Is ACT, Inc. profitable in 2026?

No. ACT ran net losses roughly $79 to $113.5 million cumulatively from 2019 to 2022, including a $60 to $60.6 million loss in 2020 alone. Its last reported nonprofit surplus was $21.3 million in 2018. No profitable year has been publicly reported since.

Nonprofit ETS announced it is acquiring ACT from private equity firm Nexus Capital Management on June 30, 2026, with the deal expected to close around July 1, 2026. Terms were undisclosed. Encoura, ACT's data subsidiary, was excluded from the sale.

Is ACT losing market share to the SAT?

Yes. In the class of 2025, roughly 36% of US students took the ACT versus about 47% for the SAT, per Washington Post reporting cited by Times Higher Education on 2026-07-06. SAT participation also surpassed 2 million test-takers for the first time since 2020.

Could AI replace the ACT test?

Unlikely for the core proctored exam itself, which relies on state contracts, psychometric validation, and trusted in-person administration. AI is instead disrupting the adjacent test-prep layer, with platforms like AlphaTest and Khanmigo commoditizing personalized study plans as of 2026.

Is it safe to take a job at ACT, Inc. right now?

Caution warranted. ACT laid off 100+ employees (40 in Iowa City) in 2023 and sold its Iowa City campus. Job postings fell 42.9% in 2025 versus 2024, and the company is mid-integration into ETS following a June 30, 2026 acquisition announcement.

Is ACT still a nonprofit?

No. After 65 years as a 501(c)(3), ACT converted in May 2024 into a for-profit Delaware public benefit corporation, ACT Education Corp., partnering with Nexus Capital Management. As of the June 2026 ETS deal, its for-profit status remains under review.

Education companies · acquisition pending · United States

ACT, Inc.

act.org ↗

Nonprofit-turned-for-profit behind the ACT college admissions test.

Losing its protection

Assessed 22 July 2026 · Evidence as of 22 July 2026

The structural protection is eroding.

On the recordSince 22 July 2026 · Checkable from H2 2026 to 2027 · Every call on the record Checkpoint: Class of 2027 market share data and ETS decision on ACT's legal status

The call

ACT just got bought by ETS after years of losses and share loss to the Digital SAT, leaving its future shape and independence unclear.

ACT gives high school students a college entrance exam that they cannot cheat on because it is proctored and closely watched, which is genuinely hard to copy. However, the SAT switched to a computer-based test that adapts to each student's answers and is now used by nearly half of test-takers versus ACT's one-third, and over 2,000 colleges no longer require any test at all.

Why

AI pressure: None apparent. AI tutors like Khanmigo help students prep for the test but don't replace the proctored exam itself. Could AI do the core job? Unlikely.

Bigger players: College Board (Digital SAT). College Board's adaptive Digital SAT hit 47% of the class of 2025 versus ACT's 36%, and keeps pulling ahead. Could a giant copy it? Yes, easily.

What protects it. State contracts in 17 states and colleges' need for a trusted, proctored score keep ACT in the game.

What would change this call

Fall 2026 release of class of 2027 ACT vs SAT market share data. Shows whether ACT's share loss to the SAT continues, stabilizes, or reverses.
ETS announces layoffs or role eliminations at ACT within 12 to 24 months of the July 2026 close. Shows whether ETS is consolidating ACT's functions and cutting redundant jobs.
ETS publishes a roadmap or launch date for an adaptive digital ACT test. Shows whether ACT can match the Digital SAT's product capability.

Key numbers

36% of class of 2025 took ACT vs. 47% SAT (2025-06-30)
1.3M test takers in 2025, down from 1.78M peak (2025-12-31)
Job postings fell 42.9% in 2025 vs 2024 (2025-12-31)

Named risks

Continued market share loss to fully adaptive Digital SAT. Severity: high
Structural shrinkage from test-optional admissions policies. Severity: high
ETS integration causing redundancy layoffs and functional overlap. Severity: medium
Unresolved legal status (for-profit vs nonprofit) under new ETS ownership. Severity: medium
History of sustained net losses (2019-2022) creating fragile financial base. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
College Board (SAT)	losing to	ACT held 36% vs SAT's 47% of class of 2025; SAT crossed 2M test-takers, March 2024 adaptive launch
ETS	contesting	Former SAT administrator (lost contract 2024) became ACT's owner via June 30, 2026 acquisition
AI test-prep platforms (AlphaTest, Khanmigo, PrepSharp)	gaining on	Commoditizing ACT test-prep content with adaptive tutoring and score prediction as of 2026
Test-optional college policies	gaining on	Over 2,000 four-year colleges did not require SAT/ACT scores for fall 2026

Questions people ask

Is ACT, Inc. profitable in 2026?: No. ACT ran net losses roughly $79 to $113.5 million cumulatively from 2019 to 2022, including a $60 to $60.6 million loss in 2020 alone. Its last reported nonprofit surplus was $21.3 million in 2018. No profitable year has been publicly reported since.
Who owns ACT now?: Nonprofit ETS announced it is acquiring ACT from private equity firm Nexus Capital Management on June 30, 2026, with the deal expected to close around July 1, 2026. Terms were undisclosed. Encoura, ACT's data subsidiary, was excluded from the sale.
Is ACT losing market share to the SAT?: Yes. In the class of 2025, roughly 36% of US students took the ACT versus about 47% for the SAT, per Washington Post reporting cited by Times Higher Education on 2026-07-06. SAT participation also surpassed 2 million test-takers for the first time since 2020.
Could AI replace the ACT test?: Unlikely for the core proctored exam itself, which relies on state contracts, psychometric validation, and trusted in-person administration. AI is instead disrupting the adjacent test-prep layer, with platforms like AlphaTest and Khanmigo commoditizing personalized study plans as of 2026.
Is it safe to take a job at ACT, Inc. right now?: Caution warranted. ACT laid off 100+ employees (40 in Iowa City) in 2023 and sold its Iowa City campus. Job postings fell 42.9% in 2025 versus 2024, and the company is mid-integration into ETS following a June 30, 2026 acquisition announcement.
Is ACT still a nonprofit?: No. After 65 years as a 501(c)(3), ACT converted in May 2024 into a for-profit Delaware public benefit corporation, ACT Education Corp., partnering with Nexus Capital Management. As of the June 2026 ETS deal, its for-profit status remains under review.

Timeline

2026-07-07Press-Citizen reports ETS buys ACT after years of losses and layoffs
2026-06-30ETS announces acquisition of ACT from Nexus Capital Management
2026-04-30Harvard, Stanford, Yale, MIT, Caltech reported to have reinstated testing requirements
2025-12-31ACT global headcount ~5,520; job postings down 42.9% versus 2024
2025-09Enhanced ACT rollout extends to paper and international testing
2025-04Enhanced ACT launches nationally for online testing
2024-05-01ACT completes conversion to for-profit public benefit corporation with Nexus
2024-03College Board launches fully adaptive Digital SAT via Bluebook
2023-12-31ACT lays off 100+ staff (40 in Iowa City), sells Iowa City campus
2018-12-31ACT reports last nonprofit-era surplus of $21.3 million

Revision history

22 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

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