KinderCare Learning Companies, Inc. (NYSE: KLC) saw its stock plummet 11.40% in Thursday's trading session following the release of its third-quarter 2025 financial results. The sharp decline came as the company's revenue fell short of analyst expectations and management lowered its full-year outlook.
For Q3 2025, KinderCare reported adjusted earnings per share of $0.13, in line with analyst consensus estimates and up from $0.05 in the same period last year. However, the company's quarterly revenue of $676.8 million missed the analyst consensus estimate of $682.6 million. This represents only a modest 0.79% increase compared to $671.5 million in the same quarter of the previous year.
Adding to investor concerns, KinderCare lowered its full-year outlook, now projecting revenue between $2.72 billion and $2.74 billion, down from the previous guidance of $2.75 billion to $2.8 billion. The company also reduced its adjusted EPS forecast to a range of $0.64 to $0.67, compared to the earlier projection of $0.77 to $0.82. This downward revision in guidance, coupled with the revenue miss, appears to have sparked a significant sell-off in KLC shares, as investors reassess the company's growth prospects in the competitive childcare and early education market.
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