Third annual study indicates institutions are centralizing governance, strengthening enterprise-level capacity, and addressing financial issues as online learning becomes part of core academic infrastructure

 WASHINGTON, D.C., ISSUED AUGUST 17, 2026…UPCEA, the online and professional education association, today announced the release of its 2026 “Benchmarking Online Enterprises: Insights into Structures, Strategies, and Financial Models in Higher Education(opens in new tab)” (BOnES) study. The report offers timely insights into how colleges and universities are strengthening digital learning enterprises through evolving governance models, financial strategies, and scalable operations. The report provides key benchmarking data on structure, staffing, finances, and innovation.

The 2026 BOnES provides an in-depth update on national trends shaping the governance and financial models of digital learning enterprises across higher education. Many of the trends identified in the benchmarking study align closely with the Hallmarks of Excellence in Digital Learning Enterprises, a framework recently released by UPCEA describing the leadership, governance, and organizational conditions needed to sustain digital learning as institutional infrastructure. Taken together, the findings point to a new phase in the evolution of digital learning enterprises—one in which governance, financial alignment, and organizational capacity are becoming as important as enrollment growth.

“The 2026 benchmarking data reveals a sector in transition,” stated Julie Uranis, Senior Vice President for Online and Strategic Initiatives at UPCEA. “Institutions are centralizing authority, expanding enterprise-level capacity, and confronting long-standing misalignments in governance and financial models, all while preparing for the opportunities and challenges presented by AI. Together, these findings illustrate a landscape where digital learning enterprises are becoming essential drivers of institutional resilience, competitiveness, and long-term sustainability.”

As institutions increase investments in digital learning enterprises, expand staffing, diversify program portfolios, and begin integrating AI into operations, the 2026 BOnES report provides an essential benchmarking resource for leaders navigating an increasingly competitive and financially constrained environment.

Key Findings

• Shift to the Provost’s Office: The 2026 BOnES study indicates that 57% of online enterprises now report to the provost, up from 41% two years prior, signaling a decisive move toward academic centrality
• Revenue Growth: Average online enterprise revenue reached $30.5 million in FY2026, compared to $18 million in 2024 with median revenue rising as well, indicating broad-based financial expansion rather than gains concentrated among a few large institutions
• Budget Expansion: Institutions reported rising budgets and increased investment in enterprise-level capacity, reflecting the maturation of digital learning as core infrastructure
• Staffing Growth: Numerous enterprises expanded staffing in FY2026 to support larger portfolios, more complex operations, and emerging AI-driven functions
• Governance Centralization: Clear movement toward centralized administrative authority paired with decentralized academic decision-making, a structural pattern consistent with mature digital enterprises
• Financial Misalignment: Most online enterprises continue to rely on general funds, while more than half depend on online/distance education fees set by central or system administration; as such there exists a gap between financial accountability and financial authority
• AI Integration: Although BOnES is not an AI-focused study, institutions reported early adoption of AI across instructional design, learner support, analytics, and operations – underscoring the need for enterprise-level readiness

Strategic Recommendations

To ensure the long-term success and sustainability of online higher education, the 2026 BOnES benchmarking report recommends that institutions move beyond simply naming online learning as a strategic priority and instead back it up with tangible authority and resources for online leaders.

• Establish Unified Financial Governance: Institutions should adopt integrated financial models that align authority with accountability
• Strengthen Enterprise-level Coordination: Online learning should be governed as institutional infrastructure, not as a collection of decentralized projects
• Build AI-ready Organizational Capacity: Institutions should prepare for AI integration by expanding instructional design and learner support teams and developing AI-aligned professional development for faculty and staff
• Adopt Sustainable Staffing and Operational Models: As online learning scales, institutions should shift from ad-hoc staffing to enterprise-level workforce planning, invest in roles that support continuous improvement, and create clear career pathways for digital learning professionals
• Use Benchmarking Data for Strategic Planning: Institutions should leverage 2026 BOnES findings to compare their governance and financial models to national norms, identify gaps in organizational maturity, and prioritize investments that align with sector-wide movement toward enterprise-level digital learning

Insights Beyond the Report

The 2026 BOnES reveals a sector in the midst of structural realignment, with institutions making deliberate choices about how digital learning is organized, governed, and financed. As online enterprises continue to expand enrollment, revenue, and operational capacity, the survey highlights both the momentum driving growth and the persistent tensions that shape enterprise-level decision making.

• Digital Learning Enterprises as Nerve Centers: As AI, analytics, and hybrid learning expand, online units are increasingly responsible for data infrastructure, learning experience design, and technology governance, positioning them as strategic hubs, not simple service units
• Organizational Agility as Competitive Differentiator: Institutions that can rapidly adapt course development, learner support, and analytics workflows will outperform those with rigid, siloed structures
• Digital as Standard Model: The combination of centralized administration, decentralized academic authority, enterprise-level operations, and AI-aligned capacity is becoming the dominant organizational pattern across higher education

“The 2026 BOnES report makes clear that enterprises are becoming more central to the institution from both a strategic and administrative perspective,” said Bruce Etter, Senior Director of Research and Consulting at UPCEA. “What we are seeing across the sector is a deliberate effort to build learning enterprises that are structurally coherent, financially aligned, and capable of supporting the next generation of academic innovation. Institutions today are rethinking the organizational systems that make sustainable growth possible.”

UPCEA’s 2026 Benchmarking Online Enterprises Report offers a timely and essential resource for institutional leaders navigating the complexity of online education. With data-driven insights into funding models, staffing, AI adoption and strategy, and market positioning, the report equips decision-makers to align their online enterprises with institutional goals and financial realities. By benchmarking against peers and acting on key indicators, colleges and universities can build more sustainable, competitive, and learner-centered programs in an increasingly dynamic landscape.

An advance preview of the report was presented during the 2026 UPCEA SOLAR Conference in July. The full report is now publicly available. UPCEA will also host a webinar on August 26 exploring the findings, key trends, and implications for higher education leaders. To download the report or learn more about the webinar, visit https://upcea.edu/2026-benchmarking-online-enterprises-survey/.

 

ABOUT UPCEA

UPCEA is the online and professional education association. Our members continuously reinvent higher education, positively impacting millions of lives. We proudly lead and support them through cutting-edge research, professional development, networking and mentorship, conferences and seminars, and stakeholder advocacy. Our collaborative, entrepreneurial community brings together decision-makers and influencers in education, industry, research, and policy interested in improving educational access and outcomes. Learn more at https://UPCEA.edu and follow @UPCEA on social media.

 

CONTACT:

Molly Nelson, UPCEA Vice President of Communications, [email protected]

Nicole Joy Hales, PRfirst, 617-947-7983, [email protected]