KinderCare Learning Companies announced that Tom Wyatt will return as chief executive officer, effective December 2, 2025, and will also continue as chairman of the board. Wyatt’s second tenure follows a brief hiatus after he stepped down in June 2024; he will lead the company through a period of strategic expansion while Paul Thompson, the outgoing CEO, remains on the board to support the transition.
Wyatt’s previous decade‑long leadership saw KinderCare grow from a regional provider to the nation’s largest early‑childhood operator, steering acquisitions of Rainbow Childcare in 2018 and the Crème de la Crème School in 2022. Those deals expanded the company’s geographic footprint and added high‑margin brand portfolios, setting the stage for the current focus on early‑childhood and before‑/after‑school programs and employer‑sponsored care initiatives.
Financially, KinderCare reported a 0.8% year‑over‑year revenue increase to $676.8 million in the third quarter of 2025, driven by double‑digit growth in its core early‑childhood and before‑/after‑school segments. However, operating income fell and margins compressed, largely because same‑center occupancy slipped and enrollment trends weakened across the U.S. market. The company’s guidance for the full year was lowered for revenue, adjusted EBITDA, and adjusted EPS, reflecting management’s concern over slower enrollment recovery and a high fixed‑cost base that amplifies margin pressure.
Management emphasized the strategic rationale for Wyatt’s return. Lead independent director Jean Desravines said, “Tom’s transformative leadership and unique experience with KinderCare make him the right person to lead the Company through this next important phase of growth and expansion of our portfolio of brands.” Wyatt added, “I am optimistic about the future of this great organization and excited to be asked by the Board to return as CEO to help position us for growth and fully realize our role in building confidence in children, families and the future we share.” Paul Thompson, the outgoing CEO, noted, “It has been an honor to serve for 10 years on the executive team at KinderCare, including as CEO. I look forward to seeing the next phase of KinderCare’s journey.”
Analysts have responded cautiously. Morgan Stanley downgraded KinderCare to “Equalweight” from “Overweight,” citing enrollment deterioration and margin compression, while Barclays reiterated a “Hold” rating and lowered its price target. The market reaction reflects concern that the company’s high fixed‑cost structure makes it vulnerable to occupancy swings, and that the recent guidance cuts signal a more conservative outlook for revenue and profitability.
Strategically, Wyatt’s return is intended to accelerate growth in the company’s core segments and to deepen employer‑sponsored care programs, but the ongoing enrollment headwinds and margin pressures suggest that the leadership change is a corrective measure rather than a purely growth‑driven move. The company’s focus on expanding early‑childhood and before‑/after‑school services, coupled with a disciplined approach to cost control, will be critical to restoring confidence among investors and stakeholders as KinderCare navigates a fragmented and competitive market.
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