KinderCare Learning Companies, Inc. announced strong financial results for the first quarter ended March 29, 2025, on May 13, 2025. Total revenue increased by 2.1% to $668.2 million, with early childhood education centers growing 1.6% and before- and after-school sites growing 7.8% due to new site openings.
The company reported a net income of $21.2 million, a significant improvement from a net loss of $1.8 million in Q1 2024. This turnaround was driven by a 45.3% increase in income from operations to $48.8 million, primarily due to a $16.9 million decrease in stock-based compensation and bonus expense.
Adjusted EBITDA increased by 12.2% to $83.6 million, and adjusted net income rose to $27.0 million. A substantial $16.3 million decrease in interest expense, resulting from the October 2024 debt repayment and repricing amendment, also contributed to profitability. KinderCare expanded into Idaho, its 41st state, and acquired five centers during the quarter, while reaffirming its full-year 2025 guidance for revenue and Adjusted EBITDA.
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