KinderCare Learning Companies Inc (NYSE:KLC)

Q2 2026 Kindercare Learning Companies Inc Earnings Call Transcript

Aug 13, 2026 / 09:00 PM GMT

Release Date Price: $4.83 (+4.09%)

Transcript 10-Q8-K

Key Points

Positve

Champions delivered another strong quarter with 13% revenue growth, extending its streak to four consecutive quarters of double-digit growth.
Learning Adventures revenue nearly doubled year-over-year, with family response exceeding expectations and expansion into more centers and seasonal programming.
The Crim School brand is gaining traction, with summer camp enrollment up approximately 26% year-over-year and the opening of its first California location in Irvine.
KinderCare for Employers continues to see strong demand, welcoming several new partners and supporting unique needs like 24-hour childcare for Dallas public safety employees during the World Cup.
Footprint optimization is progressing well, with 49 center closures completed in Q2, providing a 70 basis point benefit to same-center occupancy and expected to yield an $8 million annualized EBITDA benefit.

Negative

Total revenue declined slightly to $698 million from $700 million in the prior year, with same-center revenue down 2% due to lower enrollment and an $11 million impact from closures.
Adjusted EBITDA fell to $63 million from $82 million a year ago, impacted by lower occupancy operating leverage and $5 million in adjustments to insurance and legal reserves.
Full-year guidance was reduced, with adjusted EBITDA now expected between $200 million and $220 million and adjusted EPS between $0.05 and $0.15, reflecting optimization costs and lower tuition expectations.
Tuition contribution to revenue growth was lowered to 2.5% from 3% due to slower-than-expected state subsidy reimbursement rate increases, which could also impact the first half of 2027.
Free cash flow is expected to be less than $10 million for the year, significantly impacted by elevated cash costs associated with the footprint optimization, including $20 million to $25 million in expected lease exit payments.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KLC.N - Kindercare Learning Companies Inc
Q2 2026 Kindercare Learning Companies Inc Earnings Call
Aug 13, 2026 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Welcome to KinderCare's second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again.

It is now my pleasure to introduce Jason Terry, KinderCare's Director of Investor Relations. Mr. Terry, you may begin the conference.

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Unidentified_2 [2]
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