KinderCare Learning Companies Inc (KLC)

KinderCare Learning Cos., Inc. (KLC) stock experienced a 78.92% decline between October 2024 and October 2025. A securities class action lawsuit was filed against KinderCare and its executives alleging misleading investors following child neglect allegations. The company's Q2 2025 earnings missed expectations, with an EPS of $0.22 versus a $0.26 forecast and revenue of $700 million against an expected $705.72 million. Revenue grew 1.5% year-over-year, but adjusted EBITDA decreased by 5%, while net income increased by 35%. In July 2025, the company completed another debt repricing, which contributed to lower interest expenses.

Demand seasonality affects KinderCare Learning Cos., Inc.'s financial performance. Adjusted EBITDA is typically lowest in the third quarter due to summer enrollment patterns. The fourth quarter is usually the strongest, sometimes amplified by a 53rd week. In Q1 2025, occupancy fell behind the previous year's trend due to a longer sales cycle and slower infant enrollment, potentially influenced by macroeconomic uncertainties.

KinderCare Learning Cos., Inc. (KLC) is a major provider of early childhood education and care in the U.S., offering programs for children aged six weeks to 12 years. Its services include infant, toddler, preschool, kindergarten, and before- and after-school programs, operating under the brand names KinderCare Learning Centers (KCLC), KinderCare Education at Work (KCE at Work), and Champions.

KinderCare Learning Cos., Inc. has a significant presence across the United States, operating over 2,600 early learning programs in 41 states and the District of Columbia. It provides community-based and employer-sponsored services through approximately 1,568 centers in 39 states and D.C. The Champions brand offers before- and after-school services at about 948 sites in 25 states and D.C., often within elementary schools.

KinderCare Learning Cos., Inc.'s brand reputation has been mixed. The company was named a Gallup Exceptional Workplace for the seventh year and surveys highlighted parents' prioritization of childcare. KinderCare endorsed the Child Care Modernization Act, showing commitment to quality after-school care. However, a securities class action lawsuit was filed due to child neglect allegations. An incident in May 2024 involved a child testing positive for cocaine at a KinderCare in Wisconsin, leading to license revocation and revelations of prior safety violations. Other incidents include a toddler found roaming outside a KinderCare in Connecticut. These events have led to public criticism.

KinderCare Learning Cos., Inc. is primarily owned by institutional shareholders, holding 95.35% of the company, with insiders owning 73.32% and retail investors holding 0.00%. Partners Group Holding AG is the largest shareholder, owning 81.42 million shares, representing 68.93% of the company. Other major institutional owners include Brown Advisory Inc, American Century Companies Inc, Fmr LLC, Vanguard Group Inc, Burgundy Asset Management Ltd, BlackRock, Inc., and Millennium Management LLC.