KinderCare swings to $85M net loss in Q3 2026
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
KinderCare Learning Companies, Inc. (KLC) reported third-quarter revenue of $665.3 million, down 1.7% from $676.8 million a year earlier. It recorded a $75.5 million operating loss, compared with $26.3 million operating income, and an $85.0 million net loss, versus $4.6 million net income. Adjusted EBITDA was $42.5 million, down 35.9%; adjusted net loss was $3.0 million, compared with adjusted net income of $15.3 million.
Early-childhood center revenue fell 3.1%, as enrollment declined 5.9%, partly offset by a 2.8% increase from higher tuition. Before- and after-school revenue rose 16.4%. KinderCare closed 20 early-childhood centers during the quarter. Impairment losses were $86.8 million, including goodwill, long-lived asset and legacy trade-name impairments.
As of October 3, 2026, KinderCare had $143.4 million in cash and $187.7 million in available revolving-credit capacity after $74.8 million in letters of credit. For the first nine months, operating activities provided $109.8 million in cash and net investments totaled $91.3 million. The updated 2026 outlook is approximately $2.64 billion to $2.66 billion in revenue, $190 million to $195 million in adjusted EBITDA, and $0.02 to $0.04 in adjusted net income per diluted share.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Minor pointBefore- and after-school revenue rose 16.4% year over year.
Negative
- Major pointNet loss reached $85.0 million, versus $4.6 million income in third-quarter 2025.
- Moderate pointAdjusted EBITDA declined 35.9% to $42.5 million in the quarter.
Filing Explained
The results release adds a nine-month view: through October 3, 2026, KinderCare reported an operating loss of
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
goodwill impairment financial
indefinite-lived intangible assets financial
operating lease right-of-use assets financial
Employee Retention Credits financial
Earnings Snapshot
Updated full-year 2026 outlook: revenue of approximately $2.64 billion to $2.66 billion; adjusted EBITDA of approximately $190 million to $195 million; adjusted net income per diluted common share of approximately $0.02 to $0.04.
FAQ
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What were KLC's third-quarter 2026 financial results?
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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
Date of Report (Date of earliest event reported): |
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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 November 12, 2026, KinderCare Learning Companies, Inc. (the “Company”) issued a press release announcing its results of operations for the third quarter ended October 3, 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 November 12, 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: |
November 12, 2026 |
By: |
/s/ Anthony Amandi |
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Name: Title: |
Anthony Amandi |
Exhibit 99.1
KinderCare Reports Third Quarter 2026 Financial Results
Third Quarter Highlighted by Actions to Enhance Center Operations and Continued Strength in Champions.
Company Updates Full-Year Outlook.
Lake Oswego, Ore. (November 12, 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 third quarter ended October 3, 2026.
Third Quarter 2026 Highlights
Non-GAAP financial measures
“While third-quarter enrollment at KinderCare Learning Centers fell short of our expectations, recent improvements reinforce our confidence in the operational changes we've made,” said Tom Wyatt, Chairman and Chief Executive Officer of KinderCare Learning Companies. “We’ve strengthened field leadership and helped center teams focus on the critical work of welcoming and supporting families. Since the end of back-to-school, new enrollments have outpaced the same period last year, although overall enrollment remains below last year’s levels. Additionally, Champions’ strong results, progress at Crème and opportunities in KinderCare for Employers give us a foundation to build on heading into 2027.”
Mr. Wyatt continued, “We know families face tough financial choices, and we’re focused on demonstrating the value of KinderCare’s high-quality education and care across all of our brands. Throughout it all, our focus remains unwavering: to reach more children and families, continue investing in our people and classrooms, and make a lasting difference in communities nationwide."
Third Quarter 2026 Financial Results
Total revenue decreased $11.5 million, or 1.7%, to $665.3 million for the third quarter of 2026 as compared to $676.8 million for the third quarter of 2025.
Revenue from early childhood education centers decreased by $19.6 million, or 3.1%, for the third quarter of 2026 as compared to the third quarter of 2025. The decrease was driven from 5.9% lower enrollment, partially offset by 2.8% increase from higher tuition rates. The impact of operating fewer centers from our ongoing center optimization initiative reduced enrollment by approximately 190 basis points for the three months ended October 3, 2026 as compared to the three months ended September 27, 2025.
Revenue from before- and after-school sites increased by $8.2 million, or 16.4%, for the third quarter of 2026 as compared to the third quarter of 2025 primarily due to increased enrollment and opening new sites.
Loss from operations was $75.5 million for the third quarter of 2026 as compared to income of $26.3 million for the third quarter of 2025, a decline of $101.8 million. The decrease was driven by an $83.4 million increase in impairment losses in the third quarter of 2026 primarily due to the deterioration in our market capitalization from the decline in our stock price in the period triggering goodwill impairment, more centers closed and centers with lower operational performance resulting in higher impairment of long-lived assets, as well as indefinite-lived intangible asset impairment related to certain legacy trade names and trademarks. During the third quarter of 2026, the Company closed 20 early childhood education centers as part of an on-going center optimization initiative. Additionally, the decrease was attributable to an increase in cost of services of $8.1 million, primarily due to higher rent, insurance, janitorial, utilities and food costs, combined with an increase in marketing spend which was partially offset by lower personnel costs due to reduced labor hours as a result of lower enrollment. Selling, general and administrative expenses remained relatively consistent for the third quarter of 2026 compared to the third quarter of 2025, due to reduced expenses from long-term compensation plans offset by increased severance expense incurred from organizational changes during the quarter as well as higher closed center costs due to our center optimization initiative.
Net loss was $85.0 million for the third quarter of 2026 as compared to net income of $4.6 million for the third quarter of 2025, a decline of $89.6 million. The decrease was primarily driven by the loss from operations noted above, partially offset by a $9.9 million decrease in income taxes, resulting from an income tax benefit in the third quarter of 2026 compared to income tax expense in the comparative period. Net loss per common share, diluted was $0.71 for the third quarter of 2026 compared to net income per common share, diluted of $0.04 for the third quarter of 2025.
For the third quarter of 2026, adjusted EBITDA (1) decreased $23.9 million, or 35.9%, to $42.5 million, and adjusted net income (1) decreased $18.3 million, to an adjusted net loss (1) of $3.0 million, from the third quarter of 2025. Adjusted net loss per common share, diluted (1) was $0.03 for the third quarter of 2026 compared to adjusted net income per share, diluted (1) of $0.13 for the third quarter of 2025.
As of October 3, 2026, the Company operated 1,556 early childhood education centers and 1,208 before- and after-school sites.
Balance Sheet and Liquidity
As of October 3, 2026, the Company had $143.4 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 nine months ended October 3, 2026, the Company generated $109.8 million in cash provided by operating activities and made net investments totaling $91.3 million, primarily from purchases of property and equipment. Additionally, during the nine months ended October 3, 2026, the Company utilized $8.4 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 $2.64 billion to $2.66 billion and adjusted EBITDA is expected to be approximately $190 million to $195 million (2). Adjusted net income per common share, diluted is expected to be approximately $0.02 to $0.04 (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 third 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 633 177 554. Participants are asked to dial in a few minutes prior to the call to register.
A supplemental presentation of third 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 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, and our ability to manage any adverse impact of a prolonged shutdown of the United States government on these factors; 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; our ability to address adverse publicity; changes in federal child care and education spending policies, tax incentives and budget priorities; our ability to acquire additional capital; our ability to successfully identify acquisition targets, acquire businesses and integrate acquired operations into 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 ability to manage payment-related risks; 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; the occurrence of natural disasters, environmental contamination or other highly disruptive events; expenses associated with being a public company 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 (loss) income, and adjusted net (loss) 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 2,700 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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October 3, 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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$ |
143,406 |
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$ |
133,205 |
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Accounts receivable, net |
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113,343 |
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118,523 |
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Prepaid expenses and other current assets |
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63,143 |
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106,291 |
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Total current assets |
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319,892 |
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358,019 |
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Property and equipment, net |
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387,856 |
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417,789 |
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Goodwill |
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621,797 |
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964,829 |
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Intangible assets, net |
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411,000 |
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420,922 |
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Operating lease right-of-use assets |
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1,867,121 |
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1,500,786 |
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Other assets |
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80,729 |
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85,545 |
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Total assets |
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$ |
3,688,395 |
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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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$ |
159,039 |
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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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137,097 |
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146,594 |
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Deferred revenue |
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46,336 |
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49,577 |
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Other current liabilities |
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63,150 |
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115,762 |
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Total current liabilities |
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415,242 |
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484,865 |
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Long-term debt, net |
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915,224 |
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917,925 |
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Operating lease liabilities—long-term |
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1,837,689 |
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1,447,524 |
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Deferred income taxes, net |
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32,760 |
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35,454 |
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Other long-term liabilities |
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102,466 |
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106,860 |
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Total liabilities |
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3,303,381 |
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2,992,628 |
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Total shareholders' equity |
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385,014 |
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755,262 |
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Total liabilities and shareholders' equity |
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$ |
3,688,395 |
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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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October 3, 2026 |
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September 27, 2025 |
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Revenue |
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$ |
665,336 |
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$ |
676,830 |
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Costs and expenses: |
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Cost of services (excluding depreciation and impairment) |
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551,234 |
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82.9% |
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543,139 |
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80.2% |
Depreciation and amortization |
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30,341 |
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4.6% |
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31,019 |
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4.6% |
Selling, general, and administrative expenses |
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72,555 |
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10.9% |
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73,043 |
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10.8% |
Impairment losses |
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86,755 |
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13.0% |
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3,309 |
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0.5% |
Total costs and expenses |
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740,885 |
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111.4% |
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650,510 |
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96.1% |
(Loss) income from operations |
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|
(75,549 |
) |
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(11.4%) |
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|
26,320 |
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3.9% |
Interest expense |
|
|
18,303 |
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|
2.8% |
|
|
24,095 |
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|
3.6% |
Interest income |
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|
(967 |
) |
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(0.1%) |
|
|
(1,731 |
) |
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(0.3%) |
Other expense (income), net |
|
|
316 |
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|
0.0% |
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|
(2,249 |
) |
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(0.3%) |
(Loss) income before income taxes |
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|
(93,201 |
) |
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(14.0%) |
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|
6,205 |
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|
0.9% |
Income tax (benefit) expense |
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|
(8,230 |
) |
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(1.2%) |
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|
1,655 |
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|
0.2% |
Net (loss) income |
|
$ |
(84,971 |
) |
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(12.8%) |
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$ |
4,550 |
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0.7% |
Net (loss) income per common share: |
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Basic |
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$ |
(0.71 |
) |
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$ |
0.04 |
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Diluted |
|
$ |
(0.71 |
) |
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|
$ |
0.04 |
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|
Weighted average number of common shares outstanding: |
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|
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|
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Basic |
|
|
118,862 |
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|
|
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|
118,353 |
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|
Diluted |
|
|
118,862 |
|
|
|
|
|
118,413 |
|
|
|
KinderCare Learning Companies, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data and percentages)
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Nine Months Ended |
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October 3, 2026 |
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September 27, 2025 |
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Revenue |
|
$ |
2,035,380 |
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|
|
|
$ |
2,045,184 |
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Costs and expenses: |
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|
|
|
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Cost of services (excluding depreciation and impairment) |
|
|
1,669,591 |
|
|
82.0% |
|
|
1,578,804 |
|
|
77.2% |
Depreciation and amortization |
|
|
93,117 |
|
|
4.6% |
|
|
92,070 |
|
|
4.5% |
Selling, general, and administrative expenses |
|
|
216,752 |
|
|
10.6% |
|
|
223,418 |
|
|
10.9% |
Impairment losses |
|
|
401,153 |
|
|
19.7% |
|
|
7,054 |
|
|
0.3% |
Total costs and expenses |
|
|
2,380,613 |
|
|
117.0% |
|
|
1,901,346 |
|
|
93.0% |
(Loss) income from operations |
|
|
(345,233 |
) |
|
(17.0%) |
|
|
143,838 |
|
|
7.0% |
Interest expense |
|
|
54,778 |
|
|
2.7% |
|
|
64,276 |
|
|
3.1% |
Interest income |
|
|
(2,779 |
) |
|
(0.1%) |
|
|
(3,814 |
) |
|
(0.2%) |
Other income, net |
|
|
(3,119 |
) |
|
(0.2%) |
|
|
(4,900 |
) |
|
(0.2%) |
(Loss) income before income taxes |
|
|
(394,113 |
) |
|
(19.4%) |
|
|
88,276 |
|
|
4.3% |
Income tax (benefit) expense |
|
|
(10,540 |
) |
|
(0.5%) |
|
|
23,981 |
|
|
1.2% |
Net (loss) income |
|
$ |
(383,573 |
) |
|
(18.8%) |
|
$ |
64,295 |
|
|
3.1% |
Net (loss) income per common share: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
(3.23 |
) |
|
|
|
$ |
0.54 |
|
|
|
Diluted |
|
$ |
(3.23 |
) |
|
|
|
$ |
0.54 |
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
118,719 |
|
|
|
|
|
118,300 |
|
|
|
Diluted |
|
|
118,719 |
|
|
|
|
|
118,368 |
|
|
|
KinderCare Learning Companies, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
|
|
Nine Months Ended |
|
|||||
|
|
October 3, 2026 |
|
|
September 27, 2025 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(383,573 |
) |
|
$ |
64,295 |
|
Adjustments to reconcile net (loss) income to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
93,117 |
|
|
|
92,070 |
|
Impairment losses |
|
|
401,153 |
|
|
|
7,054 |
|
Change in deferred taxes |
|
|
(5,479 |
) |
|
|
5,898 |
|
Loss on extinguishment of long-term debt, net |
|
|
— |
|
|
|
5,434 |
|
Amortization of debt issuance costs |
|
|
4,514 |
|
|
|
4,635 |
|
Stock-based compensation |
|
|
5,478 |
|
|
|
10,135 |
|
Realized and unrealized losses from investments held in deferred |
|
|
(1,675 |
) |
|
|
(3,850 |
) |
Gain on disposal of property and equipment |
|
|
(8 |
) |
|
|
(82 |
) |
Changes in assets and liabilities, net of effects of acquisitions |
|
|
(3,727 |
) |
|
|
48,693 |
|
Cash provided by operating activities |
|
|
109,800 |
|
|
|
234,282 |
|
Investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(89,727 |
) |
|
|
(95,925 |
) |
Payments for acquisitions, net of cash acquired |
|
|
(1,759 |
) |
|
|
(17,544 |
) |
Proceeds from the disposal of property and equipment |
|
|
16 |
|
|
|
169 |
|
Investments in deferred compensation asset trusts |
|
|
(4,590 |
) |
|
|
(4,885 |
) |
Proceeds from deferred compensation asset trust redemptions |
|
|
4,726 |
|
|
|
3,762 |
|
Cash used in investing activities |
|
|
(91,334 |
) |
|
|
(114,423 |
) |
Financing activities: |
|
|
|
|
|
|
||
Payments of deferred offering costs |
|
|
— |
|
|
|
(275 |
) |
Principal payments of long-term debt |
|
|
(7,215 |
) |
|
|
(4,834 |
) |
Payments of debt issuance costs |
|
|
— |
|
|
|
(317 |
) |
Repayments of promissory notes |
|
|
(212 |
) |
|
|
(250 |
) |
Payments of financing lease obligations |
|
|
(775 |
) |
|
|
(934 |
) |
Tax payments related to net settlement of restricted stock units |
|
|
(157 |
) |
|
|
(851 |
) |
Cash used in financing activities |
|
|
(8,359 |
) |
|
|
(7,461 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
|
10,107 |
|
|
|
112,398 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
133,299 |
|
|
|
62,430 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
143,406 |
|
|
$ |
174,828 |
|
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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
October 3, |
|
|
September 27, |
|
|
October 3, |
|
|
September 27, |
|
||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net (loss) income |
|
$ |
(84,971 |
) |
|
$ |
4,550 |
|
|
$ |
(383,573 |
) |
|
$ |
64,295 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
18,303 |
|
|
|
24,095 |
|
|
|
54,778 |
|
|
|
64,276 |
|
Interest income |
|
|
(967 |
) |
|
|
(1,731 |
) |
|
|
(2,779 |
) |
|
|
(3,814 |
) |
Income tax (benefit) expense |
|
|
(8,230 |
) |
|
|
1,655 |
|
|
|
(10,540 |
) |
|
|
23,981 |
|
EBIT |
|
$ |
(75,865 |
) |
|
$ |
28,569 |
|
|
$ |
(342,114 |
) |
|
$ |
148,738 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
30,341 |
|
|
|
31,019 |
|
|
|
93,117 |
|
|
|
92,070 |
|
EBITDA |
|
$ |
(45,524 |
) |
|
$ |
59,588 |
|
|
$ |
(248,997 |
) |
|
$ |
240,808 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impairment losses (1) |
|
|
86,755 |
|
|
|
3,309 |
|
|
|
401,153 |
|
|
|
7,054 |
|
Stock-based compensation (2) |
|
|
1,307 |
|
|
|
2,826 |
|
|
|
5,478 |
|
|
|
10,360 |
|
COVID-19 Related Stimulus, net (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(26,713 |
) |
Other costs (4) |
|
|
— |
|
|
|
672 |
|
|
|
— |
|
|
|
882 |
|
Adjusted EBITDA |
|
$ |
42,538 |
|
|
$ |
66,395 |
|
|
$ |
157,634 |
|
|
$ |
232,391 |
|
The following table shows adjusted net (loss) income and adjusted net (loss) 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 |
|
|
Nine Months Ended |
|
||||||||||
|
|
October 3, |
|
|
September 27, |
|
|
October 3, |
|
|
September 27, |
|
||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net (loss) income |
|
$ |
(84,971 |
) |
|
$ |
4,550 |
|
|
$ |
(383,573 |
) |
|
$ |
64,295 |
|
Income tax (benefit) expense |
|
|
(8,230 |
) |
|
|
1,655 |
|
|
|
(10,540 |
) |
|
|
23,981 |
|
Net (loss) income before income tax |
|
$ |
(93,201 |
) |
|
$ |
6,205 |
|
|
$ |
(394,113 |
) |
|
$ |
88,276 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of intangible assets |
|
|
2,074 |
|
|
|
2,152 |
|
|
|
6,222 |
|
|
|
6,770 |
|
Impairment losses (1) |
|
|
86,755 |
|
|
|
3,309 |
|
|
|
401,153 |
|
|
|
7,054 |
|
Stock-based compensation (2) |
|
|
1,307 |
|
|
|
2,826 |
|
|
|
5,478 |
|
|
|
10,360 |
|
COVID-19 Related Stimulus, net (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(26,713 |
) |
Loss on extinguishment of long-term debt, net |
|
|
— |
|
|
|
5,434 |
|
|
|
— |
|
|
|
5,434 |
|
Other costs (4) |
|
|
— |
|
|
|
672 |
|
|
|
— |
|
|
|
882 |
|
Adjusted (loss) income before income tax |
|
|
(3,065 |
) |
|
|
20,598 |
|
|
|
18,740 |
|
|
|
92,063 |
|
Adjusted income tax (benefit) expense (5) |
|
|
(52 |
) |
|
|
5,316 |
|
|
|
7,638 |
|
|
|
23,761 |
|
Adjusted net (loss) income |
|
$ |
(3,013 |
) |
|
$ |
15,282 |
|
|
$ |
11,102 |
|
|
$ |
68,302 |
|
Net (loss) income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.71 |
) |
|
$ |
0.04 |
|
|
$ |
(3.23 |
) |
|
$ |
0.54 |
|
Diluted |
|
$ |
(0.71 |
) |
|
$ |
0.04 |
|
|
$ |
(3.23 |
) |
|
$ |
0.54 |
|
Adjusted net (loss) income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.03 |
) |
|
$ |
0.13 |
|
|
$ |
0.09 |
|
|
$ |
0.58 |
|
Diluted |
|
$ |
(0.03 |
) |
|
$ |
0.13 |
|
|
$ |
0.09 |
|
|
$ |
0.58 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
118,862 |
|
|
|
118,353 |
|
|
|
118,719 |
|
|
|
118,300 |
|
Diluted |
|
|
118,862 |
|
|
|
118,413 |
|
|
|
118,719 |
|
|
|
118,368 |
|
Explanation of add backs: