What is the revenue and EPS growth rate for KinderCare Learning year over year?

What is the market's earnings forecast for KinderCare Learning next quarter?

Did KinderCare Learning beat or miss consensus estimates last quarter?

What is KinderCare Learning's gross profit margin?

What is KinderCare Learning's latest dividend and current dividend yield?

What were the key takeaways from KinderCare Learning’s earnings call?

What does KinderCare Learning do and what are its main business segments?

What guidance did KinderCare Learning's management provide for the next earnings period?

- **Revenue Growth**: 6% YoY to $688M (Q4 2025), but same-center occupancy down 340 bps to 64.5%. 
- **Strategic Shifts**: 
  - 100% growth-focused incentive comp for all employees. 
  - $10M paid search investment driving inquiry growth. 
  - 15-20 center closures annually to optimize portfolio. 
- **2026 Outlook**: 
  - Flat revenue ($2.7B-$2.75B) but 27% EBITDA decline to $210M-$230M. 
  - 3% FTE decline offset by 3% tuition growth. 
- **Key Risks**: 
  - Fixed cost deleverage from lower occupancy. 
  - $10M annual grant funding decline. 
  - Center director distractions impacting enrollment conversion. 
- **Positive Signs**: 
  - Early paid search inquiry growth. 
  - Opportunity region best practices rolled out to all centers. 
  - Bipartisan policy support for childcare sector. 


**【CEO Summary Section】**
- **Revenue Growth**: Q4 2025 revenue of $688 million (+6% YoY), driven by a 53rd week contribution of $45 million. Same-center revenue grew 6%, but same-center occupancy dropped to 64.5% (-340 bps YoY). 
- **Strategic Priorities**: 
  - Reassigned Michael Canavin to focus solely on KinderCare to improve enrollment. 
  - Increased marketing investment (paid search) to drive inquiries, with early signs of success. 
  - Changed incentive compensation to 100% growth-focused for all eligible employees. 
  - Closed 7 underperforming centers in Q4 and plans to evaluate 15-20 closures annually. 
- **Brand Performance**: 
  - Champions (12% YoY growth) and B2B (1% revenue contribution) outperformed KinderCare. 
  - Creme Schools repositioned but underperformed, with plans to expand enrollment through curriculum updates. 

**【CFO Financial Commentary】**
- **Q4 2025 Results**: 
  - Adjusted EBITDA: $68 million (includes $12 million from 53rd week). 
  - Adjusted EPS: $0.12 (up $0.03 YoY). 
  - Net loss of $177 million due to non-cash goodwill impairment. 
- **2026 Outlook**: 
  - Revenue: $2.7-$2.75 billion (flat YoY on 52-week basis). 
  - EBITDA: $210-$230 million (down 27% YoY due to 3% FTE decline). 
  - Key drivers: 3% tuition growth offset by 3% occupancy decline, $10 million marketing investment. 
  - Free cash flow: $35-$40 million. 
- **Challenges**: 
  - Enrollment softness in private pay and subsidy segments. 
  - Grant funding normalization post-COVID. 
  - Fixed cost deleverage from lower occupancy. 

**【Q&A Highlights】**
- **Enrollment Trends**: 
  - CEO attributes 2025 underperformance to center director distractions (e.g., administrative tasks). 
  - 2026 focus: clearing center director distractions, paid search inquiries up YoY. 
  - Expect gradual enrollment improvement post-summer, with potential for 2027 recovery. 
- **Industry Dynamics**: 
  - Top 3 providers (5% market share) poised to gain from mom-and-pop contractions. 
  - Bipartisan policy support but state grant variability complicates subsidy revenue. 
- **Margin Decline**: 
  - 2026 EBITDA margin expected to drop to 8% (vs. 11% in 2025) due to: 
    - 3% FTE decline. 
    - $10 million marketing investment. 
    - $10 million grant funding decline. 
  - CFO notes 2026 will lap one-time costs, enabling margin stabilization if enrollment improves. 


KinderCare Learning Companies, Inc.(KLC)-20260313-2025 Q4 Earnings call transcript

- **Revenue Growth**: Q3 2025 revenue $677M (+1% YoY), driven by B2B (Champions +11%, Employers +2%).
- **Occupancy Challenges**: Same-center occupancy 67% (down 160bps YoY) due to subsidy cuts and cautious consumers.
- **2026 Outlook**: 2-3% revenue growth from 1% contributions in B2B, new centers, and tuck-ins.
- **Margin Management**: Maintained 50-100bps wage spread, 10% EBITDA margin despite Q3 seasonality.
- **Strategic Moves**: Promoted COO, refined district leader structure, and expanded digital enrollment tools.

**【CEO Summary】**
- Q3 2025 revenue of $677 million, up 1% YoY, driven by B2B (Champions and Employer programs) and new center openings.
- Same-center occupancy at 67% (down 160bps YoY), impacted by cautious consumer sentiment and state subsidy reductions.
- 2% tuition increase vs. 2024, with 50-100bps wage spread maintained.
- 2026 outlook: 1-2% growth from B2B, 1% from new centers, and 1% from tuck-in acquisitions.
- Promoted Lindsay Sorhondo to COO to focus on operational excellence and center-level execution.

**【CFO Financial Commentary】**
- Q3 2025: $67 million Adjusted EBITDA (down 7% YoY), $15 million net income, $0.13 EPS.
- 2025 full-year guidance: $2.72-2.74 billion revenue, $290-295 million EBITDA, $0.64-0.67 EPS.
- 2026 expectations: 2%+ tuition growth, 1%+ B2B, 1%+ new centers, 1%+ tuck-ins.
- Free cash flow $88-94 million, CapEx $131-133 million.

**【Q&A Highlights】**
- **Enrollment Challenges**: 2025 occupancy ~200bps below 2024, driven by state subsidy cuts (e.g., Indiana -1,000 students). 2026 recovery expected as states stabilize budgets.
- **Government Shutdown Impact**: Minimal direct impact, but state uncertainty delayed enrollment decisions.
- **Pricing Strategy**: 2026 tuition increases will be higher than 2025, guided by local market dynamics.
- **Cost Management**: Maintaining 50-100bps wage spread, disciplined G&A (SG&A up 109bps YoY in Q3).
- **Acquisition Pipeline**: 6 tuck-ins in Q3, 2025 total $18 million, targeting 1%+ contribution in 2026.
- **Center Closures**: Actively evaluating underperforming centers, but no aggressive closure plan.
- **Long-Term Algorithm**: Expected return to 4-5% revenue growth in 2027 via B2B, new centers, and tuck-ins.

KinderCare Learning Companies, Inc. (KLC) Q3 2025 Earnings Call Transcript

- **Policy Tailwind**: Federal funding clarity and expanded tax credits add $16B family buying power, benefiting both subsidized and private pay families.
- **Enrollment Struggles**: Q2 occupancy down 130bps to 71%, driven by local market issues. Strategy: targeted support for underperforming centers via digital tools and tailored guidance.
- **B2B Growth Engine**: Champions (+8% YoY) and employer partnerships (e.g., 45F tax credit) drive sticky, recurring revenue, offsetting occupancy headwinds.
- **Financial Resilience**: Adjusted EPS up 33% YoY to $0.22. Debt reduction saves $5M annually, supporting net income growth despite occupancy challenges.

**【CEO Summary Section】**
- **Legislative Support Boost**: Highlighted federal funding clarity (CCDBG fully funded) and new tax credits (40-50% employer credit, expanded child care tax deductions), estimating $16B family buying power over 10 years.
- **Enrollment Challenges**: Q2 same-center occupancy dropped 130bps to 71%, driven by local market-specific issues (e.g., teacher turnover, inquiry-to-enrollment conversion). 1-2 children per center underperformance identified.
- **Opportunity Region Strategy**: Targeted support for underperforming centers via digital tools (online tour scheduling, real-time occupancy dashboards) and tailored operational guidance, showing early inquiry growth.
- **Champions Growth**: Added 13 new districts and 13 sites, total 1,043 locations (+10% YoY). Expanded into 3 new states post-Q2.
- **B2B Expansion**: Signed 12+ employer partnerships (e.g., John Deere, UC Davis), leveraging Tuition Benefit program flexibility. On-site center in Maricopa County saw strong enrollment uptake.

**【CFO Financial Commentary】**
- **Q2 Results**: Revenue $700M (+1.5% YoY), same-center revenue $638M (+1% YoY). Adjusted EBITDA $82M (-5% YoY) due to occupancy decline. Net income $10M+ increase, adjusted EPS $0.22 (+33% YoY).
- **Guidance 2025**: Revenue $2.75-2.8B, EBITDA $310-320M, EPS $0.77-0.82. Occupancy expected -1% to -1.5% YoY. Q3 occupancy 67-68%, Q4 benefiting from 53rd week.
- **Financial Health**: Net debt/EBITDA 2.7x (target 2.5-3x). Free cash flow $85-95M. Debt repricing saves $5M annually.

**【Q&A Highlights】**
- **Enrollment Drivers**: Private pay families show longer decision cycles vs. subsidy families. No macro affordability issues; local market-specific execution challenges.
- **Gross Margin Pressure**: Occupancy decline (71% vs. 72.3% YoY) limits labor and rent leverage. Target 50-100bps between tuition and wage growth maintained.
- **Strategy Effectiveness**: Opportunity region centers show improved inquiry-to-enrollment rates. Digital tools streamline operations, freeing directors for relationship-building.
- **B2B Momentum**: Champions and employer partnerships (e.g., 45F tax credit) expected to contribute 1%+ revenue growth. Sticky, recurring B2B streams offset occupancy headwinds.

KinderCare Learning Companies, Inc. (KLC) Q2 2025 Earnings Call Transcript

- **Q1 Growth Highlights**: 2% revenue growth, 12% EBITDA expansion, and $75M free cash flow underscore strong profitability.
- **Enrollment Outlook**: Temporary delay (50 bps occupancy decline) but robust inquiries and retention suggest recovery potential.
- **Champions Strength**: 7.8% B2B revenue growth and 88 new sites highlight resilience in school-age care.
- **M&A Momentum**: $5.5M TTM acquisition revenue and 3-5x EBITDA multiples support scalable expansion.
- **Pricing Discipline**: 2.5% Q1 tuition growth with 3-5% 2025 guidance, maintaining healthy wage-tuition spread.

**【CEO Summary Section】**
- Q1 revenue grew 2% YoY to $668 million, driven by stable tuition growth and new center openings. Adjusted EBITDA increased 12% to $84 million, with net income of $21 million.
- Same-center occupancy declined 50 bps to 69.1%, attributed to delayed enrollment decisions amid macroeconomic uncertainty. However, inquiries and tours remain strong, suggesting temporary delay rather than lost demand.
- Organic growth initiatives, including 19 new Champion sites and 5 new centers, expanded the portfolio to 1,038 Champion sites and 1,500+ centers nationwide.
- Strategic acquisitions (e.g., Idaho expansion) and partnerships (e.g., Montgomery County Early Learning Center) reinforce market leadership and community impact.

**【CFO Financial Commentary】**
- GAAP revenue of $668 million reflects 2% YoY growth, with same-center revenue up 1.4% due to tuition increases. B2B revenue grew 7.8% to $53 million, driven by Champion site expansion.
- Adjusted EBITDA margin improved to 13%, benefiting from operating leverage and G&A expense control (11% of revenue). Free cash flow of $75 million supported $6.1 million in tuck-in acquisitions.
- 2025 guidance reaffirmed: $2.75-$2.85 billion revenue, $310-$325 million EBITDA, and $0.75-$0.85 EPS, reflecting confidence in organic and inorganic growth drivers.

**【Q&A Key Takeaways】**
- **Enrollment Dynamics**: Delayed enrollment (e.g., 8-12 week vs. 6-week start) driven by consumer hesitation, but retention rates and inquiry levels remain robust. Week-on-week growth in May signals potential recovery.
- **Champions Resilience**: Lower weekly tuition ($10 vs. $100) makes Champions less discretionary, with 88 net new sites over 12 months and 64,000 elementary schools for expansion.
- **M&A Activity**: $5.5 million TTM acquisition revenue, with multiples 3-5x EBITDA. Acquisitions funded by free cash flow, supporting mid-20s NCO targets.
- **Pricing Strategy**: 2.5% Q1 tuition growth, guided to 3-5% for 2025. Healthy wage-tuition spread maintained through disciplined pricing and wage management.


Actual	0.05	0.09	0.23	0.22	0.13	0.12
Forecast	-0.0208	0.0537	0.1654	0.2556	0.1236	0.0903
Surprise	+340.38%	+67.60%	+39.06%	-13.93%	+5.18%	+32.89%

Actual	671.48M	646.96M	668.24M	700.11M	676.83M	688.14M
Forecast	669.45M	646.66M	680.99M	705.72M	682.61M	685.32M
Surprise	+0.30%	+0.05%	-1.87%	-0.79%	-0.85%	+0.41%

KLC

KLC fundamentals

KLC Q4 2025 Earnings

Earnings Call

You can ask Aime

KLC

KLC fundamentals

KLC Q4 2025 Earnings

Earnings Call

KLC Earnings Call Summary for Q4/20255:00 PM on Mar 12, 2026

KLC Earnings Call Summary for Q3/20255:00 PM on Nov 12, 2025

KLC Earnings Call Summary for Q2/20255:00 PM on Aug 12, 2025

KLC Earnings Call Summary for Q1/20255:00 PM on May 13, 2025

KLC Earnings Call Summary for Q4/2024 Mar 25, 2026

You can ask Aime