Wellsprings Friends School

Wellsprings Friends School is burning the cushion faster than the 4-month buffer suggests. Expenses are outpacing revenue 3.6% vs -4.3% per year over three years, and the latest operating margin is -17.5% on a 83% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 21 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: -1.1 / 10, distressed.

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

Wellsprings Friends School reported $619K in revenue against $727K in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $224K — about 0.31x annual operating expense.

Operating margin landed at -17.4%, with 82.8% of revenue coming from tuition. Among same-size peers, that puts Wellsprings Friends School at the p10 on operating margin.