KinderCare Learning Companies, Inc. (NYSE: KLC), a key player in the early childhood education sector, reported its fourth-quarter earnings on March 20, 2025. The company operates more than 2,500 centers in the U.S. and provides various childcare solutions to accommodate families of diverse backgrounds.

In the fourth quarter of 2024, KinderCare demonstrated a stable operating condition, reflecting a notable recovery trajectory. Total revenue reached $647 million, increasing by 4.7% from the prior year’s $618 million. This year-over-year growth was bolstered by an escalation in revenue from early childhood education centers, which rose to $593 million, up 4% year-over-year primarily due to a 3% hike in tuition rates and approximately 1% from increased enrollment.

As for adjusted EBITDA, KinderCare reported $66 million, reflecting a 4.9% increase from $62.9 million in the fourth quarter of 2023. The adjusted EBITDA margin remained flat at 10%. KinderCare’s net loss for the fourth quarter was $133.6 million, with a dilutive net loss per common share of $1.17, contrasting with a net income of $14.8 million and earnings per share of $0.16 for the same period last year.

In terms of operational efficiency, the company added 23 new centers throughout 2024, with seven acquired in the fourth quarter alone. This aligns with a strategic focus on expanding its footprint and enhancing its offerings, particularly with its Champions program, which generated a 12.5% revenue growth to approximately $54 million in the fourth quarter.

KinderCare’s financial outlook for the full year 2025 includes projected revenues of $2.75 to $2.85 billion, indicating growth of 3% to 7% compared to 2024 results. Adjusted EBITDA for the upcoming year is anticipated to fall between $310 million and $325 million, representing a year-over-year increase of 4% to 9%. The company is also guiding adjusted net income per share to land between $0.75 and $0.85, based on adjusted EBITDA contributions from a 53rd operational week, estimated to add an additional $45 to $50 million in revenue for the year.

In 2024, the company saw an increase in average weekly full-time enrollments to 145,000, a slight improvement compared to previous metrics. The overall financial expectations underscore KinderCare’s commitment to expanding its capacity while controlling operational costs amidst a competitive landscape.

For fiscal year 2024, total revenues stood at $2.663 billion, compared to $2.510 billion in 2023, marking a growth of 6%. The company managed to decrease its net debt significantly to $864 million from $1.38 billion year-over-year, achieving a net debt to adjusted EBITDA ratio of 2.9 as of December 28, 2024.