Overview

• U.S. early childhood education provider's Q1 revenue rose 0.6%, slightly beating analyst expectations

• Adjusted EPS and adjusted EBITDA for Q1 beat analyst estimates

• Company posted large net loss due to $291 mln impairment charge on goodwill and underperforming centers

Outlook

• Company raises full-year 2026 adjusted EBITDA outlook to $215 mln-$235 mln

• Company now expects 2026 revenue of $2.7 bln-$2.75 bln

• Adjusted net income per share for 2026 now seen at $0.15-$0.25

Result Drivers

• ENROLLMENT PRESSURE - Revenue from early childhood education centers fell due to 3% lower enrollment, partly offset by higher tuition rates

• SITE EXPANSION - Revenue from before- and after-school sites grew 17.1% due to new site openings and higher tuition rates

• IMPAIRMENT CHARGES - $291 mln in impairment losses driven by lower market capitalization and underperforming centers identified for closure

Company press release: ID:nBw3lvH6Sa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$672.52 mln	$669.23 mln (5 Analysts)
Q1 Adjusted EPS	Beat	$0.04	-$0.01 (6 Analysts)
Q1 EPS		-$2.45
Q1 Adjusted Net Income	Beat	$4.20 mln	-$576,670 (3 Analysts)
Q1 Net Income		-$289.83 mln
Q1 Adjusted EBITDA	Beat	$52.07 mln	$46.81 mln (5 Analysts)
Q1 Income from Operations		-$272.10 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy."

• Wall Street's median 12-month price target for Kindercare Learning Companies Inc is $3.01, about 26.9% below its May 13 closing price of $4.11

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 7 three months ago

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