The IDEAL School

The IDEAL School is burning the cushion faster than the 4-month buffer suggests. Expenses are outpacing revenue 6.7% vs -1.2% per year over three years, and the latest operating margin is -18.0% on a 90% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 22 more months — the full budget, by contrast, is covered for about 4 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: -1.3 / 10, distressed.

The IDEAL School holds only 4 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

The IDEAL School reported $18.6M in revenue against $21.9M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $7.3M — about 0.33x annual operating expense.

Operating margin landed at -18.0%, with 89.5% of revenue coming from tuition. Among same-size peers, that puts The IDEAL School at the p10 on operating margin.