Leake Academy

Leake Academy is burning the cushion faster than the 13-month buffer suggests. Expenses are outpacing revenue 5.5% vs -2.9% per year over three years, and the latest operating margin is -5.7% on a 96% 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 13 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: 2.0 / 10, watch.

Leake Academy operates at 96% tuition dependency — among the most tuition-reliant 14% of peers in its cohort. A soft admissions year would flow straight to operations.

Leake Academy reported $2.6M in revenue against $2.8M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $3.0M — about 1.09x annual operating expense.

Operating margin landed at -5.7%, with 95.7% of revenue coming from tuition. Among same-size peers, that puts Leake Academy at the p31 on operating margin.