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Mar 29, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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