Warren Gatland’s position as head coach of the men’s team is uncertain following a record 12 Test defeats in a row, while women’s head coach Ioan Cunningham resigned earlier this month.
The governing body admitted serious failings in the way it handled contract negotiations with the women’s squad over the summer.
Funding to the regions fell from £35.5m to £28.7m while Dragons were sold back to private ownership in July 2023.
However, the governing body said it still invested £60m into all levels of the game in Wales.
Chief executive Abi Tierney presented the report for the first time since taking charge in January, at the WRU annual general meeting in the Vale of Glamorgan on Sunday, and said the union was focused on establishing “financial stability”.
“This year’s annual report comes against a backdrop of a challenging but incredibly future-focused time for Welsh rugby,” she said.
“The need to establish financial stability features at the core of [our] strategy and is essential to shaping a sustainable future for the game.
“The WRU has been presented with a number of financial obstacles this year [but] our aim, as ever, is to maximise the re-investment into rugby each year.”
