Filing Flows › KinderCare Learning Companies (KLC) › Q1 2025
KinderCare Learning Companies (KLC) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 13, 2025
KinderCare Learning Companies (KLC) reported revenue of $668M for the first quarter 2025 (Q1 2025), +2% from a year earlier and +3% from the quarter before. Operating margin was 7.3%, net earnings $21.2M (3.2% of revenue).
KinderCare Learning Companies, Q1 2025: revenue $668M (+2% year over year), operating margin 7.3%, net earnings $21.2M, operating cash flow $98.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $668M | +3% | +2% |
| Operating profit | $48.8M | — | +45% |
| Net earnings | $21.2M | — | — |
| Operating cash flow | $98.4M | — | +54% |
| Free cash flow | $75.1M | — | +88% |
What changed
Revenue was $668.2M in Q1 2025, up 2% year over year and up 3% from the previous quarter. Early Childhood Education Centers was the largest line at 92% of revenue. Early Childhood Education Centers added $9.7M year over year (up 2%), 72% of the total change.
Operating profit was $48.8M, a 7.3% margin (up 2.2 points year over year). Of the extra revenue versus a year earlier, 112% reached operating profit, above the 5% margin then. Total costs fell 0% while revenue rose 2%. Net earnings were $21.2M. The effective tax rate was 27.0%.
Operating cash flow was $98.4M (up 54% year over year), 465% of net earnings. Non-cash charges added back $30.0M of depreciation and amortization and $3.8M of share-based compensation. Working capital and other items added $43.5M. Capital expenditures of $23.4M left free cash flow of $75.1M.
Questions
What was KinderCare Learning Companies' revenue in the first quarter 2025?
KinderCare Learning Companies (KLC) reported revenue of $668M for the first quarter 2025 (Q1 2025), +2% from a year earlier and +3% from the quarter before.
Was KinderCare Learning Companies profitable in the first quarter 2025?
Operating profit was $48.8M (7.3% of revenue) and net earnings $21.2M.