v3.26.1
Leases
 9 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases
Note 9 - Leases
As of June 30, 2026, we have facility leases at 32 of our 34 operating campuses, the new UTI Atlanta, Georgia campus which opened in July 2026, three non-operating campuses that are currently under construction, and three non-campus locations which are all under non-cancelable operating or finance leases.
During the nine months ended June 30, 2026, we signed a lease agreement for a new Concorde Atlanta, Georgia campus as well as a lease to relocate the Concorde North Hollywood, California campus to Burbank, California. As of June 30, 2026, these leases, which have not yet commenced and which relate to properties that we have not yet taken possession, will have total minimum lease payments of approximately $50.1 million over a range of 11 to 15 years.
Some of our leases contain escalation clauses and requirements to pay other fees associated with the leases. The facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2040. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of June 30, 2026, resulted in minimal income. All leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets.
The components of lease expense during the three and nine months ended June 30, 2026 and 2025 were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
Lease Expense2026202520262025
Operating lease expense(1)
$9,134 $8,428 $26,754 $23,693 
Finance lease expense:
Amortization of leased assets227 227 681 681 
Interest on lease liabilities48 62 154 197 
Variable lease expense2,978 2,708 9,228 7,861 
Sublease income(3)(30)(24)(89)
Total net lease expense$12,384 $11,395 $36,793 $32,343 
(1)    Excludes the expense for short-term leases, which was not significant for the three and nine months ended June 30, 2026 and 2025.
Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate):
LeasesClassificationJune 30, 2026September 30, 2025
Assets:
Operating lease assetsRight-of-use assets for operating leases$182,004 $178,861 
Finance lease assets
Property and equipment, net(1)
2,347 3,028 
Total leased assets$184,351 $181,889 
Liabilities:
Current
Operating lease liabilitiesOperating lease liabilities, current portion$14,814 $16,967 
Finance lease liabilities
Long-term debt, current portion(1)
1,104 1,029 
Non-current
Operating lease liabilitiesOperating lease liabilities184,623 174,838 
Finance lease liabilitiesLong-term debt1,968 2,805 
Total lease liabilities$202,509 $195,639 
(1) The finance lease assets and liabilities as of June 30, 2026 and September 30, 2025 consisted of one facility lease. The finance lease asset is recorded net of accumulated amortization of $3.3 million and $2.6 million as of June 30, 2026 and September 30, 2025, respectively.
Lease Term and Discount RateJune 30, 2026September 30, 2025
Weighted-average remaining lease term (in years):
Operating leases7.377.44
Finance lease2.583.33
Weighted average discount rate:
Operating leases5.22 %5.09 %
Finance lease6.02 %6.02 %
Nine Months Ended June 30,
Supplemental Disclosure of Cash Flow and Other Information20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$15,167 $16,758 
Financing cash flows from finance leases762 692 
Non-cash activity related to lease liabilities:
Lease assets obtained in exchange for new operating lease liabilities$22,799 $34,097 

Maturities of lease liabilities were as follows:
As of June 30, 2026
Years ending September 30,Operating LeasesFinance Lease
Remainder of 2026$5,638 $312 
202726,451 1,263 
202837,299 1,301 
202936,402 439 
203033,593 — 
2031 and thereafter109,373 — 
Total lease payments248,756 3,315 
Less: interest(49,319)(243)
Present value of lease liabilities199,437 3,072 
Less: current lease liabilities(14,814)(1,104)
Long-term lease liabilities$184,623 $1,968 
Leases
Note 9 - Leases
As of June 30, 2026, we have facility leases at 32 of our 34 operating campuses, the new UTI Atlanta, Georgia campus which opened in July 2026, three non-operating campuses that are currently under construction, and three non-campus locations which are all under non-cancelable operating or finance leases.
During the nine months ended June 30, 2026, we signed a lease agreement for a new Concorde Atlanta, Georgia campus as well as a lease to relocate the Concorde North Hollywood, California campus to Burbank, California. As of June 30, 2026, these leases, which have not yet commenced and which relate to properties that we have not yet taken possession, will have total minimum lease payments of approximately $50.1 million over a range of 11 to 15 years.
Some of our leases contain escalation clauses and requirements to pay other fees associated with the leases. The facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2040. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of June 30, 2026, resulted in minimal income. All leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets.
The components of lease expense during the three and nine months ended June 30, 2026 and 2025 were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
Lease Expense2026202520262025
Operating lease expense(1)
$9,134 $8,428 $26,754 $23,693 
Finance lease expense:
Amortization of leased assets227 227 681 681 
Interest on lease liabilities48 62 154 197 
Variable lease expense2,978 2,708 9,228 7,861 
Sublease income(3)(30)(24)(89)
Total net lease expense$12,384 $11,395 $36,793 $32,343 
(1)    Excludes the expense for short-term leases, which was not significant for the three and nine months ended June 30, 2026 and 2025.
Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate):
LeasesClassificationJune 30, 2026September 30, 2025
Assets:
Operating lease assetsRight-of-use assets for operating leases$182,004 $178,861 
Finance lease assets
Property and equipment, net(1)
2,347 3,028 
Total leased assets$184,351 $181,889 
Liabilities:
Current
Operating lease liabilitiesOperating lease liabilities, current portion$14,814 $16,967 
Finance lease liabilities
Long-term debt, current portion(1)
1,104 1,029 
Non-current
Operating lease liabilitiesOperating lease liabilities184,623 174,838 
Finance lease liabilitiesLong-term debt1,968 2,805 
Total lease liabilities$202,509 $195,639 
(1) The finance lease assets and liabilities as of June 30, 2026 and September 30, 2025 consisted of one facility lease. The finance lease asset is recorded net of accumulated amortization of $3.3 million and $2.6 million as of June 30, 2026 and September 30, 2025, respectively.
Lease Term and Discount RateJune 30, 2026September 30, 2025
Weighted-average remaining lease term (in years):
Operating leases7.377.44
Finance lease2.583.33
Weighted average discount rate:
Operating leases5.22 %5.09 %
Finance lease6.02 %6.02 %
Nine Months Ended June 30,
Supplemental Disclosure of Cash Flow and Other Information20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$15,167 $16,758 
Financing cash flows from finance leases762 692 
Non-cash activity related to lease liabilities:
Lease assets obtained in exchange for new operating lease liabilities$22,799 $34,097 

Maturities of lease liabilities were as follows:
As of June 30, 2026
Years ending September 30,Operating LeasesFinance Lease
Remainder of 2026$5,638 $312 
202726,451 1,263 
202837,299 1,301 
202936,402 439 
203033,593 — 
2031 and thereafter109,373 — 
Total lease payments248,756 3,315 
Less: interest(49,319)(243)
Present value of lease liabilities199,437 3,072 
Less: current lease liabilities(14,814)(1,104)
Long-term lease liabilities$184,623 $1,968