KinderCare Learning Companies, Inc. (NYSE: KLC) experienced a sharp pre-market plunge of 18.40% on Thursday, as investors reacted to the company's disappointing third-quarter 2025 financial results and reduced full-year guidance released after Wednesday's market close.
The childcare and early education provider reported Q3 2025 adjusted earnings per share of $0.13, meeting analyst expectations and showing a significant improvement from $0.05 per share in the same period last year. However, KinderCare's quarterly revenue of $676.8 million fell short of the analyst consensus estimate of $682.609 million, representing only a modest 0.79% increase year-over-year.
Adding to investor concerns, KinderCare substantially lowered its full-year 2025 outlook. The company now projects revenue between $2.72 billion and $2.74 billion, down from its previous guidance of $2.75 billion to $2.8 billion. Additionally, KinderCare 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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