KinderCare (NYSE: KLC) swings to 2026 loss after $314M in impairment charges
Rhea-AI Filing Summary
KinderCare Learning Companies reported second quarter 2026 revenue of $697.5 million, down 0.4% from a year earlier. Income from operations fell sharply to $2.4 million from $68.7 million, and the company recorded a net loss of $8.8 million, or $(0.07) per diluted share, versus net income of $38.6 million, or $0.33 per diluted share, in 2025. Adjusted EBITDA declined 23.6% to $63.0 million, while adjusted net income was $9.9 million, or $0.08 per diluted share.
Results were pressured by higher cost of services and significantly higher impairment losses, including $273.5 million of goodwill impairment in the first half tied to stock-price-driven market capitalization declines, as well as reduced performance and closures at certain centers. For the six months ended July 4, 2026, revenue was $1.37 billion and the company posted a net loss of $298.6 million. Despite the loss, KinderCare generated $104.5 million of operating cash flow and ended the quarter with $173.7 million in cash plus $187.7 million of available revolver capacity. Management updated 2026 guidance to revenue of $2.66–$2.70 billion, adjusted EBITDA of $200–$220 million, and adjusted diluted EPS of $0.05–$0.15.
Positive
- $104.5 million of cash provided by operating activities in the first half of 2026 demonstrates solid cash generation despite GAAP losses.
- Strong liquidity with $173.7 million in cash and $187.7 million of available revolver capacity supports ongoing operations and optimization initiatives.
- Before- and after-school site revenue grew 13.4% year over year in Q2 2026, reflecting successful expansion and higher rates in that segment.
- Full-year 2026 guidance calls for revenue of $2.66–$2.70 billion and adjusted EBITDA of $200–$220 million, implying continued positive adjusted profitability.
Negative
- Q2 2026 swung to a net loss of $8.8 million from net income of $38.6 million a year earlier, reflecting margin compression and higher charges.
- For the first half of 2026, the company reported a substantial net loss of $298.6 million versus net income of $59.7 million in 2025.
- Impairment losses reached $314.4 million in the first half, including $273.5 million of goodwill impairment driven by a decline in market capitalization.
- Income from operations dropped to $2.4 million in Q2 2026 from $68.7 million, pressured by higher service costs, rent, and marketing and the absence of prior-period Employee Retention Credits.
- The company closed 49 early childhood education centers in Q2 2026 as part of a footprint optimization initiative, signaling underperforming locations.
- Management discloses a material weakness in internal control over financial reporting, indicating elevated financial reporting risk.
Filing Explained
During the second quarter ended
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Employee Retention Credits financial
goodwill impairment financial
operating lease right-of-use assets financial
material weakness in our internal control over financial reporting financial
Earnings Snapshot
For full-year 2026, revenue is expected to be $2.66–$2.70 billion, adjusted EBITDA $200–$220 million, and adjusted net income per diluted share $0.05–$0.15.
FAQ
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AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 13, 2026, KinderCare Learning Companies, Inc. (the “Company”) issued a press release announcing its results of operations for the second quarter ended July 4, 2026. A copy of the press release is furnished as Exhibit 99.1.
The information furnished under Item 2.02 of this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference into the Company's filings with the Securities and Exchange Commission under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit |
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Description |
99.1 |
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Press Release dated August 13, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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KinderCare Learning Companies, Inc. |
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Date: |
August 13, 2026 |
By: |
/s/ Anthony Amandi |
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Name: Title: |
Anthony Amandi |
Exhibit 99.1
KinderCare Reports Second Quarter 2026 Financial Results
Second Quarter Highlighted by Continued Progress Across Key Growth Initiatives and Center Footprint Optimization.
Company Updates Full-Year Outlook.
Lake Oswego, Ore. (August 13, 2026) – KinderCare Learning Companies, Inc. (NYSE: KLC) (“KinderCare,” the “Company,” and “we”), a leading provider of high-quality early childhood education, today announced financial results for the second quarter ended July 4, 2026.
Second Quarter 2026 Highlights
Non-GAAP financial measures
“Throughout the second quarter, we remained focused on our mission of providing high-quality early childhood education and care while executing our long-term strategy,” said Tom Wyatt, Chairman and Chief Executive Officer of KinderCare Learning Companies. “We expanded access to our programs in growing communities, built momentum across our early childhood education and school-age offerings, and continued aligning our center footprint to better meet the evolving needs of families.”
Mr. Wyatt continued, “We're encouraged by the progress we're making and remain focused on strengthening KinderCare for the long term. That means supporting our educators, delivering high quality early education and care, and ensuring our centers are positioned to serve families where they live and work.”
Second Quarter 2026 Financial Results
Total revenue decreased $2.6 million, or 0.4%, to $697.5 million for the second quarter of 2026 as compared to $700.1 million for the second quarter of 2025.
Revenue from early childhood education centers decreased by $9.6 million, or 1.5%, for the second quarter of 2026 as compared to the second quarter of 2025. The decrease was driven from 4.0% lower enrollment, partially offset by 2.6% increase from higher tuition rates.
Revenue from before- and after-school sites increased by $7.0 million, or 13.4%, for the second quarter of 2026 as compared to the second quarter of 2025 primarily due to higher rates and opening new sites.
Income from operations was $2.4 million for the second quarter of 2026 as compared to $68.7 million for the second quarter of 2025, a decrease of $66.3 million. The decrease was driven by an increase in cost of services of $48.0 million, primarily due to Employee Retention Credits ("ERC") recognized during the second quarter of 2025, which offsets cost of services (excluding depreciation and impairment) in the comparative period, as well as increased rent, insurance, janitorial, and utilities expense, combined with an increase in marketing spend. Additionally, the decrease was attributable to a $20.7 million increase in impairment losses as a result of more centers with lower operational performance as well as center closures and early lease termination agreements executed during the second quarter of 2026. During the second quarter of 2026, the Company closed 49 early childhood education centers as part of an on-going center optimization initiative. These increases were partially offset by a decrease in selling, general, and administrative expenses of $5.6 million, driven by lower personnel costs primarily due to reduced incentive compensation and stock-based compensation expense.
Net loss was $8.8 million for the second quarter of 2026 as compared to net income of $38.6 million for the second quarter of 2025, a change of $47.4 million. The change was primarily driven by the loss from operations noted above, partially offset by a $16.3 million decrease in income taxes, resulting from an income tax benefit in the second quarter of 2026 compared to income tax expense in the
comparative period. Net loss per common share, diluted was $0.07 for the second quarter of 2026 compared to net income per common share, diluted of $0.33 for the second quarter of 2025.
For the second quarter of 2026, adjusted EBITDA (1) decreased $19.4 million, or 23.6%, to $63.0 million, and adjusted net income (1) decreased $16.1 million, to $9.9 million, from the second quarter of 2025. Adjusted net income per common share, diluted (1) was $0.08 for the second quarter of 2026 compared to $0.22 for the second quarter of 2025.
As of July 4, 2026, the Company operated 1,567 early childhood education centers and 1,128 before- and after-school sites.
Balance Sheet and Liquidity
As of July 4, 2026, the Company had $173.7 million of cash and cash equivalents and $187.7 million of available borrowing capacity under the revolving credit facility, after giving effect to the outstanding letters of credit of $74.8 million.
During the six months ended July 4, 2026, the Company generated $104.5 million in cash provided by operating activities and made net investments totaling $58.5 million, primarily from purchases of property and equipment. Additionally, during the six months ended July 4, 2026, the Company utilized $5.6 million in cash for financing activities.
2026 Outlook
Based on current trends and outlook, the Company is updating its guidance ranges for the full year 2026. Revenue is now expected to be approximately $2.66 billion to $2.70 billion and adjusted EBITDA is expected to be approximately $200 million to $220 million (2). Adjusted net income per common share, diluted is expected to be approximately $0.05 to $0.15 (2). The Company will provide additional details on its outlook during its earnings conference call.
Conference Call and Webcast
Management will host a conference call today at 5:00 pm ET to discuss the financial results for the second quarter of 2026. The conference call will be webcast live via the Company's investor relations website at https://investors.kindercare.com. A replay of the webcast will be made available on the same investor relations website shortly after the event concludes.
Interested parties may also access the conference call live over the phone by dialing 1-833-461-5787 (Toll-free) or 1-585-542-9983 (Toll) and referencing conference ID 681 245 687. Participants are asked to dial in a few minutes prior to the call to register.
A supplemental presentation of second quarter results will be available at https://investors.kindercare.com.
Footnote References
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations or guidance regarding, among other things, future enrollment trends, the impact of occupancy initiatives on future performance, future government support for childcare (including the timing or amount of future grants, reimbursement or other forms of government assistance); future business plans, objectives or initiatives; the Company’s future financial position; future financial outlook and performance; general economic and industry trends; future operating results; and working capital and liquidity and other statements that are not statements of historical facts. When used in this press release and on the related teleconference, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “vision,” or “should,” or the negative thereof or other variations thereon or comparable terminology. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to attract and retain families in our centers, schools and programs, and to attract and retain employers that contract with us for family care benefits for their workforce; our ability to address changes in the demand for child care and workplace solutions; our ability to adjust to shifts in workforce demographics, economic conditions, office environments and unemployment rates; our business may be affected by delays, disruptions or reductions in federally funded childcare subsidies or tuition reimbursements or from reductions in certain federal, state and local government programs; our ability to hire and retain qualified teachers, management, employees, and maintain strong employee engagement; the impact of public health crises on our business, financial condition and results of operations; the negative impact of impairment of goodwill, other intangible assets or long-lived assets on our current and potentially future results of operations; our ability to address adverse publicity; our ability to acquire additional capital; risks associated with acquired centers; our substantial indebtedness could adversely affect our business; our reliance on our subsidiaries; our ability to protect our intellectual property rights; our ability to protect our information technology and that of our third-party service providers; our ability to manage the costs and liabilities of collecting, using, storing, disclosing, transferring and processing personal information; our expectations regarding the effects of existing and developing laws and regulations, litigation and regulatory proceedings; our ability to maintain adequate insurance coverage; the fluctuation in our stock price; we have a material weakness in our internal control over financial reporting; the occurrence of natural disasters, environmental contamination or other highly disruptive events; the interests of Partners Group, a controlling stockholder, may conflict with the interests of our other stockholders; and other risks and uncertainties set forth under “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended January 3, 2026 and in our other filings with the SEC. The Company does not undertake any obligation to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based, except as otherwise required by law.
Use of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures, including EBIT, EBITDA, adjusted EBITDA, adjusted net income, and adjusted net income per common share. Tables showing the reconciliation of these non-GAAP financial measures to the comparable GAAP measures are included at the end of this release. Management believes these non-GAAP financial measures are useful in evaluating the Company’s operating performance, and may be helpful to securities analysts, institutional investors and other interested parties in understanding the Company’s operating performance. Management also uses these non-GAAP financial measures for budgeting and compensation purposes.
Investors are cautioned against placing undue reliance on non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures, such as net (loss) income or net (loss) income per common share. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies because different companies may calculate similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
About KinderCare Learning Companies™
KinderCare Learning Companies, Inc. (NYSE: KLC) is a leading private provider of early childhood and school-age education and care, KinderCare builds confidence for life in children and families from all backgrounds. KinderCare supports hardworking families in 42 states and the District of Columbia with differentiated flexible child care solutions:
KinderCare partners with employers nationwide to address the child care needs of today’s dynamic workforce. We provide customized family care benefits for organizations, including care for young children on or near the site where their parents work, tuition benefits, and backup care where KinderCare programs are located. Headquartered in Lake Oswego, Oregon, KinderCare operates more than 2,600 early learning centers and sites.
Contacts:
Investors
Investor Relations
investors@kindercare.com
Media
Media Relations
media@kindercare.com
Source: KinderCare
KinderCare Learning Companies, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
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July 4, 2026 |
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January 3, 2026 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
173,706 |
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$ |
133,205 |
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Accounts receivable, net |
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114,312 |
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118,523 |
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Prepaid expenses and other current assets |
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54,038 |
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106,291 |
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Total current assets |
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342,056 |
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358,019 |
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Property and equipment, net |
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391,559 |
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417,789 |
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Goodwill |
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692,405 |
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964,829 |
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Intangible assets, net |
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416,774 |
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420,922 |
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Operating lease right-of-use assets |
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1,474,434 |
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1,500,786 |
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Other assets |
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86,339 |
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85,545 |
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Total assets |
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$ |
3,403,567 |
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$ |
3,747,890 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
174,793 |
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$ |
163,312 |
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Current portion of long-term debt |
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9,620 |
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9,620 |
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Operating lease liabilities—current |
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162,938 |
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146,594 |
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Deferred revenue |
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54,875 |
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49,577 |
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Other current liabilities |
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56,893 |
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115,762 |
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Total current liabilities |
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459,119 |
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484,865 |
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Long-term debt, net |
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916,097 |
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917,925 |
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Operating lease liabilities—long-term |
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1,421,301 |
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1,447,524 |
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Deferred income taxes, net |
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34,585 |
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35,454 |
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Other long-term liabilities |
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106,278 |
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106,860 |
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Total liabilities |
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2,937,380 |
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2,992,628 |
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Total shareholders' equity |
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466,187 |
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755,262 |
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Total liabilities and shareholders' equity |
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$ |
3,403,567 |
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$ |
3,747,890 |
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KinderCare Learning Companies, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data and percentages)
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Three Months Ended |
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July 4, 2026 |
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June 28, 2025 |
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Revenue |
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$ |
697,522 |
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$ |
700,110 |
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Costs and expenses: |
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Cost of services (excluding depreciation and impairment) |
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567,434 |
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81.3% |
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519,477 |
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74.2% |
Depreciation and amortization |
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31,699 |
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4.5% |
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31,074 |
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4.4% |
Selling, general, and administrative expenses |
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73,068 |
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10.5% |
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78,648 |
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11.2% |
Impairment losses |
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22,923 |
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3.3% |
|
|
2,235 |
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0.3% |
Total costs and expenses |
|
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695,124 |
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99.7% |
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|
631,434 |
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90.2% |
Income from operations |
|
|
2,398 |
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|
0.3% |
|
|
68,676 |
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|
9.8% |
Interest expense |
|
|
18,255 |
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|
2.6% |
|
|
20,073 |
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|
2.9% |
Interest income |
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|
(970 |
) |
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(0.1%) |
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|
(1,424 |
) |
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(0.2%) |
Other income, net |
|
|
(4,342 |
) |
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(0.6%) |
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|
(3,049 |
) |
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(0.4%) |
(Loss) income before income taxes |
|
|
(10,545 |
) |
|
(1.5%) |
|
|
53,076 |
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|
7.6% |
Income tax (benefit) expense |
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|
(1,775 |
) |
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(0.3%) |
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14,488 |
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|
2.1% |
Net (loss) income |
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$ |
(8,770 |
) |
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(1.3%) |
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$ |
38,588 |
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5.5% |
Net (loss) income per common share: |
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Basic |
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$ |
(0.07 |
) |
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$ |
0.33 |
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Diluted |
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$ |
(0.07 |
) |
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|
$ |
0.33 |
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Weighted average number of common shares outstanding: |
|
|
|
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|
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Basic |
|
|
118,798 |
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|
|
|
|
118,309 |
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Diluted |
|
|
118,798 |
|
|
|
|
|
118,371 |
|
|
|
KinderCare Learning Companies, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data and percentages)
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Six Months Ended |
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July 4, 2026 |
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June 28, 2025 |
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Revenue |
|
$ |
1,370,044 |
|
|
|
|
$ |
1,368,354 |
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Costs and expenses: |
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|
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Cost of services (excluding depreciation and impairment) |
|
|
1,118,357 |
|
|
81.6% |
|
|
1,035,665 |
|
|
75.7% |
Depreciation and amortization |
|
|
62,776 |
|
|
4.6% |
|
|
61,051 |
|
|
4.5% |
Selling, general, and administrative expenses |
|
|
144,197 |
|
|
10.5% |
|
|
150,375 |
|
|
11.0% |
Impairment losses |
|
|
314,398 |
|
|
22.9% |
|
|
3,745 |
|
|
0.3% |
Total costs and expenses |
|
|
1,639,728 |
|
|
119.7% |
|
|
1,250,836 |
|
|
91.4% |
(Loss) income from operations |
|
|
(269,684 |
) |
|
(19.7%) |
|
|
117,518 |
|
|
8.6% |
Interest expense |
|
|
36,475 |
|
|
2.7% |
|
|
40,181 |
|
|
2.9% |
Interest income |
|
|
(1,812 |
) |
|
(0.1%) |
|
|
(2,083 |
) |
|
(0.2%) |
Other income, net |
|
|
(3,435 |
) |
|
(0.3%) |
|
|
(2,651 |
) |
|
(0.2%) |
(Loss) income before income taxes |
|
|
(300,912 |
) |
|
(22.0%) |
|
|
82,071 |
|
|
6.0% |
Income tax (benefit) expense |
|
|
(2,310 |
) |
|
(0.2%) |
|
|
22,326 |
|
|
1.6% |
Net (loss) income |
|
$ |
(298,602 |
) |
|
(21.8%) |
|
$ |
59,745 |
|
|
4.4% |
Net (loss) income per common share: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
(2.52 |
) |
|
|
|
$ |
0.51 |
|
|
|
Diluted |
|
$ |
(2.52 |
) |
|
|
|
$ |
0.50 |
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
118,648 |
|
|
|
|
|
118,274 |
|
|
|
Diluted |
|
|
118,648 |
|
|
|
|
|
118,346 |
|
|
|
KinderCare Learning Companies, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
|
|
Six Months Ended |
|
|||||
|
|
July 4, 2026 |
|
|
June 28, 2025 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(298,602 |
) |
|
$ |
59,745 |
|
Adjustments to reconcile net (loss) income to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
62,776 |
|
|
|
61,051 |
|
Impairment losses |
|
|
314,398 |
|
|
|
3,745 |
|
Change in deferred taxes |
|
|
(2,781 |
) |
|
|
(1,963 |
) |
Amortization of debt issuance costs |
|
|
2,982 |
|
|
|
3,189 |
|
Stock-based compensation |
|
|
4,171 |
|
|
|
7,309 |
|
Realized and unrealized losses from investments held in deferred |
|
|
(2,354 |
) |
|
|
(1,978 |
) |
Gain on disposal of property and equipment |
|
|
— |
|
|
|
(97 |
) |
Changes in assets and liabilities, net of effects of acquisitions |
|
|
23,892 |
|
|
|
2,489 |
|
Cash provided by operating activities |
|
|
104,482 |
|
|
|
133,490 |
|
Investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(58,005 |
) |
|
|
(57,735 |
) |
Payments for acquisitions, net of cash acquired |
|
|
(995 |
) |
|
|
(14,560 |
) |
Proceeds from the disposal of property and equipment |
|
|
— |
|
|
|
169 |
|
Investments in deferred compensation asset trusts |
|
|
(3,537 |
) |
|
|
(3,667 |
) |
Proceeds from deferred compensation asset trust redemptions |
|
|
4,070 |
|
|
|
3,603 |
|
Cash used in investing activities |
|
|
(58,467 |
) |
|
|
(72,190 |
) |
Financing activities: |
|
|
|
|
|
|
||
Payments of deferred offering costs |
|
|
— |
|
|
|
(275 |
) |
Principal payments of long-term debt |
|
|
(4,810 |
) |
|
|
(2,417 |
) |
Payments of debt issuance costs |
|
|
— |
|
|
|
(269 |
) |
Repayments of promissory notes |
|
|
(149 |
) |
|
|
(165 |
) |
Payments of financing lease obligations |
|
|
(511 |
) |
|
|
(689 |
) |
Tax payments related to net settlement of restricted stock units |
|
|
(138 |
) |
|
|
(786 |
) |
Cash used in financing activities |
|
|
(5,608 |
) |
|
|
(4,601 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
|
40,407 |
|
|
|
56,699 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
133,299 |
|
|
|
62,430 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
173,706 |
|
|
$ |
119,129 |
|
KinderCare Learning Companies, Inc.
Consolidated Non-GAAP Measures (Unaudited)
(In thousands, except per share data)
The following table shows EBIT, EBITDA, and adjusted EBITDA for the periods presented, and the reconciliation to its most comparable GAAP measure, net (loss) income, for the periods presented:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
July 4, |
|
|
June 28, |
|
|
July 4, |
|
|
June 28, |
|
||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net (loss) income |
|
$ |
(8,770 |
) |
|
$ |
38,588 |
|
|
$ |
(298,602 |
) |
|
$ |
59,745 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
18,255 |
|
|
|
20,073 |
|
|
|
36,475 |
|
|
|
40,181 |
|
Interest income |
|
|
(970 |
) |
|
|
(1,424 |
) |
|
|
(1,812 |
) |
|
|
(2,083 |
) |
Income tax (benefit) expense |
|
|
(1,775 |
) |
|
|
14,488 |
|
|
|
(2,310 |
) |
|
|
22,326 |
|
EBIT |
|
$ |
6,740 |
|
|
$ |
71,725 |
|
|
$ |
(266,249 |
) |
|
$ |
120,169 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
31,699 |
|
|
|
31,074 |
|
|
|
62,776 |
|
|
|
61,051 |
|
EBITDA |
|
$ |
38,439 |
|
|
$ |
102,799 |
|
|
$ |
(203,473 |
) |
|
$ |
181,220 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impairment losses (1) |
|
|
22,923 |
|
|
|
2,235 |
|
|
|
314,398 |
|
|
|
3,745 |
|
Stock-based compensation (2) |
|
|
1,663 |
|
|
|
3,461 |
|
|
|
4,171 |
|
|
|
7,534 |
|
COVID-19 Related Stimulus, net (3) |
|
|
— |
|
|
|
(26,050 |
) |
|
|
— |
|
|
|
(26,713 |
) |
Other costs (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
210 |
|
Adjusted EBITDA |
|
$ |
63,025 |
|
|
$ |
82,445 |
|
|
$ |
115,096 |
|
|
$ |
165,996 |
|
The following table shows adjusted net income and adjusted net income per common share for the periods presented and the reconciliation to the most comparable GAAP measure, net (loss) income and net (loss) income per common share, respectively, for the periods presented:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
July 4, |
|
|
June 28, |
|
|
July 4, |
|
|
June 28, |
|
||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net (loss) income |
|
$ |
(8,770 |
) |
|
$ |
38,588 |
|
|
$ |
(298,602 |
) |
|
$ |
59,745 |
|
Income tax (benefit) expense |
|
|
(1,775 |
) |
|
|
14,488 |
|
|
|
(2,310 |
) |
|
|
22,326 |
|
Net (loss) income before income tax |
|
$ |
(10,545 |
) |
|
$ |
53,076 |
|
|
$ |
(300,912 |
) |
|
$ |
82,071 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of intangible assets |
|
|
2,074 |
|
|
|
2,309 |
|
|
|
4,148 |
|
|
|
4,618 |
|
Impairment losses (1) |
|
|
22,923 |
|
|
|
2,235 |
|
|
|
314,398 |
|
|
|
3,745 |
|
Stock-based compensation (2) |
|
|
1,663 |
|
|
|
3,461 |
|
|
|
4,171 |
|
|
|
7,534 |
|
COVID-19 Related Stimulus, net (3) |
|
|
— |
|
|
|
(26,050 |
) |
|
|
— |
|
|
|
(26,713 |
) |
Other costs (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
210 |
|
Adjusted income before income tax |
|
|
16,115 |
|
|
|
35,031 |
|
|
|
21,805 |
|
|
|
71,465 |
|
Adjusted income tax expense (5) |
|
|
6,222 |
|
|
|
9,042 |
|
|
|
7,691 |
|
|
|
18,445 |
|
Adjusted net income |
|
$ |
9,893 |
|
|
$ |
25,989 |
|
|
$ |
14,114 |
|
|
$ |
53,020 |
|
Net (loss) income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.07 |
) |
|
$ |
0.33 |
|
|
$ |
(2.52 |
) |
|
$ |
0.51 |
|
Diluted |
|
$ |
(0.07 |
) |
|
$ |
0.33 |
|
|
$ |
(2.52 |
) |
|
$ |
0.50 |
|
Adjusted net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.08 |
|
|
$ |
0.22 |
|
|
$ |
0.12 |
|
|
$ |
0.45 |
|
Diluted |
|
$ |
0.08 |
|
|
$ |
0.22 |
|
|
$ |
0.12 |
|
|
$ |
0.45 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
118,798 |
|
|
|
118,309 |
|
|
|
118,648 |
|
|
|
118,274 |
|
Diluted |
|
|
118,798 |
|
|
|
118,371 |
|
|
|
118,648 |
|
|
|
118,346 |
|
Explanation of add backs: