Newberry Academy

Newberry Academy is burning the cushion faster than the 7-month buffer suggests. Expenses are outpacing revenue 15.1% vs 1.6% per year over three years, and the latest operating margin is -5.8% on a 88% 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 7 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, distressed.

Newberry Academy reported $1.6M in revenue against $1.7M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $1.0M — about 0.62x annual operating expense.

Operating margin landed at -5.8%, with 88.4% of revenue coming from tuition. Among same-size peers, that puts Newberry Academy at the p27 on operating margin.