KinderCare Learning Companies Inc. (KLC) Tanks Nearly 80% YTD—Analysts Still Predict Massive Upside

Jacques Francis

Updated on:

KinderCare Learning Companies Inc. (KLC) saw lighter-than-usual activity in its latest trading session, with 0.75 million shares changing hands compared to its average volume of 0.94 million. The stock traded between an intraday high of $4.05 and a low of $3.90, reflecting relatively narrow price movement. Over the past 52 weeks, KLC has ranged from a high of $24.71 to a low of $3.61, showcasing significant long-term volatility. Analysts currently maintain a 1-year price target of $5.96, and the stock’s beta of 2.17 indicates that it is considerably more volatile than the broader market.

Price Performance and Earnings Overview

KLC’s recent price trajectory continues to reflect steep declines, despite minor short-term recovery. Over the past week, the stock rose 4.79%, but this momentum has not offset deeper losses. Over one month, KLC declined 34.44%, while its three-month performance dropped 45.28%. The downward trend extends further, as the stock fell 68.25% over six months, 77.87% over the past year, and 79.66% year-to-date.

From an earnings perspective, KLC’s trailing twelve-month EPS stands at –0.63, a reflection of ongoing financial challenges. However, analysts expect a turnaround, forecasting 0.63 EPS for next year and 0.09 for the upcoming quarter. These estimates indicate an EPS growth rate of 66.98% this year, though projections suggest a 5.29% decline next year. Long-term expectations call for annual EPS growth of 19.94% over the next five years, despite the company experiencing a –30.49% annual decline over the previous five years.

Share Structure and Short Interest

KLC currently has 118.14 million shares outstanding, with a significantly smaller float of 30.98 million shares available for public trading. As of November 14, 2025, the number of shorted shares totaled 2.42 million, marking a substantial increase from the prior reporting period.

Leadership at KinderCare continues under Mr. Paul Thompson, the firm’s CEO and Director, alongside Mr. Anthony Amandi, who serves as Chief Financial Officer.

Financial Performance: Key Quarterly Results

Investors examining KLC’s financials will note mixed performance in the most recent quarter. For the fiscal period ending September 27, 2025, the company reported $676.83 million in revenue and $29.63 million in operating income. The quarter’s EBITDA measured $64.63 million, while diluted EPS came in at $0.04. These results show operational stability but highlight the company’s ongoing efforts to recover profitability.

Analyst Ratings and Price Target Outlook

Price targets from analysts suggest meaningful upside potential for KLC. Estimates range from a low of $4.50 to a high of $8.00, with an average 12-month target of $5.9625. If the stock reaches its high target, it could surge 103.05% from current levels. Even achieving the lower target represents a potential 14.21% gain, while hitting the average price target would imply an upside of 51.33%.

EPS: Analyst Estimates vs. Actual Results

Earnings estimates provide additional insight into KLC’s future performance. Analysts have issued yearly EPS projections between $0.3412 on the high end and $0.2895 on the low end, resulting in an average estimate of $0.31018. The most recent quarter delivered a notable earnings surprise of $0.26, indicating better-than-expected performance.

Looking ahead, analysts forecast next-quarter EPS between $0.10 and $0.24, with an average expectation of $0.19. These projections underscore cautious optimism as the company works to rebuild growth.

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