19.3%.

Both segment increases were primarily due to overall growth in full-time active students and new program expansions.

Our operating expenses for the year ended September 30, 2025 were $752.1 million, an 11.6% increase over the prior year .

In fiscal 2025, we had operating income of $83.5 million, a 41.7% increase when compared to $58.9 million in the prior year.

This increase in operating income was primarily driven by productivity improvements and proactive cost reductions, which have been a key part of our operating model for the past several years.

Net income for the year ended September 30, 2024 was $42.0 million compared to $12.3 million in the prior year.

This increase in operating income was primarily driven by the increased revenues from the larger student population.

Additionally, productivity improvements and proactive cost reductions have been a key part of our operating model for the past several years, and we continue to identify and execute on optimization opportunities throughout our operations in both segments.

Net income for the year ended September 30, 2025 was $63.0 million, a 50% increase when compared to $42.0 million in the prior year.

Business Strategy

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During the year ended September 30, 2025, we executed the following as part of our growth, diversification and optimization strategy:

• Concorde announced the launch of additional dental hygiene program offerings in Jacksonville, Florida, Miramar, Florida, and Portland, Oregon and sonography program offerings in Orlando, Florida and San Bernardino, California.

• UTI announced additional HVAC and refrigeration program expansions in Avondale, Arizona, Bloomfield, New Jersey, Long Beach, California and Sacramento, California.

Avondale, Bloomfield and Long Beach first launched in the third quarter of 2024, with Sacramento expected to launch in the first half of fiscal 2025.

• UTI announced plans to consolidate the two Houston, Texas campuses to align the curriculum, student facing systems, and support services to better serve students.

As part of the transition, the MIAT Houston campus, acquired in November 2021, began operating under the UTI brand and implemented a phased teach-out agreement starting in May 2024.

Both facilities will remain in use post-consolidation.

See Note 16 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K for further details on the restructuring.

• UTI obtained Federal Aviation Administration approval for the Airframe and Powerplant Technician program at the Miramar, Florida campus and started the first cohort of students during the first quarter of 2024, which completed the rollout of the 14 new programs announced in fiscal 2023.

• UTI Wind Turbine Technician programs were the first in the United States to earn Certified Training Center status from the Global Wind Organisation.

• UTI announced new partnerships with United Service Organization, Hawaiian Airlines, iRacing, Crown Equipment, The Associated company and several other companies for early employment programs.

These partnerships will provide additional career transition and placement opportunities for UTI students.

• UTI announced the integration of Electric Vehicle curriculum into BMW’s manufacturer specific advanced training program in the fourth quarter of fiscal 2024.

• UTI announced Atlanta, Georgia as the location of the division’s next new campus (“UTI Atlanta”).

Pending regulatory approvals, UTI Atlanta will open in 2026.

• UTI announced the division’s second new campus will be in San Antonio, Texas (“UTI San Antonio”).

This new campus, once open, will be the first skilled trades and energy education focused campus.

Pending regulatory approvals, UTI San Antonio will open in 2026, bringing the total number of UTI campuses nationwide to 17.

• UTI signed a new facility lease agreement for a major expansion of its Dallas, Texas campus, adding a new 30,000-square-foot facility expected to open in early 2026.

The Dallas campus currently serves nearly 1,400 students.

The expansion will accommodate approximately 1,000 additional students and introduce programs in Airframe and Powerplant;

and Electrical programs, pending all regulatory approvals.

• Concorde signed a new facility lease agreement related to our partnership with Heartland Dental to construct a new co-branded campus in Fort Myers, Florida, which is expected to open in early fiscal 2026, pending regulatory approvals, and will bring the total number of Concorde campuses nationwide to 18.

• UTI announced the expansion of its Manufacturer Specific Advanced Training program by adding Tesla's START Collision Repair program.

Tesla's START program is an intensive training program that prepares individuals for successful careers at Tesla and began at the Long Beach, California campus in the third quarter of 2025.

• UTI launched its HVACR program at each of the Sacramento, California;

Orlando, Florida;

Rancho Cucamonga, California;

and Miramar, Florida campuses during 2025.

The program covers topics such as air handling, AC and DC circuits, sheet metal ductwork, and troubleshooting.

This program is now offered at UTI campuses in seven states.

• UTI announced the expansion of its core automotive program to include new Battery Hybrid Electric Vehicle and Electric Vehicle (“EV”) courses with roll out completed during 2025 at the following campuses:

Avondale, Arizona;

Orlando, Florida;

Bloomfield, New Jersey;

Dallas, Texas;

Austin, Texas;

Houston, Texas;

and Miramar, Florida.

This expansion builds on existing EV training at UTI's California campuses and covers topics such as high-voltage vehicle operation, electric vehicle components, diagnosis, and service.

• UTI announced four new electrical programs.

Several UTI campuses will begin offering Electrical, Electronics & Industrial Technology (EEIT);

Electrical & Industrial Maintenance Technology (EIMT);

Electrical, Robotics, and Automation Technology (ERAT);

and Electrical & Wind Turbine Technology (EWTT), pending all regulatory approvals.

The Exton, Pennsylvania and Mooresville, North Carolina campuses are the first campuses to begin teaching the EEIT program.

• UTI partnered with FirstCall Mechanical, a leading provider of HVACR services to commercial and industrial sectors, in connection with its early employment program.

As part of this partnership, students in the HVACR

program at Mooresville, North Carolina;

Orlando, Florida;

and Austin, Texas can apply for roles at FirstCall Mechanical and start working while still in school.

• UTI also partnered with Loftin Equipment Company for its early employment program.

Offered at campuses in Houston, Dallas and Austin, Texas, and Avondale, Arizona, this program gives diesel technology students the opportunity to gain paid work experience while completing their education.

Students enrolled in the industrial maintenance program in Houston, Texas are also eligible for this opportunity.

• Concorde announced plans to relocate its Aurora, Colorado campus to Denver, Colorado to increase its campus footprint and expand student capacity to address the skilled workforce gap.

Pending receipt of regulatory approvals, the new 60,000-square-foot facility will offer expanded programs and enhanced simulation and dental hygiene clinic spaces to support student learning and community engagement.

Construction is underway, with opening planned for 2026.

• Concorde began expanding access to its respiratory therapy programs to address the rising national demand for such therapists.

Eight campuses have received programmatic approval to increase enrollment, with one pending.

Concorde is also growing its hospital partnership model, which now includes partnerships with 20 hospital systems across 11 states.

In addition, we continue to pursue other opportunities that align with our growth, diversification and optimization strategy.

Results of Operations

The following table sets forth selected statements of operations data as a percentage of revenues for each of the periods indicated.

Consolidated Results of Operations for the Year Ended September 30, 2025 Compared to Year Ended September 30, 2024

The following table sets forth selected statements of operations data (in thousands) and as a percentage of revenues for each of the periods indicated.

Year Ended September 30,

2024 2023 2022

2025 % of Revenue 2024 % of Revenue

Revenues $ 835,616 100.0 % $ 732,687 100.0 %

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Income from operations 83,469 10.0 % 58,891 8.0 %

Interest (expense) income, net (0.4) % (0.6) % (0.4) %

Other income (expense) 0.1 % 0.1 % (0.1) %

Total other (expense) income, net (0.3) % (0.5) % (0.5) %

Interest income (expense), net 540 0.1 % (3,157) (0.4) %

Other income (expense), net 265 — % 496 0.1 %

Total other income (expense), net 805 0.1 % (2,661) (0.3) %

Income before income taxes 84,274 10.1 % 56,230 7.7 %

Income tax (expense) benefit (1.9) % (0.9) % 1.3 %

Income tax expense (21,256) (2.5) % (14,229) (1.9) %

Net income 63,018 7.6 % 42,001 5.8 %

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Net income available to common shareholders 63,018 7.6 % 38,049 5.3 %

Year Ended September 30, 2024 Compared to Year Ended September 30, 2023

The following table presents revenue by segment (in thousands):

Year ended September 30, 2024 Year ended September 30, 2023 Year over Year % Change

UTI $ 486,376 $ 429,317 13.3 %

Concorde 246,311 178,091 38.3 %

Consolidated 732,687 607,408 20.6 %

Revenues and Student Metrics

Year Ended September 30,

Student Metrics 2025 2024 % Change

Average full-time active students 24,618 22,285 10.5 %

Total new student starts 29,793 26,885 10.8 %

End of period full-time active students 27,679 25,620 8.0 %

Our revenues for the year ended September 30, 2025 were $835.6 million, an increase of $102.9 million, or 14.0%, as compared to revenues of $732.7 million for the year ended September 30, 2024.

Revenues for UTI for the year ended September 30, 2024 were $486.4 million, an increase of $57.1 million, or 13.3%, versus the prior year.

Revenue increased primarily due to a 9.5% increase in overall average full-time active students and an overall increase in average revenue per student.

We recognized $12.0 million on an accrual basis related to revenues and interest under the proprietary loan program for the year ended September 30, 2024, as compared to $8.8 million recognized for the year ended September 30, 2023.

Revenues for Concorde for the year ended September 30, 2024 were $246.3 million, an increase of $68.2 million, or 38.3%, versus the prior period.

The primary drivers of the increase for Concorde were the inclusion of two additional months of revenue during the current year and a 10.7% increase in overall average full-time active students.

Average full-time active students for the year ended September 30, 2025 was 24,618, an increase of 10.5% over the prior year primarily due to increased student demand across both segments.

During fiscal 2025, we launched 19 new programs across the UTI and Concorde divisions, which included nine new full-length programs, eight within the UTI segment and one within the Concorde segment, along with 10 shorter, cash-pay courses at Concorde.

The revenue growth reflects the full-year impact of new program launches and expansions during recent years that further broadened access to high-demand skilled trades and healthcare training.

These initiatives align with our growth, diversification, and optimization strategy and continue to support strong enrollment trends across the UTI and Concorde segments.

Revenues also increased due to tuition rate increases in both divisions during the year.

Educational services and facilities expenses

Our educational services and facilities expenses for the year ended September 30, 2024 were $384.5 million, representing an increase of $54.6 million, or 16.6%, as compared to $329.9 million for the year ended September 30, 2023.

This increase was primarily due to the increase in student volumes during the current period and the inclusion of Concorde results for two additional months in the current year.

The following table sets forth the significant components of our educational services and facilities expenses (in thousands):

Year ended September 30, 2024

UTI Concorde Consolidated

Salaries, employee benefits and tax expense $ 118,638 $ 93,671 $ 212,309

Bonus expense 1,954 1,155 3,109

Stock-based compensation 481 — 481

Compensation and related costs 121,073 94,826 215,899

Occupancy costs 30,519 21,847 52,366

Supplies, maintenance and student expense 33,204 17,479 50,683

Depreciation and amortization expense 22,456 4,346 26,802

Contract services expense 3,611 2,126 5,737

Other educational services and facilities expenses 23,159 9,883 33,042

Total educational services and facilities expense $ 234,022 $ 150,507 $ 384,529

Year ended September 30, 2023

UTI Concorde Consolidated

Salaries, employee benefits and tax expense $ 111,030 $ 68,238 $ 179,268

Bonus expense 2,027 — 2,027

Stock-based compensation 192 — 192

Year Ended September 30, Year over Year Change Year over Year % Change

Compensation and related costs

$ 243,015 $ 215,899 $ 27,116 12.6 %

Occupancy costs

55,949 52,366 3,583 6.8 %

Supplies, maintenance and student expense 57,046 59,087 (2,041) (3.5) %

Depreciation and amortization expense 30,558 26,802 3,756 14.0 %

Contract services expense 3,763 431 4,194

Other educational services and facilities expenses

33,923 30,375 3,548 11.7 %

Total educational services and facilities expense

Compensation and related costs increased $7.8 million for the year ended September 30, 2024 primarily due to additional instructors and other personnel hired to support the new programs added in fiscal 2023 and 2024.

Supplies, maintenance and student expense increased by $5.8 million primarily due to approximately $6.5 million in additional grants for student housing during the current year.

This increase was offset by a decrease of approximately $0.6 million in expenses for student laptops.

Depreciation and amortization expense increased $2.7 million during the year ended September 30, 2024 primarily due to the purchase of the three primary buildings at our UTI Orlando, Florida campus in March 2023 and increased capital expenditures related to the new program launches during fiscal 2023 and 2024.

Other educational services and facilities expense increased by $1.5 million.

The increase is primarily due to a higher Snap-on tool voucher expense of $1.8 million.

$ 420,491 $ 384,529 35,962 9.4 %

Our educational services and facilities expenses for the year ended September 30, 2025 were $420.5 million, representing an increase of $36.0 million, or 9.4%, as compared to $384.5 million for the year ended September 30, 2024.

This increase was primarily due to the increase in average full-time active students during the year.

Compensation and related costs increased $27.1 million for the year ended September 30, 2025 primarily due to additional instructors and other personnel hired to support the newly launched and expanded programs and the increase in student population.

Occupancy costs increased $3.6 million for the year ended September 30, 2025 primarily due to our growth strategy and expansion efforts.

We took possession and recorded facility leases for three new campus locations, one campus relocation, and one campus expansion during the current year, each of which we anticipate opening to students in fiscal 2026.

Supplies, maintenance and student expenses decreased $2.0 million for the year ended September 30, 2025 primarily due to a decrease in student housing expenses of approximately $6.3 million, partially offset by increased supplies and training costs to support our larger student population.

Depreciation and amortization expense increased $3.8 million related to continued investments in campus facilities and equipment to support our new programs that launched during fiscal 2025.

Other educational services and facilities expenses increased by $3.5 million which is primarily attributable to higher costs incurred to support our expanded programs and campus operations.

Selling, general and administrative expenses

Our selling, general and administrative expenses for the year ended September 30, 2024 were $289.3 million, representing an increase of $33.2 million, or 12.9%, as compared to $256.1 million for the year ended September 30, 2023.

This increase was primarily due to the increase in student volumes during the current period and the inclusion of Concorde results for two additional months in the current year.

During fiscal 2023, in coordination with the integration of Concorde, we began to reassess our operating model to determine the organizational structure that would best help the Company achieve future growth goals and optimally support the business.

Beginning in fiscal 2024, we have executed an internal reorganization to fully transition our operating and reporting model to support a multi-divisional business.

As part of the internal reorganization, each of the reportable segments now have dedicated accounting, finance, information technology, and human resources teams.

Additionally, human resources and information technology costs that benefit the entire organization are now allocated across UTI, Concorde and Corporate each period based upon relative headcount.

As a result, additional costs have moved from Corporate into the UTI segment and to a lesser extent the Concorde segment as resources were redirected to support the segment’s objectives.

Due to these changes in allocation methodology, the prior year amounts for selling, general and administrative expenses have been recast for comparability to the current year presentation.

The following table sets forth the significant components of our selling, general and administrative expenses (in thousands):

Year ended September 30, 2024

UTI Concorde Corporate Consolidated

Salaries, employee benefits and tax expense $ 78,900 $ 27,688 $ 15,857 $ 122,445

Bonus expense 9,849 2,352 4,977 17,178

Stock-based compensation 1,599 213 6,267 8,079

Compensation and related costs 90,348 30,253 27,101 147,702

Advertising and marketing expense 51,940 25,744 577 78,261

Professional and contract services expense 6,810 7,557 11,861 26,228

Other selling, general and administrative expenses 25,500 11,446 130 37,076

Total selling, general and administrative expenses $ 174,598 $ 75,000 $ 39,669 $ 289,267

Year ended September 30, 2023

UTI Concorde Corporate Consolidated

Salaries, employee benefits and tax expense $ 72,577 $ 21,401 $ 13,777 $ 107,755

Bonus expense 11,257 2,594 5,141 18,992

Stock-based compensation 877 — 2,779 3,656

Year Ended September 30, Year over Year Change Year over Year % Change

Compensation and related costs

$ 161,882 $ 147,702 $ 14,180 9.6 %

Advertising and marketing expense

Professional and contract services expense 8,093 4,537 9,110 21,740

88,590 78,261 10,329 13.2 %

Other selling, general and administrative expenses

81,184 63,304 17,880 28.2 %

Total selling, general and administrative expenses

Compensation and related costs increased by $5.6 million for the year ended September 30, 2024 as compared to the prior year, primarily due to an increase in headcount to support our growth, diversification and optimization initiatives.

Advertising and marketing expense decreased by $0.9 million for the year ended September 30, 2024, as compared to the prior year.

We continue to fine tune our marketing strategy by selecting cost-effective marketing options.

Advertising expense as a percentage of revenues decreased to 10.7% for the year ended September 30, 2024 as compared to 12.3% in the prior year.

Professional and contract services decreased by $1.3 million for the year ended September 30, 2024.

The decreases were primarily due to one-time costs incurred in the prior year related to our business strategies.

$ 331,656 $ 289,267 42,389 14.7 %

Our selling, general and administrative expenses for the year ended September 30, 2025 were $331.7 million, representing an increase of $42.4 million, or 14.7%, as compared to $289.3 million for the year ended September 30, 2024.

This increase was primarily due to costs associated with our business strategies.

Compensation and related costs increased by $14.2 million for the year ended September 30, 2025 as compared to the prior year, primarily due to additional personnel across corporate functions and support operations to execute on our growth strategy.

Advertising and marketing expenses increased by $10.3 million for the year ended September 30, 2025 as compared to the prior year.

Advertising expense as a percentage of revenues decreased slightly to 10.6% for the year ended September 30, 2025 as compared to 10.7% in the prior year.

Other selling, general and administrative expenses increased by $17.9 million for the year ended September 30, 2025 as compared to the prior year.

This increase is in line with the growth in headcount to support the UTI segment and our business strategies.

Compensation and related costs increased by $6.3 million for the year ended September 30, 2024 as compared to the prior year, primarily due to the inclusion of two additional months of expense in the current year and an increase in headcount to support our growth, diversification and optimization initiatives.

Advertising and marketing expense increased by $6.4 million for the year ended September 30, 2024, as compared to the prior year primarily due to the inclusion of two additional months of expense in the current year and to support overall growth in the student population.

Advertising expense as a percentage of revenues decreased to 10.5% for the year ended September 30, 2024 as compared to 10.9% in the prior year.

Other selling, general and administrative expenses for Concorde for the year ended September 30, 2024 increased across all categories as the current year period includes two additional months of expenses compared to the prior year.

This increase was also partially due to the continued integration of Concorde during 2024.

Corporate compensation and related costs increased by $5.4 million for the year ended September 30, 2024 as compared to the prior year, primarily due to additional headcount hired to support our business strategies and higher expected achievement on our performance stock-based compensation awards.

Professional and contract services expense increased by $2.8 million for the year ended September 30, 2024 as compared to the prior year, due to an increase of $2.3 million in contract services primarily related to optimization and integration projects and an increase of $0.4 million in accounting and legal fees.

Other selling, general and administrative expenses decreased by $1.0 million for the year ended September 30, 2024 as compared to the prior year, primarily due to the completion of integration projects.

The increase was primarily driven by a $13.6 million increase in the provision for credit losses due to growth in revenues and higher student volumes.

Software expenses increased by approximately $3.0 million, reflecting continued investment in technology infrastructure to enhance operational efficiency and scalability.

Employee-related costs increased by $1.4 million, primarily due to higher recruiting and job advertising costs to support hiring as we continue to expand our operations.

Other (expense) income, net

Other expense for the year ended September 30, 2024 was $2.7 million, compared to $3.3 million for the year ended September 30, 2023.

The $2.7 million of other expense in fiscal 2024 is primarily comprised of $9.5 million of interest expense from our revolving credit facility and term loans, partially offset by interest income of $6.3 million.

Other income, net for the year ended September 30, 2025 was $0.8 million, compared to other expense, net of $2.7 million for the year ended September 30, 2024.

The $0.8 million of other income, net in fiscal 2025 is primarily comprised of interest income of $6.2 million, partially offset by $5.6 million of interest expense from our revolving credit facility and term loans.

The decrease in expense in the current year is due to repaying the outstanding balance of our revolving credit facility throughout the year with available cash on hand.

Our income tax expense for the year ended September 30, 2025 was $21.3 million, or 25.2% of pre-tax income, compared to $14.2 million, or 25.3% of pre-tax income, for the year ended September 30, 2024.

The effective income tax rate for the year ended September 30, 2024 differed from the federal statutory tax rate of 21% primarily due to non-deductible executive compensation, stock compensation, change in valuation allowance, federal research and development tax credits and state and local income and franchise taxes.

The effective income tax rate for the year ended September 30, 2023 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, transaction costs, federal research and development tax credits and state and local income and franchise taxes.

The effective income tax rate for the year ended September 30, 2025 differed from the federal statutory tax rate of 21% primarily due to non-deductible executive compensation, stock compensation, refinements to the federal research and development tax credits, and state and local income and franchise taxes.

The effective income tax rate for the year ended September 30, 2024 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, stock compensation, change in valuation allowance, federal research and development tax credits, and state and local income and franchise taxes.

See Note 16 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K for further discussion.

Preferred stock dividends

As of September 30, 2024, no shares of the Series A Preferred Stock remained outstanding and all rights of the holders to receive future dividends have been terminated due to the combination of the repurchase and conversion of all outstanding preferred shares as of December 18, 2023.

As of September 30, 2023, 675,885 shares of Series A Convertible Preferred Stock were issued and outstanding.

Pursuant to the Certificate of Designations of the Series A Preferred Stock, we paid preferred stock cash dividends of $1.1 million and $5.1 million during the years ended September 30, 2024 and 2023, respectively.

Note 18 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K for further discussion of the preferred stock.

As of December 18, 2023, no shares of the Series A Preferred Stock remained outstanding and all rights of the holders to

receive future dividends have been terminated due to the combination of the repurchase and conversion of all outstanding

preferred shares.

Pursuant to the Certificate of Designations of the Series A Preferred Stock, we paid cash dividends of $1.1 million during the year ended September 30, 2024.

See Note 19 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K for further discussion of the preferred stock.

Income available for distribution

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Income allocated to participating securities

Our Series A Preferred Stock is considered a participating security because, in the event that we pay a dividend or make a distribution on the outstanding common stock, we must also pay each holder of the Series A Preferred Stock a dividend on an as-converted basis.

Our previously outstanding Series A Preferred Stock was considered a participating security because, in the event that we pay a dividend or make a distribution on the outstanding common stock, we were required to pay each holder of the Series A Preferred Stock a dividend on an as-converted basis.

The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividend and participation rights in undistributed earnings.

Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends.

As noted above, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date.

The amount of income allocated to the participating securities for the years ended September 30, 2024 and 2023 was $2.9 million and $2.7 million, respectively.

As noted above, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends were terminated on December 18, 2023.

There was no income was allocated to participating securities for the year ended September 30, 2025.

The amount of income allocated to the participating securities for the year ended September 30, 2024 was $2.9 million.

Net income available to common shareholders

After allocating the income to the participating securities, we had $63.0 million and $38.0 million of net income available to common shareholders for the years ended September 30, 2025 and 2024, respectively.

For a discussion of the financial results of operations for the year ended September 30, 2023 compared to the year ended September 30 2022, refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” of our 2023 Form 10-K filed with the SEC on December 1, 2023 which discussion is incorporated herein by reference and which is available free of charge on the SEC’s website at www.sec.gov.

Segment Results of Operation for the Year Ended September 30, 2025 Compared to Year Ended September 30, 2024

The summary of segment financial information below should be referenced in connection with a review of the following discussion of our segment results from operations for the years ended September 30, 2025 and 2024 (dollars in thousands), including comparisons of our year-over-year performance between these years.

The following table presents results for the activity for our reportable operating segments for the fiscal years ended September 30, 2025 and 2024:

UTI Concorde Corporate Consolidated

Year Ended September 30, 2025

Revenues $ 541,816 $ 293,800 $ — $ 835,616

Compensation and Benefits 205,859 132,270 66,768 404,897

Advertising 56,754 30,575 217 87,546

Occupancy 39,868 24,769 946 65,583

Student Related 38,245 24,084 — 62,329

General Operations 21,695 17,919 12,249 51,863

Professional and Contract Services 9,925 5,207 17,826 32,958

Depreciation and amortization 24,085 7,554 1,319 32,958

Other Expenses (1)

6,530 3,704 3,779 14,013

Corporate Support (2)

44,485 11,589 (56,074) —

Total Operating Expenses 447,446 257,671 47,030 752,147

Income (loss) from operations 94,370 36,129 (47,030) 83,469

Net income (loss) $ 89,901 $ 36,001 $ (62,884) $ 63,018

UTI Concorde Corporate Consolidated

Year Ended September 30, 2024

Revenues $ 486,376 $ 246,311 $ — $ 732,687

Compensation and Benefits 190,640 116,591 56,373 363,604

Advertising 51,302 25,744 215 77,261

Occupancy 36,202 23,454 714 60,370

Student Related 42,402 22,177 — 64,579

General Operations 15,349 8,516 10,677 34,542

Professional and Contract Services 9,416 8,540 14,216 32,172

Depreciation and amortization 22,855 5,159 1,310 29,324

Other Expenses (1)

6,048 4,033 1,863 11,944

Corporate Support (2)

34,406 11,293 (45,699) —

Total Operating Expenses 408,620 225,507 39,669 673,796

Income (loss) from operations 77,756 20,804 (39,669) 58,891

Net income (loss) $ 71,646 $ 21,048 $ (50,693) $ 42,001

(1) Other expenses include employee-related, travel and entertainment expenses.

(2) Corporate support primarily include costs for information technology, human resources, accounting and finance support services.

Segment Revenue and Student Metrics

Year Ended September 30,

Student Metrics 2025 2024 % Change

Average full-time active students 14,913 13,810 8.0 %

Total new student starts 16,339 15,138 7.9 %

End of period full-time active students 16,841 15,873 6.1 %

Average full-time active students 9,705 8,475 14.5 %

Total new student starts 13,454 11,747 14.5 %

End of period full-time active students 10,838 9,747 11.2 %

Revenues for UTI for the year ended September 30, 2025 were $541.8 million, an increase of $55.4 million, or 11.4%, versus the prior year.

Revenue increased primarily due to an 8.0% increase in average full-time active students and new program launches associated with continued execution of our growth and diversification strategy.

Additionally, UTI segment implemented average tuition rate increases of approximately 1.9% during the year.

Concorde Segment

Revenues for Concorde for the year ended September 30, 2025 were $293.8 million, an increase of $47.5 million, or 19.3%, versus the prior year.

Revenue increased primarily due to a 14.5% increase in average full-time active students.

Additionally, the Concorde segment implemented average tuition rate increases of approximately 2.5% during the year.

Segment Operating Expenses

Compensation and benefits increased by $15.2 million for the year ended September 30, 2025 as compared to the prior year, primarily due to higher headcount and related personnel costs to support new program launches, expanded campus operations, and increased student volumes.

Advertising expense increased by $5.5 million for the year ended September 30, 2025 as compared to the prior year.

While advertising expense as a percentage of revenue was 10.5% for both the year ended September 30, 2025 and 2024, the increase in costs reflects continued investment in marketing initiatives that support average full-time active student growth and align with overall revenue trends.

Occupancy expense increased by $3.7 million, primarily due to recording facility leases for two new campus locations and one campus expansion during the current year, each of which we anticipate opening to students in fiscal 2026.

Student-related expenses decreased by $4.2 million compared to the prior year, primarily due to lower student housing expenses.

General operations expense increased by $6.3 million, primarily due to an increase in the provision for credit losses due to growth in revenues and higher student volumes.

Concorde Segment

Compensation and benefits increased by $15.7 million for the year ended September 30, 2025 as compared to the prior year, primarily due to additional instructional and administrative headcount and related compensation costs to support new program growth and increased student volumes.

Advertising expense increased by $4.8 million for the year ended September 30, 2025 as compared to the prior year.

Advertising expense as a percentage of revenues decreased slightly to 10.4% for the year ended September 30, 2025 as compared to 10.5% in the prior year.

Occupancy expense increased by $1.3 million, primarily due to recording facility leases for one new campus location and one campus relocation during the current year, each of which we anticipate opening to students in fiscal 2026.

General operations expense increased by $9.4 million for the year ended September 30, 2025 as compared to the prior year, primarily due to a $7.2 million increase in the provision for credit losses due to growth in revenues and higher student volumes.

The increase also reflects a $1.2 million increase in software expenses, representing continued investment in technology to support the execution of our growth, diversification, and optimization strategy, and a $0.6 million increase in insurance premiums associated with the expansion of operations and programs.

Professional and contract services decreased by $3.3 million for the year ended September 30, 2025 as compared to the prior year.

The decrease in professional and contract services was primarily due to lower legal and consulting expenses as several integration activities were completed in the prior year.

Student-related expenses increased by $1.9 million compared to the prior year, primarily due to higher spending on student training aids and compliance testing costs to support our larger student population.

Depreciation and amortization expense increased by $2.4 million for the year ended September 30, 2025 as compared to the prior year, primarily due to continued investments in facilities and equipment to support new and expanded program offerings.

Corporate Segment

Compensation and benefits increased by $10.4 million for the year ended September 30, 2025 as compared to the prior year, primarily due to higher corporate headcount to execute on our business strategies.

General operations expense increased by $1.6 million for the year ended September 30, 2025 as compared to the prior year, primarily due to higher software expenses reflecting continued investment in technology to support the execution of our growth, diversification, and optimization strategy.

Professional and contract services increased by $3.6 million for the year ended September 30, 2025 as compared to the prior year, primarily due to higher legal, consulting, and other professional service costs supporting corporate initiatives and continued execution of our growth, diversification, and optimization strategy.

Other expenses increased by $1.9 million for the year ended September 30, 2025 as compared to the prior year, primarily due to higher recruiting and job advertising costs to support hiring as we continue to expand our operations.

For a discussion of the financial results of operations for the year ended September 30, 2023, refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” of our 2024 Form 10-K filed with the SEC on December 5, 2024 which discussion is incorporated herein by reference and which is available free of charge on the SEC’s website at www.sec.gov.

Non-GAAP Financial Measures

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Net income $ 63,018 $ 42,001 $ 12,322

Interest expense (income), net 3,157 3,795 1,495

Income tax expense (benefit) 14,229 5,765 (5,407)

Interest (income) expense, net (540) 3,157 3,795

Income tax expense 21,256 14,229 5,765

Depreciation and amortization 32,958 29,324 25,215

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Our cash position is available to fund strategic long-term growth initiatives, including opening additional campuses in new markets and the creation and expansion of new programs in existing markets where we continue to optimize utilization of our campus facilities.

Our aggregate liquidity as of September 30, 2024 totaled $230.9 million and was comprised of cash and cash equivalents of $161.9 million and undrawn revolving credit facility capacity of $69.0 million.

Our aggregate liquidity as of September 30, 2025 totaled $254.5 million and was comprised of cash and cash equivalents of $127.4 million, $41.8 million of short-term investments, and $85.4 million in availability on our revolving credit facility.

This represents an increase of $23.6 million from our total liquidity as of September 30, 2024.

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To the extent that potential acquisitions are large enough to require financing beyond cash from operations, cash and cash equivalents, short-term investments, or available revolving credit facility capacity, or we need capital to fund operations, new campus openings or expansion of programs at existing campuses, we may enter into additional credit facilities, issue debt or issue additional equity.

Long-term Debt

Long-term Debt and Letter of Credit

As of September 30, 2025, we had $87.4 million of long-term debt outstanding, which is comprised of two term loans, a finance lease and our revolving credit facility.

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Approximately $3.8 million relates to a finance lease for a campus within our Concorde segment.

The remaining $56.0 million relates to funds drawn from the revolving credit facility that was secured in connection with the Concorde acquisition.

During the fourth quarter of 2024, we increased the capacity of our revolving credit facility by $25.0 million to $125.0 million, adding an additional accordion feature.

See Note 13 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K for additional details on the term loans and the revolving credit facility.

The remaining $20.0 million relates to funds drawn from the $125.0 million revolving credit facility for working capital purposes.

In October 2025, we used cash on hand to repay $20.0 million outstanding on the revolving credit facility which increased the overall availability under the revolving credit facility to $105.4 million.

As of September 30, 2025, we were in compliance with all debt covenants.

In July 2025, we issued a letter of credit to ED under the revolving credit facility for $19.6 million, which expires on June 30, 2026, to satisfy the agency’s requirements for initiating growth plans prior to completing two fiscal years under UTI ownership.

With the placement of this letter of credit, we have been granted permission to begin seeking new program and campus approvals for Concorde.

We currently do not pay a cash dividend on our common stock.

For our outstanding Series A preferred shares, we paid preferred stock cash dividends of $1.1 million and $5.1 million during the years ended September 30, 2024 and 2023, respectively.

With the Series A Preferred Stock repurchase and subsequent conversion of remaining shares to common stock in December 2023, there will be no further dividend payments related to the Series A Preferred Stock going forward.

With the Series A Preferred Stock repurchase and subsequent conversion of remaining shares to common stock in December 2023, there were no dividend payments related to the Series A Preferred Stock during the year ended September 30, 2025.

We paid preferred stock cash dividends of $1.1 million during the year ended September 30, 2024.

See Note 19 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K for additional details on the conversion of our preferred stock.

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Net income, after adjustments for non-cash items, provided cash of $151.5 million for the year ended September 30, 2025.

The non-cash items included $29.3 million for depreciation and amortization expense, $21.9 million for amortization of right-of-use assets for operating leases, $8.6 million for stock-based compensation expense, $7.5 million for provision for credit losses and $4.4 million of deferred taxes.

The non-cash items included $33.0 million for depreciation and amortization expense, $23.8 million for amortization of right-of-use assets for operating leases, $22.1 million for the provision for credit losses, and $9.2 million for stock-based compensation expense.

Changes in operating assets and liabilities for the year ended September 30, 2025 used cash of $54.2 million primarily due to the following:

• Changes in our operating lease liability as a result of rent payments used cash of $22.4 million.

• The increase in receivables used cash of $38.7 million and was primarily due to the timing of Title IV disbursements and other cash receipts on behalf of our students.

• Changes in our accounts payable and accrued expenses due to the timing of payments provided cash of $13.2 million.

• The change in deferred revenue provided cash of $6.8 million and was primarily attributable to the timing of student starts, the number of students in school and where they were at period end in relation to completion of their program at September 30, 2024 as compared to September 30, 2023.

• Changes in our operating lease liability as a result of rent payments used cash of $22.1 million.

• The change in other assets used cash of $6.7 million and was primarily due to higher utilization of retail installment contracts.

• The increase in notes receivable used cash of $5.2 million and was primarily due to higher utilization of UTI’s proprietary loan program.

Net income, after adjustments for non-cash items, for the year ended September 30, 2023 provided cash of $71.8 million.

The non-cash items included $25.2 million for depreciation and amortization expense, $20.6 million for amortization of right-of -use assets for operating leases, $4.6 million of deferred taxes, $3.8 million for stock-based compensation expense and $3.3 million for provision for credit losses.

• Changes in prepaid expenses used cash of $1.7 million primarily due to the timing of payments.

• The increase in our income tax payable provided cash of $11.4 million.

• Changes in our accounts payable and accrued expenses due to the timing of payments provided cash of $11.2 million.

Net income, after adjustments for non-cash items, provided cash of $114.2 million for the year ended September 30, 2024.

Changes in operating assets and liabilities for the year ended September 30, 2024 used cash of $28.3 million primarily due to the following:

• Changes in our operating lease liability as a result of rent payments used cash of $22.4 million.

• The change in deferred revenue provided cash of $11.4 million and was primarily attributable to the timing of student starts, the number of students in school and where they were at period end in relation to completion of their program at September 30, 2023 as compared to September 30, 2022.

• Changes in our accounts payable and accrued expenses due to the timing of payments used cash of $5.9 million.

• The increase in receivables used cash of $12.1 million and was primarily due to the timing of Title IV disbursements and other cash receipts on behalf of our students.

• The increase in notes receivable used cash of $5.8 million and was primarily due to higher utilization of UTI’s proprietary loan program.

• Changes in our accounts payable and accrued expenses due to the timing of payments provided cash of $13.2 million.

Investing Activities

For the year ended September 30, 2025, net cash used in investing activities was $87.9 million.

The cash outflow was primarily related to the purchase of property and equipment of $24.3 million to support new program expansions at both UTI and Concorde.

The cash used was primarily related to the purchase of held-to-maturity investments of $68.4 million and the purchase of property and equipment of $42.0 million to support new program expansions at both UTI and Concorde, partially offset by $22.3 million in proceeds received upon maturity of investments.

For the year ended September 30, 2024, net cash used in investing activities was $24.0 million.

The cash outflow was primarily related to the purchase of property and equipment of $56.7 million.

During the year ended September 30, 2023, we purchased three buildings and the associated land at our UTI Orlando, Florida campus for $26.2 million.

Additionally, we had continued capital expenditures for further construction at the UTI Austin, Texas and Miramar, Florida campuses, and program expansion costs for both UTI and Concorde.

Further, on December 1, 2022, we completed the acquisition of Concorde which resulted in $16.4 million of cash paid for acquisitions, net of cash acquired.

Partially offsetting the cash outflows, is the $29.0 million in proceeds from maturities of held-to-maturity securities.

The cash outflow was primarily related to the purchase of property and equipment of $24.3 million to support new program expansions at both UTI and Concorde.

Financing Activities

For the year ended September 30, 2025, net cash used by financing activities was $42.8 million which was primarily related to $36.0 million in net payments on the revolving credit facility, or $62.0 million in payments offset by $26.0 million in proceeds.

Additional uses of cash included payroll taxes paid for stock-based compensation through shares withheld of $4.8 million, and the payment of long-term debt of $2.7 million.

For the year ended September 30, 2024, net cash used by financing activities was $51.3 million which was primarily related to $34.0 million in net payments on the revolving credit facility, or $75.0 million in payments offset by $41.0 million in proceeds.

Additionally, $11.5 million was used to repurchase Series A Preferred Stock.

See Note 18 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K for additional details on the repurchase.

Other uses of cash included payroll taxes paid for stock-based compensation through shares withheld of $2.2 million, the payment of long-term debt of $2.5 million, and the payment of preferred stock dividends of $1.1 million.

For the year ended September 30, 2023, net cash provided by financing activities was $81.8 million, which was primarily related to proceeds from our revolving credit facility of $90.0 million, offset by payment of preferred stock dividends of $5.1 million, and the repayment of long-term debt of $1.8 million.

For a discussion of our liquidity for the year ended September 30, 2023, refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Position and Results of Operations,” of our 2024 Form 10-K filed with the SEC on December 5, 2024 which discussion is incorporated herein by reference and which is available free of charge on the SEC’s website at www.sec.gov.

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Total fiscal year $ 835,616 100.0 % $ 732,687 100.0 % $ 607,408 100.0 %

The increase in revenues for each of the three months ended December 31, 2024, March 31, 2025, June 30, 2025 and September 30, 2025, as compared to the same periods in fiscal 2024, was due to an increase in student population and program expansions during recent years, including 2025.

The increase in revenues for each of the three months ended December 31, 2023, March 31, 2024, June 30, 2024 and September 30, 2024, as compared to the same periods in fiscal 2023, was due to an increase in student population during fiscal 2024.

The increase in revenues for each of the three months ended December 31, 2022, March 31, 2023, June 30, 2023 and September 30, 2023, as compared to the same periods in fiscal 2022, was due to an increase in student population during fiscal 2023 primarily related to the acquisition of Concorde.

Revenues from the Concorde segment presented in the year ended September 30, 2023 column represents the period of UTI’s ownership, or December 1, 2022 through September 30, 2023.

Income from Operations

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Total fiscal year $ 83,469 100.0 % $ 58,891 100.0 % $ 21,399 100.0 %

The increase in income from operations for fiscal year 2024 was primarily due to increased revenues as a result of higher student population as well as continued execution of cost control measures.

The decrease in income from operations for fiscal year 2023 was primarily due to increased compensation related costs primarily due to an increase in headcount to support our growth, diversification and optimization initiatives.

The increase in income from operations for fiscal 2025 was primarily due to increased revenues as a result of a higher student population, as well as continued execution of cost control measures.

Operating income for fiscal 2025 reflected a more balanced distribution across quarters compared to prior years, with a higher proportion recognized in the first quarter and a lower proportion in the fourth quarter.

The shift primarily reflects the timing of expenses.

The decrease in income from operations for fiscal year 2024 was primarily due to increased revenues as a result of a higher student population, as well as continued execution of cost control measures.

Income from the Concorde segment presented in the year ended September 30, 2023 column represents the period of UTI’s ownership, or December 1, 2022 through September 30, 2023.

Effect of Inflation

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Our significant accounting policies are discussed in Note 2 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K.

We believe that the following accounting estimates are the most critical to aid

in fully understanding and evaluating our reported financial results, and they require management’s most subjective and complex judgments in estimating the effect of inherent uncertainties.

We believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results, and they require management’s most subjective and complex judgments in estimating the effect of inherent uncertainties.

Revenue recognition

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In addition to revenue from tuition and fees, UTI and Concorde derive supplemental revenues from sales of textbooks and program supplies and other revenues, which are recognized as the transfer of goods or services occurs.

Deferred revenue represents the excess of tuition and fee payments received as compared to tuition and fees earned and is reflected as a current liability on our consolidated balance sheets because it is expected to be earned within the next 12 months.

Deferred revenue represents the excess

of tuition and fee payments received as compared to tuition and fees earned and is reflected as a current liability on our consolidated balance sheets because it is expected to be earned within the next 12 months.

All of our revenues are generated within the United States.

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We use estimates that are subjective and require judgment in determining the allowance for credit losses, which represent an estimate of the lifetime expected credit losses inherent in our receivables as of each balance sheet date.

We principally utilize

historical percentages of uncollectible accounts, customer credit worthiness, and changes in payment history when evaluating the adequacy of the allowance for credit losses.

We principally utilize historical percentages of uncollectible accounts, customer credit worthiness, and changes in payment history when evaluating the adequacy of the allowance for credit losses.

We also monitor and consider external factors such as changes in the economic and regulatory environment.

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Recent Accounting Pronouncements

Information concerning recently issued accounting pronouncements which are not yet effective is included in Note 3 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K.

As indicated in Note 3, we are still evaluating the impact of the recently issued accounting pronouncements on our financial statements.

Information concerning recently issued accounting pronouncements is included in Note 3 of the notes to our Consolidated Financial Statements within Part II, Item 8 of this Annual Report on Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis