Royce Learning Center

Royce Learning Center shows signs of real financial distress. Reserves cover 5 months of operating expense, a thin runway. Revenue is 90% tuition-dependent (peer median 82%), concentrated but in line with most independent day schools. Staff compensation runs 77% of expenses, generous relative to peers. Three-year net-asset trend is negative (-4.6%/yr), indicating reserve drawdown. NACUBO Composite Financial Index: -0.8 / 10, distressed.

Royce Learning Center holds only 5 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

Royce Learning Center reported $2.9M in revenue against $3.0M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $1.2M — about 0.41x annual operating expense.

Operating margin landed at -5.7%, with 89.8% of revenue coming from tuition. Among same-size peers, that puts Royce Learning Center at the p17 on operating margin.