Montessori De Terra Linda

Montessori De Terra Linda shows signs of real financial distress. Reserves cover 5 months of operating expense, a thin runway. Revenue is highly concentrated at 92% tuition-dependent (peer median 87%): a soft admissions year would flow straight to the bottom line. Staff compensation runs 61% of expenses, leaner than the peer median. Net assets are growing 30.4%/yr over three years; the cushion is being built, not drawn. NACUBO Composite Financial Index: -0.1 / 10, distressed.

Montessori De Terra Linda holds only 5 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

Montessori De Terra Linda reported $4.5M in revenue against $4.5M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $2.0M — about 0.45x annual operating expense.

Operating margin landed at -1.9%, with 91.7% of revenue coming from tuition. Among same-size peers, that puts Montessori De Terra Linda at the p27 on operating margin.