KinderCare Learning Companies, Inc. (NYSE: KLC), a prominent provider of early childhood education (ECE) services, reported financial results for the first quarter of 2025, marking a stable increase in key financial metrics compared to the previous year.

Total revenue increased by $13.6 million, or 2.1%, to $668.2 million for the first quarter of 2025, up from $654.7 million in the first quarter of 2024. Revenue from early childhood education centers accounted for an increase of $9.7 million, or 1.6%, which included a 2% rise in tuition rates, though enrollment was slightly lower. Before- and after-school site revenue rose by $3.9 million, or 7.8%, largely due to new site openings.

Income from operations grew by $15.2 million, or 45.3%, reaching $48.8 million for the first quarter of 2025, compared to $33.6 million in the same quarter a year earlier. This surge was attributed to a decrease in expenses related to stock-based compensation and bonuses amounting to $16.9 million from the prior year’s distribution to profit interest unit holders.

Net income surged to $21.2 million for the first quarter of 2025, in stark contrast to a net loss of $1.8 million for the first quarter of 2024, marking a $22.9 million change. The increase in net income was aided by a reduction in interest expenses of $16.3 million, primarily due to lower principal amounts and interest rates on the First Lien Term Loan Facility, following amendments made in October 2024.

The adjusted EBITDA for the first quarter of 2025 was $83.6 million, an increase of $9.1 million, or 12.2%, compared to $74.4 million in the first quarter of 2024. Adjusted net income rose $16.7 million to $27.0 million, with adjusted net income per common share, diluted, reported at $0.23, compared to $0.11 in the prior year quarter.

As of March 29, 2025, KinderCare operated 1,582 early childhood education centers and 1,038 before- and after-school sites. The company had a cash position of $131.3 million and $207.4 million in available borrowing capacity under its revolving credit facility, accounting for outstanding letters of credit totaling $55.1 million.

For the overall fiscal year 2025, KinderCare reiterated its revenue guidance, projecting between $2.75 billion and $2.85 billion, anticipating adjusted EBITDA of approximately $310 million to $325 million, and adjusted net income per share to range from $0.75 to $0.85.