Kindercare Learning Companies, Inc. · NYSE:KLC
Kindercare Learning Companies — Q4 2025 Earnings Presentation
29 slides from Kindercare Learning Companies's earnings presentation, Mar 12, 2026
Slide 1: Earnings Results 4th Quarter, 2025
Earnings Results 4th Quarter, 2025 MARCH 2 0 2 6
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION This presentation (including the verbal information and discussion relating to these materials) contains “forward-looking statements” within the meaning of, and made pursuant to, the safe harbor provisions of the U
Slide 3: The Future We Shape Today is the Future We Share Tomorrow
The Future We Shape Today is the Future We Share Tomorrow OUR Building confidence, for kids and families and the future we share PURPOSE OUR 1. Families come first 2. Our work is our passion BELIEFS 3. Integrity is everything 4. Inclusion creates belonging 5. We’re never done OUR Leverage our positi
Slide 4: Core Pillars Strategically Aligned to Deliver Positive Results
Core Pillars Strategically Aligned to Deliver Positive Results Foundational principles result in superior outcomes, engaged employees and families, and profitable results EDUCATIONAL EXCELLENCE HEALTH & SAFETY Proprietary curriculum drives better outcomes Dedicated Health & Safety team focused
Slide 5: KinderCare is a Leading Provider of Early Childhood Education in the U.S.
KinderCare is a Leading Provider of Early Childhood Education (ECE) in the U.S. Market Leader with Scale across ~219K Our Portfolio of Brands Children Served Daily at the End of 2025 (1) $2,733M $300M Revenue (4) Adj. EBITDA (4)(5) (2025) (2025) Nationwide Platform Meets 41 States & D.C. Families Wh
Slide 6: Nationwide Footprint Creates Strategic Advantages
Nationwide Footprint Creates Strategic Advantages ~40% of Children Age 0-12 (~20M) live within a 10 Min drive of a KCE KinderCare’s Scale Provides Tangible Advantages Branded Location(1) Compared to Smaller Providers KinderCare Learning Companies Location Brand Recognition and Wide Footprint Efficie
Slide 7: Filling the Need for Access to Quality ECE
Filling the Need for Access to Quality ECE 77% of Parents agree, “If I knew I would always have quality childcare coverage, I would be able to be more present as a parent when I am with my kids” (1) Accreditation is the Culmination of Quality Our Students see Improved Developmental Outcomes (2) % of
Slide 8: Deep Family Engagement Drives Loyalty and Retention
Deep Family Engagement Drives Loyalty and Retention Fully Engaged Families… Retention and growth are driven by trust. Family engagement is how we measure and maintain that trust across our programs. Generate word-of-mouth referrals Engagement is a leading indicator of satisfaction and loyalty Suppor
Slide 9: A Scalable Platform Across Communities, Employers, and Schools
A Scalable Platform Across Communities, Employers, and Schools Serving Families Where They Are In Your Neighborhood Where You Work At Your School One of the largest footprints of community Employee discounts leveraging our A leading provider of high-quality centers supporting families where they liv
Slide 10: Fourth Quarter FY25 Business Highlights
Fourth Quarter FY25 Business Highlights Opened 24 new sites across 11 states Added 13 centers through NCOs and during Q4. For the entire year, acquisitions in Q4, further expanding the 1 Champions Champions grew by 128 net new sites, a 3 Strategic Growth KinderCare footprint and maintaining 12% incr
Slide 11: Complementary Brands Serve Different Family Needs
Complementary Brands Serve Different Family Needs Our Brands and Services Align to Key Market Segments Community ECE Serving Ages Premium ECE Provider Serving Ages Before- and After-School Serving Ages 6 Weeks – 12 Years 6 Weeks – 12 Years 6 – 12 Years A Leader in Premium ECE Leading Private Provide
Slide 12: Champions: Expanding to Serve More School-Aged Children
Champions: Expanding to Serve More School-Aged Children Champions is a Leading Provider of Before- and After-School Programs in the U.S. A Leader for On-Site Organized Care Champions’ Site Count Champions runs programming on school property: little to no +512 upfront investment 1,153 948 1,025 Abili
Slide 13: B2B Employer Relationships Compounds Revenue Growth
B2B Employer Relationships Compounds Revenue Growth Annual Cohorts Drive Sticky Organic Growth High LTV Enrollment Growth Through Employer-Sponsored Benefits The Program: Offers employees an employer sponsored discounted tuition Delivery Method: Childcare services delivered through our own national
Slide 14: Disciplined Approach to NCOs and M&A
Disciplined Approach to NCOs and M&A Robust Greenfield Engine Proven M&A Playbook • Dedicated team of 50+ leveraging proprietary • Highly fragmented market tools and a data-driven • M&A playbook indexed to approach to expedite the quality identification and opening process • Able to build density an
Slide 15: Steady Revenue Performance Amid Enrollment Pressure
Steady Revenue Performance Amid Enrollment Pressure Revenue ($M) (3) (4) Adjusted EBITDA ($M) (3) (4) +6.4% +2.6% $700.1 $83.6 $82.4 $688.1 $676.8 $668.2 $67.7 $66.0 $66.4 $647.0 4Q24 1Q25 2Q25 3Q25 4Q25 4Q24 1Q25 2Q25 3Q25 4Q25 ECE (1) $593.3 $615.0 $647.7 $627.0 $628.2 TTM $298.1 $307.3 $303.3 $29
Slide 16: Portfolio Growth Supports Long-Term Performance
Portfolio Growth Supports Long-Term Performance Total Centers and Sites(1) Average Weekly FTEs (000’s) (2) 144.1 149.0 +6.0% 141.0 140.5 135.9 2,733 2,754 2,599 2,620 2,632 1,043 1,138 1,153 1,025 1,038 4Q24 1Q25 2Q25 3Q25 4Q25 NCOs (3) and Tuck-in Acquisitions 12 13 1,574 1,582 1,589 1,595 1,601 11
Slide 17: Mixed Same-Center Performance Driven by Enrollment Trends
Mixed Same-Center Performance Driven by Enrollment Trends Same-Center Revenue ($M) (1)(2) Same-Center Occupancy (1) +6.1% (340) bps $637.7 71.0% 67.9% 69.1% 67.0% 64.5% $616.9 $617.8 $606.4 $582.4 4Q24 1Q25 2Q25 3Q25 4Q25 4Q24 1Q25 2Q25 3Q25 4Q25 Same-center revenue benefited from the extra week in
Slide 18: Historical Revenue & Adjusted EBITDA
Historical Revenue & Adjusted EBITDA Revenue ($M) (3) (4) Adjusted EBITDA ($M) (3) (4) $2,663 $2,733 $2,510 $298 $300 $2,166 $266 $208 2022 2023 2024 2025 2022 2023 2024 2025 ECE (1) $2,054 $2,345 $2,466 $2,518 EBITDA Margin 9.6% 10.6% 11.2% 11.0% Before & After (2) $112 $165 $197 $215 Notes: 1. Inc
Slide 19: Capitalization Summary
Capitalization Summary Liquidity Profile ($M) (3) • Ample liquidity to execute strategic growth plan Revolver availability $262.5 • No material near-term debt maturities • Corporate/Issuer ratings: B2/B+ Less outstanding letters of credit (72.8) Plus unrestricted cash 133.2 Liquidity $322.9 Leverage
Slide 20: Fiscal Year 2026 Guidance Summary
Fiscal Year 2026 Guidance Summary Revenue Adjusted EBITDA Adjusted EPS $2.7 - $2.75 Billion $210 - $230 Million $0.10 - $0.20 Supporting Growth Assumptions (% Year over Year Revenue Growth Contributions) Occupancy New Center Openings (NCOs) ~(3%) ~0.5% Tuition Tuck-in Acquisitions ~3% ~0.5% B2B/Cham
Slide 21: Shareholder Value Proposition
Shareholder Value Proposition Attractive valuation multiple Predictable enrollment trends and pricing drive revenue visibility Historical track record of strong profitability Leading provider in a highly fragmented market Diversified revenue sources create strong cash flow generation 21
Slide 22: Appendix / Reconciliations
Appendix / Reconciliations
Slide 23: Significant Potential for Occupancy Growth Across Fleet
Significant Potential for Occupancy Growth Across Fleet Occupancy Rates of Quintiles Ranked by Center Profitability (1) Quintile 2024 2025 2025 vs 2024 1st 87.3% 84.8% 2.5% 2nd 80.5% 77.5% 3.0% 3rd 75.0% 73.2% 1.8% 4th 65.0% 63.6% 1.5% 5th 48.3% 52.0% 3.7% Notes: 1. This Quintile analysis ranks our
Slide 24: Resilient Subsidy Funding with Consistent Growth and Strong Bipartisan Support
Resilient Subsidy Funding with Consistent Growth and Strong Bipartisan Support (1) CCDF Funding, $B 14.66 14.79 13.65 11.24 11.47 10.31 10.61 10.30 9.18 7.86 7.95 7.31 7.39 7.31 7.45 7.54 7.16 7.16 7.16 7.22 6.84 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 25: Key Performance Metrics
Key Performance Metrics January 3, December 28, Total Centers and Sites Count 2026 2024 Early childhood education centers 1,601 1,574 Early childhood education centers Total Before- and after-school sites 1,153 1,025 December 28, 2024 1,574 Total centers and sites 2,754 2,599 Acquired 26 Three Month
Slide 26: Income Statement
Income Statement (In thousands, except per share data) Three Months Ended(2) Fiscal Years Ended(2) January 3, December 28, January 3, December 28, 2026 2024 2026 2024 Revenue $ 688,139 $ 646,956 $ 2,733,323 $ 2,663,035 Costs and expenses: Cost of services (excluding depreciation and impairment) 549,
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In thousands) Three Months Ended(1) Fiscal Years Ended(1) January 3, December 28, January 3, December 28, 2026 2024 2026 2024 Net (loss) income $ (177,175) $ (133,583) $ (112,880) $ (92,840) Add back: Interest expense 19,699 50,733 83,975 170,539 Interest income (1,01
Slide 28: TTM Adjusted EBITDA Reconciliation
TTM Adjusted EBITDA Reconciliation (In thousands) Three Months Ended September 27, June 28, March 29, December 28, September 28, June 29, 2025 2025 2025 2024 2024 2024 Net (loss) income $ 4,550 $ 38,588 $ 21,157 $ (133,583) $ 13,959 $ 28,535 Add back: Interest expense 24,095 20,073 20,108 50,733 39,
Slide 29: Statement of Cash Flows and Free Cash Flow Reconciliation
Statement of Cash Flows and Free Cash Flow Reconciliation (In thousands) Fiscal Years Ended January 3, December 28, 2026 2024 Cash provided by operating activities $ 238,535 $ 115,887 Cash used in investing activities (154,416) (147,238) Cash used in financing activities (13,250) (62,631) Net change
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