Tessellations

Tessellations sits in the watch range. Reserves cover under 1 months of expenses, a precarious runway. Revenue is unusually diversified at 52% tuition-dependent (peer median 87%). Staff compensation runs 58% of expenses, well below the peer median, worth understanding why. Net assets are growing 7.5%/yr over three years; the cushion is being built, not drawn. NACUBO Composite Financial Index: 2.6 / 10, watch.

Tessellations runs only 52% tuition-dependent — unusually diversified for an independent school. Endowment payout and contributions carry meaningful weight in the operating budget.

Tessellations reported $13.8M in revenue against $13.5M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $801K — about 0.06x annual operating expense.

Operating margin landed at 1.5%, with 52.2% of revenue coming from tuition. Among same-size peers, that puts Tessellations at the p47 on operating margin.