KinderCare Learning Companies Inc (KLC) AI Stock Analysis

• Market Cap: $470.91M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 2.20%
• EPS Growth: -229.99%
• Country: US
• Employees: 43,690
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.13
• Shares Outstanding: 118,318,560
• 10 Day Avg. Volume: 1,147,927
• 30 Day Avg. Volume: 1,101,552
• PEG Ratio: 0.10
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -104.31
• Enterprise Value/Market Cap: 6.73
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 5.28
• Enterprise Value/Ebitda: 16.87
• 1Y Price Target: $5.75
• Price Target Upside: 43.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.77
• Revenue Forecast (FY): $2.76B

• Rating: 46 Neutral
• Price Target: $4.00 ▲(0.00% Upside)

KinderCare Learning Companies Inc faces significant financial and technical challenges. High leverage and negative profitability weigh heavily on its financial performance. Technical indicators show bearish momentum, and valuation metrics are unattractive. While there are some positive operational initiatives, the overall outlook remains cautious.

Positive Factors

Revenue Growth

Steady revenue growth indicates resilience and potential for market expansion, driven by successful programs like Champions.

Employer Partnerships

Strong employer partnerships enhance enrollment stability and growth potential, leveraging corporate networks for sustained demand.

Champions Program Success

The success of the Champions program reflects strategic growth in after-school care, boosting revenue and market presence.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, necessitating careful debt management to ensure long-term stability.

Enrollment Challenges

Declining enrollments impact revenue potential and highlight challenges in attracting and retaining students, affecting growth prospects.

Subsidy Business Headwinds

Subsidy headwinds can pressure margins and limit revenue growth, requiring strategic adjustments to mitigate financial impact.

KinderCare Learning Companies Inc Business Overview & Revenue Model

Company Description

KinderCare Learning Companies Inc. (KLC) is a leading provider of early childhood education and care services in the United States. Operating a network of childcare centers and preschools, KLC caters to children from infancy through age 12. The company focuses on delivering high-quality educational programs that promote social, emotional, and cognitive development. With a commitment to fostering a nurturing environment, KLC offers a range of services, including full-day and part-time care, curriculum-based learning, and enrichment programs designed to meet the needs of children and their families.

How the Company Makes Money

KinderCare Learning Companies Inc. generates revenue primarily through tuition fees paid by parents for childcare and educational services. The company's revenue model is built around various key streams, including enrollment fees, ongoing monthly tuition payments, and additional charges for enrichment programs and special activities. KLC often establishes partnerships with employers and organizations to provide childcare benefits to employees, which can lead to increased enrollment. Additionally, KLC may receive state and federal funding for early childhood education programs, further contributing to its revenue. The combination of these factors allows KinderCare to maintain a robust financial standing while delivering quality education and care.

KinderCare Learning Companies Inc Financial Statement Overview

Summary

KinderCare Learning Companies Inc shows strong revenue growth but struggles with profitability and financial stability. High debt levels and negative net profit margin are concerning, though cash flow is improving.

Income Statement

KinderCare Learning Companies Inc has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) revenue growth rate is strong at 19.9%, indicating a positive trajectory. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -2.23%. The gross profit margin is moderate at 22.94%, but the EBIT and EBITDA margins are relatively low, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects high leverage, with a debt-to-equity ratio of 2.67 in the TTM period, indicating significant reliance on debt financing. The return on equity is negative at -8.23%, pointing to inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the high debt levels suggest potential financial risk.

Cash Flow

Cash flow analysis shows improvement, with a free cash flow growth rate of 41.63% in the TTM period. The operating cash flow to net income ratio is 0.43, indicating some cash generation capability despite net losses. The free cash flow to net income ratio is 0.24, suggesting that while free cash flow is positive, it is not yet sufficient to cover net losses fully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.69B	2.66B	2.51B	2.17B	1.81B	1.37B
Gross Profit	599.64M	630.52M	685.86M	444.20M	368.30M	165.49M
EBITDA	187.72M	209.91M	391.86M	176.91M	141.22M	-6.55M
Net Income	-69.29M	-92.84M	102.56M	219.17M	88.41M	-129.50M
Balance Sheet
Total Assets	3.88B	3.65B	3.65B	3.66B	3.47B	3.27B
Cash, Cash Equivalents and Short-Term Investments	174.73M	62.34M	156.15M	105.21M	177.25M	53.23M
Total Debt	1.60B	2.39B	2.69B	2.86B	2.89B	2.85B
Total Liabilities	2.95B	2.78B	3.15B	3.26B	3.21B	3.13B
Stockholders Equity	931.21M	864.51M	506.88M	407.69M	255.61M	136.28M
Cash Flow
Free Cash Flow	59.80M	-16.43M	174.50M	202.18M	116.40M	-34.60M
Operating Cash Flow	193.43M	115.89M	303.54M	341.61M	183.29M	13.59M
Investing Cash Flow	-152.96M	-147.24M	-117.66M	-299.73M	-80.15M	-48.48M
Financing Cash Flow	-2.98M	-62.63M	-134.94M	-117.66M	20.87M	47.77M

KinderCare Learning Companies Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLC, the sentiment is Negative. The current price of 4 is below the 20-day moving average (MA) of 4.52, below the 50-day MA of 5.55, and below the 200-day MA of 10.10, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 34.46 is Neutral, neither overbought nor oversold. The STOCH value of 50.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KLC.

KinderCare Learning Companies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDU	70 Outperform	$8.46B	22.38	9.28%	1.13%	7.22%	-2.84%
APEI	68 Neutral	$569.11M	29.86	11.20%	―	6.75%	141.11%
UTI	65 Neutral	$1.25B	20.29	21.42%	―	14.05%	51.96%
COUR	63 Neutral	$1.32B	―	-7.43%	―	8.10%	43.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	53 Neutral	$650.82M	45.43	7.94%	―	16.90%	41.11%
KLC	46 Neutral	$470.91M	―	-11.88%	―	2.20%	-229.99%

KinderCare Learning Companies Inc Corporate Events

KinderCare Earnings Call: Growth Amid Challenges

KinderCare Learning Companies Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company reported steady revenue growth, primarily driven by the expansion of its Champions program and strengthening employer partnerships. However, challenges such as declining enrollment, occupancy rates, and subsidy business headwinds have exerted pressure on margins and net income. Despite operational improvements, the current economic climate and subsidy rate reductions present significant hurdles for the company.

KinderCare Reports Revenue Growth Amid Economic Challenges

KinderCare Learning Companies, Inc., headquartered in Lake Oswego, Oregon, is a prominent provider of early childhood and school-age education and care services across the United States, offering flexible childcare solutions through its extensive network of learning centers and school programs.

KinderCare Appoints New COO Lindsay Sorhondo

On November 5, 2025, KinderCare Learning Companies appointed Lindsay Sorhondo as Executive Vice President and Chief Operating Officer, effective November 11, 2025. Sorhondo, who has been with KinderCare since 2013, previously served as Chief Innovation Officer and has played a significant role in the company’s growth and operational success. In her new role, she will oversee strategy, operations, and growth channels, aiming to drive innovation and operational excellence. Her promotion is seen as a strategic move to further enhance KinderCare’s mission of providing exceptional early education experiences, aligning with the company’s continued expansion and service improvement goals.

The most recent analyst rating on (KLC) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on KinderCare Learning Companies Inc stock, see the KLC Stock Forecast page.

KinderCare’s Earnings Call: Growth Amid Challenges

KinderCare Learning Companies Inc’s recent earnings call revealed a mixed sentiment, highlighting both achievements and challenges. The company reported notable revenue growth and legislative support, alongside strong B2B partnerships. However, challenges in enrollment and occupancy were significant concerns, impacting overall performance. While legislative changes may offer future benefits, current occupancy issues remain a pressing challenge.