KinderCare slightly beats Q4 revenue estimates

Overview

• US early childhood education firm's fiscal Q4 revenue rose slightly, beating analyst expectations

• Adjusted EPS for fiscal Q4 beat analyst expectations

• Net loss widened due to impairment charges tied to stock price decline

Outlook

• Kindercare expects 2026 revenue of $2.70 bln to $2.75 bln

• Company sees 2026 adjusted EBITDA of $210 mln to $230 mln

• Company expects 2026 adjusted net income per share, diluted, of $0.10 to $0.20

Result Drivers

• EXTRA WEEK - Q4 revenue increase was primarily due to the impact of a 14th week in the quarter, contributing $45.1 mln

• LOWER ENROLLMENT - During comparable 13-week periods, revenue fell 1.6%, with a 3.6% decline from lower enrollment, partially offset by higher tuition rates

• IMPAIRMENT CHARGES - Operating loss increased due to $193.6 mln in impairment losses tied to declines in market capitalization from stock price drop

Company press release: ID:nBw2SYd0da

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy."

• Wall Street's median 12-month price target for Kindercare Learning Companies Inc is $6.00, about 82.4% above its March 11 closing price of $3.29

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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