2025 Unaudited Financial Results
An update on the year, ahead of the Form 990 release
Executive Summary
We want to keep our members informed on where the organization stands as we head into 2026. Total revenue for the year was $16.5 million, compared to $18.2 million in 2024. Total expenses were $18.4 million, essentially flat year over year. This resulted in an operating loss of approximately $1.96 million, funded through reserves.
The year included meaningful growth in several program areas, continued investment in our team, and disciplined management of professional fees and consulting costs. It also included revenue pressures in membership dues and timing-related declines in USPAP revenue that we expect to recover with the 2026 cycle.
Revenue
Membership
Dues revenue was $11.0 million, compared to approximately $11.5 million in 2024, a decline of 4.1 percent. This result was closely aligned with budget. Retirements remain the primary driver of membership change, and retention and recruitment continue as central elements of our membership strategy.
Education
Total education revenue grew to $5.1 million, up approximately $369,000 from 2024.
- Continuing Education revenue grew 62 percent to nearly $1.6 million, driven by URAR companion courses, the “AI on AI” program, and expanded online offerings.
- PAREA revenue more than doubled, from $230,000 to $560,000.
- Qualifying Education revenue was $1.45 million, compared to $1.64 million in 2024.
- USPAP revenue was $499,000, reflecting the standard even-year cycle pattern. Recovery is expected in the 2026 cycle.
Publications
Publications revenue was $550,000, compared to $464,000 in 2024. The 2026 release of The Appraisal of Real Estate, 16th Edition, and the 8th Edition of the Dictionary of Real Estate Appraisal are anticipated to contribute meaningfully to this category going forward.
Expenses
Total expenses were $18.4 million, an increase of less than $100,000 over 2024. Within that total, personnel costs increased by approximately $1.2 million, reflecting continued investment in staff capacity to better serve members and support organizational growth. Professional fees and consulting costs decreased by approximately $850,000. Overall expense growth was effectively contained year over year.
Balance Sheet
The Appraisal Institute maintains a reserve position that continues to provide operational flexibility. Operating results over the past three years have drawn on reserves, and ongoing financial planning reflects active management of that balance, as of 3/31/2026 we are at a Reserve Ratio of 6.6 months.
(Gross Reserve Ratio: National Reserves Balance/Total Operating Expenses. This measures our ability to pay for expenses out of Reserves if no further revenue is being received.)
Looking Ahead
Our 2026 priorities reflect the trends in these results:
- Continuing the growth trajectory in Continuing Education and PAREA.
- Strengthening Qualifying Education enrollment.
- Capturing revenue from the 2026-2027 USPAP cycle recovery and the publications releases planned for 2026.
- Maintaining membership through focused retention and recruitment.
- Continued expense discipline aligned with revenue planning.
The 2025 results give a clear view of where the organization is investing, where programs are gaining traction, and where work remains. We appreciate your continued membership and remain committed to delivering value in 2026 and beyond. Additional details will be shared with the Form 990.
This report provides a high-level overview of unaudited 2025 financial results. The Form 990 will be available in Q3/Q4 2026.