The Gow School

The Gow School is burning the cushion faster than the 3.2-year buffer suggests. Expenses are outpacing revenue 8.5% vs -4.2% per year over three years, and the latest operating margin is -42.7% on a 86% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 7.4 more years — the full budget, by contrast, is covered for about 3.2 years if every revenue line stopped. The board conversation here is the recovery plan for the operating model and the timeline to break-even. NACUBO Composite Financial Index: 2.6 / 10, watch.

The Gow School holds 3.2 years of operating expense in net assets — a deeper reserve position than most independent day schools carry. Less exposed than peers to a one-year admissions shock.

The Gow School reported $10.9M in revenue against $15.5M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $49.3M — about 3.17x annual operating expense.

Operating margin landed at -42.7%, with 86.3% of revenue coming from tuition. Among same-size peers, that puts The Gow School at the p3 on operating margin.