Valor Preparatory Academy-Waco

Valor Preparatory Academy-Waco is burning the cushion faster than the 8-month buffer suggests. Expenses are outpacing revenue 28.8% vs 16.8% per year over three years, and the latest operating margin is -7.6% on a 90% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 8.7 more years — the full budget, by contrast, is covered for about 8 months 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: 0.1 / 10, re-engineer.

Valor Preparatory Academy-Waco reported $3.2M in revenue against $3.4M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $2.2M — about 0.66x annual operating expense.

Operating margin landed at -7.6%, with 89.6% of revenue coming from tuition. Among same-size peers, that puts Valor Preparatory Academy-Waco at the p23 on operating margin.