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      "text": "“PowerSchool’s contracts typically have a three-year term with one-year rolling renewals” - FY22 10-K",
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      "text": "24-25 looks to be \"the bloodletting\"",
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      "text": "Analysis from Georgetown University supports our thesis. Their data indicates that the fiscal cliff will be felt most intensely from 2024-2025 as the quadruple whammy of expiring ESSER funds, declining student enrollment, inflation & expanded staffing, and the effect of a slowing economy on state budgets form the perfect storm, creating what they dub as a budget “bloodletting” in 2024 and 2025. This will no doubt impact K-12 vendors come contract renewal time. Per PowerSchool’s own 10-K, its average contract length is 3 years, implying that contracts signed during 2021 and 2022, when budgets were flush with COVID funding, will come up for renewal during 2024 and 2025, precisely when the data points to a “bloodletting” in district budgets.",
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