KinderCare Learning Companies (NYSE:KLC) Announces Earnings Results

KinderCare Learning Companies (NYSE:KLC) issued its quarterly earnings data on Thursday. The company reported ($0.03) earnings per share for the quarter, FiscalAI reports. The company had revenue of $665.34 million for the quarter, compared to the consensus estimate of $668.77 million. KinderCare Learning Companies had a negative net margin of 17.23% and a positive return on equity of 6.65%. KinderCare Learning Companies’s revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the business posted $0.13 earnings per share. KinderCare Learning Companies updated its FY 2026 guidance to 0.020-0.040 EPS.

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

• Q3 revenue fell 1.7% to $665 million, average weekly early-childhood enrollment declined about 6%, and adjusted EBITDA dropped to $43 million from $66 million a year earlier. The company attributed the pressure mainly to weaker KinderCare enrollment and operating deleverage.
• KinderCare’s enrollment trend improved after back-to-school: new enrollments since mid-September outpaced the same period last year, narrowing the year-over-year enrollment gap by about 200 basis points, though total enrollment remained below last year. Management said high retention and stronger family engagement are encouraging signs, while acknowledging execution needs to improve.
• Growth in other businesses provided a partial offset: Champions’ average weekly enrollment rose about 17% year over year, Crème’s new Irvine center exceeded its first-year enrollment expectations within 50 days, and comparable KinderCare for Employers centers grew enrollment about 2%.
• KinderCare lowered its 2026 outlook to revenue of $2.64–$2.66 billion, adjusted EBITDA of $190–$195 million, and adjusted EPS of $0.02–$0.04; it expects free cash flow below $10 million. Net debt to adjusted EBITDA was about 3.5 times, and management expects leverage to remain elevated through year-end.
• The footprint plan is nearing completion, with 69 centers closed through Q3 and about 85 expected for the year. Closures are expected to generate roughly $10 million in annualized adjusted EBITDA benefit, but also create an estimated $32 million revenue headwind for 2026 and ongoing lease-termination cash costs into 2027.

KinderCare Learning Companies Stock Down 1.6%

Shares of KinderCare Learning Companies stock traded down $0.04 during midday trading on Thursday, hitting $2.10. The company had a trading volume of 870,830 shares, compared to its average volume of 797,411. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.75 and a current ratio of 0.75. The company has a 50 day moving average of $2.07 and a 200 day moving average of $3.40. KinderCare Learning Companies has a 52-week low of $1.63 and a 52-week high of $5.62. The stock has a market capitalization of $249.48 million, a P/E ratio of 5.78 and a beta of 3.67.

Analysts Set New Price Targets

A number of research firms have recently commented on KLC. Morgan Stanley lowered their target price on KinderCare Learning Companies from $2.50 to $2.00 and set an “underweight” rating on the stock in a research note on Wednesday, September 23rd. Zacks Research lowered shares of KinderCare Learning Companies from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 13th. Deutsche Bank restated a “hold” rating and set a $6.00 price target on shares of KinderCare Learning Companies in a research report on Friday, August 14th. UBS Group decreased their price objective on KinderCare Learning Companies from $5.00 to $4.50 and set a “neutral” rating on the stock in a report on Friday, August 14th. Finally, Wall Street Zen upgraded KinderCare Learning Companies from a “strong sell” rating to a “sell” rating in a research report on Tuesday, September 15th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, KinderCare Learning Companies presently has a consensus rating of “Reduce” and an average target price of $3.77.

About KinderCare Learning Companies

KinderCare Learning Companies provides early childhood education and child care in the United States. Its services include full-day care and preschool programs for infants, toddlers and school-age children, with curricula designed to support children’s learning and development. The company operates through brands including KinderCare Learning Centers and Champions, which provides before- and after-school programs. It also offers child care solutions for employers, including on-site centers and backup care.