Our Financial Results for FY 2025

Dear members of the Columbia community,

Today, we are releasing the University’s financial results for fiscal year 2025 (July 1, 2024-June 30, 2025) and performance results for the University’s endowment during the same period. In addition to both reports, Anne Sullivan, the University’s Executive Vice President for Finance, has prepared a summary of our financial results, which can be found online. You will see that we have opted to share the information in significant detail, which wethought was critical given the challenges our community has weathered together, as well as the work and opportunities that lie ahead.  

It’s fair to say that a careful examination of our results offers a mixed picture. There is no question that our FY25 financial results reflect continued resilience in our operations and strength in financial management during a turbulent time. Our endowment performance was quite strong, which is welcome news. Our operating performance, however, was low by historical standards. This matters because our operating surplus helps to fund ongoing capital investments, among other short- and long-term needs. That performance level is largely the result of stalled grant activity this spring, some pre-existing cost pressure, and also significant new costs we incurred, as we faced new political and governmental terrain.

I want to be clear: The University remains on solid financial footing. But we do see significant challenges ahead, specifically related to future federal research funding and potential changes to the recovery of indirect costs—both critical to our research enterprise. Changes to Medicaid funding and labor market pressure are also having a substantial impact on the financial models for healthcare delivery, as our clinical programs make investments in the patient experience and quality of clinical care.

None of these challenges are unique to Columbia—they are being felt across most higher education institutions and academic medical centers. In short, it is a complex operational and financial environment. We have, therefore, been taking a conservative approach to managing our future operations and expenses across every part of our institution and will continue to do so.

Moving forward, we will continue to focus on innovation in our approach to research funding. We are also turning our attention, academically and administratively, to lowering costs in our operations, and I am glad to see so many initiatives underway that are examining processes and structures in order to provide improved service to our community more efficiently. Taking a fresh look at how we execute in achieving our mission will make us a stronger and more resilient institution over the long-term.

Our community has made enormous sacrifices over the last year, professionally, financially, and personally. We recognize that and have asked our deans in the coming weeks to work with our finance team and University leadership to continue assessing what adjustments we need to make to ensure we are protecting and investing in our academic excellence and the highest quality services for our students and patients. We have also advised our deans that they have flexibility to prioritize the needs of their individual schools on compensation, hiring, and administrative expenses. You’ll be hearing more on that front from Anne Sullivan and our deans in the coming weeks.

We have withstood an enormous challenge as an institution. I see and understand how hard it has been on our community. I hope most of you can see what we in the leadership team are focused on—the remarkable future we have in front of us. The quality of the pathbreaking research and scholarship that takes place here every day is staggering. World-class researchers, scientists, clinicians, and scholars continue to want to be at Columbia. The caliber of our undergraduate and graduate student body is simply outstanding. And the staff that show up every day to make our campuses run smoothly are deeply committed to supporting this excellent work.

I want to thank our deans, and our leadership team, for their constant and unwavering leadership through this past year. Thank you to all who have provided a steady hand in our operations and financial management so that we can continue to deliver on our academic mission for generations to come.

Regards,

Claire Shipman
Acting President, Columbia University in the City of New York