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On March 20, 2025, KinderCare issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 28, 2024 and provided guidance for 2025. Among other items, KinderCare reported an operational loss of $89.3 million in the fourth quarter of 2024, contrasting with an operational income of $48.7 million in the previous year. KinderCare attributed the loss primarily to increased equity-based compensation expenses and lower COVID-19 stimulus reimbursements. KinderCare also provided full-year guidance that fell short of consensus estimates.
Following this news, KinderCare’s stock price fell over 22% on March 21, 2025.