# KinderCare Learning Companies, Inc. (KLC) Informational only - not investment advice. CIK: 0001873529 SIC: 8351 Services-Child Day Care Services SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 83](/major-group/83/) > [SIC 8351 Services-Child Day Care Services](/industry/8351/) Latest 10-K filed: 2026-03-13 SEC page: https://www.sec.gov/edgar/browse/?CIK=1873529 Filing source: https://www.sec.gov/Archives/edgar/data/1873529/000119312526106342/klc-20260103.htm ## At a glance FY2025 · period end 2026-01-03 · filed 2026-03-13 · accession 0001193125-26-106342 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001873529.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 2,733,323,000 USD | 2025 | verified | | Net income | -112,880,000 USD | 2025 | verified | | Assets | 3,747,890,000 USD | 2025 | verified | | Free cash flow | 110,264,000 USD | 2025 | computed | | Net margin | -4.13% | 2025 | computed | | Operating margin | -0.73% | 2025 | computed | | Revenue YoY | +2.64% | 2025 | computed | | ROE | -14.95% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 2733323000 | USD | 2025 | 2026-03-13 | | Net income | -112880000 | USD | 2025 | 2026-03-13 | | Assets | 3747890000 | USD | 2025 | 2026-03-13 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001873529.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | | Revenue | | 2,165,813,000 | 2,510,182,000 | 2,663,035,000 | 2,733,323,000 | | Net income | | 219,169,000 | 102,558,000 | -92,840,000 | -112,880,000 | | Operating income | | 389,473,000 | 275,286,000 | 79,318,000 | -20,057,000 | | Diluted EPS | | 2.35 | 1.13 | -0.96 | -0.95 | | Operating cash flow | | 341,609,000 | 303,540,000 | 115,887,000 | 238,535,000 | | Capital expenditures | | 139,425,000 | 129,045,000 | 132,322,000 | 128,271,000 | | Assets | | | 3,653,262,000 | 3,645,467,000 | 3,747,890,000 | | Liabilities | | | 3,146,382,000 | 2,780,958,000 | 2,992,628,000 | | Stockholders' equity | 255,607,000 | 407,686,000 | 506,880,000 | 864,509,000 | 755,262,000 | | Cash and cash equivalents | | 105,206,000 | 156,147,000 | 62,336,000 | 133,205,000 | | Free cash flow | | 202,184,000 | 174,495,000 | -16,435,000 | 110,264,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | | Net margin | | 10.12% | 4.09% | -3.49% | -4.13% | | Operating margin | | 17.98% | 10.97% | 2.98% | -0.73% | | Return on equity | | 53.76% | 20.23% | -10.74% | -14.95% | | Return on assets | | | 2.81% | -2.55% | -3.01% | | Liabilities / equity | | | 6.21 | 3.22 | 3.96 | | Current ratio | | | 0.66 | 0.52 | 0.74 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001873529.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2024-Q3 | 2024-09-28 | 671,476,000 | 13,959,000 | 0.15 | reported discrete quarter | | 2024-Q4 | 2024-12-28 | 646,956,000 | -133,583,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-29 | 668,244,000 | 21,157,000 | 0.18 | reported discrete quarter | | 2025-Q2 | 2025-06-28 | 700,110,000 | 38,588,000 | 0.33 | reported discrete quarter | | 2025-Q3 | 2025-09-27 | 676,830,000 | 4,550,000 | 0.04 | reported discrete quarter | | 2025-Q4 | 2026-01-03 | 688,139,000 | -177,175,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-04-04 | 672,522,000 | -289,832,000 | -2.45 | reported discrete quarter | | 2026-Q2 | 2026-07-04 | 697,522,000 | -8,770,000 | -0.07 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from KLC's latest 10-K: [/company/KLC/business/](/company/KLC/business/). ## Risk Factors Verbatim Item 1A Risk Factors from KLC's latest 10-K: [/company/KLC/risk-factors/](/company/KLC/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1873529/000119312526349480/klc-20260704.htm Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub. Confidence: high Filing date: 2026-08-13 Report date: 2026-07-04 Results of Operations We operate as a single operating segment to reflect the way our chief operating decision maker reviews and assesses the performance of the business. Refer to Note 1 and Note 16 of our unaudited condensed consolidated financial statements, included elsewhere in this Quarterly Report on Form 10-Q, and Note 1 and Note 23 of our audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2026 for additional information regarding the Company's accounting policies and segment disclosures. The period-to-period comparisons below of financial results are not necessarily indicative of future results. The following table sets forth our results of operations including as a percentage of revenue for the three months ended July 4, 2026 and June 28, 2025 (in thousands, except per share data and percentages): [[GREPCENT_TABLE]] [["","","Three Months Ended"],["","","July 4, 2026","","June 28, 2025"],["Revenue","","$","697,522","","","","","$","700,110"],["Costs and expenses:"],["Cost of services (excluding depreciation and impairment)","","","567,434","","","81.3%","","","519,477","","","74.2%"],["Depreciation and amortization","","","31,699","","","4.5%","","","31,074","","","4.4%"],["Selling, general, and administrative expenses","","","73,068","","","10.5%","","","78,648","","","11.2%"],["Impairment losses","","","22,923","","","3.3%","","","2,235","","","0.3%"],["Total costs and expenses","","","695,124","","","99.7%","","","631,434","","","90.2%"],["Income from operations","","","2,398","","","0.3%","","","68,676","","","9.8%"],["Interest expense","","","18,255","","","2.6%","","","20,073","","","2.9%"],["Interest income","","","(970",")","","(0.1%)","","","(1,424",")","","(0.2%)"],["Other income, net","","","(4,342",")","","(0.6%)","","","(3,049",")","","(0.4%)"],["(Loss) income before income taxes","","","(10,545",")","","(1.5%)","","","53,076","","","7.6%"],["Income tax (benefit) expense","","","(1,775",")","","(0.3%)","","","14,488","","","2.1%"],["Net (loss) income","","$","(8,770",")","","(1.3%)","","$","38,588","","","5.5%"],["Net (loss) income per common share:"],["Basic","","$","(0.07",")","","","","$","0.33"],["Diluted","","$","(0.07",")","","","","$","0.33"],["Weighted average number of common shares outstanding:"],["Basic","","","118,798","","","","","","118,309"],["Diluted","","","118,798","","","","","","118,371"]] [[/GREPCENT_TABLE]] 25 The following table sets forth our results of operations including as a percentage of revenue for the six months ended July 4, 2026 and June 28, 2025 (in thousands, except per share data and percentages): [[GREPCENT_TABLE]] [["","","Six Months Ended"],["","","July 4, 2026","","June 28, 2025"],["Revenue","","$","1,370,044","","","","","$","1,368,354"],["Costs and expenses:"],["Cost of services (excluding depreciation and impairment)","","","1,118,357","","","81.6%","","","1,035,665","","","75.7%"],["Depreciation and amortization","","","62,776","","","4.6%","","","61,051","","","4.5%"],["Selling, general, and administrative expenses","","","144,197","","","10.5%","","","150,375","","","11.0%"],["Impairment losses","","","314,398","","","22.9%","","","3,745","","","0.3%"],["Total costs and expenses","","","1,639,728","","","119.7%","","","1,250,836","","","91.4%"],["(Loss) income from operations","","","(269,684",")","","(19.7%)","","","117,518","","","8.6%"],["Interest expense","","","36,475","","","2.7%","","","40,181","","","2.9%"],["Interest income","","","(1,812",")","","(0.1%)","","","(2,083",")","","(0.2%)"],["Other income, net","","","(3,435",")","","(0.3%)","","","(2,651",")","","(0.2%)"],["(Loss) income before income taxes","","","(300,912",")","","(22.0%)","","","82,071","","","6.0%"],["Income tax (benefit) expense","","","(2,310",")","","(0.2%)","","","22,326","","","1.6%"],["Net (loss) income","","$","(298,602",")","","(21.8%)","","$","59,745","","","4.4%"],["Net (loss) income per common share:"],["Basic","","$","(2.52",")","","","","$","0.51"],["Diluted","","$","(2.52",")","","","","$","0.50"],["Weighted average number of common shares outstanding:"],["Basic","","","118,648","","","","","","118,274"],["Diluted","","","118,648","","","","","","118,346"]] [[/GREPCENT_TABLE]] Comparison of the Three Months Ended July 4, 2026 and June 28, 2025 Revenue [[GREPCENT_TABLE]] [["","","Three Months Ended","","","Change"],["","","July 4, 2026","","","June 28, 2025","","","Amount","","","%"],["Early childhood education centers","","$","638,058","","","$","647,675","","","$","(9,617",")","","","(1.5",")%"],["Before- and after-school sites","","","59,464","","","","52,435","","","","7,029","","","","13.4","%"],["Total revenue","","$","697,522","","","$","700,110","","","$","(2,588",")","","","(0.4",")%"]] [[/GREPCENT_TABLE]] Total revenue decreased by $2.6 million, or 0.4%, for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. Revenue from early childhood education centers decreased by $9.6 million, or 1.5%, for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. The decrease was driven from 4.0% lower enrollment, partially offset by 2.6% increase from higher tuition rates. The $9.6 million decrease in revenue from early childhood education centers for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025 was comprised of $14.0 million lower ECE same-center revenue, partially offset by a $4.4 million net increase in revenue from centers that were not classified as same-centers. Revenue from before- and after-school sites increased by $7.0 million, or 13.4%, for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025 primarily due to higher rates and opening new sites. Cost of services (excluding depreciation and impairment) Cost of services (excluding depreciation and impairment) increased by $48.0 million, or 9.2%, for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. The increase was driven by $30.1 million of Employee Retention Credits ("ERC") recognized during the three months ended June 28, 2025, which offsets cost of services (excluding depreciation and impairment) in the comparative period. The increase was also attributable to $10.8 million higher insurance, janitorial, and utilities 26 expenses, combined with an increase in marketing spend. Lastly, rent expense increased by $7.7 million due to new and acquired centers and sites as well as contractual rent increases. Depreciation and amortization Depreciation and amortization remained relatively consistent for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. Selling, general, and administrative expenses Selling, general, and administrative expenses decreased by $5.6 million, or 7.1%, for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. This decrease was driven by lower personnel costs primarily due to reduced incentive compensation expense reflective of operating performance and certain stock-based compensation awards becoming fully vested. Impairment losses Impairment losses increased by $20.7 million, for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025, primarily driven by more centers with reduced cash flow projections as a result of lower operational performances as well as center closures and early lease termination agreements executed during the three months ended July 4, 2026. Interest expense Interest expense decreased by $1.8 million, or 9.1%, for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. This decrease was primarily driven by lower interest rates on the First Lien Term Loan Facility as a result of the July 2025 repricing amendment and lower outstanding principal, partially offset by losses on interest rate derivative contracts reclassified into net loss during the three months ended July 4, 2026 compared to gains reclassified into net income during the three months ended June 28, 2025. Interest income Interest income remained relatively consistent for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. Other income, net Other income, net increased by $1.3 million for the three months ended July 4, 2026 as compared to the three months ended June 28, 2025. The increase was primarily comprised of net changes in realized and unrealized gains from investments held in deferred compensation asset trusts. Income tax (benefit) expense Income taxes decreased $16.3 million to an income tax benefit for the three months ended July 4, 2026, as compared to income tax expense for the three months ended June 28, 2025. The effective tax rate was 16.8% for the three months ended July 4, 2026, as compared to 27.3% for the three months ended June 28, 2025. Compared to the statutory rate, the reduction in the effective tax rate for the three months ended July 4, 2026, was primarily due to a true up of the 2025 tax provision, partially offset by the relative impact of recurring nondeductible expenses which had a proportionally greater impact to the effective tax rate when applied to the loss before income taxes for the three months ended July 4, 2026. Compared to the statutory rate, the difference in the effective tax rate for the three months ended June 28, 2025, was primarily due to the impact of state and local taxes. Comparison of the Six Months Ended July 4, 2026 and June 28, 2025 Revenue [[GREPCENT_TABLE]] [["","","Six Months Ended","","","Change"],["","","July 4, 2026","","","June 28, 2025","","","Amount","","","%"],["Early childhood education centers","","$","1,248,229","","","$","1,262,682","","","$","(14,453",")","","","(1.1",")%"],["Before- and after-school sites","","","121,815","","","","105,672","","","","16,143","","","","15.3","%"],["Total revenue","","$","1,370,044","","","$","1,368,354","","","$","1,690","","","","0.1","%"]] [[/GREPCENT_TABLE]] 27 Total revenue increased by $1.7 million, or 0.1%, for the six months ended July 4, 2026 as compared to the six months ended June 28, 2025. Revenue from early childhood education centers decreased by $14.5 million, or 1.1%, for the six months ended July 4, 2026 as compared to the six months ended June 28, 2025. The decrease was driven from 3.5% lower enrollment, partially offset by 2.4% increase from higher tuition rates. The $14.5 million decrease in revenue from early childhood education centers for the six months ended July 4, 2026 as compared to the six months ended June 28, 2025 was comprised of $25.9 million lower ECE same-center revenue, partially offset by a $11.5 million net increase in revenue from centers that were not classified as same-centers. Revenue from before- and after-school sites increased by $16.1 million, or 15.3%, for the six months ended July 4, 2026 as compared to the six months ended June 28, 2025 primarily due to higher rates and opening new sites. Cost of services (excluding depreciation and impairment) Cost of services (excluding depreciation and impairment) increased by $82.7 million, or 8.0%, for the six months ended July 4, 2026 as compared to the six months ended June 28, 2025. The increase was driven by $30.1 million of ERC recognized during the six months ended June 28, 2025, which offsets cost of services (excluding depreciation and impairment) in the comparative period. Additionally, the increase was attributable to $29.0 million higher insurance, janitorial, utilities and food costs, partially due to operating more centers and sites, combined with an increase in marketing spend. Rent expense increased $15.9 million due to new and acquired centers and sites as well as contractual rent increases. Lastly, the increase was also attributable to $5.0 million higher personnel costs due to inc [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1873529/000119312526106342/klc-20260103.htm Complete FY 2026 MD&A: /company/KLC/mda/fy2026/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-13 Report date: 2026-01-03 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements and notes thereto for the fiscal year ended January 3, 2026 included in Item 8 of this Annual Report on Form 10-K. This discussion and analysis primarily addresses the 53-week fiscal year ended January 3, 2026 ("fiscal 2025") and the 52-week fiscal year ended December 28, 2024 ("fiscal 2024") and comparisons between these years. Discussion and analysis as well as comparisons of the fiscal years ended December 28, 2024 and December 30, 2023 can be found within "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our previous Annual Report on Form 10-K for the fiscal year ended December 28, 2024 filed with the SEC on March 21, 2025. Some of the information included in this discussion and analysis or set forth elsewhere in this Annual Report on Form 10-K, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. You should review the “Cautionary Note Regarding Forward-Looking Statements” and "Risk Factors” sections included elsewhere in this Annual Report on Form 10-K for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Our Company KinderCare Learning Companies, Inc. is a leading provider of high-quality ECE in the United States. We are a mission-driven organization, rooted in a commitment to providing all children with the very best start in life. We serve children ranging from six weeks to 12 years of age across our market-leading footprint of 1,601 early childhood education centers with center capacity for 214,803 children and 1,153 before- and after-school sites located in 41 states and the District of Columbia as of January 3, 2026. On October 8, 2024, our registration statement on Form S-1, as amended (File No. 333-281971) ("Form S-1") related to our IPO, was declared effective by the SEC, and our IPO was completed on October 10, 2024. In connection with our IPO, the Company converted Class A and Class B common stock, both with a par value of $0.0001 per share, to common stock, with a par value of $0.01 per share, at a ratio of 8.375 shares of Class A and Class B common stock to one share of common stock, which became effective immediately following the effectiveness of our registration statement on Form S-1 for our IPO ("Common Stock Conversion"). As a result, prior periods presented in our consolidated financial statements and notes thereto as of and for the fiscal year ended January 3, 2026 have been adjusted to retrospectively reflect the Common Stock Conversion. Refer to Note 17 within the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for further information. Factors Affecting the Comparability of our Results of Operations As a result of certain factors, our historical results of operations may not be comparable from period to period and may not be comparable to our financial results of operations in future periods. Set forth below is a brief discussion of the key factors impacting the comparability of our results of operations. 28 Fiscal Period We report on a 52- or 53-week fiscal year comprised of 13- or 14-week fourth quarters, respectively, with the fiscal year ending on the Saturday closest to December 31. Fiscal 2025 is a 53-week fiscal year as compared to fiscal 2024 which is a 52-week fiscal year. The 53rd week in fiscal 2025 contributed an additional $45.1 million of revenue and an estimated $12 million of adjusted EBITDA. IPO and Related Transactions In October 2024, we sold 27.6 million shares of our common stock through our IPO, including 3.6 million shares sold pursuant to the underwriters' exercise in full of their option to purchase additional shares. Net proceeds of $616.1 million, after underwriting discounts and offering costs, were recognized within additional paid-in capital on the consolidated financial statements. These net proceeds were primarily utilized to repay $608.0 million of outstanding principal on our first lien term loan ("First Lien Term Loan Facility"), which provided us the ability to enter into a refinancing amendment to the credit agreement, dated as of June 12, 2023 (as subsequently amended and restated) (the "Credit Agreement") to reduce the interest rates on our senior secured credit facilities. We recognized a loss on extinguishment of debt of $24.8 million within interest expense as a result of the partial repayment and refinancing of our senior secured credit facilities. In conjunction with our IPO, we modified the terms of our stock-based award plans. The 2022 Incentive Award Plan ("2022 Plan") was amended to provide for share settlement of all unexercised stock options and unvested restricted stock units ("RSUs") when stock options are exercised and RSUs vest according to their original vesting schedules. As a result of this modification, the previously liability-classified stock options and RSUs were reclassified as equity and the awards will not be remeasured at fair value each reporting period. The 2015 Equity Incentive Plan ("PIUs Plan") was modified to accelerate the vesting of all outstanding profit interest units ("PIUs"). As certain PIUs were improbable to vest prior to the modification and became probable to vest subsequent to the modification, we recognized the full fair value of the awards at the date of modification. As a result of the modification, we recognized $113.1 million as stock-based compensation expense within selling, general, and administrative expenses. The PIUs were settled in shares of our common stock in accordance with the plan of dissolution and liquidation of our parent company effectively terminating the PIUs Plan. Our IPO, as well as the transactions we entered into in connection with our IPO, have affected the comparability of our operating results for the periods presented. Refer to Note 12 and Note 17 within the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for further information. COVID-19 Related Stimulus During 2020 and 2021, the United States government approved several incremental stimulus funding programs for ECE providers in response to the coronavirus disease 2019 ("COVID-19") pandemic, and as a result, we have received grants in the form of revenue or cost reimbursements ("COVID-19 Related Stimulus"). We recognized $0.7 million and $63.3 million during fiscal 2025 and fiscal 2024, respectively, in funding for reimbursement of center operating expenses in cost of services (excluding depreciation and impairment). The federal programs funding the COVID-19 Related Stimulus were required to distribute all stimulus funding by December 31, 2024, and we do not expect to receive a material amount of funding after that date. The variability of funding provided by COVID-19 Related Stimulus has impacted the comparability of our operating results for the periods presented. The Employee Retention Credit (“ERC”), established by the Coronavirus Aid, Relief and Economic Security Act and extended and expanded by several subsequent governmental acts, allows eligible businesses to claim a per employee payroll tax credit based on a percentage of qualified wages, including health care expenses, paid during calendar year 2020 through September 2021. During fiscal 2022, we applied for ERC for qualified wages and benefits paid throughout fiscal 2021 and fiscal 2020. Reimbursements of $62.0 million in cash tax refunds for ERC claimed, along with $2.3 million in interest income, were received during fiscal 2023. Due to the unprecedented nature of ERC legislation and the changing administrative guidance, not all of the ERC reimbursements received have met our recognition criteria. During fiscal 2025 and fiscal 2024, we recognized $30.1 million and $23.4 million of ERC in cost of services (excluding depreciation and impairment), along with $1.3 million and $0.5 million in interest income, respectively. The timing in recognition of the remaining deferred ERC liabilities will have an impact on the comparability of future periods. 29 Key Performance Metrics Total centers and sites We measure and track the number of centers and sites because, as our number of centers and sites grow, it highlights our geographic expansion and potential growth in revenue. We believe this information is useful to investors as an indicator of revenue growth and operational expansion and can be used to measure and track our performance over time. We define the number of centers and sites as the number of centers and sites at the beginning of the period plus openings and acquisitions, minus any permanent closures for the period. A permanently closed center or site is a center or site that has ceased operations as of the end of the reporting period that management does not intend on reopening. During fiscal 2025, management updated the definition of total before- and after-school sites to include sites that are temporarily closed as a result of the summer season to more accurately reflect the total sites that were operating during the year. Prior periods presented were adjusted to reflect the updated definition for comparative purposes. [[GREPCENT_TABLE]] [["","","January 3,","","","December 28,"],["","","2026","","","2024"],["Early childhood education centers","","","1,601","","","","1,574"],["Before- and after-school sites","","","1,153","","","","1,025"],["Total centers and sites","","","2,754","","","","2,599"]] [[/GREPCENT_TABLE]] As of January 3, 2026, we had 1,601 early childhood education centers with a center capacity for 214,803 children as compared to 1,574 early childhood education centers as of December 28, 2024, with a center capacity for 210,135 children. During fiscal 2025, total centers increased by 27 due to acquiring 26 centers and opening 20 centers, partially offset by 19 permanent center closures. Total before- and after-school sites increased by 128 during fiscal 2025 as compared to the number of before- and after-school sites as of December 28, 2024 due to opening 236 sites, partially offset by 108 site closures. Average weekly ECE FTEs Average weekly ECE full-time enrollment ("FTEs") is a measure of the number of full-time children enrolled and charged tuition weekly in our centers. We calculate average weekly ECE FTEs based on weighted averages; for example, an enrolled full-time child equates to one average weekly ECE FTE, while a child enrolled for three full days equates to 0.6 average weekly ECE FTE. This metric is used by management and we believe is useful to investors as it is the key driver of revenue generated and variable costs incurred in our operations. [[GREPCENT_TABLE]] [["","","Fiscal Years Ended"],["","","January 3,","","","December 28,"],["","","2026","","","2024"],["Average weekly ECE FTEs","","","142,248","","","","145,149"]] [[/GREPCENT_TABLE]] Average weekly ECE FTEs decreased by 2,901, or 2.0%, for fiscal 2025 as compared to fiscal 2024 primarily due to lower FTEs at same-centers. ECE same-center occupancy ECE same-center occupancy is a measure of the utilization of center capacity. We define same-center to be centers that have been operated by us for at least 12 months as of the period end date or, in other words, centers that are starting their second year of operation. Excluded from same-centers are any closed centers at the end of the reporting period and any new or acquired centers that have not yet met the same-center criteria. We calculate ECE same-center occupancy as the average weekly ECE same-center full-time [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2026 MD&A: /company/KLC/mda/fy2026/ All MD&A years: /company/KLC/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/KLC/mda/fy2024/): filed 2025-03-21; accession 0000950170-25-043210 (https://www.sec.gov/Archives/edgar/data/1873529/000095017025043210/klc-20241228.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 8351 Services-Child Day Care Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/KLC.md · JSON record: /company/KLC.json · verified financials: /company/KLC/financials.json / /company/KLC/financials.csv · machine TOC for the whole site: /llms.txt