KLC (KinderCare Learning) Interest Coverage: 1.39 (As of Jun. 2026) — 26% Below Median

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KLC KinderCare Learning Companies Inc KLC
29 GF Score
Price $2.49
! 6 Warning Signs
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What is KinderCare Learning Interest Coverage?

KinderCare Learning KLC -1.97% 29 Interest Coverage is 1.39 as of Jun. 2026, which is 26% below its 10-year median of 1.89. GuruFocus rates KLC with a GF Score™ of 29/100. The stock has 6 warning signs investors should review. Among 193 Education companies, KinderCare Learning ranks worse than 90.67% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. KinderCare Learning's Operating Income for the three months ended in Jun. 2026 was $25 Mil. KinderCare Learning's Interest Expense for the three months ended in Jun. 2026 was $-18 Mil. KinderCare Learning's interest coverage for the quarter that ended in Jun. 2026 was 1.39. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. KinderCare Learning Companies Inc interest coverage is 1.34, which is low.

The historical rank and industry rank for KinderCare Learning's Interest Coverage or its related term are showing as below:

KLC' s Interest Coverage Range Over the Past 10 Years
Min: 0.53   Med: 1.89   Max: 3.99
Current: 1.34


KLC's Interest Coverage is ranked worse than
90.67% of 193 companies
in the Education industry
Industry Median: 13.8 vs KLC: 1.34

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


KinderCare Learning  (NYSE:KLC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


KinderCare Learning Interest Coverage Related Terms


KinderCare Learning Interest Coverage Historical Data

* Premium members only.

The historical data trend for KinderCare Learning's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

KinderCare Learning Interest Coverage Chart

KinderCare Learning Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 2.27 3.99 1.89 0.53 2.19

KinderCare Learning Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Sep22 Dec22 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.53 1.23 1.68 1.06 1.39

KLC vs GOTU, APEI, JDZG: Interest Coverage Comparison

For the Education & Training Services subindustry, KinderCare Learning's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KinderCare Learning Interest Coverage vs Education Industry

For the Education industry and Consumer Defensive sector, KinderCare Learning's Interest Coverage distribution charts can be found below:

* The bar in red indicates where KinderCare Learning's Interest Coverage falls into.


KLC
29GF Score
KinderCare Learning Companies Inc KLC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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KinderCare Learning Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

KinderCare Learning's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, KinderCare Learning's Interest Expense was $-84 Mil. Its Operating Income was $184 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,368 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*183.994/-83.975
=2.19

KinderCare Learning's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, KinderCare Learning's Interest Expense was $-18 Mil. Its Operating Income was $25 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,337 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*25.321/-18.255
=1.39

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 1.39 mean?
KinderCare Learning (KLC) has a Interest Coverage of 1.39 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KinderCare Learning and its competitors. This is 26% below median its historical median of 1.89. Over the past decade, KinderCare Learning's Interest Coverage has ranged from 0.53 to 3.99. According to the industry distribution chart, KinderCare Learning ranks #175 out of 193 companies in the Education industry, placing it in the top 90.7%.
Is KinderCare Learning's Interest Coverage too high?
KinderCare Learning's current Interest Coverage of 1.39 is 26% below median its 10-year median of 1.89. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 3.99. The Education industry median Interest Coverage is 13.80. KinderCare Learning's value of 1.39 is 89.9% below this industry median. Based on the distribution chart, KinderCare Learning ranks #175 out of 193 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, KinderCare Learning has a GF Score™ of 29/100, reflecting its overall financial health beyond just this single metric.
How does KinderCare Learning's Interest Coverage compare to GOTU and APEI?
According to the Education industry distribution chart, KinderCare Learning ranks #175 out of 193 companies for Interest Coverage. This places KinderCare Learning in the lower half of its industry. The industry median Interest Coverage is 13.80. KinderCare Learning's value of 1.39 is 89.9% below this benchmark. Historically, KinderCare Learning's own Interest Coverage has ranged from 0.53 to 3.99 over the past decade. While the company's 10-year median is 1.89 vs. the industry median of 13.80, KinderCare Learning has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Education company?
The median Interest Coverage among Education companies is 13.80, based on 193 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KinderCare Learning's current Interest Coverage of 1.39 is 89.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on KinderCare Learning and its competitors. For the Education industry, the median Interest Coverage is 13.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KinderCare Learning's current Interest Coverage is 1.39, which is 26% below median its own 10-year median of 1.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KinderCare Learning stock overvalued right now?
KinderCare Learning (KLC) has a current Interest Coverage of 1.39. The current Interest Coverage is 1.39, which is 26% below median its 10-year median of 1.89 and 89.9% below the Education industry median of 13.80. KinderCare Learning's overall GF Score™ is 29/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For KinderCare Learning (KLC), the current Interest Coverage is 1.39 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

KinderCare Learning Business Description

Address 5005 Meadows Road, Lake Oswego, OR, USA, 97035
KinderCare Learning Companies Inc is a private provider of early childhood education and child care services, serving children from six weeks to twelve years through a nationwide network of centers and programs. The company operates through three consumer-facing brands: KinderCare Learning Centers, Creme School, and Champions. KinderCare Learning Centers provide community-based early education and care, Creme School offers premium early education with enrichment-focused programs, and Champions delivers before- and after-school and summer programs for school-aged children.
29GF Score

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