Revenue: As of FY2027 Q1, the actual value is USD 672.52 M, missing the estimate of USD 683.78 M.EPS: As of FY2027 Q1, the actual value is USD -2.45, missing the estimate of USD -0.0639.EBIT: As of FY2027 Q1, the actual value is USD -254.7 M.<h3>Consolidated Financial Performance</h3>KinderCare Learning Companies, Inc. reported a total revenue of $672,522 thousand for the three months ended April 4, 2026, marking a 0.6% increase from $668,244 thousand in the prior year period. <h4>Segment Revenue</h4><ul><li>Early Childhood Education Centers: Revenue decreased by $4,836 thousand, or 0.8%, to $610,171 thousand for the three months ended April 4, 2026, from $615,007 thousand in the prior year, primarily due to 3.0% lower enrollment, partially offset by a 2.2% increase from higher tuition rates. </li><li>Before- and After-School Sites: Revenue increased by $9,114 thousand, or 17.1%, to $62,351 thousand for the three months ended April 4, 2026, from $53,237 thousand in the prior year, mainly due to new site openings and higher tuition rates. </li><li>Subsidized Revenue: Revenue from families with partially or fully subsidized tuition was $234.3 million for the three months ended April 4, 2026, down from $240.1 million in the prior year period. </li></ul><h4>Operational Metrics</h4><ul><li>Net (Loss) Income: The company reported a net loss of -$289,832 thousand for the three months ended April 4, 2026, a significant decrease from a net income of $21,157 thousand in the prior year period. </li><li>Cost of Services (excluding depreciation and impairment): Increased by $34,735 thousand, or 6.7%, to $550,923 thousand for the three months ended April 4, 2026, compared to $516,188 thousand in the prior year, driven by higher food, supplies, utilities, janitorial costs, increased marketing spend, an $8.2 million increase in rent expense, and $4.8 million higher personnel costs, with cost reimbursements from government assistance being $3.4 million lower. </li><li>Depreciation and Amortization: Increased by $1,100 thousand, or 3.7%, to $31,077 thousand for the three months ended April 4, 2026, compared to $29,977 thousand in the prior year, primarily due to assets placed into service from new and acquired centers. </li><li>Selling, General, and Administrative Expenses: Decreased by $598 thousand, or 0.8%, to $71,129 thousand for the three months ended April 4, 2026, compared to $71,727 thousand in the prior year, mainly due to lower stock-based compensation expense. </li><li>Impairment Losses: Increased by $290.0 million to $291,475 thousand for the three months ended April 4, 2026, from $1,510 thousand in the prior year, primarily due to a -$273.5 million goodwill impairment and a $16.5 million increase in long-lived asset impairment. </li><li>(Loss) Income from Operations: The company reported an operating loss of -$272,082 thousand for the three months ended April 4, 2026, compared to an operating income of $48,842 thousand in the prior year period. </li><li>Interest Expense: Decreased by $1,888 thousand, or 9.4%, to $18,220 thousand for the three months ended April 4, 2026, from $20,108 thousand in the prior year, mainly due to lower interest rates on the First Lien Term Loan Facility and lower outstanding principal. </li><li>Adjusted EBITDA: Decreased to $52,071 thousand for the three months ended April 4, 2026, from $83,551 thousand in the prior year period. </li><li>Adjusted Net Income: Decreased to $4,221 thousand for the three months ended April 4, 2026, from $27,030 thousand in the prior year period. </li></ul><h4>Operational Metrics (Non-Financial)</h4><ul><li>Total Centers and Sites: Increased to 2,765 as of April 4, 2026, from 2,620 as of March 29, 2025. <ul><li>Early Childhood Education Centers: Increased to 1,606 centers with a capacity for 215,371 children as of April 4, 2026, from 1,582 centers with a capacity for 211,767 children as of March 29, 2025. During the three months ended April 4, 2026, five centers were added (three opened, two acquired). </li><li>Before- and After-School Sites: Increased to 1,159 sites as of April 4, 2026, from 1,038 sites as of March 29, 2025. During the three months ended April 4, 2026, six sites were added (17 opened, 11 closed). </li></ul></li><li>Average Weekly ECE FTEs: Decreased by 4,294, or 3.0%, to 139,782 for the three months ended April 4, 2026, compared to 144,076 in the prior year, primarily due to lower FTEs at same-centers. </li><li>ECE Same-Center Occupancy: Decreased by 310 basis points to 66.0% for the three months ended April 4, 2026, compared to 69.1% in the prior year, primarily due to lower enrollment. </li><li>ECE Same-Center Revenue: Decreased by $7.4 million, or 1.2%, to $599,002 thousand for the three months ended April 4, 2026, compared to $606,357 thousand in the prior year period. </li></ul><h4>Cash Flow</h4><ul><li>Cash Provided by Operating Activities: Decreased by $67.4 million to $31,058 thousand for the three months ended April 4, 2026, from $98,444 thousand in the prior year, primarily due to decreased net (loss) income and changes in operating assets and liabilities. </li><li>Cash Used in Investing Activities: Increased by $0.3 million to -$28,651 thousand for the three months ended April 4, 2026, from -$28,388 thousand in the prior year, driven by $6.6 million higher capital expenditures, partially offset by a $5.5 million decrease in payments for acquisitions. </li><li>Cash Used in Financing Activities: Increased by $1.7 million to -$2,832 thousand for the three months ended April 4, 2026, from -$1,097 thousand in the prior year, primarily due to a principal payment on the First Lien Term Loan. </li><li>Net Change in Cash, Cash Equivalents, and Restricted Cash: Resulted in a decrease of -$425 thousand for the three months ended April 4, 2026, compared to an increase of $68,959 thousand in the prior year. </li></ul><h4>Future Outlook and Strategy</h4>KinderCare Learning Companies, Inc. expects to meet its liquidity requirements for at least the next 12 months using cash from operations, current cash balances, and available borrowings under its revolving credit facility. The company may seek additional funding for future expenditures through equity or debt financing arrangements. A subsequent event on April 8, 2026, involves a Fifth Amendment to a Master Lease Agreement impacting 545 center sites, which, if effective, will extend lease terms by approximately three to nine years and increase total minimum lease payments by approximately $600 million over the amended lease terms.

KinderCare Learning Cos | 10-Q: FY2027 Q1 Revenue Misses Estimate at USD 672.52 M