KLC

This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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. 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. Warning! GuruFocus has detected 6 Warning Signs with KLC. Is KLC fairly valued? Test your thesis with our free DCF calculator. Q: Can you bridge why closing unprofitable centers leads to lower EBITDA guidance instead of an increase, given the expected $8 million annualized benefit?A: Tony Amandi (CFO) explained that the guidance reduction is due to several factors working against the partial benefit from closures. These include approximately $8 million in incremental insurance reserves, about $3 million in one-time closure costs (severance and maintenance), and a reduction in expected tuition contribution from 3% to 2.5% due to slower state subsidy rate increases. Since Q1 and Q2 are typically the highest EBITDA quarters, the full annualized benefit of $8 million won't be realized in the back half of the year. Q: What specific criteria are used to evaluate a center for consolidation, closure, or remediation?A: Tony Amandi (CFO) detailed a multi-step process. First, they evaluated the entire portfolio against demographic criteria used for new center development, flagging underperformers. Then, they analyzed each flagged center individually, looking at inquiry levels, demographics, engagement trends, financial trajectory, and labor availability (which is not a major issue). They also considered "drive time maps" of 10-15 minutes to identify potential "magnet centers" to absorb families from closed locations. Tom Wyatt (CEO) added that density is a key factorif a low-performing center is in a high-density area, it's an execution issue, but if families have migrated away, it's a location issue. Q: What is the impact of the center closures on guidance, and were there other changes beyond the closures?A: Tony Amandi (CFO) confirmed that the closures are a significant factor in the guidance revision, representing about a $30 million revenue headwind and a 150 basis point impact on occupancy. The other major change was reducing the tuition contribution assumption from 3% to 2.5% for the year, driven by slower-than-expected state subsidy reimbursement rate increases. He noted this could potentially impact the first half of 2027 as well. Q: Can you provide more color on the progress of marketing initiatives and enrollment growth in the "opportunity region"?A: Tom Wyatt (CEO) stated that the opportunity region continues to perform well. They have increased targeted marketing spend by an additional $1 million for the back-to-school period, which has resulted in year-over-year increases in inquiries every single week. He noted that the simplification of the center director role is starting to pay off, with early traction in enrollment conversions. The company is hopeful this momentum will continue to build through back-to-school and into the fourth quarter and first half of next year. Q: Regarding the tuition reduction in guidance, is this a timing issue or a more permanent change related to state subsidies?A: Tony Amandi (CFO) clarified that it's not necessarily a timing issue but a revision based on current knowledge of state budget decisions. While there is potential for states to make different decisions later in the year, the current expectation is that subsidy rate increases will be lower than initially anticipated. Tom Wyatt (CEO) added that while some states like Indiana are improving, others may not provide as much, but overall the environment is more stable than last year, citing positive developments in New York, California, and New Hampshire. Q: How many centers in the retained portfolio have occupancy or profitability comparable to those being closed?A: Tony Amandi (CFO) did not provide an exact figure but noted that about 9 out of 10 closures so far are from the fifth quintile, and a strong portion of remaining closures will also come from that lowest-performing quintile. Centers with similar low occupancy that are being retained are kept due to favorable demographics or recent center director changes, but they are on a "watch list" for potential future action if they don't improve. Tom Wyatt (CEO) added that some centers have "graduated" from the opportunity region, showing successful turnarounds. Q: For retained centers in lower quintiles, what improvement is needed and over what timeframe before deciding to close them?A: Tony Amandi (CFO) explained it's a center-by-center determination based on quantitative factors like lease length, financial trajectory, and progress toward the 45-50% occupancy break-even point. Centers showing positive trajectory and improving engagement levels (a leading indicator) can buy themselves more time. Tom Wyatt (CEO) added that density is crucialif a center is in a low-density area where families have migrated away, it's more likely to be closed, whereas a low performer in a high-density area is an execution problem that can be fixed. Q: Are the centers being closed primarily a result of COVID-related impacts?A: Tony Amandi (CFO) disagreed with that characterization, stating that while demographics may have shifted, it's more about long-term changes in where families live and work rather than a direct COVID impact. These centers were historically successful but are now in locations where the local demand for childcare has diminished, making them no longer viable. Q: What are the expected cash costs and impacts of the center consolidation work extending into 2027?A: Tony Amandi (CFO) stated that the adjusted EBITDA benefits from closures will start flowing through in 2027, with some partial benefit in the back half of 2026. He outlined approximately $20 million to $25 million in expected lease exit payments, which are one-time cash costs that will not hit EBITDA but may impact net income. While they hope to complete negotiations as soon as possible, some of these cash costs may extend into 2027. Q: Can you provide the specific Q3 2026 guidance ranges?A: Tony Amandi (CFO) confirmed the Q3 outlook: revenue between $660 million and $680 million, adjusted EBITDA between $44 million and $48 million, and occupancy in the mid-60s percentage range. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is executing a significant footprint optimization, closing 49 centers in Q2 (approximately 3% of total footprint) to align capacity with shifting community demand and demographic trends. Performance attribution for the quarter highlights that while total enrollment declined 4%, the year-over-year gap is narrowing due to improved productivity in the Champions segment and growth in KinderCare for Employers. Operational focus has shifted toward simplifying center director responsibilities to reduce administrative distractions, aiming to improve family engagement and conversion of inquiries into enrollments. The 'Learning Adventures' small group enrichment programs (phonics, STEM, Spanish) have emerged as a key differentiator, with revenue nearly doubling year-over-year. Strategic positioning involves expanding into 'childcare deserts' and high-demand markets like Bentonville, Arkansas, and Irvine, California, while exiting legacy locations where occupancy averaged below 37%. Management noted that labor availability is no longer a primary constraint on growth, allowing the company to focus on execution and marketing efficiency rather than staffing shortages. Full-year guidance assumes a 1.5% revenue headwind from consolidations, partially offset by an expected $8 million annualized EBITDA benefit once the optimization is complete. Tuition contribution expectations were lowered from 3% to 2.5% for the year, reflecting a slower-than-anticipated pace of state subsidy reimbursement rate increases. The company expects to complete 80 to 85 total center closures by year-end 2026, with the majority of remaining actions scheduled for the fourth quarter. Management is integrating AI tools to monitor the quality of parent tours and follow-up interactions, with Enrollment trends are expected to improve over the next year as the company continues to invest in targeted marketing and operational improvements. Free cash flow for the year is expected to be less than $10 million, primarily due to $20 million to $25 million in anticipated lease exit payments and transition costs. Updated outlook includes an $8 million incremental insurance headwind related to actuarial analysis of workers' compensation and general liability self-insurance. Adjustments to insurance and legal reserves drove $5 million of the EBITDA decline in Q2, while footprint optimization efforts included additional impacts such as $0.5 million in severance expense and other transition costs. Management flagged that while 2/3 of consolidations are complete, lease exit negotiations for the remaining centers may extend cash impacts into 2027. A $57 million annualized revenue headwind is estimated from the optimization work, though it is expected to improve overall portfolio occupancy by roughly 150 basis points. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the $30 million revenue decrease from closures was the primary driver for the guidance revision, alongside a reduction in expected pricing yield. The $8 million EBITDA benefit is an annualized figure; the immediate impact in 2026 includes $3 million in one-time closure costs such as severance and maintenance. Management reduced tuition growth expectations because state budget cycles are not yet reflecting the rate increases previously anticipated. While some states like New York and California have announced significant funding, the timing of these funds hitting the P&L remains uncertain and may impact the first half of 2027. Decisions are based on a 'magnet center' strategy, where families are transitioned to nearby locations within a 10-15 minute drive time. Centers are retained if they show improving engagement levels (a leading indicator) or if low occupancy is attributed to addressable leadership issues rather than permanent demographic shifts.

Interested in KinderCare Learning Companies, Inc.? Here are five stocks we like better. Second-quarter results weakened: Revenue fell slightly to $698 million, while the company posted an $8.8 million net loss and adjusted EBITDA declined to $63 million, driven by lower occupancy, enrollment pressure and center closures. Footprint optimization is accelerating: KinderCare closed 49 centers in the quarter and expects 80–85 closures for 2026. The initiative is expected to create a $57 million annualized revenue headwind but deliver $8 million in adjusted EBITDA savings and improve occupancy by roughly 150 basis points. Full-year guidance was reduced: The company now expects revenue of $2.66–$2.70 billion, adjusted EBITDA of $200–$220 million and free cash flow below $10 million. Growth businesses including Champions, employer-sponsored care and enrichment programs continued to perform well, partially offsetting core enrollment challenges. KinderCare Learning Companies (NYSE:KLC) reported second-quarter 2026 revenue of $698 million, down slightly from $700 million a year earlier, as enrollment pressure and center closures outweighed growth in its Champions school-age care business and employer-sponsored offerings. The company posted a net loss of $8.8 million, or $0.07 per share, compared with adjusted net income of $26 million, or $0.22 per share, in the prior-year period. Adjusted EBITDA declined to $63 million from $82 million a year earlier, reflecting lower occupancy and operating leverage, as well as roughly $5 million related to adjustments in insurance and legal reserves. → Lumentum Just Delivered the AI Growth Investors Wanted Chief Executive Officer Tom Wyatt said results were largely in line with expectations and highlighted continued efforts to improve execution at the company’s centers, simplify center-director responsibilities and optimize the physical footprint. Same-center occupancy was 68.6% during the quarter, down 240 basis points from the prior year. However, Chief Financial Officer Tony Amandi said consolidations provided a 70-basis-point benefit to occupancy during the period. Total enrollment declined 4% year over year, reflecting both ongoing enrollment pressure and the impact of center consolidation actions. → Ryman Checks Into a $1.38B Hospitality Upgrade KinderCare closed 49 centers during the second quarter, representing about 3% of its total center footprint. Wyatt said the locations were primarily in the company’s fourth and fifth performance quintiles and had average occupancy below 37%. The company expects to close 80 to 85 centers for the full year, with most of the remaining closures anticipated in the fourth quarter. Amandi said the optimization initiative is expected to create an estimated annualized revenue headwind of about $57 million but provide an $8 million annualized benefit to adjusted EBITDA. Annual rent expense is expected to decline by approximately $7 million, while occupancy is projected to improve by about 150 basis points once the work is complete. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Management said the closures are intended to align KinderCare’s footprint with shifting demographics and local demand. The company evaluates centers based on market demographics, inquiries, engagement, financial trends, nearby locations and the potential to transition families to “magnet” centers within a 10- to 15-minute drive. Amandi said labor availability was generally not a factor preventing enrollment growth. The company expects continued, routine center closures in future years as part of managing a multi-location business, though the current optimization initiative is expected to be completed in 2026. Amandi said KinderCare expects to enter 2027 with a better-aligned footprint, improving occupancy trends and a cost structure better positioned for long-term growth. While the core KinderCare brand faced enrollment pressure, the company cited several areas of growth. Champions revenue increased 13% year over year, driven by 85 net new sites since the second quarter of 2025 and higher average revenue per site. Wyatt said the business has now delivered four consecutive quarters of double-digit revenue growth. KinderCare for Employers added several new partners during the quarter, according to management. The company said its national footprint across 42 states supports its ability to provide employer-sponsored childcare and tuition-benefit programs. Wyatt cited the company’s provision of 24-hour childcare for public safety employees in Dallas during the World Cup as an example of a tailored employer solution. The company’s Learning Adventures enrichment programs, which include subjects such as phonics, STEM and Spanish, generated revenue that nearly doubled from a year earlier, Wyatt said. KinderCare is expanding those offerings to additional centers and seasonal programs. Management also reported improving performance at its premium Crème de la Crème brand. Enrollment in Crème de la Crème summer camps increased approximately 26% from a year earlier. Shortly after the quarter ended, the company opened its first Crème de la Crème location in California, in Irvine’s Great Park area. KinderCare opened new centers in Bentonville, Arkansas, and Ridgefield, Washington, during the quarter, entering its 42nd state with the Bentonville opening. It also acquired five centers for about $500,000 in cash consideration. New and acquired centers contributed approximately $2.6 million in revenue year to date, Amandi said. Wyatt said targeted marketing initiatives have increased year-over-year inquiries every week since their launch in the first quarter. The company added marketing spending ahead of the back-to-school season and recently introduced an artificial-intelligence program designed to evaluate the quality of tours, parent interactions, calls and follow-up by center directors. KinderCare lowered its full-year outlook to account for the footprint optimization effort and lower expected subsidy-related pricing benefits. The company now expects: Revenue of $2.66 billion to $2.70 billion. Adjusted EBITDA of $200 million to $220 million. Adjusted earnings per share of $0.05 to $0.15. Capital expenditures of $120 million to $130 million. Free cash flow of less than $10 million, primarily due to elevated optimization-related cash costs. The company expects occupancy to decline approximately 3% for the year, with reduced capacity from closures partly offsetting enrollment pressure. Tuition is expected to contribute about 2.5% to revenue growth, down from the company’s previous 3% expectation because state subsidy reimbursement rate increases have been slower than anticipated. Champions and business-to-business operations are expected to contribute about 1% to revenue growth, while new centers and acquisitions are each expected to contribute roughly 50 basis points. Consolidations are projected to represent a 1.5% headwind to full-year revenue growth. For the third quarter, KinderCare forecast revenue of $660 million to $680 million and adjusted EBITDA of $44 million to $48 million, with occupancy expected in the mid-60% range. The company ended the quarter with $174 million in cash, $188 million of available revolving-credit capacity and net debt of approximately three times adjusted EBITDA. It has identified about 36 lease exits that could require $20 million to $25 million in payments. Amandi said some lease-related cash costs may extend into 2027, depending on negotiations and the timing of lease resolutions. KinderCare Learning Companies Inc is a provider of high-quality early childhood education by center capacity. KinderCare Learning Companies Inc is based in PORTLAND, Ore. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "KinderCare Learning Companies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

KinderCare Learning Companies, Inc. (KLC) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -20.00%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced earnings of $0.04, delivering a surprise of +500%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. KinderCare Learning Companies, Inc., which belongs to the Zacks Schools industry, posted revenues of $697.52 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $700.11 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. KinderCare Learning Companies, Inc. shares have added about 7.4% since the beginning of the year versus the S&P 500's gain of 13.2%. While KinderCare Learning Companies, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for KinderCare Learning Companies, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.02 on $688.23 million in revenues for the coming quarter and $0.20 on $2.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Viking Holdings (VIK), another stock in the broader Zacks Consumer Discretionary sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 19. This cruise operator is expected to post quarterly earnings of $1.25 per share in its upcoming report, which represents a year-over-year change of +26.3%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. Viking Holdings' revenues are expected to be $2.12 billion, up 12.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KinderCare Learning Companies, Inc. (KLC) : Free Stock Analysis Report Viking Holdings Ltd. (VIK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Highlighted by Continued Progress Across Key Growth Initiatives and Center Footprint Optimization. Company Updates Full-Year Outlook. LAKE OSWEGO, Ore., August 13, 2026--(BUSINESS WIRE)--KinderCare Learning Companies, Inc. (NYSE: KLC) ("KinderCare," the "Company," and "we"), a leading provider of high-quality early childhood education, today announced financial results for the second quarter ended July 4, 2026. Second Quarter 2026 Highlights Revenue of $697.5 million Income from operations of $2.4 million Net loss of $8.8 million and net loss per common share, diluted of $0.07 Non-GAAP financial measures Adjusted EBITDA (1) of $63.0 million Adjusted net income (1) of $9.9 million and adjusted net income per common share, diluted (1) of $0.08 "Throughout the second quarter, we remained focused on our mission of providing high-quality early childhood education and care while executing our long-term strategy," said Tom Wyatt, Chairman and Chief Executive Officer of KinderCare Learning Companies. "We expanded access to our programs in growing communities, built momentum across our early childhood education and school-age offerings, and continued aligning our center footprint to better meet the evolving needs of families." Mr. Wyatt continued, "We're encouraged by the progress we're making and remain focused on strengthening KinderCare for the long term. That means supporting our educators, delivering high quality early education and care, and ensuring our centers are positioned to serve families where they live and work." Second Quarter 2026 Financial Results Total revenue decreased $2.6 million, or 0.4%, to $697.5 million for the second quarter of 2026 as compared to $700.1 million for the second quarter of 2025. Revenue from early childhood education centers decreased by $9.6 million, or 1.5%, for the second quarter of 2026 as compared to the second quarter of 2025. The decrease was driven from 4.0% lower enrollment, partially offset by 2.6% increase from higher tuition rates. Revenue from before- and after-school sites increased by $7.0 million, or 13.4%, for the second quarter of 2026 as compared to the second quarter of 2025 primarily due to higher rates and opening new sites. Income from operations was $2.4 million for the second quarter of 2026 as compared to $68.7 million for the second quarter of 2025, a decrease of $66.3 million. The decrease was driven by an increase in cost of services of $48.0 million, primarily due to Employee Retention Credits ("ERC") recognized during the second quarter of 2025, which offsets cost of services (excluding depreciation and impairment) in the comparative period, as well as increased rent, insurance, janitorial, and utilities expense, combined with an increase in marketing spend. Additionally, the decrease was attributable to a $20.7 million increase in impairment losses as a result of more centers with lower operational performance as well as center closures and early lease termination agreements executed during the second quarter of 2026. During the second quarter of 2026, the Company closed 49 early childhood education centers as part of an on-going center optimization initiative. These increases were partially offset by a decrease in selling, general, and administrative expenses of $5.6 million, driven by lower personnel costs primarily due to reduced incentive compensation and stock-based compensation expense. Net loss was $8.8 million for the second quarter of 2026 as compared to net income of $38.6 million for the second quarter of 2025, a change of $47.4 million. The change was primarily driven by the loss from operations noted above, partially offset by a $16.3 million decrease in income taxes, resulting from an income tax benefit in the second quarter of 2026 compared to income tax expense in the comparative period. Net loss per common share, diluted was $0.07 for the second quarter of 2026 compared to net income per common share, diluted of $0.33 for the second quarter of 2025. For the second quarter of 2026, adjusted EBITDA (1) decreased $19.4 million, or 23.6%, to $63.0 million, and adjusted net income (1) decreased $16.1 million, to $9.9 million, from the second quarter of 2025. Adjusted net income per common share, diluted (1) was $0.08 for the second quarter of 2026 compared to $0.22 for the second quarter of 2025. As of July 4, 2026, the Company operated 1,567 early childhood education centers and 1,128 before- and after-school sites. Balance Sheet and Liquidity As of July 4, 2026, the Company had $173.7 million of cash and cash equivalents and $187.7 million of available borrowing capacity under the revolving credit facility, after giving effect to the outstanding letters of credit of $74.8 million. During the six months ended July 4, 2026, the Company generated $104.5 million in cash provided by operating activities and made net investments totaling $58.5 million, primarily from purchases of property and equipment. Additionally, during the six months ended July 4, 2026, the Company utilized $5.6 million in cash for financing activities. 2026 Outlook Based on current trends and outlook, the Company is updating its guidance ranges for the full year 2026. Revenue is now expected to be approximately $2.66 billion to $2.70 billion and adjusted EBITDA is expected to be approximately $200 million to $220 million (2). Adjusted net income per common share, diluted is expected to be approximately $0.05 to $0.15 (2). The Company will provide additional details on its outlook during its earnings conference call. Conference Call and Webcast Management will host a conference call today at 5:00 pm ET to discuss the financial results for the second quarter of 2026. The conference call will be webcast live via the Company's investor relations website at https://investors.kindercare.com. A replay of the webcast will be made available on the same investor relations website shortly after the event concludes. Interested parties may also access the conference call live over the phone by dialing 1-833-461-5787 (Toll-free) or 1-585-542-9983 (Toll) and referencing conference ID 681 245 687. Participants are asked to dial in a few minutes prior to the call to register. A supplemental presentation of second quarter results will be available at https://investors.kindercare.com. Footnote References Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations or guidance regarding, among other things, future enrollment trends, the impact of occupancy initiatives on future performance, future government support for childcare (including the timing or amount of future grants, reimbursement or other forms of government assistance); future business plans, objectives or initiatives; the Company’s future financial position; future financial outlook and performance; general economic and industry trends; future operating results; and working capital and liquidity and other statements that are not statements of historical facts. When used in this press release and on the related teleconference, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," "vision," or "should," or the negative thereof or other variations thereon or comparable terminology. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to attract and retain families in our centers, schools and programs, and to attract and retain employers that contract with us for family care benefits for their workforce; our ability to address changes in the demand for child care and workplace solutions; our ability to adjust to shifts in workforce demographics, economic conditions, office environments and unemployment rates; our business may be affected by delays, disruptions or reductions in federally funded childcare subsidies or tuition reimbursements or from reductions in certain federal, state and local government programs; our ability to hire and retain qualified teachers, management, employees, and maintain strong employee engagement; the impact of public health crises on our business, financial condition and results of operations; the negative impact of impairment of goodwill, other intangible assets or long-lived assets on our current and potentially future results of operations; our ability to address adverse publicity; our ability to acquire additional capital; risks associated with acquired centers; our substantial indebtedness could adversely affect our business; our reliance on our subsidiaries; our ability to protect our intellectual property rights; our ability to protect our information technology and that of our third-party service providers; our ability to manage the costs and liabilities of collecting, using, storing, disclosing, transferring and processing personal information; our expectations regarding the effects of existing and developing laws and regulations, litigation and regulatory proceedings; our ability to maintain adequate insurance coverage; the fluctuation in our stock price; we have a material weakness in our internal control over financial reporting; the occurrence of natural disasters, environmental contamination or other highly disruptive events; the interests of Partners Group, a controlling stockholder, may conflict with the interests of our other stockholders; and other risks and uncertainties set forth under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended January 3, 2026 and in our other filings with the SEC. The Company does not undertake any obligation to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based, except as otherwise required by law. Use of Non-GAAP Financial Measures This press release contains certain non-GAAP financial measures, including EBIT, EBITDA, adjusted EBITDA, adjusted net income, and adjusted net income per common share. Tables showing the reconciliation of these non-GAAP financial measures to the comparable GAAP measures are included at the end of this release. Management believes these non-GAAP financial measures are useful in evaluating the Company’s operating performance, and may be helpful to securities analysts, institutional investors and other interested parties in understanding the Company’s operating performance. Management also uses these non-GAAP financial measures for budgeting and compensation purposes. Investors are cautioned against placing undue reliance on non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures, such as net (loss) income or net (loss) income per common share. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies because different companies may calculate similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles. About KinderCare Learning Companies™ KinderCare Learning Companies, Inc. (NYSE: KLC) is a leading private provider of early childhood and school-age education and care, KinderCare builds confidence for life in children and families from all backgrounds. KinderCare supports hardworking families in 42 states and the District of Columbia with differentiated flexible child care solutions: In neighborhoods, with KinderCare® Learning Centers that offer early learning programs for children six weeks to 12 years old; Crème School®, which offers a premium early education experience using a variety of enrichment classrooms; and In local schools, with Champions® before and after-school programs. KinderCare partners with employers nationwide to address the child care needs of today’s dynamic workforce. We provide customized family care benefits for organizations, including care for young children on or near the site where their parents work, tuition benefits, and backup care where KinderCare programs are located. Headquartered in Lake Oswego, Oregon, KinderCare operates more than 2,600 early learning centers and sites. View source version on businesswire.com: https://www.businesswire.com/news/home/20260813429154/en/ Contacts Investors Investor [email protected] Media Media [email protected]

Covista (CVSA) came out with quarterly earnings of $2.09 per share, beating the Zacks Consensus Estimate of $1.9 per share. This compares to earnings of $1.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this for-profit education company would post earnings of $1.73 per share when it actually produced earnings of $1.98, delivering a surprise of +14.45%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Covista, which belongs to the Zacks Schools industry, posted revenues of $501.38 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.38%. This compares to year-ago revenues of $457.11 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Covista shares have added about 24.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While Covista has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Covista was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.00 on $494.87 million in revenues for the coming quarter and $8.85 on $2.07 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. KinderCare Learning Companies, Inc. (KLC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -54.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. KinderCare Learning Companies, Inc.'s revenues are expected to be $696.93 million, down 0.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Covista Inc. (CVSA) : Free Stock Analysis Report KinderCare Learning Companies, Inc. (KLC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. KinderCare Learning Companies Inc (NYSE:KLC) reported a modest increase in revenue, supported by strong performance in its Champions brand and B2B businesses. The company saw a 15% increase in inquiries in targeted areas due to refined marketing investments, indicating growing interest from families. Enrollment in the opportunity region increased by 8%, showcasing effective leadership and strategic focus in underperforming areas. The Champions segment experienced 70% growth, driven by new site additions and strong performance at existing sites. KLC signed 12 new tuition benefit clients in the quarter, reflecting strong employer interest in supporting employees with childcare solutions. Enrollment in Early Childhood Education (ECE) centers remained below prior year levels, down about 3%, which continues to be a primary pressure point. Same-center revenue decreased by $7 million from last year, primarily due to lower enrollment. The company expects to close more centers than usual in 2026 as part of a comprehensive network assessment, which could create near-term variability. Adjusted EBITDA decreased to $52 million from $83 million in the first quarter of the previous year, impacted by lower occupancy. The company recorded a non-cash impairment related to a decline in stock price, resulting in a reported net loss of $290 million. Warning! GuruFocus has detected 2 Warning Signs with KLC. Is KLC fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the higher inquiry rates from a marketing perspective and whether this trend can continue? A: (Tom Wyatt, CEO) The increase in inquiries is driven by our efforts to reduce administrative distractions for center directors and our investments in paid search. We've seen a 3% increase in inquiries across KinderCare and a 15% increase in targeted areas year-over-year. This indicates strong demand for childcare, and we plan to continue leveraging this demand. Q: What is embedded in your guidance for same-center occupancy, and where should occupancy be by the end of the year? A: (Tony Amandi, CFO) We are maintaining our guidance of a 3% decline in occupancy for the year. The first quarter showed a 310 basis point decline, an improvement from the 360 basis point decline in the fourth quarter. We expect gradual improvements throughout the year. Q: Can you discuss the improvement at CRIM and the opportunity region where enrollment increased by 8%? What factors contributed to this success? A: (Tom Wyatt, CEO) The opportunity region had been challenged with occupancy for years. We placed a strong leader over this region who developed a focused strategy on growth and retention. For CRIM, the rebranding, leadership changes, and new curriculum have significantly improved family and teacher experiences, leading to better conversion rates and increased inquiries. Q: Regarding the Champions and before and after school sites, what contributed to the acceleration in 1Q, and are there any timing factors to consider? A: (Tony Amandi, CFO) Champions ended the quarter with 1,159 sites, up from 1,038 last year, reflecting a 10% increase in site count. This growth is driven by new site additions and improved site quality. We expect continued growth and have not changed our guidance for the year. Q: How are you approaching the role of closures versus turnaround efforts for underperforming centers? A: (Tony Amandi, CFO) We evaluate each center individually, considering demographics, leadership, and engagement. Centers with potential for improvement are given time to turn around, while those without a clear path forward may be closed. Our goal is to maintain a strong portfolio for long-term health. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

KinderCare Learning Companies, Inc. (KLC) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +725.00%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.12, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. KinderCare Learning Companies, Inc., which belongs to the Zacks Schools industry, posted revenues of $672.52 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.53%. This compares to year-ago revenues of $668.24 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. KinderCare Learning Companies, Inc. shares have lost about 4.9% since the beginning of the year versus the S&P 500's gain of 8.8%. While KinderCare Learning Companies, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for KinderCare Learning Companies, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $709.13 million in revenues for the coming quarter and $0.17 on $2.72 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Schools is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Consumer Discretionary sector, Monro Muffler Brake (MNRO), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 27. This automotive repair chain is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +55.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Monro Muffler Brake's revenues are expected to be $280.54 million, down 4.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KinderCare Learning Companies, Inc. (KLC) : Free Stock Analysis Report Monro Muffler Brake, Inc. (MNRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research