KinderCare Q4 Revenue Up 6% to $688M, EBITDA Margin Guidance Cut to 8%
KinderCare reported Q4 2025 revenue up 6% to $688M after an extra week, but same center occupancy fell to 64.5%, dragging EBITDA margins. The company posted a $177M net loss from a goodwill impairment and forecasts 2026 adjusted EBITDA margins to dip to 8% on lower occupancy and reduced grants.
1. Q4 2025 Financial Performance
KinderCare delivered $688 million in Q4 2025 revenue, up 6% after an extra week, and reported adjusted EPS of $0.12 versus $0.09 a year prior while same center occupancy dropped to 64.5%, down 340 basis points.
2. Impairment Charge and Net Loss
A non-cash goodwill impairment resulted in a $177 million net loss for the quarter, offsetting revenue gains and exerting pressure on profitability metrics.
3. 2026 Guidance and Outlook
Management projects a decline in adjusted EBITDA margins to 8% in 2026 from 11% in 2025 due to lower occupancy, absence of the extra week benefit, and reduced grant funding, with center occupancy expected to fall by 3%.
4. Strategic Initiatives
To address these challenges, KinderCare has appointed a dedicated leader for the business, refocused incentive compensation on growth, and increased investment in paid search to drive enrollment and operational accountability.