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KinderCare Reports Third Quarter 2026 Financial Results

KLC
  • KinderCare Learning Companies reported third-quarter 2026 revenue of $665.3 million, a 1.7% decrease from the prior year.
  • The company recorded a loss from operations of $75.5 million, driven primarily by $83.4 million in impairment losses due to declining market capitalization and center closures.
  • Net loss for the quarter was $85.0 million, or $0.71 per diluted share, compared to a net income of $4.6 million in the same period last year.
  • Non-GAAP adjusted EBITDA for the quarter was $42.5 million, down 35.9% from the previous year, while adjusted net loss was $3.0 million.
  • Early childhood education center revenue fell 3.1% due to a 5.9% drop in enrollment, partially offset by a 2.8% increase in tuition rates.
  • Before- and after-school site revenue increased 16.4% to $8.2 million, fueled by higher enrollment and new site openings.
  • The company closed 20 early childhood education centers during the quarter as part of an ongoing optimization initiative.
  • Management noted that new enrollments have outpaced last year's levels since the end of the back-to-school period, despite overall enrollment remaining below prior year figures.
  • As of October 3, 2026, KinderCare operated 1,556 early childhood education centers and 1,208 before- and after-school sites.
  • The company updated its full-year 2026 outlook, projecting revenue between $2.64 billion and $2.66 billion, adjusted EBITDA between $190 million and $195 million, and adjusted net income per share between $0.02 and $0.04.
  • Cash and cash equivalents stood at $143.4 million at the end of the quarter, with $187.7 million available under the revolving credit facility.
  • Operating cash flow for the nine months ended October 3, 2026, was $109.8 million, while net investments totaled $91.3 million.