Analysis of 104 UK institutions shows 30—nearly a third—reported operating deficits for 2024–25, with aggregate losses rising to £365.7 million. Coventry University posted the largest shortfall, driven in part by a surge in recruitment-agency fees tied to late enrolment growth. The figures underscore uneven financial health across the sector as international student shortfalls and recruitment costs bite. At the same time, the same group generated £2.3 billion in net cash from operating activities—an 87% increase year-on-year—suggesting some institutions are improving cash management even while headline deficits persist. Sector leaders warn the mixed signals complicate planning and may prompt further consolidation or targeted cost-control measures.