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KinderCare Learning Companies

KLC
16
Education & Training Services · Consumer Defensive
Price
$2.75
-0.03 (-1.08%)
Market Cap
$325.7M
Winston Score
16
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jul 4, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Weak
Valuation
Data not available

Share count rising — dilution

+3.5% over 5y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 114.4M (2021) → 118.3M (2026)

Winston Score History

The full picture

KinderCare Learning Companies runs a large network of childcare centers and early education programs across the United States. It serves infants, toddlers, and young children up to school age, offering daycare and preschool-style learning at its KinderCare and Champions branded locations. It is one of the largest for-profit childcare providers in the country.

The company earns money by charging families tuition fees for weekly or monthly enrollment at its centers. It operates primarily in the U.S., with hundreds of locations ranging from standalone community centers to employer-sponsored sites inside corporate campuses. Its scale and established brand give it some advantage over smaller local competitors, but thin margins leave little room for error. The main risk is that childcare is expensive to staff and regulate, and rising labor costs could pressure profitability further, while demand depends heavily on whether parents feel financially secure enough to pay for professional childcare.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

YoY Growth Rate

Revenue data limited

EPS Growth

YoY Growth Rate

EPS data limited

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

71.1%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~14 months

$133M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
-13.0%
Thin — -13.0% gross margin
Profit after running costs
Operating Margin
-41.4%
Losing money on operations — -41.4%
Return on the money invested
ROCE
-10.0%
Weak — -10.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+1.8%
Nearly flat sales (+1.8% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
3.0%
Thin free cash flow (3.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
3.42
Heavy debt load (3.42)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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