Colleges absolutely do look at the profitability of its academic programs. That’s why some majors get cut when times are tough and the forecast doesn’t look good for increased student interest (tuition) to fund the programs. Of course, many do operate at a loss on paper but because they bring in some other value (uniqueness, prestige, donor interest, future value of the IP they generate, etc.).
I definitely think more D1s will convert to D3 (like Hartford) when push comes to shove on cutting academics vs extra curriculars.