NYSE$KLC

Kindercare Learning Cos Inc · Q1 2026 earnings

Q1 2026 earnings · · Investor relations

Briefing

Kindercare Learning Cos Inc reported a net loss for Q1 2026 driven by a significant goodwill impairment.

KinderCare Learning Companies reported revenue of $672.5 million for the first quarter of 2026, up slightly from the prior year. The company recorded a large goodwill impairment charge leading to a net loss of $289.8 million. Operating results were impacted by higher costs and lower enrollment in early childhood centers.

  • Revenue increased 0.6% year-over-year to $672.5 million, with growth in before-and-after-school sites offsetting declines in early childhood centers.
  • A $273.5 million goodwill impairment drove a net loss of $289.8 million and a basic EPS of $(2.45).
  • Total centers reached 1,606 and before-and-after-school sites reached 1,159 as of quarter end.
  • Operating cash flow was $31.1 million with free cash flow of $1.1 million after capital expenditures.

Headline financials

Total Revenue

$673M

Previous: $668M+0.6%
EPS (adj)

-$2.45

Previous: $0.23-1165.2%
Before- and after-school sites

1.2K

Previous: 1.0K+11.7%
Total centers

1.6K

Previous: 1.6K+1.5%
Capital Expenditures

-$30M

Previous: -$23.4M-28.4%
Free Cash Flow

$1.07M

No prior period
Net Income

-$290M

Previous: $21.2M-1469.9%
Operating Income

-$272M

Previous: $48.8M-657.1%
Gross Profit

-$582M

No prior period
Cash & Equivalents

$133M

No prior period
Total Assets

$3.44B

No prior period

Revenue & EPS history

Kindercare Learning Cos Inc · Revenue · Quarterly

$673M

Q1 2026+0.6%vs Q1 2025
Beat estimate in 4 of 7 quarters(57%)
ActualEstimate

Revenue by segment

Kindercare Learning Cos Inc · $673M total across 2 segments · Q1 2026

  • Early childhood education centers
    $610M
  • Before- and after-school sites
    $62.4M

Forward guidance

Management continues to monitor enrollment trends and cost management while expanding the network of centers and sites.

Tailwinds

  • Continued site expansion with new openings and acquisitions

Headwinds

  • Lower same-center occupancy and enrollment pressures

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports · overlaid with Q1 2026

Historical avgQ1 2026

-16.8%

Avg return

Earnings day

-17.4%

Avg return

5 days after

-22.4%

Avg return

30 days after

13%

1 / 8 earnings

Positive

+7.1%

Q1 2026

Best reaction

-43.1%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.1%-11.5%
Q4 2025-43.1%-40.9%-15.0%
Q3 2025-19.2%-24.8%-8.0%
Q2 2025-22.5%-23.8%-23.9%
Q1 2025-8.1%-9.9%-25.1%
Q2 2024-22.2%-27.0%-36.3%
Q1 2023-8.5%+3.0%-22.9%
Q3 2024-18.1%-4.7%-25.6%
Q2 2022
Q3 2022
Q2 2021
Q1 2021
Q4 2020

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