Filing Flows › KinderCare Learning Companies (KLC) › Q2 2025
KinderCare Learning Companies (KLC) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 12, 2025
KinderCare Learning Companies (KLC) reported revenue of $700M for the second quarter 2025 (Q2 2025), +1% from a year earlier and +5% from the quarter before. Operating margin was 9.8%, net earnings $38.6M (5.5% of revenue).
KinderCare Learning Companies, Q2 2025: revenue $700M (+2% year over year), operating margin 9.8%, net earnings $38.6M, operating cash flow $35.0M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $700M | +5% | +1% |
| Operating profit | $68.7M | +41% | -15% |
| Net earnings | $38.6M | +82% | +35% |
| Operating cash flow | $35.0M | -64% | +491% |
| Free cash flow | $671K | -99% | — |
What changed
Revenue was $700.1M in Q2 2025, up 1% year over year and up 5% from the previous quarter. Early Childhood Education Centers was the largest line at 93% of revenue. Early Childhood Education Centers added $6.5M year over year (up 1%), 64% of the total change.
Operating profit was $68.7M, a 9.8% margin (down 1.9 points year over year). Operating profit fell $11.9M even though revenue rose $10.2M versus a year earlier, so costs grew faster than sales. Total costs grew 4% against revenue growth of 1%. Net earnings were $38.6M, up 35% year over year. The effective tax rate was 27.3%.
Operating cash flow was $35.0M (up 491% year over year), 91% of net earnings. Non-cash charges added back $31.1M of depreciation and amortization and $3.5M of share-based compensation. Working capital and other items used $38.1M. Capital expenditures of $34.4M left free cash flow of $671K.
Questions
What was KinderCare Learning Companies' revenue in the second quarter 2025?
KinderCare Learning Companies (KLC) reported revenue of $700M for the second quarter 2025 (Q2 2025), +1% from a year earlier and +5% from the quarter before.
Was KinderCare Learning Companies profitable in the second quarter 2025?
Operating profit was $68.7M (9.8% of revenue) and net earnings $38.6M.