Kindercare Learning Companies, Inc. · NYSE:KLC
Kindercare Learning Companies — Q2 2026 Earnings Presentation
15 slides from Kindercare Learning Companies's earnings presentation, Aug 13, 2026
Slide 1: Earnings Results 2nd Quarter, 2026
Earnings Results 2nd Quarter, 2026 AUGUST 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: Second Quarter FY26 Business Highlights
Second Quarter FY26 Business Highlights Continued to expand our national footprint Champions 13% YoY marks fourth with a new center in Arkansas, our 42nd consecutive quarter of double-digit 1 Market Expansion state, while extending the Crème brand 3 B2B Performance growth. KCFE continued to expand w
Slide 4: Key Performance Metrics
Key Performance Metrics Total Centers and Sites Count July 4, 2026 June 28, 2025 Early childhood education centers 1,567 1,589 Early childhood education centers Total Before- and after-school sites 1,128 1,043 January 3, 2026 1,601 Total centers and sites 2,695 2,632 Acquired 7 Three Months Ended Op
Slide 5: Enrollment Pressure Remains Primary Headwind to Growth
Enrollment Pressure Remains Primary Headwind to Growth Revenue ($M) (1) Adjusted EBITDA ($M) (1) (2) (0.4)% (23.6)% $700.1 $697.5 $82.4 $688.1 $676.8 $672.5 $66.4 $67.7 $63.0 $52.1 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26 ECE (3) $647.7 $627.0 $628.2 $610.2 $638.0 TTM $303.3 $298.4 $300.1 $
Slide 6: Optimizing Our Footprint While Continuing to Invest For Growth
Optimizing Our Footprint While Continuing to Invest For Growth Total Centers and Sites(1) Average Weekly FTEs (000’s)(2) 149.0 143.0 +2.4% 140.5 135.9 139.8 2,733 2,754 2,765 2,695 2,632 1,138 1,153 1,159 1,128 1,043 2Q25 3Q25 4Q25 1Q26 2Q26 NCOs (3) and Tuck-in Acquisitions 12 13 1,589 1,595 1,601
Slide 7: Occupancy Trends Stable Through Peak Enrollment Quarter
Occupancy Trends Stable Through Peak Enrollment Quarter Same-Center Revenue ($M) (1)(2) Same-Center Occupancy (1) (2.2)% (240) bps $637.7 $623.7 71.0% $616.9 $617.8 68.6% $599.0 67.0% 66.0% 64.5% 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26 Organic operating trends remained stable, while same-c
Slide 8: Debt and Liquidity Summary
Debt and Liquidity Summary Liquidity Profile ($M) (4) • No material near-term debt maturities Revolver availability $262.5 • Corporate/Issuer ratings: B2/B+ Less outstanding letters of credit (74.8) Plus unrestricted cash 173.7 Liquidity $361.4 Leverage Profile ($M) (1) Scheduled Debt Principal Paym
Slide 9: Fiscal Year 2026 Guidance Summary
Fiscal Year 2026 Guidance Summary Revenue Adjusted EBITDA Adjusted EPS $2.66 - $2.7 Billion $200 - $220 Million $0.05 - $0.15 Supporting Growth Assumptions (% Year over Year Revenue Growth Contributions) Occupancy New Center Openings (NCOs) ~(3%) ~0.5% Tuition Tuck-in Acquisitions ~2.5% ~0.5% B2B/Ch
Slide 10: Footprint Optimization
Footprint Optimization Operational Impacts ($M) 2Q26 FY26E Centers Consolidated 49 80 - 85 Total Revenue Impact ($5) ($32) Adj. EBITDA Impact ($2) ($3) Occupancy +70bps +150bps Cash Consideration for Lease Buyouts $0.6 $20-$25 36.1% average occupancy(1) 89% from 5th Quintile (1) Notes: 1. For center
Slide 11: Appendix / Reconciliations
Appendix / Reconciliations
Slide 12: Income Statement
Income Statement (In thousands, except per share data) Three Months Ended July 4, 2026 June 28, 2025 Revenue $ 697,522 $ 700,110 Costs and expenses: Cost of services (excluding depreciation and impairment) $ 567,434 $ 519,477 Depreciation and amortization $ 31,699 $ 31,074 Selling, general, and admi
Slide 13: TTM Adjusted EBITDA Reconciliation
TTM Adjusted EBITDA Reconciliation (In thousands) Three Months Ended July 4, April 4, January 3, September 27, June 28, March 29, December 28, September 28, 2026 2026 2026 2025 2025 2025 2024 2024 Net (loss) income $ (8,770) $ (289,832) $ (177,175) $ 4,550 $ 38,588 $ 21,157 $ (133,583) $ 13,959 Add
Slide 14: Statement of Cash Flows and Free Cash Flow Reconciliation
Statement of Cash Flows and Free Cash Flow Reconciliation (In thousands) Six Months Ended July 4, June 28, 2026 2025 Cash provided by operating activities $ 104,482 $ 133,490 Cash used in investing activities (58,467) (72,190) Cash used in financing activities (5,608) (4,601) Net change in cash, cas
Slide 15: 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 10.61 10.31 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 2014 2021 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2016 2017 2018 2019 2020 20
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