KinderCare Learning Companies delivered solid Q4 2025 results, posting revenue of $688.1 million, a 6.4% increase year-over-year, driven by an extra week in the quarter. Adjusted EBITDA rose 2.6% to $67.7 million, while adjusted net income per diluted share reached $0.12.
Q4 and Full-Year Financial Highlights
The company reported a net loss of $177.2 million for the quarter, up from $133.6 million in the prior year, primarily due to higher impairment losses on goodwill and assets. Full-year 2025 revenue totaled $2.733 billion, up 2.6%, with adjusted EBITDA at $300.1 million, a slight 0.6% gain. Free cash flow improved sharply to $110.3 million for the year.4556
Same-center revenue grew 6.1% in Q4 to $617.8 million, supported by pricing and the 14th week. Early childhood education centers generated $628.2 million in Q4 revenue, while before- and after-school programs contributed $60.0 million.
Operational Metrics and Enrollment Trends
Average weekly full-time equivalent enrollment in early childhood centers stood at 135,900 for Q4, down from 141,000 the prior year. Same-center occupancy dipped to 64.5%, a 340 basis point decline year-over-year, though full-year occupancy held at 67.8%. The company ended the quarter operating 1,601 early childhood centers and 1,153 before- and after-school sites, up 6% overall.56
Growth Strategies and B2B Expansion
KinderCare expanded its Champions before- and after-school brand by 128 net new sites in 2025, boosting revenue to $215 million. Business-to-business initiatives, including employer-sponsored benefits worth about $595 million or 22% of revenue, gained traction with new partnerships. The firm added 13 centers via new openings and acquisitions in Q4, part of 46 such moves for the year.
Net debt stands at $794.3 million, with leverage at 2.6 times trailing adjusted EBITDA and liquidity of $322.9 million.
2026 Outlook
Management projects 2026 revenue between $2.7 billion and $2.75 billion, adjusted EBITDA of $210 million to $230 million, and adjusted EPS of $0.10 to $0.20. Assumptions include modest occupancy growth, 0.5% from new centers, 3% from tuition tuck-ins, 1% from B2B, offset by closures.56
