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KinderCare Learning Companies (KLC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

KinderCare Learning Companies
NYSE•Consumer Defensive•Education & Training Services
$2.40+0.06(0.02%)Market open
Market Cap
$266.11M
P/S
0.1x
P/B
0.6x

KinderCare Learning Companies, Inc. provides early childhood education and care services in the United States. The company offers community-based early childhood education services for infants, toddlers, preschool, and kindergarten students; and customized family care benefits for organizations, including care for young children on or near the site where their parents work, tuition benefits, and backup care under the KinderCare Learning Centers (KCLC) and Crème School brands. It also provides before-and after-school programs, including summer camp programs for preschool and school-age children under the Champions brand. The company was formerly known as KC Holdco, LLC and changed its name to KinderCare Learning Companies, Inc. in January 2022. KinderCare Learning Companies, Inc. was founded in 1969 and is headquartered in Lake Oswego, Oregon.

D

How this company scores

WeakMetricSide Score: 33/100

Grade capped at D — Interest coverage below 1× (0.1x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (17/25); weakest: Growth (5/25).

Profitability5/25
Growth5/25
Balance Sheet & Red Flags6/25
Cash & Earnings Quality17/25
Strengths
Rising free cash flowImproving margins
Grade capped at D
  • Interest coverage below 1× (0.1x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 0.1x5y range 0.1x – 0.3x
P/S 0.1x · below its 5-quarter median

Currently below its 5-quarter median.

P/B · 0.6x5y range 0.6x – 10.0x
P/B 0.6x · below its 8-quarter median

Currently below its 8-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 326.8% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume
Market Cap $266.11M

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$2.74B
32%
Q. Revenue
$697.52M
0%
TTM EBITDA
$-219.47M
4Q
TTM Op. Income
$-407.26M
4Q
Q. Op. Income
$2.40M
97%
TTM Net Income
$-471.23M
5Q
Q. Net Income
$-8.77M
123%
EPS
$-0.07
121%
Shares Out.
$118.80M
7Q
$2.74B in TTM revenue declined 32.2% YoY, reaching $697.52M last quarter. TTM EBITDA of $-219.47M and TTM operating income of $-407.26M show growth is flowing through to the bottom line. However, net income is negative at $471.23M — growth is not yet reaching the bottom line. Over the past year, TTM revenue is down 32% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
4.9%
66%
Op. Margin
0.3%
96%
Net Margin
-1.3%
123%
Op. margin of 0.3% is down 9.5% YoY — costs are rising relative to revenue. Net margin at -1.3% Over the past year, operating margin is down 96% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
N/A
P/S Ratio
0.1x
4Q
P/B Ratio
0.6x
7Q
P/S of 0.1x and P/B of 0.6x. P/S is low relative to typical market levels.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$3.40B
3Q
Cash
$173.71M
46%
Long-Term Debt
$916.10M
3Q
Book Value
$466.19M
3Q
D/E Ratio
2.0
3Q
Debt/EBITDA
26.9
2Q
With $3.40B in assets and $916.10M in long-term debt, D/E is 2.0and book value is $466.19M — moderate leverage. Across the last 8 quarters, debt/equity has risen for 3 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$73.42M
2Q
TTM Free Cash Flow
$80.99M
37%
FCF Margin
3.0%
101%
FCF / Net Income
-0.2
90%
TTM FCF of $80.99M on $73.42M in operating cash flow. The FCF / Net Income ratio of -0.2x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is up 37% — an improving trend.

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Leverage Risk

Watch

Debt-to-equity has risen 98.1% recently — increasing financial risk even if the current ratio is manageable.

Cash Burn

Watch

FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.

Share Dilution

Red Flag

Shares outstanding increased 31.5% — significant dilution, likely from stock compensation or capital raises.