KinderCare Learning Companies, Inc.KLC
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KinderCare cut full-year guidance and reported lower Q2 EBITDA and revenue.
Impact on stocks 1
Consumer Discretionary
KinderCare Learning Companies, Inc.KinderCare Learning Companies lowered its full-year guidance after second-quarter adjusted EBITDA fell to $63 million from $82 million a year earlier. Total revenue slipped to $698 million from $700 million, with same-center revenue down 2% due to lower enrollment and an $11 million impact from 49 center closures. The company now expects full-year adjusted EBITDA between $200 million and $220 million and adjusted EPS between $0.05 and $0.15, citing optimization costs and lower tuition expectations. Champions delivered 13% revenue growth, and Learning Adventures revenue nearly doubled year-over-year, but tuition contribution to revenue growth was reduced to 2.5% from 3% because of slower state subsidy reimbursement rate increases. Free cash flow is expected to be less than $10 million for the year, including $20 million to $25 million in lease exit payments.
KinderCare Learning Companies, Inc.KinderCare cut full-year guidance and reported lower Q2 EBITDA and revenue.