Marlborough School

Marlborough School is burning the cushion faster than the 3.2-year buffer suggests. Expenses are outpacing revenue 10.7% vs 2.5% per year over three years, and the latest operating margin is -17.1% on a 86% 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 3.2 years 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: 2.8 / 10, watch.

Marlborough School holds 3.2 years of operating expense in net assets — a deeper reserve position than most independent day schools carry. Less exposed than peers to a one-year admissions shock.

Marlborough School reported $37.8M in revenue against $44.2M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $143.7M — about 3.25x annual operating expense.

Operating margin landed at -17.1%, with 85.6% of revenue coming from tuition. Among same-size peers, that puts Marlborough School at the p3 on operating margin.