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Mar 29
Kindercare Learning Cos Inc Q1 2025 Earnings Report
KinderCare reported higher revenue and turned a profit in Q1 2025.
Key Takeaways
KinderCare posted moderate revenue growth and transitioned from a net loss in the prior year to a solid net income. Operational improvements and reduced interest expenses contributed significantly to performance.
Revenue rose to $668,244,000 from $654,670,000 year-over-year.
Net income was $21,157,000, up from a $1,751,000 net loss last year.
Adjusted EBITDA reached $83,551,000, up 12.2% YoY.
Company expanded into Idaho, its 41st state, and opened new centers.
Kindercare Learning Cos Inc
Kindercare Learning Cos Inc
Kindercare Learning Cos Inc Revenue by Segment
Revenue by Segment
ECE Centers Revenue
CapyFin.comBefore/After School Revenue
CapyFin.com Forward Guidance
KinderCare reiterated its full-year 2025 guidance, projecting continued revenue growth and margin improvement.
Positive Outlook
- Revenue guidance maintained between $2.75B and $2.85B.
- Adjusted EBITDA expected between $310M and $325M.
- Adjusted EPS projected between $0.75 and $0.85.
- Strong cash position of $131.3M with $207.4M credit facility access.
- Solid center expansion and employer partnership growth.
Challenges Ahead
- Loss of $10.7M in government cost reimbursements from COVID-related funding.
- Slight decline in enrollment despite tuition increases.
- Higher depreciation and amortization expenses.
- Decreased stock-based compensation impacting year-over-year comparability.
- Macro uncertainty affecting enrollment timing across the industry.