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Sep 27, 2025
Kindercare Learning Cos Inc Q3 2025 Earnings Report
KinderCare Learning Cos Inc reported its Q3 2025 results with modest revenue growth, a sharp decline in operating income, and adjusted earnings that outpaced GAAP net income.
Key Takeaways
KinderCare posted Q3 2025 revenue of $676.8 million and net income of $4.6 million. Despite rising costs and reduced government assistance impacting profitability, the company maintained top-line growth, led by its before- and after-school segment. Adjusted EPS improved to $0.13, suggesting resilience amid economic headwinds.
Revenue reached $676.8 million, up from $671.5 million in Q3 2024.
Net income dropped to $4.6 million due to increased personnel costs and lower government reimbursements.
Adjusted net income rose to $15.3 million, with adjusted EPS of $0.13.
Champions before- and after-school sites delivered strong performance with a 10.7% increase in revenue.
Revenue by Segment
Forward Guidance
KinderCare expects FY25 revenue of $2.72–$2.74 billion and adjusted EBITDA of $290–$295 million, with adjusted EPS forecasted at $0.64–$0.67.
Positive Outlook
- Sustained demand from employer-sponsored childcare solutions.
- Operational initiatives enhancing execution and accountability.
- Strong performance from Champions before- and after-school programs.
- Adjusted net income showing solid growth trajectory.
- Technology investments driving digital capabilities.
Challenges Ahead
- Lower government assistance following the end of COVID-19 stimulus funding.
- Increased personnel costs impacting operating income.
- Decreased enrollment in early childhood centers offsetting tuition increases.
- Higher SG&A costs from tech and professional services.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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