KinderCare (NYSE: KLC) posts 2025 loss and guides to lower 2026 earnings

Rhea-AI Filing Summary

KinderCare Learning Companies reported higher revenue but a net loss for the fourth quarter and full year 2025, driven largely by non-cash impairment charges. Fourth quarter 2025 revenue was $688.1 million, up 6.4%, but loss from operations widened to $163.9 million after $197.0 million of impairment losses tied to a decline in market capitalization.

For fiscal 2025, revenue reached $2.73 billion, while the company posted a net loss of $112.9 million compared with prior-year profitability from operations. On a non-GAAP basis, adjusted EBITDA was $67.7 million for the quarter and $300.1 million for the year, with adjusted net income of $82.5 million and adjusted diluted EPS of $0.70.

As of January 3, 2026, KinderCare operated 1,601 early childhood education centers and 1,153 before- and after-school sites, held $133.2 million in cash and cash equivalents, and had $927.5 million of first lien term loan debt, net. For fiscal 2026, management guides revenue to about $2.70–$2.75 billion, adjusted EBITDA of $210–$230 million, and adjusted diluted EPS of $0.10–$0.20, reflecting a step down from 2025’s adjusted EBITDA and earnings.

Insights

Equity research analyst

Large non-cash impairments drive 2025 loss, while 2026 guidance signals weaker earnings versus 2025 on an adjusted basis.

KinderCare grew 2025 revenue to $2.73 billion, but moved from $79.3 million operating income in 2024 to a $20.1 million operating loss. The key driver was $204.1 million of impairment charges, including $178.0 million of goodwill, linked to a lower stock price and market capitalization.

Core cash performance looked steadier. Adjusted EBITDA was $300.1 million in 2025 versus $298.1 million in 2024, and adjusted diluted EPS rose from $0.40 to $0.70. Operating cash flow more than doubled to $238.5 million, helping raise cash and cash equivalents to $133.2 million despite $927.5 million of term loan debt.

However, 2026 guidance implies earnings pressure: management projects revenue of $2.70–$2.75 billion, but adjusted EBITDA of only $210–$230 million and adjusted diluted EPS of $0.10–$0.20, well below 2025 levels. Future disclosures may clarify how enrollment trends, tuition pricing and cost structure evolve through fiscal 2026.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

0001873529false00018735292026-03-122026-03-12

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): March 12, 2026

KinderCare Learning Companies, Inc.

(Exact name of Registrant as Specified in Its Charter)

Delaware			001-42367	87-1653366
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
5005 Meadows Road
Lake Oswego, Oregon				97035
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: (503) 872-1300

Not applicable

(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:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		KLC		New York Stock Exchange

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 March 12, 2026, KinderCare Learning Companies, Inc. (the “Company”) issued a press release announcing its results of operations for the fourth quarter and fiscal year ended January 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		Description
99.1		Press Release dated March 12, 2026
104		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.

			KinderCare Learning Companies, Inc.
Date:	March 12, 2026	By:	/s/ Anthony Amandi
		Name: Title:	Anthony Amandi Chief Financial Officer

Exhibit 99.1

KinderCare Reports Fourth Quarter 2025 Financial Results

Management Provides Full-Year 2026 Guidance

Lake Oswego, Ore. (March 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 fourth quarter and fiscal year 2025, which ended January 3, 2026, and provided guidance for fiscal year 2026. The fourth quarter and fiscal year 2025 consisted of 14 weeks and 53 weeks, respectively, compared to 13 weeks and 52 weeks in the comparable prior year periods.

Fourth Quarter 2025 Highlights

•Revenue of $688.1 million

•Loss from operations of $163.9 million

•Net loss of $177.2 million and net loss per common share, diluted of $1.50

Non-GAAP financial measures

•Adjusted EBITDA (1) of $67.7 million

•Adjusted net income (1) of $14.2 million and adjusted net income per common share, diluted (1) of $0.12

Fiscal Year Ended 2025 Highlights

•Revenue of $2,733.3 million

•Loss from operations of $20.1 million

•Net loss of $112.9 million and net loss per common share, diluted of $0.95

Non-GAAP financial measures

•Adjusted EBITDA (1) of $300.1 million

•Adjusted net income (1) of $82.5 million and adjusted net income per common share, diluted (1) of $0.70

“We closed the year having driven progress across our brands, even as results were varied across the portfolio,” said Tom Wyatt, Chief Executive Officer of KinderCare. “I’m excited to return to KinderCare and have spent my first months back listening to families, clients, and teachers, and translating those insights into a more focused operating plan.”

Mr. Wyatt continued, “Our focus for 2026 is simple. We need to execute better, center by center and market by market. That means strengthening how we attract and enroll families, scaling the practices that are working across our network, and driving greater consistency to center performance, while continuing to grow responsibly through new openings, acquisitions, and employer partnerships.”

Fourth Quarter 2025 Financial Results

Total revenue increased $41.2 million, or 6.4%, to $688.1 million for the fourth quarter of 2025 as compared to $647.0 million for the fourth quarter of 2024, primarily due to the impact of the 14th week in the fourth quarter of 2025, which contributed an additional $45.1 million of revenue.

Revenue from early childhood education centers increased by $34.8 million, or 5.9%, for the fourth quarter of 2025 as compared to the fourth quarter of 2024 primarily due to the impact of the 14th week in the fourth quarter of 2025. During the comparable 13- week periods, revenue decreased $9.5 million, or 1.6%, of which 3.6% was from lower enrollment, partially offset by 2.0% from higher tuition rates.

Revenue from before- and after-school sites increased by $6.4 million, or 11.9%, for the fourth quarter of 2025 as compared to the fourth quarter of 2024 primarily due to opening new sites.

Loss from operations increased $74.6 million, or 83.6%, to $163.9 million for the fourth quarter of 2025 as compared to a loss from operations of $89.3 million for the fourth quarter of 2024. The increase was driven by a $193.6 million increase in impairment losses of goodwill and long-lived assets primarily due to the deterioration in our market capitalization from the declines in our stock price in the fourth quarter of 2025. This increase was partially offset by a $119.8 million decrease in stock-based compensation expense primarily attributable to the PIU modification and accelerated vesting in the fourth quarter of 2024.

Net loss increased $43.6 million, or 32.6%, to $177.2 million for the fourth quarter of 2025 as compared to $133.6 million for the fourth quarter of 2024. The increase was driven by the impact to income from operations noted above, partially offset by a $31.0 million decrease in interest expense primarily due to the loss on extinguishment of debt recognized in the prior year associated with the October 2024 repayment and repricing amendment, which also resulted in a reduced principal balance and lower interest rates. Net loss per common share, diluted was $1.50 for the fourth quarter of 2025 compared to $1.17 for the fourth quarter of 2024.

For the fourth quarter of 2025, adjusted EBITDA (1) increased $1.7 million, or 2.6%, to $67.7 million. The 14th week in the fourth quarter of 2025 contributed an estimated $12 million of adjusted EBITDA. Adjusted net income (1) increased $3.5 million, to $14.2 million, from the fourth quarter of 2024 and adjusted net income per common share, diluted (1) was $0.12 for the fourth quarter of 2025 compared to $0.09 for the fourth quarter of 2024.

As of January 3, 2026, the Company operated 1,601 early childhood education centers and 1,153 before- and after-school sites.

Balance Sheet and Liquidity

As of January 3, 2026, the Company had $133.2 million of cash and cash equivalents and $189.7 million of available borrowing capacity under the revolving credit facility, after giving effect to the outstanding letters of credit of $72.8 million. Total debt under the first lien term loan facility, net of debt issuance costs, was $927.5 million as of January 3, 2026.

During the fiscal year ended January 3, 2026, the Company generated $238.5 million in cash provided by operating activities and made net investments totaling $154.4 million, which included $128.3 million in property and equipment and $23.1 million in acquisitions. Additionally, during the fiscal year ended January 3, 2026, the Company utilized $13.3 million in cash for financing activities.

2026 Outlook

Based upon current estimates, we expect revenue for the full fiscal year 2026 to be approximately $2.70 billion to $2.75 billion, adjusted EBITDA to be approximately $210 million to $230 million (2), and adjusted net income per common share, diluted to be approximately $0.10 to $0.20 (2). The fiscal year 2026 includes 52 weeks as compared to 2025 which included 53 weeks. Management will provide further detail on the 2026 financial outlook on the 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 fourth quarter and fiscal year 2025. 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 1-800-549-8228 (Toll-free) or 1-646-564-2877 (Toll) and referencing conference ID 68886. Participants are asked to dial in a few minutes prior to the call to register.

A supplemental presentation of fourth quarter results will be available at https://investors.kindercare.com.

Footnote References

(1)Adjusted EBITDA, adjusted net income, and adjusted net income per common share are non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the comparable GAAP measures are included in the tables at the end of this press release.

(2)Future period non-GAAP outlook, including adjusted EBITDA and adjusted net income per common share, diluted, includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Use of Non-GAAP Financial Measures” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.

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 most recent Annual Report on Form 10-K 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 41 states and the District of Columbia with differentiated flexible child care solutions:

•In neighborhoods, with KinderCare® Learning Centers that offer early learning programs for children six weeks to 12 years old;

•Crème School®, which offers a premium early education experience using a variety of enrichment classrooms; and

•In local schools, with Champions® before and after-school programs.

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)

		January 3, 2026				December 28, 2024
Assets
Current assets:
Cash and cash equivalents		$	133,205			$	62,336
Accounts receivable, net			118,523				104,333
Prepaid expenses and other current assets			106,291				48,104
Total current assets			358,019				214,773
Property and equipment, net			417,789				418,524
Goodwill			964,829				1,119,714
Intangible assets, net			420,922				429,766
Operating lease right-of-use assets			1,500,786				1,373,064
Other assets			85,545				89,626
Total assets		$	3,747,890			$	3,645,467
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities		$	163,312			$	152,660
Related party payables			—				119
Current portion of long-term debt			9,620				7,251
Operating lease liabilities—current			146,594				144,919
Deferred revenue			49,577				26,376
Other current liabilities			115,762				81,433
Total current liabilities			484,865				412,758
Long-term debt, net			917,925				918,719
Operating lease liabilities—long-term			1,447,524				1,315,587
Deferred income taxes, net			35,454				30,907
Other long-term liabilities			106,860				102,987
Total liabilities			2,992,628				2,780,958
Total shareholders' equity			755,262				864,509
Total liabilities and shareholders' equity		$	3,747,890			$	3,645,467

KinderCare Learning Companies, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share data and percentages of revenue)

		Three Months Ended (a)
		January 3, 2026						December 28, 2024
Revenue		$	688,139					$	646,956
Costs and expenses:
Cost of services (excluding depreciation and impairment)			549,326			79.8%			513,695			79.4%
Depreciation and amortization			31,897			4.6%			30,213			4.7%
Selling, general, and administrative expenses			73,814			10.7%			188,915			29.2%
Impairment losses			196,997			28.6%			3,395			0.5%
Total costs and expenses			852,034			123.8%			736,218			113.8%
Loss from operations			(163,895	)		(23.8%)			(89,262	)		(13.8%)
Interest expense			19,699			2.9%			50,733			7.8%
Interest income			(1,013	)		(0.1%)			(2,249	)		(0.3%)
Other (income) expense, net			(963	)		(0.1%)			101			0.0%
Loss before income taxes			(181,618	)		(26.4%)			(137,847	)		(21.3%)
Income tax benefit			(4,443	)		(0.6%)			(4,264	)		(0.7%)
Net loss		$	(177,175	)		(25.7%)		$	(133,583	)		(20.6%)
Net loss per common share: (b)
Basic		$	(1.50	)				$	(1.17	)
Diluted		$	(1.50	)				$	(1.17	)
Weighted average number of common shares outstanding: (b)
Basic			118,411						114,136
Diluted			118,411						114,136

(a)The three months ended January 3, 2026 includes 14 weeks and the three months ended December 28, 2024 includes 13 weeks.

(b)On October 8, 2024, the Company effected a common stock conversion, in which Class A and Class B common stock were converted to common stock at a ratio of 8.375 to one (“Common Stock Conversion”). The outstanding shares and per share amounts for the portion of the three months ended December 28, 2024 prior to the Common Stock Conversion have been adjusted to retrospectively reflect the conversion.

KinderCare Learning Companies, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except per share data and percentages of revenue)

		Fiscal Year Ended (a)
		January 3, 2026						December 28, 2024
Revenue		$	2,733,323					$	2,663,035
Costs and expenses:
Cost of services (excluding depreciation and impairment)			2,128,130			77.9%			2,032,513			76.3%
Depreciation and amortization			123,967			4.5%			117,606			4.4%
Selling, general, and administrative expenses			297,232			10.9%			423,063			15.9%
Impairment losses			204,051			7.5%			10,535			0.4%
Total costs and expenses			2,753,380			100.7%			2,583,717			97.0%
(Loss) income from operations			(20,057	)		(0.7%)			79,318			3.0%
Interest expense			83,975			3.1%			170,539			6.4%
Interest income			(4,827	)		(0.2%)			(7,369	)		(0.3%)
Other income, net			(5,863	)		(0.2%)			(5,620	)		(0.2%)
Loss before income taxes			(93,342	)		(3.4%)			(78,232	)		(2.9%)
Income tax expense			19,538			0.7%			14,608			0.5%
Net loss		$	(112,880	)		(4.1%)		$	(92,840	)		(3.5%)
Net loss per common share: (b)
Basic		$	(0.95	)				$	(0.96	)
Diluted		$	(0.95	)				$	(0.96	)
Weighted average number of common shares outstanding: (b)
Basic			118,329						96,309
Diluted			118,329						96,309

(a)The fiscal year ended January 3, 2026 includes 53 weeks and the fiscal year ended December 28, 2024 includes 52 weeks.

(b)On October 8, 2024, the Company effected a common stock conversion, in which Class A and Class B common stock were converted to common stock at a ratio of 8.375 to one (“Common Stock Conversion”). The outstanding shares and per share amounts for the portion of the fiscal year ended December 28, 2024 prior to the Common Stock Conversion have been adjusted to retrospectively reflect the conversion.

KinderCare Learning Companies, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

		Fiscal Year Ended (a)
		January 3, 2026				December 28, 2024
Operating activities:
Net loss		$	(112,880	)		$	(92,840	)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization			123,967				117,606
Impairment losses			204,051				10,535
Change in deferred taxes			7,272				(29,828	)
Loss on extinguishment of long-term debt, net			5,434				25,652
Amortization of debt issuance costs			6,102				6,830
Stock-based compensation			11,849				144,082
Realized and unrealized gains from investments held in deferred    compensation asset trusts			(3,131	)			(2,242	)
Gain on disposal of property and equipment			(205	)			(2,838	)
Changes in assets and liabilities, net of effects of acquisitions			(3,924	)			(61,070	)
Cash provided by operating activities			238,535				115,887
Investing activities:
Purchases of property and equipment			(128,271	)			(132,322	)
Payments for acquisitions, net of cash acquired			(23,101	)			(10,920	)
Proceeds from the disposal of property and equipment			293				2,872
Investments in deferred compensation asset trusts			(7,497	)			(8,701	)
Proceeds from deferred compensation asset trust redemptions			4,160				1,833
Cash used in investing activities			(154,416	)			(147,238	)
Financing activities:
Proceeds from initial public offering, net of underwriting discounts			—				625,968
Payments of deferred offering costs			(275	)			(9,587	)
Distribution to parent			—				(320,000	)
Proceeds from issuance of long-term debt			—				264,338
Repayment of long-term debt			—				(608,000	)
Principal payments of long-term debt			(9,644	)			(11,890	)
Payments of debt issuance costs			(317	)			(1,184	)
Repayments of promissory notes			(354	)			(421	)
Payments of financing lease obligations			(1,198	)			(1,631	)
Tax payments related to net settlement of restricted stock units			(1,462	)			(224	)
Cash used in financing activities			(13,250	)			(62,631	)
Net change in cash, cash equivalents, and restricted cash			70,869				(93,982	)
Cash, cash equivalents, and restricted cash at beginning of period			62,430				156,412
Cash, cash equivalents, and restricted cash at end of period		$	133,299			$	62,430

(a)The fiscal year ended January 3, 2026 includes 53 weeks and the fiscal year ended December 28, 2024 includes 52 weeks.

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, for the periods presented:

		Three Months Ended (a)								Fiscal Year Ended (a)
		January 3, 2026				December 28, 2024				January 3, 2026				December 28, 2024
Net loss		$	(177,175	)		$	(133,583	)		$	(112,880	)		$	(92,840	)
Add back:
Interest expense			19,699				50,733				83,975				170,539
Interest income			(1,013	)			(2,249	)			(4,827	)			(7,369	)
Income tax (benefit) expense			(4,443	)			(4,264	)			19,538				14,608
EBIT		$	(162,932	)		$	(89,363	)		$	(14,194	)		$	84,938
Add back:
Depreciation and amortization			31,897				30,213				123,967				117,606
EBITDA		$	(131,035	)		$	(59,150	)		$	109,773			$	202,544
Add back:
Impairment losses (1)			196,997				3,395				204,051				10,535
Equity-based compensation (2)			1,713				123,066				12,073				122,972
Management and advisory fee expenses (3)			—				119				—				3,767
Acquisition related costs (4)			—				—				—				16
Non-recurring distribution and bonus expense (5)			—				—				—				19,287
COVID-19 Related Stimulus, net (6)			—				(4,049	)			(26,713	)			(69,732	)
Other costs (7)			—				2,595				882				8,734
Adjusted EBITDA		$	67,675			$	65,976			$	300,066			$	298,123

(a)The three months and fiscal year ended January 3, 2026 includes 14 weeks and 53 weeks, and the three months and fiscal year ended December 28, 2024 includes 13 weeks and 52 weeks, respectively.

Explanations of add backs are located after the reconciliation of adjusted net income and adjusted net income per common share.

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 and net loss per common share, respectively, for the periods presented:

		Three Months Ended (a)								Fiscal Year Ended (a)
		January 3, 2026				December 28, 2024				January 3, 2026				December 28, 2024
Net loss		$	(177,175	)		$	(133,583	)		$	(112,880	)		$	(92,840	)
Income tax (benefit) expense			(4,443	)			(4,264	)			19,538				14,608
Net loss before income tax:		$	(181,618	)		$	(137,847	)		$	(93,342	)		$	(78,232	)
Add back:
Amortization of intangible assets			2,074				2,382				8,844				9,234
Impairment losses (1)			196,997				3,395				204,051				10,535
Equity-based compensation (2)			1,713				123,066				12,073				122,972
Management and advisory fee expenses (3)			—				119				—				3,767
Acquisition related costs (4)			—				—				—				16
Non-recurring distribution and bonus expense (5)			—				—				—				19,287
COVID-19 Related Stimulus, net (6)			—				(4,049	)			(26,713	)			(69,732	)
Loss on extinguishment of long-term debt, net (8)			—				24,757				5,434				25,652
Other costs (7)			—				2,595				882				8,734
Adjusted income before income tax			19,166				14,418				111,229				52,233
Adjusted income tax expense (9)			4,947				3,721				28,708				13,481
Adjusted net income		$	14,219			$	10,697			$	82,521			$	38,752
Net loss per common share: (10)
Basic		$	(1.50	)		$	(1.17	)		$	(0.95	)		$	(0.96	)
Diluted		$	(1.50	)		$	(1.17	)		$	(0.95	)		$	(0.96	)
Adjusted net income per common share: (10)
Basic		$	0.12			$	0.09			$	0.70			$	0.40
Diluted		$	0.12			$	0.09			$	0.70			$	0.40
Weighted average number of common shares    outstanding: (10)
Basic			118,411				114,136				118,329				96,309
Diluted			118,411				114,136				118,329				96,309

(a)The three months and fiscal year ended January 3, 2026 includes 14 weeks and 53 weeks, and the three months and fiscal year ended December 28, 2024 includes 13 weeks and 52 weeks, respectively.

Explanation of add backs:

(1)Represents impairment charges for goodwill, indefinite-lived intangible assets, and long-lived assets. Goodwill impairment recognized was $178.0 million during both the three months and fiscal year ended January 3, 2026, and was driven by the further deterioration in our market capitalization from a continued decline in our stock price. Impairments of long-lived assets for the periods presented was driven by center closures and reduced operating performance at certain centers due to the impact of changing demographics in certain locations in which we operate and current macroeconomic conditions on our overall operations.

(2)Represents non-cash stock-based compensation expense in accordance with Accounting Standards Codification 718, Compensation: Stock Compensation, and excludes cash-settled, liability-classified stock-based compensation expense. During the three months and fiscal year ended December 28, 2024, equity-based compensation includes $113.1 million in expense recognized related to the one-time October 2024 modification to the PIUs Plan. Equity-based compensation during the fiscal year ended December 28, 2024 excludes $14.3 million in expense included within “Non-recurring distribution and bonus expense” as described in explanation (5) below.

(3)Represents amounts incurred for management and advisory fees with related parties in connection with a management services agreement with Partners Group (USA), Inc., a related party of the Company, which was terminated upon completion of our IPO.

(4)Represents costs incurred in connection with planned and completed acquisitions, including due diligence, transaction, integration, and severance related costs. During the fiscal year ended December 28, 2024, these costs were incurred related to the acquisition of Crème School.

(5)During March 2024, we recognized a $14.3 million one-time expense related to an advance distribution to holders of Class B PIUs. In connection with this distribution, we recognized a $5.0 million one-time bonus expense for holders of RSUs and stock options to account for the change in value associated with the March 2024 distribution for Class B PIUs. We do not routinely make distributions to Class B PIU holders in advance of a liquidity event or pay bonuses to RSU or stock option holders outside of normal vesting and we do not expect to do so in the future. In connection with our IPO, KC Parent, our direct parent prior to

our IPO, distributed shares of our common stock then held by KC Parent to unitholders of KC Parent in proportion to their interests in KC Parent.

(6)Includes expense reimbursements and revenue arising from the COVID-19 pandemic, net of pass-through expenses incurred as a result of certain grant requirements. We recognized $7.4 million during the three months ended December 28, 2024 and $0.7 million and $63.3 million during the fiscal years ended January 3, 2026 and December 28, 2024, respectively, in funding for reimbursement of center operating expenses in cost of services (excluding depreciation and impairment), as well as $0.1 million and $0.4 million during the three months and fiscal year ended December 28, 2024, respectively, in revenue arising from COVID-19 Related Stimulus. Additionally, during the fiscal years ended January 3, 2026 and December 28, 2024, we recognized $30.1 million and $23.4 million of ERC offsetting cost of services (excluding depreciation and impairment) as well as $2.1 million and $2.6 million in professional fees in selling, general, and administrative expenses, respectively, as a result of calculating and filing for ERC. COVID-19 Related Stimulus is net of pass-through expenses incurred as stipulated within certain grants of $3.4 million during the three months ended December 28, 2024, and $1.9 million and $14.8 million during the fiscal years ended January 3, 2026 and December 28, 2024, respectively.

(7)Includes certain professional fees incurred for both contemplated and completed debt and equity transactions, as well as costs expensed in connection with prior contemplated offerings. For the fiscal year ended January 3, 2026, other costs includes $0.7 million in transaction costs associated with the July 2025 repricing amendment and $0.2 million in costs related to our IPO. For the three months ended December 28, 2024, other costs include $1.8 million in costs related to our IPO as well as $0.8 million in costs associated with debt modifications subsequent to our IPO. For the fiscal year ended December 28, 2024, other costs includes $3.6 million in transaction costs associated with our incremental first lien term loan, repricing amendments of our senior secured credit facilities, and debt modifications subsequent to our IPO, as well as $2.5 million in costs related to our IPO. These costs represent items management believes are not indicative of core operating performance.

(8)Includes the unamortized original issue discount and deferred financing costs that were written off in connection with certain lenders that had reduced principal holdings or did not participate in the loan syndication as a result of certain amendments to our senior secured credit facilities. For the fiscal year ended January 3, 2026, the loss on extinguishment of long-term debt is the result of the July 2025 repricing amendment to the Credit Agreement. For both the three months and fiscal year ended December 28, 2024, the loss on extinguishment of long-term debt is primarily the result of the October 2024 repayment of $608.0 million on the first lien term loan. Loss on extinguishment of long-term debt, net is not considered by management to be indicative of core operating performance.

(9)Includes the tax effect of the non-GAAP adjustments, calculated using the appropriate federal and state statutory tax rate and the applicable tax treatment for each adjustment. The non-GAAP tax rate was 25.8% for the three months and fiscal years ended January 3, 2026 and December 28, 2024. Our statutory rate is re-evaluated at least annually.

(10)The outstanding shares and per share amounts for the portion of the three months and fiscal year ended December 28, 2024 prior to the Common Stock Conversion have been retrospectively adjusted to reflect the Common Stock Conversion.

FAQ

How did KinderCare (KLC) perform financially in the fourth quarter of 2025?

KinderCare generated $688.1 million in revenue in Q4 2025, up 6.4% year over year, but reported a loss from operations of $163.9 million. The loss was driven by $197.0 million of impairment charges linked to lower market capitalization and stock price.

What were KinderCare’s full-year 2025 results for revenue and net income?

For fiscal 2025, KinderCare reported $2.73 billion in revenue and a net loss of $112.9 million. Loss from operations was $20.1 million, compared with operating income in 2024, reflecting sizable impairment charges despite relatively stable adjusted EBITDA performance.

How did KinderCare’s 2025 adjusted EBITDA and adjusted EPS compare to 2024?

KinderCare’s adjusted EBITDA was $300.1 million in 2025, slightly above $298.1 million in 2024. Adjusted net income was $82.5 million and adjusted diluted EPS was $0.70, up from $38.8 million and $0.40 respectively, showing stronger results on a non-GAAP basis.

What guidance did KinderCare (KLC) provide for fiscal year 2026?

KinderCare expects 2026 revenue of approximately $2.70–$2.75 billion, with adjusted EBITDA of about $210–$230 million and adjusted diluted EPS around $0.10–$0.20. The 2026 fiscal year includes 52 weeks, versus 53 weeks in 2025, and management plans to detail assumptions on its earnings call.

What is KinderCare’s balance sheet and liquidity position as of January 3, 2026?

As of January 3, 2026, KinderCare held $133.2 million in cash and cash equivalents and had $189.7 million of available borrowing capacity on its revolver. Total first lien term loan debt, net of issuance costs, was $927.5 million, reflecting a leveraged but liquid capital structure.

How many learning centers and sites does KinderCare operate?

As of January 3, 2026, KinderCare operated 1,601 early childhood education centers and 1,153 before- and after-school sites. In total, the company runs more than 2,700 early learning centers and sites across 41 states and the District of Columbia.

What were the main drivers of KinderCare’s 2025 impairment charges?

KinderCare recorded $204.1 million of impairment losses in 2025, including $178.0 million of goodwill impairment. Management attributes these charges mainly to a deterioration in market capitalization from a continued decline in the stock price and weaker performance at certain centers.

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