KinderCare Learning Companies, Inc.
KLC Consumer Defensive Education & Training Services
KinderCare Learning Companies, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.7 billion, up 2.64% from fiscal 2024. In the quarter to June 2026, revenue was flat, EPS fell 121.2%, free cash flow grew 6,646.7% and total debt was flat, each against the same quarter a year earlier. Revenue growth for three consecutive years; insiders bought in the last twelve months.
Follow KLC
KinderCare Learning Companies, Inc. (KLC) Beneish M-score
KinderCare Learning Companies, Inc.'s Beneish M-score for fiscal 2025 is −2.73; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
Embed this chart
Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.73 | (0.23) |
| FY2024 | −2.50 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.11 | — | 1.02 | |
| Gross margin index | 1.07 | — | 0.56 | |
| Asset quality index | 0.96 | — | 0.39 | |
| Sales growth index | 1.03 | — | 0.92 | |
| Depreciation index | 0.97 | — | 0.11 | |
| SG&A index | 0.68 | — | −0.12 | |
| Total accruals to total assets | (0.09) | — | −0.44 | |
| Leverage index | 1.02 | — | −0.34 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.73 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| CHGG Chegg, Inc. compare | −4.8× |
| FC Franklin Covey Company compare | −3.1× |
| LINC Lincoln Educational Services Corporation compare | −2.8× |
| KLC KinderCare Learning Companies, Inc. | −2.7× |
| DAO Youdao, Inc. Unsponsored ADR compare | −2.4× |
| LGCY Legacy Education Inc. compare | −1.9× |
| PXED Phoenix Education Partners, Inc. compare | −1.8× |
| NEW Puxin Limited compare | — |
| GOTU Gaotu Techedu Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI