The Northwest Academy

The Northwest Academy is burning the cushion faster than the 16-month buffer suggests. Expenses are outpacing revenue 9.2% vs 1.1% per year over three years, and the latest operating margin is -10.4% on a 94% tuition-dependent revenue mix. Covering the deficit at today's rate, it would take more than a decade to exhaust reserves — the full budget, by contrast, is covered for about 16 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: 1.5 / 10, watch.

The Northwest Academy operates at 94% tuition dependency — among the most tuition-reliant 10% of peers in its cohort. A soft admissions year would flow straight to operations.

The Northwest Academy reported $7.9M in revenue against $8.7M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $11.6M — about 1.33x annual operating expense.

Operating margin landed at -10.4%, with 93.8% of revenue coming from tuition. Among same-size peers, that puts The Northwest Academy at the p14 on operating margin.