KinderCare Learning Companies (NYSE:KLC) reported Q1 fiscal 2026 results exceeding analyst expectations, but shares fell 3%.
Adjusted EPS was $0.04, beating the $-0.01 consensus by $0.05. Revenue reached $672.5M, up 0.6% YoY, surpassing the $669.2M consensus.
GAAP net loss was $289.8M, primarily due to $273.5M goodwill impairment from stock price declines. Net income in the prior year was $21.2M.
Adjusted EBITDA dropped 37.7% to $52.1M. Gross margin improved to 51.3% from 48.4%.
CEO Tom Wyatt said: 'We delivered a solid start, driven by strength in Champions and B2B, team dedication, and early traction from our actions.'
For FY2026, KinderCare raised adjusted EBITDA guidance to $215M-$235M and reiterated EPS guidance of $0.15-$0.25. Revenue outlook remains $2.7B-$2.75B.
