KinderCare Learning Companies, Inc. announced its financial results for the third quarter ended September 28, 2024, reporting total revenue of $671.5 million, a 7.5% increase compared to $624.5 million in the prior-year period. Revenue from early childhood education centers grew by 6.9%, driven by approximately 6% from higher tuition rates and 1% from increased enrollment.
The company's before- and after-school sites segment saw revenue increase by 16.8% to $6.5 million, primarily due to opening new sites, offering more summer day camps, and increased tuition rates. Adjusted EBITDA increased by 25.1% to $71.4 million, and adjusted net income rose to $4.3 million from an adjusted net loss of $3.4 million in the third quarter of 2023.
However, income from operations decreased by 7.4% to $54.4 million, and net income decreased by 13.0% to $14.0 million, primarily due to a $52.7 million increase in cost of services. This increase was a result of $20.0 million lower cost reimbursements from COVID-19 Related Stimulus and increased personnel costs, partially offset by the overall revenue growth.
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