Free cash flow has shifted to a negative $26.4 million in 2026Q2, driven by a surge in capital expenditures that now represent 14.1% of total revenue.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 |
|---|
| Cash from Operations | 82.23M | 97.33M | 85.89M | 49.15M | 46.03M | 55.19M | 11.03M | 21.75M | -13.48M | -9.98M | 7.38M | 8.24M | 27.06M | 26.73M | 18.51M | 58.07M | 67.48M | 49.15M | 21.09M | 39.63M | 45.41M | 67.76M | 47.66M | 36.42M | 20.47M | 0 | 21.05M |
| Operating CF Margin % | - | 11.65% | 11.72% | 8.09% | 10.99% | 16.47% | 3.67% | 6.56% | -4.25% | -3.08% | 2.13% | 2.27% | 7.15% | 7.03% | 4.48% | 12.85% | 15.48% | 13.41% | 6.14% | 11.22% | 13.09% | 21.8% | 18.68% | 18.53% | 14.18% | - | 22.86% |
| Operating CF Growth % | 583.3% | 13.31% | 74.77% | 6.77% | -16.59% | 400.23% | -49.27% | 261.34% | -35.08% | -235.13% | -10.41% | -69.54% | 1.21% | 44.43% | -68.13% | -13.94% | 37.29% | 133.01% | -46.78% | -12.73% | -32.98% | 42.18% | 30.88% | 77.89% | - | -100% | - |
| Net Income | 42.68M | 63.02M | 42M | 12.32M | 25.85M | 14.58M | 8.01M | -7.87M | -32.68M | -8.13M | -47.7M | -9.15M | 2.04M | 3.81M | 9.03M | 27.24M | 28.83M | 11.73M | 8.22M | 15.56M | 27.39M | 35.82M | 28.82M | 20.38M | 9.92M | -9.74M | -36.22M |
| Depreciation & Amortization | 53.9M | 56.78M | 51.19M | 45.82M | 32.78M | 29.63M | 36.08M | 15.9M | 15.69M | 16.89M | 17.75M | 19.16M | 20.47M | 22.16M | 23.82M | 24.84M | 19.89M | 17.57M | 17.61M | 18.75M | 14.21M | 9.78M | 8.81M | 6.38M | 4.95M | 4.53M | 3.89M |
| Stock-Based Compensation | 5.21M | 9.15M | 8.56M | 3.85M | 4.34M | 1.73M | 2.08M | 1.39M | 1.81M | 2.94M | 4.9M | 4.26M | 5.72M | 6.22M | 6.49M | 6.28M | 5.89M | 4.7M | 5.33M | 6.44M | 1.21M | 808K | 808K | 0 | 0 | 0 | 0 |
| Deferred Taxes | 675K | -1.34M | 4.44M | 4.64M | -6.01M | 1.44M | 345K | 767K | -2.81M | 254K | 27.93M | -5.39M | -4.05M | -3.79M | -8.49M | 2.51M | -3.54M | -2.17M | -249K | -957K | -2.39M | -1.7M | 3.3M | 484K | 2.04M | 0 | 0 |
| Other Non-Cash Items | 43.09M | 23.86M | 7.99M | 5.22M | 7.84M | 351K | 2.26M | 863K | 2.44M | -1.12M | 879K | 14.17M | 5.21M | 5.04M | 6.46M | 9.35M | 6.44M | 7.74M | 5.59M | 4.05M | 8.65M | 5.06M | 4.48M | 4M | 3.65M | 9.78M | 11.28M |
| Working Capital Changes | -63.34M | -54.15M | -28.28M | -22.7M | -18.76M | 7.45M | -37.73M | 10.69M | 2.07M | -20.81M | 3.62M | -14.81M | -2.33M | -6.71M | -18.81M | -12.15M | 9.97M | 9.58M | -15.4M | -4.22M | -3.65M | 18M | 1.44M | 5.17M | -94K | -4.57M | 21.05M |
| Change in Receivables | -47.3M | -43.95M | -17.93M | -5.73M | 816K | 8.48M | -13.75M | -1.48M | -2.69M | -2.98M | 8.2M | -11.44M | -2.7M | -1.26M | -10.11M | -9.89M | -9.89M | -1.94M | -11.31M | -1.63M | -5.32M | -2.56M | -2.56M | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | -22.49M | 0 | -19.78M | -21.75M | 5.08M | 2.5M | 522K | -1.04M | 123K | 726K | 3.83M | -4.05M | -14.48M | 14.34M | 3.4M | -5.57M | -394K | 2.34M | 170K | -9.18M | -108K | 0 | 0 | 0 |
| Change in Payables | 13.53M | 11.16M | 13.2M | -5.88M | 5.65M | 1.79M | 7.02M | 2.94M | 3.86M | -4.76M | 1.85M | 2.71M | -1.86M | -700K | 3.04M | 6.04M | 6.04M | 6.99M | 109K | -2.16M | 4.65M | 6.58M | 6.58M | 0 | 0 | 0 | 0 |
| Cash from Investing | -117.34M | -87.88M | -24M | -44.07M | -134.6M | -22.95M | -45.76M | -6.15M | 28.02M | -52.17M | 17.35M | -2.68M | -9.2M | -20.76M | -16.58M | -53.99M | -42.12M | -57.05M | 12.98M | -6.39M | -29.87M | -61.48M | -16.94M | -11.65M | -5.78M | 0 | 0 |
| Capital Expenditures | -81.16M | -41.98M | -24.3M | -56.69M | -79.46M | -61.59M | -9.26M | -6.45M | -20.93M | -8.77M | -8.07M | -29.48M | -12.02M | -9.35M | -11.34M | -29.1M | -37.2M | -28.52M | -17.7M | -46.58M | -46.14M | -45.84M | -16.98M | -11.98M | -11.77M | 0 | 0 |
| CapEx % of Revenue | 9.34% | 5.02% | 3.32% | 9.33% | 18.97% | 18.38% | 3.08% | 1.95% | 6.6% | 2.7% | 2.32% | 8.13% | 3.18% | 2.46% | 2.74% | 6.44% | 8.53% | 7.78% | 5.15% | 13.18% | 13.29% | 14.75% | 6.65% | 6.1% | 8.15% | - | - |
| Acquisitions | 0 | 0 | 0 | -16.38M | -26.33M | 277K | 261K | 267K | 291K | 390K | -2.02M | 464K | 568K | 54K | -90.63M | 0 | 0 | 0 | 0 | 0 | 32M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 39.46M | 169K | 296K | 29M | -181K | 427K | 1.63M | 34K | 917K | 2.26M | 286K | 610K | 91K | -3.71M | 91.25M | 64K | 5K | 36K | 30.69M | 40.19M | 3K | 194K | 36K | 323K | 5.87M | 0 | 0 |
| Cash from Financing | 28.21M | -42.79M | -51.34M | 81.85M | 12.59M | 24.82M | 43.09M | -7.2M | -6.58M | -6.76M | 64.88M | -15.11M | -13.46M | -15.98M | -9.93M | 611K | -32.59M | -16.78M | -28.79M | 918K | -26.16M | 3.16M | 2.96M | -29.39M | -4.49M | 0 | 0 |
| Debt Issued (Net) | -13.78M | -38.7M | -36.52M | 88.21M | 18.77M | 30.77M | -99K | -1.32M | -1.11M | -913K | -736K | -663K | -613K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6K | -37K | -31.83M | -28.33M | -63.35M | 0 | 0 |
| Equity Issued (Net) | -7.49M | 659K | -11.5M | -781K | -651K | -421K | 49.15M | 0 | 0 | 0 | 68.89M | -6.62M | -1.42M | -4.9M | -1.3M | 1.27M | 4.08M | -16.06M | -29.05M | 861K | -26.95M | 3.4M | 47.32M | 0 | 42.04M | 0 | 0 |
| Dividends Paid | 0 | 0 | -1.1M | -5.07M | -5.16M | -5.25M | -5.26M | -5.25M | -5.25M | -5.25M | -2.88M | -7.31M | -9.88M | -9.82M | -7.42M | -36.33M | -36.33M | 0 | 0 | 0 | 0 | -12.56M | -12.56M | -5M | 0 | 0 | 0 |
| Share Repurchases | -7.49M | 0 | -11.5M | -781K | -651K | -421K | 0 | -629K | -223K | -595K | -393K | -6.62M | -1.42M | -5.42M | -1.85M | 0 | 0 | -16.93M | -29.54M | 0 | -30.03M | 0 | -12.95M | 0 | 0 | 0 | 0 |
| Other Financing | 49.48M | -4.75M | -2.23M | -516K | -378K | -272K | -698K | -629K | -223K | -595K | -393K | -519K | -1.55M | -1.26M | -1.21M | -658K | -336K | -723K | 251K | 57K | 798K | -199K | 28K | 3.94M | 16.82M | 0 | 0 |
| Net Change in Cash | -6.91M | -33.34M | 10.55M | 86.93M | -75.98M | 57.06M | 8.36M | 8.4M | 7.97M | -68.91M | 89.61M | -9.55M | 4.39M | -10.01M | -8.01M | 4.7M | -7.22M | -24.68M | 5.28M | 34.16M | -10.61M | 9.44M | 33.68M | -4.63M | 10.2M | 0 | 21.05M |
| Free Cash Flow | 1.88M | 55.35M | 61.6M | -7.54M | -33.43M | -6.4M | 1.77M | 15.29M | -34.41M | -18.74M | -686K | -21.24M | 15.03M | 17.38M | 7.17M | 28.97M | 30.29M | 20.63M | 3.39M | -6.95M | -722K | 21.92M | 30.69M | 24.44M | 8.7M | 0 | 21.05M |
| FCF Margin % | 0.22% | 6.62% | 8.41% | -1.24% | -7.98% | -1.91% | 0.59% | 4.61% | -10.86% | -5.78% | -0.2% | -5.86% | 3.97% | 4.57% | 1.73% | 6.41% | 6.95% | 5.63% | 0.99% | -1.97% | -0.21% | 7.05% | 12.03% | 12.44% | 6.03% | - | 22.86% |
| FCF Growth % | -97.35% | -10.14% | 917.26% | 77.45% | -422.2% | -461.64% | -88.43% | 144.44% | -83.58% | -2632.22% | 96.77% | -241.31% | -13.51% | 142.51% | -75.26% | -4.33% | 46.82% | 508.65% | 148.78% | -862.19% | -103.29% | -28.55% | 25.56% | 180.94% | - | -100% | - |
| FCF per Share | 0.03 | 1.00 | 1.21 | -0.22 | -0.99 | -0.19 | 0.06 | 0.60 | -1.37 | -0.76 | -0.03 | -0.87 | 0.60 | 0.70 | 0.29 | 1.17 | 1.24 | 0.84 | 0.13 | -0.25 | -0.03 | 0.77 | 1.11 | 0.98 | 0.43 | - | 1.57 |
| FCF Conversion (FCF/Net Income) | 0.04x | 1.54x | 2.05x | 3.99x | 1.78x | 3.78x | 1.38x | -2.76x | 0.41x | 1.23x | -0.15x | -0.90x | 13.28x | 7.02x | 2.05x | 2.13x | 2.34x | 4.19x | 2.57x | 2.55x | 1.66x | 1.89x | 1.65x | 1.79x | 2.11x | - | -0.58x |
| Interest Paid | -3.5M | 5.91M | -10.39M | -9.07M | -1.94M | 349K | 7K | 3.22M | 3.31M | 3.38M | 3.44M | 2.34M | 1.97M | 1K | 4K | 0 | 9K | 48K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -7.65M | 11.26M | 10.68M | 658K | -859K | 6.71M | 113K | 37K | 610K | 2.7M | 1.64M | 7.01M | 3.77M | 7.47M | 15.71M | 12.62M | 23.12M | 7.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory Title IV dependency
According to recent quarterly filings, UTI's operating cash flow to net income ratio has become increasingly erratic, dropping to 9.20 in 2026Q2 from a peak of 3.58 in 2024Q4, which suggests that reported accounting profits are failing to translate into meaningful cash generation for the business.
The wide variance between net income and operating cash flow indicates that non-cash items and accruals are heavily influencing the bottom line. Investors should monitor whether this divergence stems from aggressive revenue recognition or timing mismatches in student tuition collections.
As reported in financial statements, UTI's free cash flow margin has shifted from a positive 30.6% in 2024Q4 to a negative 11.9% in 2026Q2, highlighting a concerning trend where capital requirements are consistently outpacing the company's ability to generate internal cash from its core operations.
This negative trajectory suggests that the company's current operational model is becoming increasingly capital-intensive. The inability to sustain positive free cash flow may force management to rely on external financing or cash reserves to fund ongoing campus operations and maintenance.
Based on reported figures, UTI's capital expenditure as a percentage of revenue has surged to 14.1% in 2026Q2, a significant increase from the 2.2% observed in 2024Q1, indicating that the company is committing substantial resources to maintain or expand its specialized lab-intensive educational infrastructure.
This spike in capital intensity warrants further investigation into whether these expenditures are truly growth-oriented or merely necessary maintenance to keep aging industrial equipment compliant with OEM standards. Such high levels of reinvestment may continue to suppress free cash flow for the foreseeable future.
Data from recent filings reveals that working capital changes have become a persistent drag on cash flow, with a $23.5 million outflow in 2026Q2 alone, suggesting that the company is struggling to manage the timing of student payments relative to its operational cash obligations.
The recurring negative working capital adjustments imply potential friction in the collection cycle or an inefficient management of deferred revenue balances. This volatility appears to be a primary driver of the company's inconsistent cash flow performance and may indicate underlying operational inefficiencies.
Quick answers to the most common questions about buying UTI stock.
Universal Technical Institute, Inc. (UTI) generated $97.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Universal Technical Institute, Inc. (UTI) generated $55.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Universal Technical Institute, Inc. (UTI) spent $42.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.