KinderCare shares up 4% as Q1 earnings top estimates

Published 13/05/2025, 21:28
KinderCare shares up 4% as Q1 earnings top estimates

NEW YORK - KinderCare Learning Companies, Inc. (NYSE:KLC) saw its shares jump 4.10% after the early childhood education provider reported first quarter earnings that beat analyst expectations, despite revenue coming in below forecasts.

The Lake Oswego, Oregon-based company posted adjusted earnings per share of $0.23 for the quarter ended March 29, 2025, surpassing the analyst consensus estimate of $0.16. Revenue rose 2.1% YoY to $668.2 million, but fell short of Wall Street’s projection of $689.12 million.

"Our first quarter’s results came in as anticipated, with moderate growth in revenue but our operating execution drove stronger net income and adjusted EBITDA growth year over year," said Paul Thompson, KinderCare’s Chief Executive Officer.

The company’s net income for the quarter was $21.2 million, or $0.18 per diluted share, compared to a net loss of $1.8 million, or -$0.02 per share, in the same period last year. Adjusted EBITDA increased 12.2% to $83.6 million.

KinderCare reiterated its full-year 2025 guidance, expecting revenue between $2.75 billion and $2.85 billion and adjusted earnings per share in the range of $0.75 to $0.85. The midpoint of both ranges aligns closely with current analyst consensus estimates.

The company expanded its footprint during the quarter by entering Idaho, its 41st state. As of March 29, 2025, KinderCare operated 1,582 early childhood education centers and 1,038 before- and after-school sites.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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