KINDERCARE LEARNING COMPANIES Financials

KLC

Source SEC Filings (10-K/10-Q) Updated Sep 27, 2025 Currency USD FYE December

This page shows KINDERCARE LEARNING COMPANIES (KLC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 3 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 27/100

Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

KINDERCARE LEARNING COMPANIES has an operating margin of 3.0%, meaning the company retains $3 of operating profit per $100 of revenue. This below-average margin results in a low score of 15/100, suggesting thin profitability after operating expenses. This is down from 11.0% the prior year.

Growth

KINDERCARE LEARNING COMPANIES's revenue grew 6.1% year-over-year to $2.7B, a solid pace of expansion. This earns a growth score of 46/100.

Leverage

KINDERCARE LEARNING COMPANIES carries a low D/E ratio of 1.06, meaning only $1.06 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 72/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

KINDERCARE LEARNING COMPANIES's current ratio of 0.52 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 1/100, which could limit financial flexibility.

Cash Flow

While KINDERCARE LEARNING COMPANIES generated $115.9M in operating cash flow, capex of $132.3M consumed most of it, leaving -$16.4M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.

Altman Z-Score Distress

0.86

KINDERCARE LEARNING COMPANIES scores 0.86, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Piotroski F-Score Neutral

4/9

KINDERCARE LEARNING COMPANIES passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Mixed

-1.25x

For every $1 of reported earnings, KINDERCARE LEARNING COMPANIES generates $-1.25 in operating cash flow ($115.9M OCF vs -$92.8M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage At Risk

0.5x

KINDERCARE LEARNING COMPANIES earns $0.5 in operating income for every $1 of interest expense ($79.3M vs $170.5M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Revenue

$2.7B

YoY+6.1%

KINDERCARE LEARNING COMPANIES generated $2.7B in revenue in fiscal year 2024. This represents an increase of 6.1% from the prior year.

EBITDA

$196.9M

YoY-48.8%

KINDERCARE LEARNING COMPANIES's EBITDA was $196.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 48.8% from the prior year.

Free Cash Flow

-$16.4M

YoY-109.4%

KINDERCARE LEARNING COMPANIES generated -$16.4M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 109.4% from the prior year.

Net Income

-$92.8M

YoY-190.5%

KINDERCARE LEARNING COMPANIES reported -$92.8M in net income in fiscal year 2024. This represents a decrease of 190.5% from the prior year.

EPS (Diluted)

$-0.96

YoY-185.0%

KINDERCARE LEARNING COMPANIES earned $-0.96 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 185.0% from the prior year.

Cash & Debt

$62.3M

YoY-60.1%

KINDERCARE LEARNING COMPANIES held $62.3M in cash against $918.7M in long-term debt as of fiscal year 2024.

Dividends Per Share

N/A

Shares Outstanding

118M

YoY+30.5%

KINDERCARE LEARNING COMPANIES had 118M shares outstanding in fiscal year 2024. This represents an increase of 30.5% from the prior year.

Gross Margin

23.7%

YoY-3.6pp

KINDERCARE LEARNING COMPANIES's gross margin was 23.7% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 3.6 percentage points from the prior year.

Operating Margin

3.0%

YoY-8.0pp

KINDERCARE LEARNING COMPANIES's operating margin was 3.0% in fiscal year 2024, reflecting core business profitability. This is down 8.0 percentage points from the prior year.

Net Margin

-3.5%

YoY-7.6pp

KINDERCARE LEARNING COMPANIES's net profit margin was -3.5% in fiscal year 2024, showing the share of revenue converted to profit. This is down 7.6 percentage points from the prior year.

Return on Equity

N/A

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

$132.3M

YoY+2.5%

KINDERCARE LEARNING COMPANIES invested $132.3M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 2.5% from the prior year.

KLC Income Statement

Metric	FY24	FY23	FY22
Revenue	$2.7B+6.1%	$2.5B+15.9%	$2.2B
Cost of Revenue	$2.0B+11.4%	$1.8B+28.1%	$1.4B
Gross Profit	$630.5M-8.1%	$685.9M-7.5%	$741.2M
R&D Expenses	N/A	N/A	N/A
SG&A Expenses	$423.1M+46.9%	$288.0M+16.2%	$247.8M
Operating Income	$79.3M-71.2%	$275.3M-29.3%	$389.5M
Interest Expense	$170.5M+11.5%	$152.9M+50.7%	$101.5M
Income Tax	$14.6M-46.6%	$27.4M-60.1%	$68.6M
Net Income	-$92.8M-190.5%	$102.6M-53.2%	$219.2M
EPS (Diluted)	$-0.96-185.0%	$1.13-51.9%	$2.35

Metric	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24	Q4'23
Revenue	$676.8M-3.3%	$700.1M+4.8%	$668.2M+3.3%	$647.0M-3.7%	$671.5M-2.7%	$689.9M+5.4%	$654.7M+5.9%	$618.0M
Cost of Revenue	$543.1M+4.6%	$519.5M+0.6%	$516.2M+0.5%	$513.7M-1.4%	$521.1M+4.2%	$500.0M+0.5%	$497.7M	N/A
Gross Profit	$133.7M-26.0%	$180.6M+18.8%	$152.1M+14.1%	$133.3M-11.4%	$150.4M-20.8%	$189.9M+21.0%	$157.0M	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$73.0M-7.1%	$78.6M+9.6%	$71.7M-62.0%	$188.9M+190.1%	$65.1M-17.1%	$78.6M-13.1%	$90.5M	N/A
Operating Income	$26.3M-61.7%	$68.7M+40.6%	$48.8M+154.7%	-$89.3M-264.2%	$54.4M-32.5%	$80.6M+139.7%	$33.6M-30.9%	$48.7M
Interest Expense	$24.1M+20.0%	$20.1M-0.2%	$20.1M-60.4%	$50.7M+28.6%	$39.5M-10.2%	$43.9M+20.6%	$36.4M	N/A
Income Tax	$1.7M-88.6%	$14.5M+84.8%	$7.8M+283.8%	-$4.3M-202.6%	$4.2M-60.0%	$10.4M+139.0%	$4.3M	N/A
Net Income	$4.5M-88.2%	$38.6M+82.4%	$21.2M+115.8%	-$133.6M-1057.0%	$14.0M-51.1%	$28.5M+1729.6%	-$1.8M-111.8%	$14.8M
EPS (Diluted)	$0.04-87.9%	$0.33+83.3%	$0.18+115.4%	$-1.17-880.0%	$0.15-53.1%	$0.32+1700.0%	$-0.02-112.5%	$0.16

KLC Balance Sheet

Metric	FY24	FY23	FY22
Total Assets	$3.6B-0.2%	$3.7B	N/A
Current Assets	$214.8M-24.2%	$283.4M	N/A
Cash & Equivalents	$62.3M-60.1%	$156.1M+48.4%	$105.2M
Inventory	N/A	N/A	N/A
Accounts Receivable	$104.3M+18.4%	$88.1M	N/A
Goodwill	$1.1B+0.8%	$1.1B+0.7%	$1.1B
Total Liabilities	$2.8B-11.6%	$3.1B	N/A
Current Liabilities	$412.8M-3.2%	$426.5M	N/A
Long-Term Debt	$918.7M-25.7%	$1.2B	N/A
Total Equity	$864.5M+70.6%	$506.9M+24.3%	$407.7M
Retained Earnings	$30.3M-75.4%	$123.1M	N/A

Metric	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24	Q4'23
Total Assets	$3.9B+2.5%	$3.8B+1.9%	$3.7B+2.0%	$3.6B-2.1%	$3.7B	N/A	N/A	$3.7B
Current Assets	$334.1M+20.9%	$276.4M-2.9%	$284.7M+32.5%	$214.8M-29.1%	$302.8M	N/A	N/A	$283.4M
Cash & Equivalents	$174.7M+46.8%	$119.0M-9.3%	$131.3M+110.6%	$62.3M-54.6%	$137.2M+43.4%	$95.7M-25.7%	$128.7M-17.6%	$156.1M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$103.3M-8.4%	$112.7M+17.6%	$95.9M-8.1%	$104.3M+3.4%	$100.9M	N/A	N/A	$88.1M
Goodwill	$1.1B+0.3%	$1.1B+0.6%	$1.1B+0.6%	$1.1B0.0%	$1.1B	N/A	N/A	$1.1B
Total Liabilities	$3.0B+3.0%	$2.9B+1.2%	$2.8B+1.9%	$2.8B-20.2%	$3.5B	N/A	N/A	$3.1B
Current Liabilities	$469.5M+11.7%	$420.2M-10.7%	$470.4M+14.0%	$412.8M-18.2%	$504.5M	N/A	N/A	$426.5M
Long-Term Debt	$921.3M+0.5%	$916.8M-0.1%	$917.7M-0.1%	$918.7M-38.6%	$1.5B	N/A	N/A	$1.2B
Total Equity	$931.2M+0.7%	$924.3M+4.5%	$884.9M+2.4%	$864.5M+267.0%	$235.6M-0.7%	$237.4M+16.3%	$204.0M-59.7%	$506.9M
Retained Earnings	$94.6M+5.1%	$90.0M+75.0%	$51.4M+69.9%	$30.3M-81.5%	$163.8M	N/A	N/A	$123.1M

KLC Cash Flow Statement

Metric	FY24	FY23	FY22
Operating Cash Flow	$115.9M-61.8%	$303.5M-11.1%	$341.6M
Capital Expenditures	$132.3M+2.5%	$129.0M-7.4%	$139.4M
Free Cash Flow	-$16.4M-109.4%	$174.5M-13.7%	$202.2M
Investing Cash Flow	-$147.2M-25.1%	-$117.7M+60.7%	-$299.7M
Financing Cash Flow	-$62.6M+53.6%	-$134.9M-14.7%	-$117.7M
Dividends Paid	N/A	N/A	N/A
Share Buybacks	N/A	N/A	$72.7M

Metric	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24	Q4'23
Operating Cash Flow	$100.8M+187.6%	$35.0M-64.4%	$98.4M+341.0%	-$40.8M-147.1%	$86.7M+1360.8%	$5.9M-90.7%	$64.1M+1618.0%	-$4.2M
Capital Expenditures	$38.2M+11.1%	$34.4M+47.2%	$23.4M-38.1%	$37.7M-9.5%	$41.7M+44.4%	$28.8M+19.7%	$24.1M-38.6%	$39.3M
Free Cash Flow	$62.6M+9229.7%	$671K-99.1%	$75.1M+195.6%	-$78.6M-274.5%	$45.0M+296.5%	-$22.9M-157.3%	$40.0M+192.0%	-$43.5M
Investing Cash Flow	-$42.2M+3.6%	-$43.8M-54.3%	-$28.4M+26.3%	-$38.5M+10.2%	-$42.9M-24.7%	-$34.4M-9.6%	-$31.4M-48.6%	-$21.1M
Financing Cash Flow	-$2.9M+18.4%	-$3.5M-219.4%	-$1.1M-124.5%	$4.5M+299.2%	-$2.3M+50.5%	-$4.5M+92.5%	-$60.3M-743.4%	-$7.2M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

KLC Financial Ratios

Metric	FY24	FY23	FY22
Gross Margin	23.7%-3.6pp	27.3%-6.9pp	34.2%
Operating Margin	3.0%-8.0pp	11.0%-7.0pp	18.0%
Net Margin	-3.5%-7.6pp	4.1%-6.0pp	10.1%
Return on Equity	N/A	20.2%-33.5pp	53.8%
Return on Assets	-2.5%-5.4pp	2.8%	N/A
Current Ratio	0.52-0.1	0.66	N/A
Debt-to-Equity	1.06-1.4	2.44	N/A
FCF Margin	-0.6%-7.6pp	7.0%-2.4pp	9.3%

Metric	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24	Q4'23
Gross Margin	19.8%-6.0pp	25.8%+3.0pp	22.8%+2.2pp	20.6%-1.8pp	22.4%-5.1pp	27.5%+3.5pp	24.0%	N/A
Operating Margin	3.9%-5.9pp	9.8%+2.5pp	7.3%+21.1pp	-13.8%-21.9pp	8.1%-3.6pp	11.7%+6.5pp	5.1%-2.7pp	7.9%
Net Margin	0.7%-4.8pp	5.5%+2.3pp	3.2%+23.8pp	-20.6%-22.7pp	2.1%-2.1pp	4.1%+4.4pp	-0.3%-2.7pp	2.4%
Return on Equity	0.5%-3.7pp	4.2%+1.8pp	2.4%	N/A	5.9%-6.1pp	12.0%	N/A	2.9%
Return on Assets	0.1%-0.9pp	1.0%+0.5pp	0.6%+4.2pp	-3.7%-4.0pp	0.4%	N/A	N/A	0.4%
Current Ratio	0.71+0.1	0.66+0.1	0.61+0.1	0.52-0.1	0.60	N/A	N/A	0.66
Debt-to-Equity	0.990.0	0.99-0.0	1.04-0.0	1.06-5.3	6.35	N/A	N/A	2.44
FCF Margin	9.3%+9.2pp	0.1%-11.1pp	11.2%+23.4pp	-12.1%-18.9pp	6.7%+10.0pp	-3.3%-9.4pp	6.1%+13.2pp	-7.0%

Note: The current ratio is below 1.0 (0.52), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is KINDERCARE LEARNING COMPANIES's annual revenue?

KINDERCARE LEARNING COMPANIES (KLC) reported $2.7B in total revenue for fiscal year 2024. This represents a 6.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is KINDERCARE LEARNING COMPANIES's revenue growing?

KINDERCARE LEARNING COMPANIES (KLC) revenue grew by 6.1% year-over-year, from $2.5B to $2.7B in fiscal year 2024.

Is KINDERCARE LEARNING COMPANIES profitable?

No, KINDERCARE LEARNING COMPANIES (KLC) reported a net income of -$92.8M in fiscal year 2024, with a net profit margin of -3.5%.

What is KINDERCARE LEARNING COMPANIES's earnings per share (EPS)?

KINDERCARE LEARNING COMPANIES (KLC) reported diluted earnings per share of $-0.96 for fiscal year 2024. This represents a -185.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is KINDERCARE LEARNING COMPANIES's EBITDA?

KINDERCARE LEARNING COMPANIES (KLC) had EBITDA of $196.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does KINDERCARE LEARNING COMPANIES have?

As of fiscal year 2024, KINDERCARE LEARNING COMPANIES (KLC) had $62.3M in cash and equivalents against $918.7M in long-term debt.

What is KINDERCARE LEARNING COMPANIES's gross margin?

KINDERCARE LEARNING COMPANIES (KLC) had a gross margin of 23.7% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.

What is KINDERCARE LEARNING COMPANIES's operating margin?

KINDERCARE LEARNING COMPANIES (KLC) had an operating margin of 3.0% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.

What is KINDERCARE LEARNING COMPANIES's net profit margin?

KINDERCARE LEARNING COMPANIES (KLC) had a net profit margin of -3.5% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.

What is KINDERCARE LEARNING COMPANIES's free cash flow?

KINDERCARE LEARNING COMPANIES (KLC) generated -$16.4M in free cash flow during fiscal year 2024. This represents a -109.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is KINDERCARE LEARNING COMPANIES's operating cash flow?

KINDERCARE LEARNING COMPANIES (KLC) generated $115.9M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.

What are KINDERCARE LEARNING COMPANIES's total assets?

KINDERCARE LEARNING COMPANIES (KLC) had $3.6B in total assets as of fiscal year 2024, including both current and long-term assets.

What are KINDERCARE LEARNING COMPANIES's capital expenditures?

KINDERCARE LEARNING COMPANIES (KLC) invested $132.3M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.

How many shares does KINDERCARE LEARNING COMPANIES have outstanding?

KINDERCARE LEARNING COMPANIES (KLC) had 118M shares outstanding as of fiscal year 2024.

What is KINDERCARE LEARNING COMPANIES's current ratio?

KINDERCARE LEARNING COMPANIES (KLC) had a current ratio of 0.52 as of fiscal year 2024, which is below 1.0, which may suggest potential liquidity concerns.

What is KINDERCARE LEARNING COMPANIES's debt-to-equity ratio?

KINDERCARE LEARNING COMPANIES (KLC) had a debt-to-equity ratio of 1.06 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is KINDERCARE LEARNING COMPANIES's return on assets (ROA)?

KINDERCARE LEARNING COMPANIES (KLC) had a return on assets of -2.5% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.

What is KINDERCARE LEARNING COMPANIES's Altman Z-Score?

KINDERCARE LEARNING COMPANIES (KLC) has an Altman Z-Score of 0.86, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is KINDERCARE LEARNING COMPANIES's Piotroski F-Score?

KINDERCARE LEARNING COMPANIES (KLC) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are KINDERCARE LEARNING COMPANIES's earnings high quality?

KINDERCARE LEARNING COMPANIES (KLC) has an earnings quality ratio of -1.25x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can KINDERCARE LEARNING COMPANIES cover its interest payments?

KINDERCARE LEARNING COMPANIES (KLC) has an interest coverage ratio of 0.5x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is KINDERCARE LEARNING COMPANIES?

KINDERCARE LEARNING COMPANIES (KLC) scores 27 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.