The 2025 audit of the Educational Testing Service is now available from the Federal Audit Clearinghouse. It covers the year ending September 30, 2025.
A few notes (all amounts USD):
- Operating revenues are 1.02 billion. That’s a drop of 12.1%. I don’t think operating revenues have been this low since 2010.
- In any case, I’m more interested in program service revenues (that is, revenues from tests), but we’ll have to wait ‘till the 990 form is published in the summer.
- ETS finished the year with an operating loss of 60.7 million dollars. That’s less than 2024, when its operating loss was 146.8 million dollars.
- Total assets are 1.67 billion. That’s down 6.7%.
- Net assets are 1.34 billion. That’s down 4.3%.
- One interesting thing about ETS’s assets is that they include quite a lot of goodwill (valued at 261 million) and intangible assets (valued at 194 million). That’s a lot more than before. These things seem to be a result of the purchase of PSI Services. If we go back to just 2023, goodwill was valued at 26 million and intangible assets at just 6 million. I don’t know if this means anything.
- The organization’s restructuring is starting to show up in the audit. Operating expenses for the year were 1.08 billion, a drop of 17.6%. This is mostly the result of less money being spent on wages, test centers, and subcontracted services.
- 13% of ETS’s revenues came from the new College Board contract. The old one accounted for 30% of revenues.