(Updates with the latest stock moves in the headline and first paragraph, and prior guidance in the fifth paragraph.)
KinderCare Learning Companies (KLC) shares were down nearly 44% in Friday afternoon trading after the company slashed its fiscal 2026 outlook and reported lower Q2 results.
The company reported late Thursday Q2 adjusted earnings of $0.08 per diluted share, down from $0.22 a year earlier.
Revenue for the quarter ended July 4 was $697.5 million, down from $700.1 million a year ago.
Analysts surveyed by FactSet expected $697.9 million.
For 2026, the company now expects adjusted EPS of $0.05 to $0.15 on revenue of $2.66 billion to $2.70 billion. It previously projected adjusted EPS of $0.15 to $0.25 on revenue of $2.7 billion to $2.75 billion.
Analysts expected revenue of $2.71 billion.
Price: $2.73, Change: $-2.11, Percent Change: -43.58%