v3.25.2
Restructuring Costs
9 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Costs
Note 13 - Restructuring Costs
On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. Both facilities will remain in use post-consolidation. As part of the transition, the MIAT Houston campus, acquired in November 2021, began a phased teach-out in May 2024 and began operating under the UTI brand. The consolidation into a single UTI Houston campus was completed during the three months ended December 31, 2024, reducing the number of UTI campuses from 16 to 15.
The total costs of the restructuring plan are estimated to be approximately $1.2 million and relate to the UTI segment. From announcement through June 30, 2025, we have incurred total restructuring costs of $0.2 million.

There were no restructuring costs expensed during the three months ended June 30, 2025. During the nine months ended June 30, 2025, we expensed $43 thousand of restructuring costs primarily related to student financing costs, employee termination costs and tools, with $12 thousand reported in “Educational services and facilities” and the remainder reported in “Selling, general and administrative” on the condensed consolidated statements of operations.

During the three months ended June 30, 2024, $53 thousand of expenses, primarily related to tools, were incurred. During the nine months ended June 30, 2025, $141 thousand of expenses, primarily related to employee termination costs and tools, were incurred. Of the $141 thousand recorded during the nine months ended June 30, 2024, approximately $87 thousand was reported in “Educational services and facilities” while approximately $57 thousand was reported in “Selling, general and administrative” on the condensed consolidated statements of operations.

As of June 30, 2025, the only remaining cost related to this restructuring is the potential for federal loan discharges which we are estimating could be up to $1.0 million.