KLC Stock Forecast & Price Target

KinderCare Learning Companies Inc. demonstrated overall growth in its revenue streams, with Champions revenues increasing by 7.6% year-over-year. Additionally, Early Childhood Centers (ECE) revenues experienced a 1% year-over-year growth, aligning with expectations and reflecting a 0.5% organic growth. Despite a decline in weekly full-time equivalent enrollments by 1.4%, same-center revenues still managed to rise by 0.9% year-over-year, highlighting the company's ability to maintain revenue stability in a challenging environment.

KinderCare Learning Companies Inc. has issued a revised 2025E growth outlook, significantly lowering its revenue and adjusted EBITDA projections primarily due to declining occupancy levels, which has directly impacted enrollment figures. In the second quarter of 2025, the company reported an adjusted EBITDA of $82.4 million, falling short of expectations amid weaker-than-anticipated enrollment linked to occupancy challenges. This trend of declining occupancy and resulting financial underperformance has led to a further reduction in estimates, contributing to a negative sentiment regarding the stock's future performance.