Northern Light School

Northern Light School is burning the cushion faster than the 12-month buffer suggests. Expenses are outpacing revenue 6.9% vs -7.3% per year over three years, and the latest operating margin is -16.9% on a 58% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 5.7 more years — the full budget, by contrast, is covered for about 12 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, watch.

Northern Light School reported $4.6M in revenue against $5.4M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $5.2M — about 0.96x annual operating expense.

Operating margin landed at -16.9%, with 58.1% of revenue coming from tuition. Among same-size peers, that puts Northern Light School at the p0 on operating margin.