KLC Stock Forecast & Price Target

KinderCare Learning Companies Inc. has demonstrated resilience in its revenue streams, with Champions revenues growing 7.6% year-over-year, showcasing strong demand in the early childhood education sector. Although Early Childhood Centers (ECE) revenues experienced a modest growth of 1% year-over-year, they met expectations, indicating stable performance within that segment. Furthermore, the same-center revenues increased by 0.9% year-over-year, underscoring the company's ability to maintain revenue even amidst a slight decline in weekly full-time equivalent enrollments.

KinderCare Learning Companies Inc. has trimmed its 2025 growth projections, particularly highlighting a notable decline in occupancy, which has necessitated a downward revision of revenue and adjusted EBITDA forecasts. This reduction stems from weaker-than-expected enrollment driven by low occupancy rates, resulting in adjusted EBITDA of $82.4 million that fell short of expectations. Consequently, these factors have led to a cautious outlook on the company's performance, with a general anticipation of continued stock weakness as estimates have been revised lower.