Readworksinc

What it reported doing in 2024

With a deep commitment to under-resourced communities, readworks supports teacher instruction that builds the knowledge and vocabulary that drive students' reading comprehension.readworks continues to focus on growing and improving our product to impact the millions of users we serve, based on data, the science of reading, and a deep understanding and empathy for the practical realities faced by teachers and students in classrooms today. In the 2024-2025 school year, readworks served over 800,000 educators and more than 10.5 million students.for over two decades, we have supported educators and students through free resources, offering: - a wide-ranging library - thousands of k-12 texts with academically- and culturally-relevant topics, offering diverse representation to invite curiosity, engage students, and foster meaningful reading experiences- expertly-crafted texts - carefully researched and written passagesboth nonfiction and fictionthat prioritize content knowledge, vocabulary, text structure, syntax, and empathy- supplemental materials - hand-curated content and instructional routines that enhance the teaching of topics across all content areas, commonly-read books, and ela curricula to build knowledge and vocabulary through effective reading practice- research-proven effectiveness - tested in classrooms with results that show educator and student growth- differentiation - tools that can be easily modified for a variety of learning needs and that offer opportunities for both academic challenge and support- bilingual reading - authentic spanish texts that leverage spanish speakers' existing language skills to support their reading in english- professional development - personalized educator support focused on the needs of under-resourced schools- partnership - collaboration among expert staff, thought leaders, and educators in under-resourced schools- access for all - free resources that can be used digitally or printedin the fall of 2024, we launched one of our most requested offerings, spanish-english paired texts (septs). Septs are designed to build vocabulary, background knowledge, and strategic reading skills without requiring a separate lesson plan. Each pair includes a spanish-language passage. A topically-related english-language passage, and a comprehension question set for the english passage. These resources help spanish-speaking students use their strengths in spanish to access and better understand grade-level english texts.in addition to this new resource, we became an add-on for google classroom users and launched an alignment with the university of Florida literacy institute's ufli phonics curriculum, a free, popular resource used nationwide. We also completed and published a 9-week study, in which students using readworks' article-a-day improved by approximately 11% on the science background knowledge assessment. In the 2024-2025 school year, readworks welcomed two new members to the board of directors, anthony hernandez and lori mayer. Anthony hernandez currently serves as strategic partnerships manager for google for education partnerships, driving product partnerships and programmatic approaches to partnering with the edtech ecosystem to increase the collective impact for all. He has worked in corporate strategy, business development, and partnerships for microsoft and thomson reuters, as well as served as a board member to teach for america's wa collective chapter, and leads a local scholarship in his hometown. Lori mayer serves as a partner at pricewaterhousecoopers (pwc), leading a transformational global delivery excellence program, crafting a comprehensive methodology supported through an intelligent technology ecosystem, and integrating cutting-edge solutions through generative ai. With degrees in computer science and education from the university of Michigan, lori combines technical expertise with educational insight. Her experience as a classroom teacher gives her a unique understanding of th

Financial Efficiency

• Mission deployment rate: 100%; rating input score 100
• Program expense ratio: 83%; rating input score 83
• Fundraising efficiency: $7.23 raised per $1 spent on fundraising; rating input score 27; 27th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Missing
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -34.7%; rating input score 3; 3rd percentile among comparable filings
• Total-asset coverage ratio: 0.23; rating input score 7; 7th percentile among comparable filings
• Liabilities to assets ratio: 0.09; rating input score 60; 60th percentile among comparable filings
• Officer compensation ratio: 36.4%; rating input score 3; 3rd percentile among comparable filings

Growth

• Program expense growth: 7% per year; rating input score 100; 51st percentile among comparable filings
• Revenue growth: 7.3% per year; rating input score 100; 56th percentile among comparable filings
• Asset growth: 1.9% per year; rating input score 100; 19th percentile among comparable filings