PHILADELPHIA, Aug. 21, 2025 /PRNewswire/ -- Berger Montague PC is investigating potential securities fraud claims on behalf of investors of KinderCare Learning Companies, Inc. ("KinderCare" or the "Company") following the filing of a securities class action lawsuit filed on behalf of investors who purchased or otherwise acquired KinderCare securities between October 6, 2024 through August 12, 2025 (the "Class Period"), including in the Company's initial public offering in October 2024. Andrew Abramowitz, Se ...

PHILADELPHIA, Aug. 18, 2025 /PRNewswire/ -- Berger Montague PC is investigating potential securities fraud claims on behalf of investors of KinderCare Learning Companies, Inc. ("KinderCare" or the "Company") following the filing of a securities class action lawsuit filed on behalf of investors who purchased or otherwise acquired KinderCare securities between October 6, 2024 through August 12, 2025 (the "Class Period"), including in the Company's initial public offering in October 2024.Investor Deadline: Inv ...

Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. regarding its October 2024 IPO, alleging misleading disclosures about the quality of care and education provided by the company [1][3][4]. Company Overview - KinderCare Learning Companies, Inc. is the largest provider of early childhood education in the United States, with over 30% of its revenues derived from federal subsidies, primarily through the Child Care Development Fund [2]. IPO Details - KinderCare priced 27 million shares at $24 per share during its IPO on October 8, 2024, raising total gross proceeds of $648 million [3]. Allegations and Issues - The lawsuit claims that KinderCare's offering documents falsely assured investors of "high-quality" care, while failing to disclose significant issues, including numerous incidents of child abuse and neglect at its facilities [4][6]. - Reports published by analyst Edwin Dorsey highlighted severe allegations against KinderCare, including unsafe conditions for children and calls for accountability from lawmakers [5][6]. Financial Impact - Following the revelations of misconduct, KinderCare's stock price has significantly declined from the IPO price of $24, compounded by disappointing financial results and declining enrollment reported as of August 12, 2025 [5][6].

Core Insights - KinderCare Learning Companies, Inc. reported revenue of $700.11 million for the quarter ended June 2025, showing no year-over-year change and an EPS of $0.22 compared to $0 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $709.57 million, resulting in a surprise of -1.33%, while the EPS surprise was -8.33% against a consensus estimate of $0.24 [1] Performance Metrics - The company operates 1,589 early childhood education centers, exceeding the average estimate of 1,584 by two analysts [4] - Total centers and sites reached 2,632, surpassing the two-analyst average estimate of 2,574 [4] - Before- and after-school sites totaled 1,043, compared to the average estimate of 990 [4] - Revenue from before- and after-school sites was $52.44 million, exceeding the average estimate of $51 million [4] - Revenue from early childhood education centers was $647.68 million, below the average estimate of $660.3 million [4] Stock Performance - KinderCare Learning Companies, Inc. shares returned +0.6% over the past month, while the Zacks S&P 500 composite increased by +2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Robbins LLP is investigating Kindercare Learning Companies, Inc. for potential violations of securities laws and breaches of fiduciary duties by certain officers and directors [1] Company Overview - Kindercare Learning Companies, Inc. operates in the early childhood education and care services sector in the United States [1] Legal Context - Shareholders who have incurred losses in their investment in Kindercare Learning Companies, Inc. are encouraged to seek information regarding their rights [2] - Robbins LLP operates on a contingency fee basis, meaning shareholders do not pay fees or expenses unless a recovery is made [3] Firm Background - Robbins LLP has been active in shareholder rights litigation since 2002 and has recovered over $1 billion for shareholders [3]

Core Viewpoint - Robbins LLP is investigating Kindercare Learning Companies, Inc. for potential violations of securities laws and breaches of fiduciary duties by certain officers and directors [1]. Group 1: Company Overview - Kindercare Learning Companies, Inc. provides early childhood education and care services in the United States [1]. Group 2: Legal Investigation - The investigation by Robbins LLP aims to determine if there were any violations of securities laws by Kindercare's officers and directors [1]. - Shareholders who have lost money in their investment in Kindercare are encouraged to contact Robbins LLP for more information about their rights [2]. Group 3: Robbins LLP Background - Robbins LLP has been dedicated to helping shareholders recover losses and improve corporate governance since 2002, having obtained over $1 billion for shareholders [3].

Financial Data and Key Metrics Changes - KinderCare reported Q1 2025 revenue of $668 million, a 2% increase year-over-year, driven by stable tuition growth and an increased number of centers and sites [24][30] - Adjusted EBITDA for the quarter was $84 million, reflecting a 12% growth year-over-year, with an adjusted EBITDA margin of 13% [30][31] - Net income increased to $27 million from $10 million a year ago, with adjusted EPS rising to $0.23 from $0.11 [31] Business Line Data and Key Metrics Changes - Same center revenue grew to $606 million, up from $598 million a year ago, with same center occupancy at 69.1%, down from 69.6% [24][25] - Champions revenue grew by 7.8% to $53 million, with 88 net new sites added over the past twelve months [28] - The company added 10 centers in Q1, including two CREM schools and expanded into Idaho through an acquisition [8][12] Market Data and Key Metrics Changes - Demand for high-quality childcare continues to outpace supply, supporting KinderCare's market-leading position [6][22] - The company noted a delay in enrollment decisions due to consumer hesitancy, impacting same center occupancy [6][25] - The company anticipates a favorable demand environment despite macroeconomic volatility [5][22] Company Strategy and Development Direction - KinderCare's strategy focuses on driving profitability through operational efficiency and maintaining a healthy spread between wage and tuition increases [15][30] - The company aims to increase new center openings to mid-twenties per year, aligning with long-term growth targets [29] - The expansion of B2B partnerships and tuition benefit programs is a key growth area, with new partnerships established in Q1 [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite macroeconomic complexities, reaffirming guidance for 2025 [22][31] - The company is monitoring consumer behavior and sentiment in light of recent tariff announcements but believes it is better positioned than most due to its service's essential nature [32][33] - Management highlighted the importance of maintaining operational excellence and educational quality as critical pillars for success [17][18] Other Important Information - The company has a strong network of support at the state level for subsidy funding, which is seen as a strategic advantage [21] - KinderCare's G&A expenses were 11% of revenue, illustrating operating leverage at scale [30] - The company has received Gallup's exceptional workplace award for nine consecutive years, reflecting a strong organizational culture [19] Q&A Session Summary Question: What are parents doing with their kids as alternatives to enrolling in centers? - Management noted that parents may be delaying enrollment due to taking longer time off work, leading to later enrollment decisions [36] Question: How does the Champions business perform during economic uncertainty? - Management indicated that Champions remains resilient as it offers a cost-effective solution for parents needing after-school care [38] Question: What is the expected occupancy growth in the medium term? - Management confirmed confidence in a 1% to 2% annual occupancy growth in the medium to long term [43] Question: How much revenue came from M&A in the last twelve months? - Acquisition revenue for tuck-ins was $5.5 million for the trailing twelve months [45] Question: How does the guidance account for varying demand levels? - Management expressed confidence in full-year guidance, emphasizing the ability to manage expenses regardless of macroeconomic conditions [49] Question: Are there differences in enrollment between subsidy and private pay families? - Management clarified that subsidy families are less hesitant once approved, while private pay families may delay decisions based on personal financial situations [72]