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Jun 28, 2025
Kindercare Learning Cos Inc Q2 2025 Earnings Report
Kindercare Learning Cos Inc reported modest revenue growth and strong net income gains in Q2 2025, despite enrollment softness.
Key Takeaways
KinderCare’s Q2 2025 results reflected a slight increase in revenue and significant improvement in profitability. Net income rose due to lower interest expenses, even though enrollments came in softer than expected. The company remains focused on center-level performance and long-term growth.
Revenue reached $700.1M, up slightly YoY
Net income rose 35% to $38.6M
EPS came in at $0.33; Adjusted EPS at $0.22
Operating income increased to $74.8M driven by expense management
Revenue by Segment
Forward Guidance
KinderCare maintained its guidance for FY25, expecting mid-single-digit revenue growth and margin improvements through operational efficiencies.
Positive Outlook
- Net income growth of 35% YoY
- Improved operating margins through expense control
- ECE segment continues to expand
- Positive cash flow supporting capital allocation
- Strong center-level performance focus
Challenges Ahead
- Enrollment softer than internal expectations
- Before/after school segment revenue declined YoY
- Labor cost pressures continue to impact margins
- Limited short-term capacity expansion
- Adjusted EPS lower than GAAP EPS due to one-time items
Historical Earnings Impact
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Avg. Return Before/After Earnings
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