The Orme School

The Orme School is burning the cushion faster than the 6-month buffer suggests. Expenses are outpacing revenue -12.1% vs -22.2% per year over three years, and the latest operating margin is -42.5% on a 61% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 14 more months — the full budget, by contrast, is covered for about 6 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: -0.7 / 10, distressed.

The Orme School holds only 6 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

The Orme School reported $3.8M in revenue against $5.4M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $2.6M — about 0.48x annual operating expense.

Operating margin landed at -42.5%, with 61.0% of revenue coming from tuition. Among same-size peers, that puts The Orme School at the p0 on operating margin.