KinderCare Learning Companies (NYSE:KLC) Announces Earnings Results

KinderCare Learning Companies (NYSE:KLC) released its quarterly earnings results on Thursday. The company reported $0.04 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.05, FiscalAI reports. KinderCare Learning Companies had a positive return on equity of 9.85% and a negative net margin of 4.13%.The firm had revenue of $672.52 million during the quarter, compared to the consensus estimate of $669.13 million. During the same quarter in the prior year, the firm posted $0.23 EPS. The business’s revenue was up .6% on a year-over-year basis. KinderCare Learning Companies updated its FY 2026 guidance to 0.150-0.250 EPS.

Here are the key takeaways from KinderCare Learning Companies’ conference call:

• KinderCare said first-quarter results were slightly better than expected, and it raised full-year adjusted EBITDA and EPS guidance on the back of the quarter’s performance.
• Enrollment remained the main headwind, with ECE enrollment down about 3% year over year and same-center occupancy at 66%, though both improved modestly versus the prior quarter.
• Management said its marketing and execution changes are starting to work, citing a 15% increase in inquiries in targeted areas, a 3% increase companywide, and early conversion gains in select centers.
• The company plans to close more centers than usual in 2026 after a broader network review, which it says will create near-term variability even as it aims to strengthen the portfolio long term.
• Champions and B2B continued to perform well, with Champions revenue up 17% and the company signing 12 new tuition benefit clients, helping diversify the mix and offset weakness in core ECE enrollment.

KinderCare Learning Companies Stock Performance

KLC stock traded up $0.29 during trading hours on Thursday, hitting $4.40. 2,986,405 shares of the stock were exchanged, compared to its average volume of 935,704. The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 1.22. The firm has a market capitalization of $521.57 million, a P/E ratio of -4.64 and a beta of 4.61. The company has a 50-day simple moving average of $3.05 and a two-hundred day simple moving average of $3.97. KinderCare Learning Companies has a 12 month low of $1.75 and a 12 month high of $12.78.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on KLC shares. The Goldman Sachs Group dropped their price objective on KinderCare Learning Companies from $5.20 to $2.90 and set a “neutral” rating on the stock in a research note on Monday, March 16th. UBS Group dropped their price objective on KinderCare Learning Companies from $4.50 to $3.00 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Morgan Stanley cut KinderCare Learning Companies from an “equal weight” rating to an “underweight” rating and dropped their price objective for the stock from $6.00 to $2.50 in a research note on Friday, March 13th. BMO Capital Markets dropped their price objective on KinderCare Learning Companies from $6.00 to $4.00 and set an “outperform” rating on the stock in a research note on Friday, March 13th. Finally, Barclays reiterated an “underweight” rating and set a $2.00 price objective (down from $6.00) on shares of KinderCare Learning Companies in a research note on Monday, March 16th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, KinderCare Learning Companies has an average rating of “Reduce” and an average target price of $4.63.

Insider Buying and Selling at KinderCare Learning Companies

In other news, Director Michael Nuzzo acquired 25,000 shares of the stock in a transaction on Thursday, March 19th. The shares were purchased at an average price of $2.22 per share, for a total transaction of $55,500.00. Following the transaction, the director directly owned 46,905 shares of the company’s stock, valued at approximately $104,129.10. This represents a 114.13% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO John T. Wyatt acquired 275,000 shares of the stock in a transaction on Wednesday, March 18th. The shares were purchased at an average price of $2.07 per share, for a total transaction of $569,250.00. Following the transaction, the chief executive officer directly owned 1,037,834 shares in the company, valued at approximately $2,148,316.38. This trade represents a 36.05% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 519,118 shares of company stock worth $1,054,221 in the last quarter. Company insiders own 5.31% of the company’s stock.

Institutional Trading of KinderCare Learning Companies

Several large investors have recently modified their holdings of KLC. Bank of Montreal Can acquired a new stake in shares of KinderCare Learning Companies during the 4th quarter worth $19,994,000. Alyeska Investment Group L.P. grew its holdings in shares of KinderCare Learning Companies by 737.3% during the 3rd quarter. Alyeska Investment Group L.P. now owns 1,084,240 shares of the company’s stock worth $7,199,000 after purchasing an additional 954,743 shares in the last quarter. Frontier Capital Management Co. LLC acquired a new stake in shares of KinderCare Learning Companies during the 2nd quarter worth $5,466,000. Ameriprise Financial Inc. grew its holdings in shares of KinderCare Learning Companies by 69.2% during the 3rd quarter. Ameriprise Financial Inc. now owns 997,836 shares of the company’s stock worth $6,626,000 after purchasing an additional 408,124 shares in the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of KinderCare Learning Companies during the 4th quarter worth $1,304,000.

About KinderCare Learning Companies

KinderCare Learning Companies Inc is a provider of high-quality early childhood education by center capacity. KinderCare Learning Companies Inc is based in PORTLAND, Ore.