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Financial Statements July 1, 2024 through June 30, 2025 (With Independent Auditors’ Report Thereon) 1

THE NEW SCHOOL Consolidated Financial Statements June 30, 2025 and 2024 (With Independent Auditors’ Report Thereon)

KPMG LLP Two Manhattan West 375 9th Avenue, 17th Floor New York, NY 10001

Independent Auditors’ Report The Board of Trustees The New School: Opinion We have audited the consolidated financial statements of The New School (the university), which comprise the consolidated balance sheets as of June 30, 2025 and 2024, and the related consolidated statements of activities and cash flows for the years then ended, and the related notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the university as of June 30, 2025 and 2024, and the changes in its net assets and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the university and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the university’s ability to continue as a going concern for one year after the date that the consolidated financial statements are issued. Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

In performing an audit in accordance with GAAS, we:

●

Exercise professional judgment and maintain professional skepticism throughout the audit.

●

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

●

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the university’s internal control. Accordingly, no such opinion is expressed.

●

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

●

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the university’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

New York, New York November 5, 2025

THE NEW SCHOOL Consolidated Balance Sheets June 30, 2025 and 2024 (Dollars in thousands) Assets

2025

2024

4,474 8,804 22,739 27,511 55,817 1,420 533,169 301,489 2,937 786,353

201 8,323 19,739 23,084 32,358 1,584 493,122 304,211 16,980 796,295

1,744,713

1,695,897

50,256 8,045 497 74,382 343,115 647,245

52,560 9,196 728 16,871 342,682 673,435

Total liabilities

1,123,540

1,095,472

Net assets (note 9): Without donor restrictions With donor restrictions

331,257 289,916

331,191 269,234

621,173

600,425

1,744,713

1,695,897

Cash and cash equivalents Student accounts receivable, net (note 3) Contributions receivable, net (note 5) Deferred charges and other assets Funds held by bond trustees (note 8) Student loans receivable (note 3) Investments (note 4) Operating right-of-use assets (notes 11 and 13) Asset held for sale (notes 6 and 15) Land, buildings, and equipment, net (note 6) Total assets Liabilities and Net Assets Liabilities: Accounts payable and accrued liabilities (notes 7 and 12) Deferred revenue and other liabilities (note 3) Federal Perkins student loan advances Short-term debt (note 7) Operating lease liabilities (notes 11 and 13) Long-term debt, net (note 7)

Total net assets Total liabilities and net assets

See accompanying notes to consolidated financial statements.

THE NEW SCHOOL Consolidated Statements of Activities Years ended June 30, 2025 and 2024 (Dollars in thousands) 2025

2024

324,858 3,046 3,514 10,463 39,452 30,397 42,129

328,367 2,045 3,203 10,131 41,609 15,909 42,818

453,859

444,082

179,169 33,175 86,342 40,896 52,446 85,506

178,820 30,999 86,955 40,513 52,457 84,579

Total operating expenses

477,534

474,323

Change in net assets from operating activities

(23,675)

(30,241)

30,454 (10,463) 3,750

30,120 (10,131) 102

(10,150)

29,200 8,259 22,149 3,203 (42,129)

33,690 8,723 21,481 (691) (42,818)

Change in net assets with donor restrictions

20,682

20,385

Change in net assets

20,748

10,235

600,425

590,190

621,173

600,425

32,246 55,266 17,979

35,735 53,564 17,313

Change in net assets without donor restrictions: Operating revenues: Student tuition and fees (net of scholarship allowance of $164,969 and $164,685 for the years ended June 30, 2025 and 2024, respectively) (note 3) Contributions Grants and contracts Investment return appropriated for operations (notes 4 and 9) Auxiliary activities (note 3) Other income Net assets released from restrictions (note 9)

Total operating revenues Operating expenses (note 10): Instruction and departmental research Sponsored research and public services Academic support Student services Auxiliary activities Institutional support

Nonoperating activities: Investment return, net (notes 4 and 9) Investment return appropriated for operations (notes 4 and 9) Other, net Change in net assets without donor restrictions Change in net assets with donor restrictions: Contributions Grants and contracts Investment return, net (notes 4 and 9) Other, net Net assets released from restrictions (note 9)

Net assets at beginning of year Net assets at end of year Certain amounts disaggregated above are presented below in the aggregate: Contributions Investment return Investment return appropriated for operations See accompanying notes to consolidated financial statements.

THE NEW SCHOOL Consolidated Statements of Cash Flows Years ended June 30, 2025 and 2024 (Dollars in thousands) 2025 Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash used in operating activities: Depreciation Provision for uncollectible student receivables Amortization of net bond premiums and bond issuance costs Net realized and unrealized gains on investments Reduction in carrying amount of operating right-of-use-assets, net of interest expense Gain on disposal of fixed assets Contributions and grants restricted for: Investment in endowment Changes in operating assets and liabilities: Student accounts receivable Contributions receivable Deferred charges and other assets Operating lease liabilities Accounts payable and accrued expenses Deferred revenue and other liabilities

2024

20,748

10,235

31,414 3,284 (8,880) (53,662) 32,380 (11,245)

28,351 3,903 (1,898) (51,242) 33,130 —

(2,414)

(1,155)

(3,765) (3,955) (4,427) (29,225) (3,360) (1,151)

(2,487) 1,208 5,538 (28,800) (2,441) (1,728)

(34,258)

(7,386)

(344,618) 357,982 27,956 (23,084) 164

(141,047) 158,242 — (37,102) (124)

18,400

(20,031)

147,011 (89,500) 96,165 (100,335) (13,140) (690) 3,369 (231)

61,868 (55,000) — — (12,085) 565 1,155 20

Net cash provided by (used in) financing activities

42,649

(3,477)

Net change in cash, cash equivalents, and restricted cash

26,791

(30,894)

Net cash used in operating activities Cash flows from investing activities: Purchase of investments Proceeds from sales of investments Proceeds from sale of property Purchase of fixed assets Student loans collected (disbursed) Net cash provided by (used in) investing activities Cash flows from financing activities: Proceeds from short-term debt Payments on short-term debt Proceeds from issuance of debt Refund of outstanding debt Payments on long-term debt Change in funds held by bond trustee, net Contributions restricted for endowment Change in Federal Perkins student loan advances, net

Cash, cash equivalents, and restricted cash – beginning of year

10,009

40,903

Cash, cash equivalents, and restricted cash – end of year

36,800

10,009

Reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above: Cash and cash equivalents Restricted cash and cash pending investment included in investments Restricted cash included in bonds held by trustees

4,474 5,769 26,557

201 6,020 3,788

Total cash, cash equivalents, and restricted cash shown above

36,800

10,009

30,178 13,246 1,056 2,937

25,604 1,783 2,266 16,980

Supplemental information: Interest paid Right-of-use assets obtained in exchange for operating lease liabilities Fixed assets purchased through accounts payable Asset held for sale See accompanying notes to consolidated financial statements.

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

(1) The University The New School was founded in 1919 by a group of scholars, journalists, and civic leaders who imagined an educational venue where they could freely discuss their ideas and where dialogue could take place between intellectuals and the public. Originally devoted to exploring the pressing social, political, and economic problems of the day, The New School has since expanded its focus to embrace the arts and culture. Today, The New School offers bachelors and masters programs in the visual and performing arts in addition to bachelors, masters, doctorate, and certificate programs in the liberal arts, social sciences, and management and urban policy. The New School comprises five colleges. They are Parsons School of Design, Eugene Lang College of Liberal Arts, College of Performing Arts, The New School for Social Research, and Schools of Public Engagement. During 2014, The New School formed an entity, TNS Parsons, for its campus in Paris, France. The consolidated financial statements of The New School include the accounts of this affiliate (collectively referred to as the university). The university is accredited by the Middle States Association of Colleges and Schools. (2) Summary of Significant Accounting Policies (a) Net Asset Classifications The university’s consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (GAAP). All material intercompany transactions and balances have been eliminated. While the underlying accounts of the university are maintained in accordance with the principles of fund accounting to facilitate observance of specific restrictions placed on the resources available to the university and to reflect how the university manages resources, the accompanying consolidated financial statements present the financial position, activities, and cash flows of the university as a whole. The university’s resources are classified and reported in the accompanying consolidated financial statements within separate classes of net assets based on the existence or absence of donor-imposed restrictions as follows: Net assets with donor-restrictions contain donor-imposed restrictions that stipulate the resources be maintained permanently but permit the university to use the income from the resources for either specified or unspecified purposes. Also included in this category are net assets that permit the university to use or expend the assets as specified by the donor. The restrictions are satisfied either by the passage of time or by action of the university. Net assets without donor-restrictions are not restricted by donors, or the donor-imposed restrictions have been satisfied or expired. The university’s Board of Trustees has designated a portion of the net assets without donor restrictions for long-term investment (quasi-endowment) and other purposes. In addition, from time to time, the Board of Trustees may designate a portion of net assets without donor restrictions for a specified use.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

Revenues are reported as increases in net assets without donor restrictions unless their use is limited by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restrictions. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulation or by law. Expirations of net assets with donor restrictions are reported as net assets released from restrictions. Net assets released from restrictions include support for program activities such as sponsored research, instruction and financial aid. Contributions with donor-imposed restrictions are reported as donor restricted revenues and are released to net assets without donor restrictions upon the passage of time or by incurring costs which satisfy the restricted purposes specified by the donors. (b) Cash Equivalents Cash equivalents consist of money market funds and highly liquid financial instruments with an initial maturity of three months or less, except for those held by the university’s investment managers as part of their long-term investment strategies. (c) Land, Buildings, and Equipment Land, buildings, and equipment are stated at cost or, if donated, at fair value on the date of donation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the related assets as follows: Estimated useful life Buildings Building improvements Leasehold improvements Furniture and equipment Computer equipment

40–75 years 15–30 years Lease term 5 years 3 years

(d) Art Collection The university’s art collection consists of works of art, including prints, paintings, photographs, and sculptures that are held for the purposes of public exhibition, education, and research. Each of the items is cataloged, preserved, and cared for, and activities verifying their existence and assessing their condition are performed by the university’s curators. The art collection, which is made up of purchases and donations since the university’s inception, is not recognized as an asset in the consolidated balance sheets. Purchases of collection items are recorded as expenses and donated collection items are not reported as contributions. Proceeds from sales are reflected as increases in net assets without donor restrictions.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

(e) Contributions and Contributions Receivable Contributions, including grants, and unconditional promises to give (pledges), are recognized as revenues in the period received. Contributions with purpose or time restrictions are reported as increases in net assets with donor restrictions and are released to net assets without donor restrictions when the purpose or time restrictions are met. Contributions subject to donor-imposed stipulations that the corpus be maintained permanently are also recognized as increases in net assets with donor restrictions. Unconditional promises to give are recognized initially at fair value as contributions revenue in the period such promises are made by donors. Fair value is estimated considering anticipated future cash receipts (after allowance is made for uncollectible contributions) and discounting such amounts at a risk-adjusted rate commensurate with the duration of the donor’s payment plan. In subsequent periods, the discount rate is unchanged and the allowance for uncollectible contributions is reassessed and adjusted if necessary. Amortization of the discount is recorded as additional contribution revenue. A contribution is conditional if the agreement includes both a barrier that must be overcome for the recipient to be entitled to the assets transferred and a right of return for the transferred assets or a right of release of the promisor’s obligation to the transferred assets. Conditional promises to give are not recognized until they become unconditional, that is, when the barriers on which they depend are met. At June 30, 2025 and 2024, the university had received conditional promises to give of approximately $32,500 and $31,900, respectively, in the form of measurable performance, related or other barriers, and a right of return that have not been reflected in the accompanying consolidated financial statements because the barriers on which they depend have not been met. (f) Split Interest Agreements The university is the beneficiary of several split interest arrangements that require the instruments be recorded as revenue and net assets at the present value of the university’s interest. At June 30, 2025 and 2024, assets associated with split interest gifts approximate $458 and $435, respectively. (g) Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It prioritizes the inputs to the valuation techniques used to measure fair value by giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The level in the fair value hierarchy within which a financial instrument falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

The three levels of the fair value hierarchy are as follows: Level 1 – Valuation inputs include published net asset value (NAV) or quoted prices (unadjusted) in active markets for identical assets or liabilities that the university has the ability to access at measurement date. Level 2 – Valuation inputs other than published NAV or quoted prices (unadjusted) included in Level 1 that are either directly or indirectly observable for the assets or liabilities. Level 3 – Valuation inputs that are unobservable inputs for the assets or liabilities. Assets, which the university reports at fair value on a recurring basis, are investments and funds held by bond trustees. (h) Advertising Costs Advertising expenses reflected in the consolidated statements of activities totaled $3,103 and $3,843 for fiscal years 2025 and 2024, respectively. (i) Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates such as the valuation of investments and funds held by bond trustees, the net realizable value of receivables, the allocation of expenses to functional categories, and the operating lease liabilities using the incremental borrowing rate are included in the consolidated financial statements. Actual results could differ from those estimates. (j) Income Taxes The university is exempt from federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code, except for any unrelated business income activities. The university recognizes the effects of income tax positions only if those positions are more likely than not to be sustained. The university evaluates, on an annual basis, the effects of any uncertain tax positions on its consolidated financial statements. The university has not identified or provided for any such positions as of June 30, 2025 or 2024. (k) Operations The consolidated statements of activities present the changes in net assets, distinguishing between operating and nonoperating activities. Operating activities principally include all revenue and expenses that relate to the university’s educational programs, research, training, and supporting activities. Operating revenues include the investment return pursuant to the university’s spending policy and earned on working capital funds. Operating revenues also include all contributions, except those that contain donor-imposed restrictions. 9

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

The university has defined nonoperating activities principally to include endowment investment return (loss) net of amounts distributed to support operations in accordance with the endowment spending policy (note 9), contributions subject to donor-imposed restrictions, and activity related to annuity and unitrust agreements. Certain other gains, losses, or transactions considered to be of a more unusual or nonrecurring nature are also included as part of nonoperating activities. (l) Leases In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, Leases, the university determines if an arrangement is a lease at inception and classifies leases as either operating or financing depending on the terms and conditions set forth in the contract. The university uses the incremental borrowing rate to determine the present value of lease payments. The university amortizes a lease’s cost in the consolidated statements of activities on a straight-line basis over its term. On the consolidated balance sheets, operating lease right-of-use assets (ROU) represent the university’s right to use the underlying assets for the lease term and lease liabilities represents the university’s obligation to make lease payments arising from the leases. Operating ROU assets and liabilities are recognized at lease commencement based on the present value of lease payments over the lease term. Operating lease ROU assets are reduced each period by an amount equal to the difference between the operating lease expense and the amount of interest expense on the lease liabilities utilizing the effective interest method. (m) Reclassification Certain reclassifications of prior year amounts have been made to conform to the current year presentation. (3) Student Services (a) Tuition and Auxiliary Activities Tuition and fees and room and board revenues are recognized in the fiscal year in which the academic programs and residential services are delivered. Institutional scholarships awarded to students reduce the amount of tuition and fees revenue recognized. Room and board revenues are reported in auxiliary activities in the accompanying consolidated statements of activities. Payments for tuition and fees and residential services are generally due prior to the start of the academic term in accordance with the university’s due dates. Generally, students who adjust their course load or withdraw completely within one to four weeks of the academic term receive a full or partial refund in accordance with the university’s refund policy. Refunds issued reduce the amount of revenue recognized. In addition, the university records an allowance for uncollectible student accounts. The allowance is a valuation account that is deducted from the gross receivable balance to present the net carrying value of the receivable at the amount expected to be collected. The measurement of the allowance is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

(b) Scholarship Allowance Student tuition and fees are presented net of amounts awarded to students to defray their costs of attending the university as follows:

University support Sponsored support

2025

2024

159,319 5,650

157,168 7,517

164,969

164,685

University support includes tuition discounts, financial aid, and merit scholarships awarded to students from operating resources with no donor restrictions. Sponsored support includes financial aid and scholarships funded from restricted sources. (c) Student Accounts and Loans Receivable Student accounts and loans receivables consisted of the following at June 30: 2025 Student accounts receivable: Student accounts receivable Less allowance for uncollectible accounts

Student loans receivable (Perkins): Student loans Less allowance for uncollectible loans

2024

14,742 (5,938)

16,259 (7,936)

8,804

8,323

1,420 —

1,584 —

1,420

1,584

(d) Deferred Revenue and Other Liabilities The university recognizes revenue from student tuition and fees within the fiscal year in which the academic term is conducted as performance obligations are satisfied. Amounts collected in advance of such revenue recognition are deferred. Deferred revenues are typically recognized as revenue in the subsequent fiscal year. Other liabilities primarily include amounts received in advance for services, which are recognized as performance obligations are satisfied.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

As of June 30, deferred revenues and other liabilities consisted of the following: 2025 Deferred student tuition and fees Other liabilities

2024

7,160 885

7,603 1,593

8,045

9,196

(4) Investments Investments at fair value consisted of the following at June 30:

Endowment investments: Cash and cash equivalents Cash pending investment Public equity Fixed income Hedge funds Private equity Real assets

Operating and other investments: Cash and cash equivalents Public equity Fixed income Hedge funds $

2025

2024

12,667 774 120,198 79,580 113,196 117,047 80,830

25,008 2,005 121,577 66,613 103,446 104,184 63,644

524,292

486,477

8,275 491 93 18

6,019 568 57 1

8,877

6,645

533,169

493,122

Investments in debt and equity securities with readily determinable fair values are reported at fair value based upon quoted market prices or published NAV for investments in funds with characteristics similar to a mutual fund. In addition to traditional equities and fixed income securities, the university holds shares or units in alternative investment funds including fixed income, hedged equity, private equity, public equity, and real asset strategies. The estimated fair values of these investments are, as a practical expedient, based on NAV provided by the fund managers. These values are reviewed and evaluated by the university’s management. The reported value may differ significantly from the values that would have been reported 12

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

had a ready market for these investments existed. Information with respect to investment strategies, redemption terms, and funding commitments for these investments is as follows: Public Equity – Public equity funds include domestic, global, and emerging market strategies. The redemption periods range from monthly to semiannual. There are no remaining commitments to funds in this category total as of June 30, 2025. Fixed Income – Fixed income funds include limited liability partnerships that invest primarily in domestic middle market companies, shorter-duration U.S. government, agencies, and instrumentality obligations and U.S. treasuries. The redemption periods for these fixed income funds range from daily to no redemption. Remaining commitments to funds in this category total $5,966 as of June 30, 2025. Hedge Funds – Hedged strategies involve funds whose managers have the authority to invest in various asset classes at their discretion, including the ability to invest long and short. Funds with hedged strategies generally hold securities or other financial instruments for which a ready market exists and may include stocks, bonds, put or call options, swaps, currency hedges, and other instruments, which are valued accordingly. Hedged strategies generally seek to benefit from opportunities as they occur in the markets due to temporary dislocations or structural inefficiencies. The university’s hedge funds are mostly long/short but also include diversifying and equity-oriented instruments. The redemption periods for these hedge funds range from monthly to no redemption. There are no remaining commitments to funds in this category as of June 30, 2025. Private Equity – Private equity funds encompass buyout and venture capital strategies and may focus on investments in turnaround situations. Positions focus on the purchase, development, improvement, and management of companies that are not publicly traded on a stock exchange. These investments are made through limited partnerships that have a limited existence, generally 10 years. Under the terms of the agreements, the university is obligated to remit additional funding periodically as capital calls are exercised by the manager. Distributions are made to investors through the liquidation of the underlying assets. There are no redemptions for private equity funds. Remaining commitments to funds in this category total $39,428 as of June 30, 2025. Real Assets – The university’s real assets are comprised of real estate investments. The real estate investment strategies include the purchase and management of global residential, commercial, and industrial real estate with value attempted to be realized through both improved operations and gains on eventual sale. The redemption periods for real assets range from annual to no redemption. Remaining commitments in this category total $12,337 as of June 30, 2025.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

Investment return on endowment, operating, and other investments; funds held by bond trustees; and cash equivalents, and its classification in the consolidated statements of activities, is as follows:

Investment return has been allocated as follows: Operating, pursuant to the university’s endowment spending policy Other income Nonoperating investment activity Total investment return, net

Without donor restrictions

2025 With donor restrictions

10,463 2,659 19,991

7,516 5 14,632

17,979 2,664 34,623

33,113

22,153

55,266

Without donor restrictions

2024 With donor restrictions

10,131 1,951 19,989

7,182 12 14,299

17,313 1,963 34,288

32,071

21,493

53,564

Total

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

The following tables summarize investments at June 30. Certain investments that are reported using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets: 2025 Investments at Level 1: Cash and cash equivalents Cash pending investment Public equity Fixed income Real assets

2024

20,942 774 744 69,111 37,977

31,027 2,005 14,556 53,903 26,977

Total investments at Level 1

129,548

128,468

Investments measured at net asset value: Fixed income Hedge funds Private equity Public equity Real assets

10,563 113,214 117,047 119,944 42,853

12,767 103,447 104,184 107,589 36,667

403,621

364,654

533,169

493,122

Total investments measured at net asset value Total

Investments at June 30 are summarized in the following tables by their investment liquidity profile: 2025

Daily Monthly Quarterly Semiannual Annual Illiquid Total

Endowment

Operating

120,688 52,305 91,275 17,906 74,428 167,690

8,877 — — — — —

524,292

8,877

2024 Total

Endowment

Operating

Total

129,565 52,305 91,275 17,906 74,428 167,690

121,823 45,051 79,068 25,632 18,567 196,336

6,645 — — — — —

128,468 45,051 79,068 25,632 18,567 196,336

533,169

486,477

6,645

493,122

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

(5) Contributions Receivable Contributions receivable are expected to be collected as follows at June 30: 2025 Amounts expected to be collected: In one year or less In one year to five years In more than five years

Less: Allowance for uncollectible amounts Discount to present value (at rates ranging from 1.10% to 4.52% $

2024

13,504 11,100 3,410

12,452 8,752 4,120

28,014

25,324

(4,480)

(4,727)

(795)

(858)

22,739

19,739

The amounts receivable from 10 donors represent approximately 82% and 70% of the gross receivables as of June 30, 2025 and 2024, respectively. The top 5 donors represent 25% and 22% of total contributions revenue for the years ended June 30, 2025 and 2024, respectively. (6) Land, Buildings, and Equipment Land, buildings, and equipment consisted of the following at June 30:

Land and air rights Buildings and building improvements Leasehold improvements Furniture and equipment Construction in progress

Less accumulated depreciation Total land, buildings, and equipment – net

2025

2024

92,321 906,435 87,367 43,873 7,949

93,107 868,226 87,367 40,642 32,277

1,137,945

1,121,619

(351,592)

(325,324)

786,353

796,295

In August 2024, the renovation of Stuy Park was completed. As a result, $34,114 was transferred from Construction in progress to Buildings and building improvements. In May 2024, the Board of Trustees approved the sale of a residence hall and the president’s residence. The residence hall was sold in July 2024 and had a net book value of $16,980, which was reclassified to 16

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

assets held for sale at June 30, 2024. The president’s residence was sold in July 2025 (see note 15) and had a net book value of $2,937, which was reclassified to assets held for sale at June 30, 2025. (7) Debt Long-term debt consisted of the following at June 30: Description Dormitory Authority of the State of New York Revenue Bonds: Series 2025A Series 2022A Series 2022B Series 2016A Series 2016B Series 2015

Date

July 1, 2050 July 1, 2052 July 1, 2026 July 1, 2050 July 1, 2038 July 1, 2050

Interest rate

2025

2024

4.25%–5.00% $ 4.00–5.00 3.10–3.25 3.25–5.00 3.17–4.22 4.00–5.00

96,165 140,980 5,185 300,130 62,735 —

— 142,140 7,670 304,225 66,100 102,370

605,195

622,505

(3,282) — 45,332

(3,309) (176) 54,415

647,245

673,435

Less: Unamortized bond issuance costs Unamortized discount Add unamortized premium $

In March 2025, the university issued $96,165 Series 2025A tax-exempt serial and term bonds through the Dormitory Authority of the State of New York. The bonds refunded all outstanding Series 2015 bonds totaling $100,335. Net premiums received at the time of issuance totaled $3,729. The serial bonds are due in varying annual installments commencing in fiscal years 2027 through 2046. The term bonds are due in fiscal year 2051. Prior to refunding Series 2015 bonds, the university was required to maintain an asset maintenance ratio in which a percentage of net assets without donor restrictions, excluding net investment in plant, plus spendable net assets to total long-term debt outstanding must be at least 40%, in accordance with the loan agreement for Series 2015. The university was in compliance with this debt covenant at June 30, 2024. There are no other financial covenants associated with the university’s long-term debt. For the years ended June 30, 2025 and 2024, interest expense totaled $28,584 and $28,110, respectively. At June 30, 2025 and 2024, interest payable included in accounts payable and accrued liabilities was $12,461 and $14,055, respectively.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

At June 30, 2025, aggregate principal maturities of long-term debt for each of the next fiscal years and thereafter are as follows: Fiscal year ending June 30: 2026 2027 2028 2029 2030 Thereafter

13,280 16,040 16,790 17,595 18,440 523,050

605,195

Short-Term Debt The university has a margin agreement with one of its investment custodians to borrow up to 92% of its custodial liquid investments secured by treasuries, money market, and exchange-traded funds. Interest is payable at a rate equal to the Federal Funds Rate plus 0.75% There were outstanding borrowings of $74,382 and $16,871 as of June 30, 2025 and 2024, respectively. The university also has a $50,000 revolving credit facility that expires on October 15, 2027. Interest on advances under the revolving credit facility is at a rate per year equal to the Secured Overnight Financing Rate (SOFR) plus 0.90%, or the higher of the bank’s prime rate and 1.00%. The interest period during which SOFR will be in effect is one, two, three, or six months as selected by the university. There were no outstanding borrowings as of June 30, 2025 or 2024. (8) Funds Held by Bond Trustees Funds held by bond trustees consisted of the following at June 30: 2025 Cash and cash equivalents U.S. treasury securities (level 1) U.S. other securities (level 2)

2024

26,557 16,246 13,014

3,788 28,570 —

55,817

32,358

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

(9) Net Assets Net assets consisted of the following at June 30: 2025

2024

302,769 28,488

283,751 47,440

331,257

331,191

4,869 22,776 33,879 1,559 623 458

3,904 18,820 33,516 4,027 675 435

64,164

61,377

41,495 52,502

34,076 43,073

93,997

77,149

158,161

138,526

53,209 73,903 4,643

52,053 72,851 5,804

Total net assets with perpetual restrictions

131,755

130,708

Total net assets with donor restrictions

289,916

269,234

621,173

600,425

Without donor restrictions: Board-designated endowment Undesignated

Total net assets without donor restriction With donor restrictions: Subject to expenditure when a specified event occurs: Scholarships and other student support Other Educational, research, and general activities Contribution receivable Building construction and equipment Split-interest agreements

Endowment returns subject to future appropriations: Scholarships and other student support Educational, research, and general activities

Total net assets restricted by time or purpose Amounts with perpetual restrictions: Scholarships and other student support Educational, research, and general activities Contribution receivable

Total net assets

Endowment The university’s endowment is comprised of individual funds, established for a variety of purposes, including scholarships, professorships, faculty development, lectures, and research programs. The endowment consists of both donor-restricted endowment funds and funds designated by the Board of Trustees to function as endowments. Net assets associated with endowment funds, including funds functioning as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. 19

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

The university has interpreted New York’s enacted version of the Uniform Prudent Management of Institutional Funds Act (UPMIFA), referred to as “NYPMIFA,” as allowing the appropriation for expenditure or accumulation of an endowment fund as deemed prudent by the university for the uses, benefits, purposes, and duration for which the endowment fund is established, subject to the intent of the donor as expressed in the gift instrument. The university classifies the (a) original value of gifts donated to the endowment; (b) original value of subsequent gifts to the endowment; and (c) respective accumulations of income to the endowment made in accordance with the direction of the applicable donor gift instruments, if any, on an individual endowment fund as net asset with donor restrictions until appropriated by the university. In accordance with NYPMIFA, the Board of Trustees considers the following factors in making a determination to appropriate or accumulate endowment funds: •

Endowment duration and preservation

•

Purpose/mission of the institution and endowment

•

General economic conditions

•

Effect of inflation or deflation

•

The expected total return from income and the appreciation of investments

•

The university’s total resources

•

The university’s investment policy

•

An asset’s special relationship or special value, if any, to the purposes of the university

NYPMIFA allows spending from underwater endowments, unless precluded by donors, but requires that the university consider alternatives to spending such funds in addition to the aforementioned criteria. The university’s individual endowment funds are pooled for investment purposes. The investment portfolio is managed to achieve a prudent long-term return. The university relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The university targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. The endowment assets are invested to provide a real total return that preserves the purchasing power of the endowment while generating an income stream to support the academic activities of the university. Actual returns may vary from this goal in any given year. The university’s endowment spending policy is designed to provide a sustainable and predictable flow of funds to support annual operations. The spending policy is intended to balance current spending needs with the preservation of the endowment’s future purchasing power. The university applies a board-specified spending rate to a moving average of endowment investment funds. The purpose of using a moving average is to smooth out any wide fluctuations in the market value. Endowment earnings in excess of the spending rate are added back to the principal of the endowment investments.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

The board approved spending policy was 4% of the trailing 12-quarters’ market values for fiscal years 2025 and 2024, respectively. Accordingly, $17,979 and $17,313 of endowment return was appropriated in fiscal years 2025 and 2024, respectively, to support operations of the university. The following tables present the university’s endowment, exclusive of pledges, as of and for the years ended June 30:

Donor-restricted endowment funds Board-designated endowment funds Total endowment net assets

Without donor restrictions

2025 With donor restrictions

— 302,769

221,315 —

221,315 302,769

302,769

221,315

524,084

Without donor restrictions

2024 With donor restrictions

— 283,751

203,226 —

203,226 283,751

283,751

203,226

486,977

Total

Changes in endowment net assets for the year ended June 30, 2025 are as follows: Without donor restriction

With donor restrictions

Total

Endowment net assets, as of June 30, 2024 Net investment return Contributions Appropriation for spending Change in designation Net transfers

283,751 30,454 39 (10,463) 125 (1,137)

203,226 22,149 1,868 (7,516) 545 1,043

486,977 52,603 1,907 (17,979) 670 (94)

Endowment net assets, as of June 30, 2025

302,769

221,315

524,084

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

Changes in endowment net assets for the year ended June 30, 2024 are as follows: Without donor restriction

With donor restrictions

Total

Endowment net assets, as of June 30, 2023 Net investment return Contributions Appropriation for spending

263,851 30,002 29 (10,131)

186,042 21,459 2,907 (7,182)

449,893 51,461 2,936 (17,313)

Endowment net assets, as of June 30, 2024

283,751

203,226

486,977

From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or NYPMIFA requires the university to retain as a fund of perpetual duration. The deficiencies of this nature that are reported in net assets with donor restrictions totaled $239 and $822 at June 30, 2025 and 2024, respectively. These deficiencies resulted from unfavorable market fluctuations that occurred shortly after the investment of new contributions, which, in accordance with the donors’ intent, are maintained permanently, or other endowment funds where the cumulative appropriation has exceeded the accumulated appreciation; the university suspends spending endowed funds if spending appropriations, as determined under the spending policy, exceed the accumulated appreciation. (10) Expenses Expenses by functional and natural classification are as follows: Salaries and benefits

Functional expenses Instruction and departmental research Sponsored research and public services Academic support Student services Auxiliary activities Institutional support Total

Occupancy costs

General business expenses

143,485

16,515

19,584 48,655 28,754 7,841 48,151 296,470

2025 Professional services

Interest and depreciation

1,020

2,217

15,932

179,169

817 9,482 2,128 19,646 5,981

5,320 9,060 2,650 3,778 15,658

6,377 9,433 5,697 1,442 5,446

1,077 9,712 1,667 19,739 10,270

33,175 86,342 40,896 52,446 85,506

54,569

37,486

30,612

58,397

477,534

Total

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

Salaries and benefits

Functional expenses Instruction and departmental research Sponsored research and public services Academic support Student services Auxiliary activities Institutional support Total

Occupancy costs

General business expenses

142,102

17,008

17,545 52,896 27,127 8,144 42,336 290,150

2024 Professional services

Interest and depreciation

1,745

4,031

13,934

178,820

779 10,086 2,097 19,923 6,111

5,387 9,035 2,079 4,093 17,054

6,328 6,393 7,716 1,503 9,088

960 8,545 1,494 18,794 9,990

30,999 86,955 40,513 52,457 84,579

56,004

39,393

35,059

53,717

474,323

Total

Expenses associated with the operations and maintenance of plant and depreciation are allocated to functional categories based on square footage. Interest expense is allocated to functional expenses based on the purpose of the bond proceeds and square footage. Expenses associated with fundraising activities of the university were $4,849 and $5,189 in 2025 and 2024, respectively, and are included in institutional support. (11) Leases and Other Commitments and Contingencies Leases The university has entered into operating leases of certain facilities for educational purposes, which expire at various dates through 2069 and provide for renewal options. Certain facility leases provide for increases in future annual payments based on defined increases in the Consumer Price Index subject to certain maximum increases. Additionally, the agreements generally require the university to pay real estate taxes, insurance, and repairs. Operating leases with lease terms greater than one year are reported as operating lease ROU assets and liabilities in the consolidated financial statements. The university has no material finance leases on June 30, 2025 or 2024.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

The table below presents a maturity analysis of operating lease liabilities and a reconciliation of the total amount of such liabilities recognized in the consolidated balance sheets at June 30, 2025. Operating leases Year ending June 30: 2026 2027 2028 2029 2030 2031 and thereafter

31,010 30,957 30,068 30,583 31,857 614,459 768,934

Less discount for net present value

(425,819) $

343,115

Lease costs and other related information for the year ended June 30 were as follows:

2025 Operating lease cost Weighted-average remaining lease term Weighted-average discount rate

33,853 32 4.62 %

2024 33,655 33 4.66 %

Other Commitments and Contingencies At June 30, 2025, construction commitments were approximately $8,470. Amounts received and expended by the university under various federal and state programs are subject to audit by government agencies. In the opinion of management, audit adjustments, if any, would not have a material effect on the financial position, changes in net assets, or cash flows of the university. In the normal course of its operations, the university is a party to various legal proceedings and complaints, most of which are covered by insurance. While it is not feasible to predict the ultimate outcome of such matters, management of the university is not aware of any claims or contingencies that would have a material adverse effect on the university’s financial position.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

(12) Retirement and Postretirement Health Benefit Plans (a) Retirement Plans The university has a defined-contribution retirement plan that covers substantially all employees, except certain union employees, and is funded through direct payments to Teachers Insurance and Annuity Association of America (TIAA) for the purchase of various types of investment contracts. For each eligible employee, the university’s contribution is determined as a percentage of salary, taking into account age and length of accrued service. Retirement contributions paid by the university under this plan and charged to expense for fiscal years 2025 and 2024 were $17,933 and $18,081, respectively. (b) Multi-Employer Plans At June 30, 2025, the university participated in four multi-employer pension plans established under collective bargaining agreements that cover certain groups of employees throughout the university, which are reflected in the table below. These groups of employees are also eligible to participate in the New School 403(b) Retirement Plans. The university makes cash contributions to these plans under the terms of the collective-bargaining agreements that cover its union employees. The zone status reflected in table below is based on information received from the plan sponsors and, as required by the Pension Protection Act (PPA), is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. A zone status of red requires the plan sponsor to implement a Funding Improvement Plan (FIP) or Rehabilitation Plan (RP). Effective August 1, 2018, the American Federation of Musicians & Employers’ Pension Fund (AFMEPF Local 802) imposed surcharge of 9% of contributions was increased by 10%. The additional 10% in the rate of contributions will not be used to calculate any participant’s benefits under the plan, but will be used solely to improve the financial health of the Plan. The “FIP/RP Status Pending/Implemented” column indicates plans for which an FIP or RP, as required by PPA, is either pending or has been implemented by the plan’s sponsor. The university’s contribution is also disclosed below followed by the expiration dates of the collective bargaining agreements requiring contributions to the plans. The university’s contributions to Building Service 32BJ Benefit Funds, Local 802 (AFMEPF), and Local 94 (Central Pension Fund) were insignificant to the plans. The percentage of university’s contributions

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

to Local 840 Pension Fund (1205) for the years ended December 31, 2024 and 2023 represented 92% of the total contributions to the plan.

Pension fund Building service 32BJ Benefit Fund AFMEPF (802) Local 840 Pension Fund (1205) Central Pension Fund (Local 94)

EIN/Pension plan number 13-1879376/001 51-6120204/001 13-6304568/001 36-6052390/001

FIP/RP Status pending/ implemented

Pension protection Act zone status June 30, 2023 Yellow March 31, 2024 Red December 31, 2023 Red January 31, 2023 Green

June 30, 2022 Red March 31, 2023 Red December 31, 2022 Red January 31, 2022 Green

Contributions of The New School June 30 2025 2024

Surcharge paid

Expiration date of collective bargaining agreement

Yes

991

1,057

June 30, 2026

Yes

148

170

June 30, 2028

Yes

1,692

1,676

June 30, 2029

December 31, 2026

(c) Postretirement Health Plans The university provides certain healthcare benefits for past and future nonunion full-time employees who have or will retire at 65 years of age with 10 or more years of service. This benefit pays up to $1,500 per fiscal year for the cost of premiums to either a Medigap plan, a Part D prescription drug plan, or a Medicare Advantage Plan (also known as a Medicare Part C plan). The university funds its postretirement benefits costs on a pay-as-you-go basis. As of June 30, 2025, and 2024, the actuarially determined benefit obligation included in accounts payable and accrued liabilities was $3,179 and $3,083, respectively. (13) Related Party Transactions Members of the university’s Board of Trustees and senior management may, from time to time, be associated, either directly or indirectly, with companies doing business with the university. The university’s conflict of interest policy requires, among other things, that no member of the Board of Trustees or its committees participate in any decision in which they (or an immediate family member) have a material financial interest. For members of the Board of Trustees and senior management, the university requires an annual disclosure of significant financial interests in, or employment or consulting relationships with, entities doing business with the university. When such relationships exist, measures are taken to address the actual or perceived conflict to protect the best interests of the university and ensure compliance with relevant conflict of interest laws. During fiscal years ended June 30, 2025 and 2024, no significant relationships existed other than as disclosed below. The Board of Trustees approved an agreement to purchase a leasehold interest in a condominium through 2069 with an entity associated with a trustee, that the university uses as a residence hall for its students. The Board determined that the transaction was in the best interest of the university and provided substantial benefits to the university based on its review of relevant facts and circumstances, including advice from real estate consultants and outside counsel.

(Continued)

THE NEW SCHOOL Notes to Consolidated Financial Statements June 30, 2025 and 2024 (Dollars in thousands)

(14) Liquidity and Availability The university’s financial assets available for general expenditures within one year of the consolidated balance sheets as of June 30 are as follows: 2025 Cash and cash equivalents Student accounts receivable, net Contributions receivable, net Funds held by bond trustees Board approved endowment appropriation Total financial assets available within one year

2024

4,474 8,804 11,344 28,702 23,332

201 8,323 10,128 4,460 17,929

76,656

41,041

The university continually monitors liquidity required to meet its operating needs and other contractual commitments, while also looking to maximize the investment of its available funds. For purposes of analyzing resources available to meet general expenditures over a 12-month period, the university considers all expenditures related to its ongoing mission related activities, including those for plant and debt service and exclusive of expenditures for plant that are financed by contributions, as well as the conduct of services undertaken to support those activities, to be general expenditures. The consolidated statements of cash flows identify the sources and uses of the university’s cash and show negative cash generated by operations for the years ended June 30, 2025 and 2024. The university has investments associated with board-designated endowment funds which can be made available for general expenditure with approval from the Board, subject to investment liquidity provisions of $302,769 and $283,751 as of June 30, 2025 and 2024. The university invests funds in excess of current requirements in various short-term, highly liquid investments. Further, the university maintains two vehicles to provide short-term cash if needed, a revolving credit facility and a margin agreement. While total availability varies, it is generally in excess of $100 million. (15) Subsequent Events The university evaluated subsequent events after the consolidated balance sheet date of June 30, 2025 through November 5, 2025, the date on which the consolidated financial statements were issued. (a) Sale of 21 West 11th Street Residence On July 30, 2025, the university sold a residence located at 21 West 11th Street for $10,300 that resulted in a gain of approximately $7,000 which will be recognized in fiscal 2026.

The New School 66 West 12th Street New York, NY 10011