KinderCare Learning Companies (NYSE:KLC) Announces Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• KinderCare beat quarterly expectations, reporting EPS of $0.04 versus analyst estimates for a loss of $0.01, while revenue came in at $672.5 million, slightly above forecasts.
• Management said results were a bit better than expected and raised full-year FY 2026 guidance for adjusted EBITDA and EPS, now projecting EPS of $0.15 to $0.25.
• Enrollment remains the key challenge, with ECE enrollment down about 3% year over year, though the company said marketing changes are beginning to improve inquiries and conversions in targeted areas.

KinderCare Learning Companies (NYSE:KLC - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of ($0.01) by $0.05, FiscalAI reports. The company had revenue of $672.52 million during the quarter, compared to the consensus estimate of $669.13 million. KinderCare Learning Companies had a negative net margin of 4.13% and a positive return on equity of 9.85%. KinderCare Learning Companies's revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.23 earnings per share. 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 Up 7.2%

Shares of KLC stock traded up $0.29 during trading hours on Thursday, reaching $4.40. 2,986,405 shares of the company's stock were exchanged, compared to its average volume of 935,704. The stock's 50 day moving average is $3.05 and its 200-day moving average is $3.97. The company has a market cap of $521.57 million, a price-to-earnings ratio of 5.87 and a beta of 4.61. The company has a current ratio of 0.74, a quick ratio of 0.74 and a debt-to-equity ratio of 1.22. KinderCare Learning Companies has a fifty-two week low of $1.75 and a fifty-two week high of $12.78.

Insiders Place Their Bets

In other KinderCare Learning Companies news, CEO John T. Wyatt purchased 275,000 shares of KinderCare Learning Companies stock in a transaction dated Wednesday, March 18th. The shares were acquired at an average cost of $2.07 per share, with a total value of $569,250.00. Following the completion of the transaction, the chief executive officer owned 1,037,834 shares in the company, valued at approximately $2,148,316.38. This trade represents a 36.05% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Michael Nuzzo bought 25,000 shares of the business's stock in a transaction that occurred on Thursday, March 19th. The stock was purchased at an average cost of $2.22 per share, for a total transaction of $55,500.00. Following the completion of the transaction, the director owned 46,905 shares in the company, valued at $104,129.10. This trade represents a 114.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have bought 519,118 shares of company stock worth $1,054,221. Insiders own 5.31% of the company's stock.

Hedge Funds Weigh In On KinderCare Learning Companies

Several hedge funds have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of KinderCare Learning Companies by 6.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,811 shares of the company's stock valued at $195,000 after acquiring an additional 1,025 shares during the period. Tower Research Capital LLC TRC increased its position in shares of KinderCare Learning Companies by 62.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,128 shares of the company's stock valued at $52,000 after acquiring an additional 1,971 shares during the period. Caitong International Asset Management Co. Ltd increased its position in shares of KinderCare Learning Companies by 350.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 6,600 shares of the company's stock valued at $29,000 after acquiring an additional 5,136 shares during the period. Legal & General Group Plc increased its position in shares of KinderCare Learning Companies by 20.2% in the 2nd quarter. Legal & General Group Plc now owns 30,909 shares of the company's stock valued at $312,000 after acquiring an additional 5,192 shares during the period. Finally, Verition Fund Management LLC increased its position in shares of KinderCare Learning Companies by 42.4% in the 4th quarter. Verition Fund Management LLC now owns 17,800 shares of the company's stock valued at $77,000 after acquiring an additional 5,304 shares during the period.

Analyst Ratings Changes

KLC has been the subject of a number of recent research reports. Barclays reissued an "underweight" rating and issued a $2.00 price objective (down from $6.00) on shares of KinderCare Learning Companies in a research note on Monday, March 16th. Weiss Ratings reissued a "sell (d)" rating on shares of KinderCare Learning Companies in a research note on Friday, March 27th. The Goldman Sachs Group reduced their price target on KinderCare Learning Companies from $5.20 to $2.90 and set a "neutral" rating on the stock in a research report on Monday, March 16th. UBS Group reduced their price target on KinderCare Learning Companies from $4.50 to $3.00 and set a "neutral" rating on the stock in a research report on Friday, March 13th. Finally, Robert W. Baird downgraded KinderCare Learning Companies from an "outperform" rating to a "neutral" rating in a research report on Friday, March 13th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $4.63.

KinderCare Learning Companies Company Profile

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.

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