Quarterly ResultMay 14, 2026, 04:20 PM
KinderCare Q1 Net Loss $289.8M; Raises Full-Year Outlook
AI Summary
KinderCare Learning Companies reported a net loss of $289.8 million for Q1 2026, a significant decline from net income in the prior year, primarily due to a $291.5 million increase in impairment losses. Despite the loss, the company highlighted a solid start to the year, driven by strength in its Champions and B2B businesses and early progress on marketing initiatives. Based on this performance, KinderCare is raising its full-year adjusted EBITDA and adjusted EPS outlook.
Key Highlights
- Q1 2026 net loss was $289.8 million, compared to net income of $21.2 million in Q1 2025.
- Q1 2026 revenue increased 0.6% to $672.5 million from $668.2 million in Q1 2025.
- Adjusted EBITDA for Q1 2026 decreased 37.7% to $52.1 million.
- Impairment losses surged to $291.5 million in Q1 2026, up from $1.5 million in Q1 2025.
- Full-year 2026 adjusted EBITDA outlook raised to $215 million to $235 million.
- Full-year 2026 adjusted net income per share outlook raised to $0.15 to $0.25.
- Cash and cash equivalents stood at $132.9 million as of April 4, 2026.
- Cash provided by operating activities was $31.1 million for Q1 2026.