Brown Brothers Harriman, an investment management company, released its Q3 2025 investor letter for the BBH Select Series - Mid Cap Fund. A copy of the same can be downloaded here. In the quarter, the fund decreased by -0.9% on a total return basis compared to the Russell Midcap Index’s 5.3% return. The Fund has decreased by a total return of -1.8%, YTD, compared to 10.4% for the Index. The third quarter experienced a boost in the low-quality rally that started late last year and gained momentum throughout ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $677 million, up nearly 1% from the previous year, with same center revenue at $617 million [5][25] - Same center occupancy was 67%, down 160 basis points from a year ago, reflecting a decline in average weekly full-time enrollments [5][26] - Net income for the quarter was $4.6 million, bringing the year-to-date total to $64 million, a 58% increase over the same period last year [29] - Adjusted EBITDA for Q3 was $66 million, down 7% from last year, with an adjusted EBITDA margin just under 10% [29][30] Business Line Data and Key Metrics Changes - Champions revenue grew 11% year-over-year to $50 million, with 120 net new sites added over the past twelve months [27] - Employer on-site centers maintained average occupancy over 70%, contributing positively to revenue growth [21][27] - Tuition growth was 2% for the quarter, lower than anticipated due to a higher subsidy mix and smaller subsidy rate increases [20][27] Market Data and Key Metrics Changes - The economic environment remains challenging, with elevated inflation and cautious consumer behavior impacting enrollment decisions [9][10] - Enrollment challenges are attributed to both economic factors and state-level subsidy changes, particularly in Indiana where subsidy assistance has decreased significantly [11][56] Company Strategy and Development Direction - The company is focusing on operational efficiency, disciplined execution, and cash management to navigate current economic conditions [10][12] - There is a commitment to expanding access to affordable, high-quality child care through partnerships with state and federal leaders [12][11] - The company plans to accelerate new center openings and tuck-in acquisitions, aiming for mid-20s new center openings per year starting in 2026 [29][37] Management's Comments on Operating Environment and Future Outlook - Management expects enrollment challenges to persist into 2026 but remains confident in returning to historical growth patterns [7][51] - The company anticipates that the recovery in enrollment occupancy will take longer than expected, with updated revenue forecasts for 2025 between $2.72 billion and $2.74 billion [33][34] - There is optimism regarding the long-term outlook for child care funding, supported by historical bipartisan support [7][11] Other Important Information - The company has refined its district leader structure to enhance operational focus and accountability [19] - A new Chief Operating Officer has been appointed to align strategic operational goals with growth initiatives [18] - The company is actively engaging with families to improve retention and satisfaction, evidenced by high engagement survey response rates [16][17] Q&A Session Summary Question: What are the expectations for enrollment heading into 2026? - Management remains optimistic about inquiries at local centers and believes that confidence will return, leading to a return to historical growth patterns [42] Question: Is there any impact from the government shutdown factored into the guidance? - There has been minimal direct impact from the government shutdown, but uncertainty remains regarding state budget decisions [43][44] Question: When does management expect to return to the long-term growth algorithm? - Management anticipates returning to the growth algorithm by 2027, with positive expectations for B2B and new center openings in 2026 [51] Question: What factors contributed to the lower enrollment during the back-to-school period? - A softer starting point for enrollments and economic factors, including consumer confidence, have impacted enrollment [54][56] Question: How is the company addressing potential cost management? - The company is continuously evaluating operational efficiencies and is open to closing underperforming centers if necessary [70][71] Question: What is the expected impact of subsidy changes on the business? - Changes in subsidies have had a significant impact, particularly in states like Indiana, but most states have already budgeted for the upcoming fiscal year [92][93] Question: What are the expectations for pricing in 2026? - Management expects pricing increases to be higher in 2026, driven by local market dynamics and competitive factors [96][98]

An investigation underway after a suspect broke into a Georgia daycare, setting it on fire. All of it captured on camera. Security video obtained by NBC News affiliate WXIA showing the suspect running across the backyard of the property in a black hooded sweatshirt, then using a tool to break through the back entrance.Another camera capturing the moment the suspect pours gasoline down a hallway inside the building before going back outside, setting a fire, and running from the scene, jumping over the proper ...

Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. alleging misleading statements during its October 2024 IPO, claiming that the company concealed a history of safety and care failures from investors [1][5]. Financial Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's unfounded positive statements [3]. Revenue Sources - More than 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions regarding safety and care failures particularly significant, as they expose the company to undisclosed legal and regulatory risks [2]. Legal Investigation - Hagens Berman is investigating the claims against KinderCare, focusing on the alleged concealment of safety and care failures that may have led to an artificially inflated IPO price and subsequent investor losses [4][5]. Investor Communication - The firm encourages investors who purchased KLC stock in the IPO and suffered losses to consider their legal options, emphasizing the disconnect between KinderCare's presentation and the alleged reality of its operations [4][5].

Core Viewpoint - The Gross Law Firm has announced a class action lawsuit on behalf of shareholders of KinderCare Learning Companies, Inc. (NYSE: KLC) due to allegations of misleading statements and failure to disclose incidents of child abuse and neglect at their facilities [1][3]. Group 1: Allegations and Class Period - The lawsuit pertains to all purchasers of KinderCare common stock during the class period, which is traced back to the Company's October 2024 initial public offering [3]. - Allegations include that KinderCare failed to provide adequate care, did not meet minimum industry standards, and was exposed to undisclosed risks of lawsuits and reputational damage [3]. Group 2: Shareholder Actions - Shareholders are encouraged to register for the class action by the deadline of October 14, 2025, to potentially become lead plaintiffs [4]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [4]. Group 3: Law Firm's Mission - The Gross Law Firm aims to protect investors' rights and ensure companies adhere to responsible business practices [5]. - The firm seeks recovery for investors who suffered losses due to misleading statements that inflated the company's stock value [5].

Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and safety record [1][2]. Company Operations and Allegations - The lawsuit claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible" while concealing a history of serious safety and care failures [2][6]. - More than 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions regarding safety and care failures particularly significant [3]. Financial Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Legal Investigation - Hagens Berman is investigating the claims and focusing on the extent to which KinderCare's alleged history of safety failures was concealed, leading to an artificially inflated IPO price and subsequent investor losses [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].

Group 1: Unicycive Therapeutics - A shareholder class action lawsuit has been filed against Unicycive Therapeutics, alleging that the company made materially false and/or misleading statements regarding its ability to meet FDA manufacturing compliance requirements between March 29, 2024, and June 27, 2025 [1] - Investors who purchased Unicycive shares during this period and suffered significant losses are encouraged to discuss their legal rights [1] Group 2: KinderCare Learning Companies - A shareholder class action lawsuit has been filed against KinderCare Learning Companies, claiming that the company made materially false and/or misleading statements in the Registration Statement related to its October 2024 IPO regarding the quality of care at its facilities [2] - Investors who purchased KinderCare shares in connection with the October 2024 IPO and experienced significant losses are encouraged to discuss their legal rights [2] Group 3: Holzer & Holzer, LLC - Holzer & Holzer, LLC is a top-rated securities litigation law firm that focuses on representing shareholders and investors in litigation, including class action and derivative litigation [3] - The firm has been involved in recovering hundreds of millions of dollars for shareholders affected by fraud and corporate misconduct since its founding in 2000 [3]

Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and safety record [1][2]. Group 1: Lawsuit Details - The lawsuit, Gollapalli v. KinderCare Learning Companies, Inc., seeks to represent investors who purchased KLC common stock during or traceable to the IPO [1]. - The complaint claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible," while concealing a history of serious safety and care failures [2]. - The lawsuit highlights that over 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions particularly significant [3]. Group 2: Stock Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Group 3: Investigation and Implications - Hagens Berman is investigating the claims and focusing on the extent to which KinderCare's alleged history of safety failures was concealed, leading to an artificially inflated IPO price [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].

Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and concealed a history of safety failures [1][2]. Group 1: Lawsuit Details - The lawsuit, Gollapalli v. KinderCare Learning Companies, Inc., seeks to represent investors who purchased KLC common stock during or traceable to the IPO [1]. - The complaint claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible" while hiding serious safety and care failures [2]. - The lawsuit emphasizes that over 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions particularly critical [3]. Group 2: Stock Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Group 3: Investigation and Implications - Hagens Berman is investigating the claims and focusing on the extent to which KinderCare's history of safety failures was concealed, leading to an inflated IPO price and subsequent investor losses [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].

Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and safety record [1][2]. Group 1: Lawsuit Details - The lawsuit, Gollapalli v. KinderCare Learning Companies, Inc., seeks to represent investors who purchased KLC common stock during or traceable to the IPO [1]. - The complaint claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible," while concealing a history of serious safety and care failures [2]. - The lawsuit emphasizes that over 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions particularly significant [3]. Group 2: Stock Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Group 3: Investigation and Implications - Hagens Berman is investigating the claims and encourages affected investors to consider their legal options, focusing on the alleged concealment of safety and care failures that inflated the IPO price [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].