Business Wire·Aug 13, 2026, 4:15 PM ET

KinderCare Reports Second Quarter 2026 Financial Results

KLC

KinderCare Learning Companies reported second quarter 2026 revenue of $697.5 million, a 0.4% decrease from the prior year period.
The company recorded a net loss of $8.8 million, or $0.07 per diluted share, compared to net income of $38.6 million in the same quarter of 2025.
Income from operations declined to $2.4 million from $68.7 million, driven by a $48.0 million increase in cost of services due to the absence of Employee Retention Credits recognized in 2025.
Impairment losses increased by $20.7 million to $22.9 million, primarily attributed to center closures, early lease terminations, and lower operational performance.
During the quarter, the company closed 49 early childhood education centers as part of its ongoing center footprint optimization initiative.
Revenue from before- and after-school sites rose 13.4% to $7.0 million, while revenue from early childhood education centers fell 1.5% due to lower enrollment partially offset by higher tuition rates.
Adjusted EBITDA for the quarter was $63.0 million, a 23.6% decrease from the previous year, while adjusted net income dropped to $9.9 million.
As of July 4, 2026, the company operated 1,567 early childhood education centers and 1,128 before- and after-school sites.
The company updated its full-year 2026 outlook, forecasting revenue between $2.66 billion and $2.70 billion.
Full-year 2026 adjusted EBITDA guidance is now expected to range from $200 million to $220 million.
Full-year 2026 adjusted net income per diluted share guidance is projected to be between $0.05 and $0.15.
The company held $173.7 million in cash and cash equivalents with $187.7 million of available borrowing capacity under its revolving credit facility.
Operating activities generated $104.5 million in cash during the six months ended July 4, 2026.
Management emphasized a continued focus on aligning center locations to serve families where they live and work.