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

KinderCare Learning Companies (NYSE:KLC) released its earnings results on Thursday. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $669.13 million. During the same period in the prior year, the firm earned $0.23 EPS. The firm’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 traded up $0.29 during midday trading on Thursday, hitting $4.40. 2,986,405 shares of the company were exchanged, compared to its average volume of 935,704. The company’s 50 day simple moving average is $3.05 and its 200 day simple moving average is $3.97. The firm has a market capitalization 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 1-year low of $1.75 and a 1-year high of $12.78.

Insider Activity

In other news, CEO John T. Wyatt bought 275,000 shares of the 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 purchase, the chief executive officer directly owned 1,037,834 shares in the company, valued at $2,148,316.38. The trade was a 36.05% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Michael Nuzzo bought 25,000 shares of the stock in a transaction dated Thursday, March 19th. The shares were purchased at an average cost of $2.22 per share, for a total transaction of $55,500.00. Following the completion of the purchase, the director owned 46,905 shares in the company, valued at approximately $104,129.10. This represents a 114.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 519,118 shares of company stock worth $1,054,221. Corporate insiders own 5.31% of the company’s stock.

Institutional Investors Weigh In On KinderCare Learning Companies

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

Analysts Set New Price Targets

Several brokerages have weighed in on KLC. BMO Capital Markets cut their price target on KinderCare Learning Companies from $6.00 to $4.00 and set an “outperform” rating on the stock in a research report on Friday, March 13th. UBS Group cut 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. Barclays reaffirmed an “underweight” rating and set a $2.00 price target (down from $6.00) on shares of KinderCare Learning Companies in a research report on Monday, March 16th. Robert W. Baird downgraded KinderCare Learning Companies from an “outperform” rating to a “neutral” rating in a research report on Friday, March 13th. Finally, The Goldman Sachs Group cut 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. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, KinderCare Learning Companies currently has an average rating of “Reduce” and an average target price of $4.63.

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.