<span item_type="fundamental" item_id="f53f7ab17e947f9eaf4a84e720e4d6d4" counter_id="ST/US/KLC" env="prod"></span><span item_type="announcement" item_id="582088267177726081" env="prod"></span><p>Revenue: As of FY2025 Q3, the actual value is USD 676.83 M, missing the estimate of USD 682.61 M.</p><p>EPS: As of FY2025 Q3, the actual value is USD 0.04, missing the estimate of USD 0.0817.</p><p>EBIT: As of FY2025 Q3, the actual value is USD 48.68 M.</p><p></p><h3>Segment Revenue</h3><ul><li><strong>Early Childhood Education Centers</strong>: Revenue for the three months ended September 27, 2025, was $626.987 million, a slight increase from $626.439 million for the same period in 2024. For the nine months ended September 27, 2025, revenue was $1,889.669 million, up from $1,872.894 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li><li><strong>Before- and After-School Sites</strong>: Revenue for the three months ended September 27, 2025, was $49.843 million, up from $45.037 million in 2024. For the nine months ended September 27, 2025, revenue was $155.515 million, compared to $143.185 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li></ul><h3>Operational Metrics</h3><ul><li><strong>Net Income</strong>: For the three months ended September 27, 2025, net income was $4.550 million, down from $13.959 million in 2024. For the nine months ended September 27, 2025, net income was $64.295 million, up from $40.743 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li><li><strong>Operating Income</strong>: Income from operations for the three months ended September 27, 2025, was $26.320 million, compared to $54.375 million in 2024. For the nine months ended September 27, 2025, it was $143.838 million, down from $168.580 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li></ul><h3>Cash Flow</h3><ul><li><strong>Operating Cash Flow</strong>: Cash provided by operating activities for the nine months ended September 27, 2025, was $234.282 million, compared to $156.736 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li><li><strong>Free Cash Flow</strong>: Not explicitly stated, but cash used in investing activities was -$114.423 million, and cash used in financing activities was -$7.461 million for the nine months ended September 27, 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li></ul><h3>Unique Metrics</h3><ul><li><strong>Government Assistance</strong>: The company recognized $30.1 million of Employee Retention Credit (ERC) in cost of services for the nine months ended September 27, 2025, compared to $23.4 million in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li></ul><h3>Future Outlook and Strategy</h3><ul><li><strong>Core Business Focus</strong>: The company aims to increase revenues through improved occupancy and consistent price increases, expand its footprint through greenfield development and strategic acquisitions, and develop other revenue streams by leveraging employer relationships and expanding service offerings.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li><li><strong>Non-Core Business</strong>: The company is focused on accessing governmental funding and advocating for support in the early childhood education industry, which includes reimbursements for food costs and grants for capital purchases and teacher compensation.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1873529/000119312525277937/klc-20250927.htm"></span></li></ul>

KinderCare Learning Cos | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 676.83 M