For the first time in more than a decade, Webster University will finish the fiscal
year with a positive cash flow, according to an independent audit of the University’s
finances. The audit was made public Friday afternoon.

The results are due to significant enrollment increases at Webster in the past 18
months coupled with an operational efficiency initiative launched earlier this academic
year.

“This is the result of all the hard work of the faculty and staff at Webster who attacked
our challenges with innovative ideas and determination,” Webster University Chancellor
Tim Keane said. “Because of their efforts, Webster is stronger, more efficient and
better prepared to thrive in the future.”

The audit, which was conducted by the independent agency Forvis Mazars, found that
the 2023-2024 fiscal year ending last May reduced the deficit by 40% from the previous
year, an improvement of over $15 million. While ending last year with a deficit of
$22 million, the audit disclosed that in the current 2024-2025 fiscal year Webster
will be cash flow positive for the first time since 2013.

The audit provides specific details about how Webster was significantly impacted by
Covid due to its business model that relied heavily on in-person learning across more
than 50 satellite campuses in the U.S. and abroad. This institutional “long Covid”
hit Webster harder than other institutions, forcing increased and protracted losses
from 2020 through 2024.

The report also details the efforts that Webster has taken to restructure and refinance
numerous bonds and loans held by the University. It pointed out that in the past few
months, Webster has renegotiated more favorable terms on some of their outstanding
bonds and is in the process of paying them off early due to their significant assets
and stable financial situation.

The audit describes the University’s new integrated, inclusive and data informed ‘Kairos’
strategic planning process that lays out challenging, but achievable goals for the
next two years.

According to Chancellor Keane, who joined Webster in August of 2024, this outcome
was the result of everyone at Webster united in their support for the University.
“It is extremely rare for any institution in today’s challenging higher ed environment
to flip an audit from a ‘going concern’ opinion in one year to a clean outlook the
very next year, but going from a $37 million loss to breakeven in two years is extraordinary.”