Aug. 14 at 8:48 PM
KinderCare Learning Companies shares plunged at midday after the early-childhood education provider reported disappointing Q2 2026 profitability and cut its full-year outlook, triggering a sharp selloff. Adjusted EPS came in at
$0.08 versus the
$0.10 consensus, while adjusted EBITDA fell 23.6% year over year to
$63 million from
$82.4 million. Management lowered its 2026 revenue and EBITDA forecasts, citing lower tuition-rate assumptions tied to reduced government subsidies and an unexpected
$8 million insurance-reserve adjustment.
Operational trends also deteriorated, with total enrollment down 4% year over year and occupancy falling 240 basis points to 68.6%. KinderCare closed 49 early-learning centers during the quarter as part of a network optimization initiative. Wall Street reacted negatively, with JPMorgan downgrading the stock to Underweight from Neutral.
$KLC