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KinderCare Learning Companies (KLC) Q3 2025 earnings results (third quarter 2025)

10-Q filed Nov 12, 2025

KinderCare Learning Companies (KLC) reported revenue of $677M for the third quarter 2025 (Q3 2025), +0.8% from a year earlier and -3% from the quarter before. Operating margin was 3.9%, net earnings $4.5M (0.7% of revenue).

Revenue$677M
Year over year+0.8%
Quarter over quarter-3%
Operating margin3.9%
Net earnings$4.5M

KinderCare Learning Companies, Q3 2025: revenue $677M (+0.8% year over year), operating margin 3.9%, net earnings $4.5M, operating cash flow $101M. The chart follows the revenue to costs, profit and cash.

Q3 2025AmountQ/QY/Y
Revenue$677M-3%+0.8%
Operating profit$26.3M-62%-52%
Net earnings$4.5M-88%-67%
Operating cash flow$101M+188%+16%
Free cash flow$62.6M93×+39%

What changed

Revenue was $676.8M in Q3 2025, up 1% year over year and down 3% from the previous quarter. Early Childhood Education Centers was the largest line at 93% of revenue. Before and After School Sites added $4.8M year over year (up 11%), 90% of the total change.

Operating profit was $26.3M, a 3.9% margin (down 4.2 points year over year). Operating profit fell $28.1M even though revenue rose $5.4M versus a year earlier, so costs grew faster than sales. Total costs grew 5% against revenue growth of 1%. The fastest-growing cost line was SG&A (+12%). Net earnings were $4.5M, down 67% year over year. The effective tax rate was 26.7%.

Operating cash flow was $100.8M (up 16% year over year), 2215% of net earnings. Non-cash charges added back $31.0M of depreciation and amortization and $2.8M of share-based compensation. Working capital and other items added $62.4M. Capital expenditures of $38.2M left free cash flow of $62.6M.

Questions

What was KinderCare Learning Companies' revenue in the third quarter 2025?

KinderCare Learning Companies (KLC) reported revenue of $677M for the third quarter 2025 (Q3 2025), +0.8% from a year earlier and -3% from the quarter before.

Was KinderCare Learning Companies profitable in the third quarter 2025?

Operating profit was $26.3M (3.9% of revenue) and net earnings $4.5M.

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Source: KinderCare Learning Companies 10-Q on SEC EDGAR.