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KinderCare Learning Companies Inc (KLC)
NYSE:KLC
Earnings Data
Report Date
May 19, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
>-0.01Last Year’s EPS
0.23Same Quarter Last Year
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a balanced picture: financial and operational stability signals (improved SG&A, lower interest expense, free cash flow funding acquisitions, Champions and B2B momentum, Opportunity Region progress, and leadership actions) were offset by persistent enrollment softness, meaningful occupancy declines, a large non-cash goodwill impairment producing net losses, and materially lower 2026 profitability guidance driven by deleveraging and grant normalization. Management outlined clear initiatives to drive enrollment and execution but acknowledged that near-term results will be pressured.Company Guidance
Q4 Revenue Growth (Including Extra Week)
Q4 revenue of $688M, up 6% year-over-year, driven primarily by an incremental $45M contribution from the fifty-third week; on a comparable basis revenue was essentially flat year-over-year.
Adjusted EBITDA and EPS Improvement
Q4 adjusted EBITDA of $68M (includes ~ $12M from the extra week) and adjusted EPS of $0.12, up $0.03 versus prior year; full-year adjusted EBITDA of $300M (up just under 1%) and adjusted EPS improved to $0.70 from $0.40 in 2024.
Strong Performance from Champions Brand
Champions generated $60M in Q4, up 12% year-over-year, and contributed ~8% of total revenue in 2025, driven by aggressive new site openings and client growth.
B2B / Employer-Sponsored Expansion
Expanded B2B footprint with six new on-site openings in 2025 (record year), bringing total employer-sponsored centers to 77 and helping diversify revenue streams.
Disciplined Capital Allocation and Cash Generation
Full-year free cash flow of $110M funded $23M of acquisitions; ended year with net debt to adjusted EBITDA of 2.6x (near the low end of target 2.5x–3.0x), and interest expense declined significantly year-over-year after post-IPO debt actions.
Operational Improvements in Lower-Performing Centers
Opportunity Region initiatives produced encouraging improvement in lowest quintile centers and management is expanding proven practices across the fleet to stabilize performance.
SG&A and Cost Discipline
SG&A to revenue improved to 10.7% (down versus prior year which included elevated IPO-related costs); company highlighted disciplined expense management and alignment of cost structure to current enrollment.
Leadership, Culture, and Strategic Actions
CEO returned in December, leadership restructuring (Michael Canavan refocused on core brand), incentive plan tied 100% to profitable FTE growth, increased investment in paid search/marketing, and recognition as a Gallup Exceptional Workplace for the tenth consecutive year.
KLC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KLC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 12, 2026 | $3.40 | $1.95 | -42.65% |
Nov 12, 2025 | $5.00 | $4.04 | -19.20% |
Aug 12, 2025 | $9.81 | $7.62 | -22.32% |
May 13, 2025 | $13.46 | $12.31 | -8.54% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does KinderCare Learning Companies Inc (KLC) report earnings?
KinderCare Learning Companies Inc (KLC) is schdueled to report earning on May 19, 2026, After Close (Confirmed).
What is KinderCare Learning Companies Inc (KLC) earnings time?
KinderCare Learning Companies Inc (KLC) earnings time is at May 19, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KLC EPS forecast?
KLC EPS forecast for the fiscal quarter 2026 (Q1) is >-0.01.