KinderCare Learning Companies, Inc. reported a total revenue of $2.73 billion for the fiscal year ending January 3, 2026, marking a 2.6% increase from $2.66 billion in the previous fiscal year. The growth was primarily driven by an additional week of operations in fiscal 2025, which contributed approximately $45.1 million to revenue. However, the company experienced a net loss of $112.9 million, compared to a loss of $92.8 million in fiscal 2024. This decline in profitability was attributed to a significant impairment charge of $204.1 million, primarily related to goodwill, as well as increased costs in services and interest expenses.
In terms of operational metrics, KinderCare operated 1,601 early childhood education centers and 1,153 before- and after-school sites as of January 3, 2026, reflecting a net increase of 27 centers and 128 sites compared to the previous year. The average weekly enrollment in early childhood education full-time equivalents (FTEs) decreased by 2.0% to 142,248, indicating challenges in maintaining occupancy rates. The same-center occupancy rate also fell to 67.8%, down from 69.8% in the prior year, which contributed to the overall revenue growth being lower than anticipated.
Strategically, KinderCare continued to expand its footprint through acquisitions and new center openings, adding 26 centers during the fiscal year. The company has focused on enhancing its service offerings, including employer-sponsored programs, which are increasingly recognized as valuable by organizations looking to support their employees' childcare needs. The company also reported a significant reliance on government assistance, with 37% of total revenue derived from families whose tuition is subsidized by government programs.
Looking ahead, KinderCare's management expressed optimism about future growth, citing plans to increase occupancy rates and implement consistent price increases. The company aims to leverage its established brand and operational infrastructure to capture a larger share of the early childhood education market, which remains fragmented. However, management also acknowledged the ongoing challenges posed by economic conditions, demographic shifts, and competition in the childcare sector, which could impact demand for its services. The company is actively working on remediating identified weaknesses in its internal controls, particularly in information technology, to enhance operational efficiency and financial reporting accuracy.
About KinderCare Learning Companies, Inc.
KinderCare Learning Companies, Inc. is the largest private provider of early childhood education and child care in the U.S., operating over 1,500 centers across multiple brands. It offers high-quality, curriculum-driven programs for children from six weeks to 12 years, serving families, employers, and schools. The company emphasizes educational excellence, safety, employee engagement, and innovative technology to deliver accessible, outcomes-focused care and early education.
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