New Roads School

New Roads School is burning the cushion faster than the 10-month buffer suggests. Expenses are outpacing revenue 10.4% vs 3.1% per year over three years, and the latest operating margin is -7.7% 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 10 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: 0.3 / 10, re-engineer.

New Roads School operates at 94% tuition dependency — among the most tuition-reliant 3% of peers in its cohort. A soft admissions year would flow straight to operations.

New Roads School reported $31.3M in revenue against $33.7M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $28.2M — about 0.84x annual operating expense.

Operating margin landed at -7.7%, with 93.8% of revenue coming from tuition. Among same-size peers, that puts New Roads School at the p7 on operating margin.