I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2027 Q2, the actual value is USD 697.52 M, missing the estimate of USD 711.84 M.
EPS: As of FY2027 Q2, the actual value is USD -0.07, missing the estimate of USD 0.0968.
EBIT: As of FY2027 Q2, the actual value is USD 6.74 M.
Second Quarter 2026 Financial Highlights
Revenue
KinderCare Learning Companies, Inc. reported total revenue of $697.5 million for the second quarter of 2026, a decrease of $2.6 million or 0.4% compared to $700.1 million in the second quarter of 2025.
Revenue from early childhood education centers decreased by $9.6 million, or 1.5%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to 4.0% lower enrollment, partially offset by a 2.6% increase from higher tuition rates.
Revenue from before- and after-school sites increased by $7.0 million, or 13.4%, in the second quarter of 2026 compared to the second quarter of 2025, mainly due to higher rates and the opening of new sites.
Operational Metrics
Income from operations was $2.4 million for the second quarter of 2026, a significant decrease of $66.3 million from $68.7 million in the second quarter of 2025. This decline was primarily driven by a $48.0 million increase in cost of services and a $20.7 million increase in impairment losses.
KinderCare Learning Companies, Inc. reported a net loss of -$8.8 million for the second quarter of 2026, compared to a net income of $38.6 million in the second quarter of 2025, representing a -$47.4 million change.
Adjusted EBITDA decreased by $19.4 million, or 23.6%, to $63.0 million for the second quarter of 2026 from the second quarter of 2025. Adjusted net income for the quarter was $9.9 million, a decrease of $16.1 million from the second quarter of 2025.
For the six months ended July 4, 2026, KinderCare Learning Companies, Inc. reported a net loss of -$298.6 million, compared to a net income of $59.7 million for the six months ended June 28, 2025. Loss from operations for the six months ended July 4, 2026, was -$269.7 million, compared to income from operations of $117.5 million for the same period in 2025. Impairment losses for the six months ended July 4, 2026, significantly increased to $314.4 million, compared to $3.7 million for the six months ended June 28, 2025.
Operational Footprint
As of July 4, 2026, KinderCare Learning Companies, Inc. operated 1,567 early childhood education centers and 1,128 before- and after-school sites. During the second quarter of 2026, the Company closed 49 early childhood education centers as part of an ongoing optimization initiative.
Cash Flow and Liquidity
As of July 4, 2026, KinderCare Learning Companies, Inc. had $173.7 million in cash and cash equivalents. The Company also had $187.7 million of available borrowing capacity under its revolving credit facility, after accounting for $74.8 million in outstanding letters of credit.
For the six months ended July 4, 2026, cash provided by operating activities was $104.5 million. Net investments totaled $58.5 million, primarily for purchases of property and equipment. Cash utilized for financing activities during the same period was -$5.6 million.
2026 Outlook
KinderCare Learning Companies, Inc. updated its full-year 2026 guidance, expecting revenue to be approximately $2.66 billion to $2.70 billion. Adjusted EBITDA is projected to be approximately $200 million to $220 million, and adjusted net income per common share, diluted, is expected to be approximately $0.05 to $0.15.