KinderCare Learning Companies, Inc. (NYSE: KLC) saw its stock price plummet 6.80% in after-hours trading on Wednesday following the release of its third-quarter 2025 financial results. The sharp decline came as the company's revenue fell short of analyst expectations, despite meeting earnings estimates.
For Q3 2025, KinderCare reported adjusted earnings per share of $0.13, in line with analyst consensus estimates. This represents a significant 160% increase from $0.05 per share in the same period last year. However, the company's quarterly revenue of $676.8 million missed the analyst consensus estimate of $682.609 million by 0.85%. The revenue figure shows only a modest 0.79% increase compared to $671.476 million in the same quarter of the previous year.
Adding to investor concerns, KinderCare provided its full-year outlook, projecting revenue between $2.72 billion and $2.74 billion, and adjusted earnings per share in the range of $0.64 to $0.67. The market's negative reaction suggests that these projections may have fallen short of investor expectations, contributing to the after-hours sell-off. As trading resumes in the next session, investors will be closely watching to see if the stock can recover from this sharp decline or if the disappointing results will lead to a prolonged downturn.
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