KLC Stock Forecast & Price Target

KinderCare Learning Companies Inc. has reported a year-over-year revenue growth of 7.6% for its Champions segment, indicating strong performance in ancillary educational services. In contrast, its Early Childhood Centers (ECE) segment achieved a revenue growth of 1% year-over-year, consistent with expectations, and saw organic growth of 0.5%. Despite a slight decline in weekly full-time equivalent enrollments by 1.4%, the company's same-center revenues still managed to grow by 0.9%, suggesting resilience in its revenue-generating capabilities.

KinderCare Learning Companies Inc. has demonstrated a reduction in its 2025 growth outlook, particularly concerning occupancy rates, leading to lowered revenue and adjusted EBITDA projections. The company experienced a miss in adjusted EBITDA expectations that can be attributed to lower-than-expected occupancy and enrollment figures in the second quarter of 2025. Consequently, estimates have been revised downward, signaling a potentially weak performance for the company's stock moving forward.