Hampton Roads Academy

Hampton Roads Academy is burning the cushion faster than the 16-month buffer suggests. Expenses are outpacing revenue 5.0% vs -2.0% per year over three years, and the latest operating margin is -6.8% on a 91% tuition-dependent revenue mix. Covering the deficit at today's rate, it would take more than a decade to exhaust reserves — the full budget, by contrast, is covered for about 16 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: 2.8 / 10, watch.

Hampton Roads Academy operates at 92% tuition dependency — among the most tuition-reliant 20% of peers in its cohort. A soft admissions year would flow straight to operations.

Hampton Roads Academy reported $13.9M in revenue against $14.8M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $20.2M — about 1.36x annual operating expense.

Operating margin landed at -6.8%, with 91.5% of revenue coming from tuition. Among same-size peers, that puts Hampton Roads Academy at the p13 on operating margin.