Breakwater Learning

Breakwater Learning shows signs of real financial distress. Reserves cover 6 months of operating expense, a thin runway. Revenue is 89% tuition-dependent (peer median 85%), concentrated but in line with most independent day schools. Staff compensation runs 62% of expenses, well below the peer median, worth understanding why. Expenses are outpacing revenue 10.4% vs 6.2% per year over three years, signaling margin compression worth flagging. NACUBO Composite Financial Index: -0.4 / 10, distressed.

Breakwater Learning reported $5.0M in revenue against $5.3M in expenses in fiscal year 2024, the most recent filing on record. Net assets stood at $2.7M — about 0.52x annual operating expense.

Operating margin landed at -4.9%, with 89.0% of revenue coming from tuition. Among same-size peers, that puts Breakwater Learning at the p0 on operating margin.