KinderCare Learning Companies (NYSE:KLC) Announces Quarterly Earnings Results

KinderCare Learning Companies (NYSE:KLC) announced its earnings results on Thursday. The company reported $0.04 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.05, FiscalAI reports. The firm had revenue of $672.52 million for 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%. The business’s quarterly revenue was up .6% on a year-over-year basis. During the same period last year, the company posted $0.23 EPS. 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 Price Performance

NYSE KLC opened at $4.40 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.74 and a debt-to-equity ratio of 1.22. KinderCare Learning Companies has a 12-month low of $1.75 and a 12-month high of $12.78. The company has a market capitalization of $521.56 million, a PE ratio of -4.64 and a beta of 4.61. The firm’s 50 day moving average is $3.05 and its 200-day moving average is $3.97.

Wall Street Analyst Weigh In

Several analysts have commented on KLC shares. UBS Group dropped their target price on shares of KinderCare Learning Companies from $4.50 to $3.00 and set a “neutral” rating on the stock in a report on Friday, March 13th. BMO Capital Markets dropped their target price on shares of KinderCare Learning Companies from $6.00 to $4.00 and set an “outperform” rating on the stock in a report on Friday, March 13th. The Goldman Sachs Group dropped their target price on shares of KinderCare Learning Companies from $5.20 to $2.90 and set a “neutral” rating on the stock in a report on Monday, March 16th. Morgan Stanley downgraded shares of KinderCare Learning Companies from an “equal weight” rating to an “underweight” rating and dropped their target price for the stock from $6.00 to $2.50 in a report on Friday, March 13th. Finally, Barclays restated an “underweight” rating and set a $2.00 target price (down from $6.00) on shares of KinderCare Learning Companies in a report on Monday, March 16th. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus price target of $4.06.

Insider Buying and Selling

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

Institutional Trading of KinderCare Learning Companies

Hedge funds and other institutional investors have recently made changes to their positions in the business. Tower Research Capital LLC TRC raised its holdings in shares of KinderCare Learning Companies by 62.4% in the second quarter. Tower Research Capital LLC TRC now owns 5,128 shares of the company’s stock valued at $52,000 after purchasing an additional 1,971 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of KinderCare Learning Companies by 350.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 6,600 shares of the company’s stock valued at $29,000 after purchasing an additional 5,136 shares during the last quarter. PharVision Advisers LLC acquired a new stake in shares of KinderCare Learning Companies in the third quarter valued at approximately $68,000. Sherbrooke Park Advisers LLC acquired a new position in KinderCare Learning Companies during the third quarter worth $70,000. Finally, American Trust acquired a new position in KinderCare Learning Companies during the third quarter worth $71,000.

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.