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Earnings Results 3rd Quarter, 2025 November 12, 2025
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Legal Disclaimer DISCLAIMER Neither KinderCare Learning Companies, Inc. (“KinderCare”, “the Company” or “we”) nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, or any other written or oral communication transmitted or made available to any recipient or its affiliates or representatives. The Company and its affiliates or representatives expressly disclaim to the fullest extent permitted by law any and all liability based, in whole or in part, on the presentation or any information contained herein or any other written or oral communication transmitted or made available to any recipient or its affiliates or representatives, including, without limitation, with respect to errors therein or omissions therefrom. This presentation is for informational purposes and reference only and is not intended to be, and must not be, taken as the basis for a decision with respect to any possible transaction. These materials and any related oral statements do not purport to contain all of the information that may be required to evaluate all of the factors that would be relevant to your consideration of any potential transaction and shall not be construed as legal, tax, investment or any other advice. You should consult your own counsel, accountant or business advisors and should conduct your own investigation and analysis. Performance information is historical and is not indicative of, nor does it guarantee future results. There can be no assurance that similar performance may be experienced in the future. No securities commission or securities regulatory authority in the United States or any other jurisdiction has in any way passed upon the accuracy or adequacy of this presentation. FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION This presentation (including the verbal information and discussion relating to these materials) contains forward-looking statements. You can generally identify forward looking statements by the Company’s use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “vision,” or “should,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including the Company’s beliefs about market trends, the Company’s market opportunity and the growth of the Company’s various markets, the Company’s expansion into new markets, the size of the Company’s total addressable market, market trends, and the Company's expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this presentation are forward looking statements. We have based these forward-looking statements on the Company’s current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements, or could affect the Company's share price. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward looking statements include: the Company’s financial condition and results of operations; the Company’s ability to address changes in the demand for child care and workplace solutions; the Company’s ability to adjust to shifts in workforce demographics, economic conditions, office environments and unemployment rates, and the Company’s ability to manage any adverse impact of a prolonged shutdown of the United States government on these factors; the Company’s ability to hire and retain qualified teachers, management, employees, and maintain strong employee engagement; the Company’s ability to address adverse publicity; changes in federal child care and education spending policies, tax incentives, and budget priorities; the Company’s ability to acquire additional capital; the Company’s ability to successfully identify acquisition targets, acquire businesses and integrate acquired operations into the Company’s business; the Company’s reliance on the Company’s subsidiaries; the Company’s ability to protect the Company’s intellectual property rights; the Company’s ability to protect the Company’s information technology and that of the Company’s third party service providers; the Company’s ability to manage the costs and liabilities of collecting, using, storing, disclosing, transferring and processing personal information; the Company’s ability to manage payment related risks; the Company’s expectations regarding the effects of existing and developing laws and regulations, litigation and regulatory proceedings; the fluctuation in the Company’s stock price; the increased expenses associated with being a public company; the Company’s ability to maintain adequate insurance coverage; and the occurrence of natural disasters, environmental contamination, public health crises, health pandemics, or other highly disruptive events. The information contained in the Company's filings with the Securities and Exchange Commission ("SEC"), including under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024 and our other periodic reports, or incorporated therein, identifies other important factors that could cause the Company's actual results to differ materially from those stated in or implied by the Company's forward-looking statements. The Company's filings with the SEC are available on the SEC's website at www.sec.gov. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this presentation are not guarantees of future performance and the Company’s actual results of operations, financial condition, and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition, and liquidity, and events in the industry in which we operate, are consistent with the forward-looking statements contained in this presentation, they may not be predictive of results or developments in future periods. Any forward-looking statement that we make in this presentation speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. MARKET AND INDUSTRY DATA This presentation also includes estimates regarding market and industry data that we prepared based on the Company’s management’s knowledge and experience in the markets in which we operate, together with information obtained from various sources, including publicly available information, industry reports and publications, surveys, the Company’s clients, suppliers, trade and business organizations and other contacts in the markets in which we operate. Management estimates are derived from publicly available information released by independent industry analysts and third party sources, as well as data from the Company’s internal research, and are based on assumptions made by us upon reviewing such data and the Company’s knowledge of such industry and markets which we believe to be reasonable. In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on the Company’s knowledge of, and the Company’s experience to date in, the markets for our services. Market share data is subject to change and may be limited by the availability of raw data, the voluntary nature of the data gathering process and other limitations inherent in any statistical survey of market share. In addition, client preferences are subject to change. Accordingly, you are cautioned not to place undue reliance on such market share data. NON-GAAP MEASURES This presentation contains “non-GAAP financial measures,” which are financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Specifically, we make use of the non-GAAP financial measures “EBIT,” “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Free Cash Flow,” and “Net Debt” in evaluating the Company's past results and future prospects. EBIT is defined as net income adjusted for interest and income tax expense (benefit). EBITDA is defined as EBIT adjusted for depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for impairment losses, equity-based compensation, management and advisory fee expenses, acquisition related costs, non-recurring distribution and bonus expense, COVID-19 Related Stimulus, net, and other costs because these charges do not relate to the core operations of our business. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Free Cash Flow is defined as cash generated by operating activities less purchases of property and equipment. Net Debt is defined as total debt excluding capital leases less cash and cash equivalents excluding restricted cash. The Company presents EBIT, EBITDA, Adjusted EBITDA, and Free Cash Flow because the Company considers them to be important supplemental measures of performance and believe they are useful to securities analysts, investors, and other interested parties. The Company believes Adjusted EBITDA is helpful to investors in highlighting trends in core operating performance compared to other measures, which can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments. EBIT, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Net Debt have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are: they do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on indebtedness; they do not reflect income tax expense or the cash requirements for income tax liabilities; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and EBIT, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin do not reflect cash requirements for such replacements; they do not reflect the Company's cash used for capital expenditures or contractual commitments; they do not reflect changes in or cash requirements for working capital; and other companies, including other companies in the Company's industry, may calculate these measures differently than we do, limiting their usefulness as a comparative measure. The non-GAAP measures as defined by us may not be comparable to similar non-GAAP measures presented by other companies. The Company's presentation of such measures should not be construed as an inference that the Company's future results will be unaffected by other unusual or non- recurring items. A reconciliation is provided elsewhere in this presentation for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. TRADEMARKS This presentation contains trademarks and service marks owned by us, including Champions, Crème School, Early Foundations, KinderCare, KinderCare Education and Rainbow. This presentation also contains trademarks, trade names and service marks of other companies, which are the property of their respective owners. We do not intend the Company’s use or display of other parties’ trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties. 2
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Third Quarter FY25 Business Highlights 1 Champions Growth Champions continues strong growth trajectory by adding more than 200 new sites year to date, bringing TTM net total to 120 additional sites. 2 Tuition Benefit Adoption Signed 20 new employers in Q3 resulting in 317k additional employees eligible for tuition benefit program across our nationwide network of centers. 3 Employer On-site Expansion Opened 3 new KinderCare for Employers on-site centers in Q3. Average employer on-site portfolio occupancy exceeding 70%. 4 Growth Lever Momentum Positive momentum continues in total center openings and Tuck-in Acquisitions with a combined 33 centers added so far in 2025. 3
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Key Performance Metrics September 27, 2025 September 28, 2024 Early childhood education centers (1) 1,595 1,573 Before- and after-school sites (2) 1,138 1,018 Total centers and sites 2,733 2,591 Three Months Ended September 27, 2025 September 28, 2024 Average weekly ECE FTEs (3) 140,515 143,298 Three Months Ended September 27, 2025 September 28, 2024 ECE same-center occupancy (4) 67.0% 68.6% Three Months Ended September 27, 2025 September 28, 2024(In millions) ECE same-center revenue (4) $ 616.9 $ 616.7 Total Centers and Sites Count Early childhood education centers (1) Total December 28, 2024 1,574 Acquired 20 Opened 13 Closed (12) September 27, 2025 1,595 Before- and after-school sites (2) Total December 28, 2024 1,025 New 212 Closed (99) September 27, 2025 1,138 Notes: 1. Inclusive of KinderCare Learning Centers and Crème School brands. 2. Inclusive of Champions brand. 3. FTE: Full Time Enrollment. 4. 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. 4
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$71.4 $66.0 $83.6 $82.4 $66.4 3Q24 4Q24 1Q25 2Q25 3Q25 $671.5 $647.0 $668.2 $700.1 $676.8 3Q24 4Q24 1Q25 2Q25 3Q25 Notes: Some figures may not sum due to rounding. 1. Early Childhood Education. Inclusive of KinderCare Learning Centers and Crème School brands. 2. Inclusive of Champions brand. 3. See appendix for reconciliation of non-GAAP measures. Topline Growth Offset by Near-Term Margin Pressure Revenue ($M) ECE (1) $626.4 $593.3 $615.0 $647.7 $627.0 Before & After (2) $45.0 $53.7 $53.2 $52.4 $49.8 Adjusted EBITDA ($M) (3) +0.8% (7.0%) TTM $295.1 $298.1 $307.3 $303.3 $298.4 5
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1,573 1,574 1,582 1,589 1,595 1,018 1,025 1,038 1,043 1,138 2,591 2,599 2,620 2,632 2,733 3Q24 4Q24 1Q25 2Q25 3Q25 Centers Sites Portfolio Growth Lays Foundation for Long-Term Performance Total Centers and Sites(1) +5.5% 143.3 141.0 144.1 149.0 140.5 3Q24 4Q24 1Q25 2Q25 3Q25 Average Weekly FTEs (000’s) (2) 5 2 5 3 5 1 7 5 9 66 9 10 12 11 3Q24 4Q24 1Q25 2Q25 3Q25 NCO Tuck-in Acquistion NCOs (3) and Tuck-in Acquisitions Notes: 1. Number of centers and sites at the beginning of the period plus openings and acquisitions, minus any permanent closures for the period. 2. FTE: Full Time Enrollment. 3. NCO: New Center Opening. 6
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68.6% 67.9% 69.1% 71.0% 67.0% 3Q24 4Q24 1Q25 2Q25 3Q25 Same-Center Revenue Resilient Despite Occupancy Softness Same-Center Occupancy (1) (160) bps $616.7 $582.4 $606.4 $637.7 $616.9 3Q24 4Q24 1Q25 2Q25 3Q25 Same-Center Revenue ($M) (1) +0.0% • 6 Notes: 1. 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. Seasonal occupancy softness amplified by cautious economic environment and constrained subsidy seats in select states 7
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Financial Discipline Driving Balance Sheet Strength Revolver availability $262.5 Less outstanding letters of credit (68.1) Plus unrestricted cash 174.7 Liquidity $369.1 Liquidity Profile ($M) (1) Scheduled Debt Principal Payments ($M) (1) Notes: 1. Balances and figures as of September 27, 2025. Figures may not sum due to rounding. 2. See appendix for reconciliation of non-GAAP measures. • Ample liquidity to execute strategic plan • No material near-term debt maturities • Corporate/Issuer ratings: B2/B+ Current and long-term debt $930.9 Less unrestricted cash (174.7) Net debt $756.2 TTM Adjusted EBITDA (2) $298.4 Leverage Ratio 2.5x Leverage Profile ($M) (1) Remainder 2025 $4.8 2026 $9.6 2027 $9.6 2028 $9.6 2029 $7.2 Long Term $921.1 8
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FY25 Guidance Updated Revenue Adjusted EBITDA Adjusted EPS $2.72 - $2.74 Billion $290 - $295 Million $0.64 - $0.67 Growth Algorithm Assumptions (% Year over Year Growth Contributions) Occupancy New Center Openings (NCOs) ~(2%) ~1% Pricing Tuck-in Acquisitions ~2% ~1% B2B/Champions Consolidation ~1% ~(1%) 9 Notes: Revenue, Adjusted EBITDA, and Adjusted EPS ranges are inclusive of 53rd week. Growth algorithm Assumptions do not include 53rd week in fiscal year 2025.
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Long-Term Growth Powered by Multiple, Diversified Strategic Levers Occupancy Growth 1-2% Pricing Power 3-5% B2B Employer and Before- & After-School Opportunities 1-2% Disciplined M&A 1-2% Inorganic GrowthExpand Service Offerings OrganicallyBuilt-In Growth Drivers with Existing Service Offerings New Center Openings 1-2% 10
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11 CASE STUDY: Meaningful Occupancy Improvement Through Family-First Approach BACKGROUND • Michigan KinderCare with top engagement rating • Center Director with almost 25 years of experience • Occupancy was 48% in 2024 ANALYSIS Utilized Center Diagnostic Tool to conduct unbiased, data driven analysis to identify issue in sales funnel execution ACTION PLAN Leveraging our Family Builder1 and Online Tour Scheduler tools, the Center Director focused on timely and more personalized family interactions earlier in the enrollment process OUTCOME Occupancy increased to 95% in August 2025 with center profitability seeing commensurate improvement Notes: 1. Family builder is our internal CRM used to communicate with families, answer their questions, schedule tours, and register for enrollment.
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12 CASE STUDY: Optimizing Highly Occupied Center Using Digital Tools to Identify Areas for Incremental Enrollment BACKGROUND • Opportunity Region center in Indiana at 75% occupancy • Experienced Center Director having challenges identifying a path to occupancy improvement ANALYSIS District Leader and Center Director utilized the Digital Occupancy White Board to identify opportunities for more efficient classroom management ACTION PLAN Classrooms and Staff were better optimized to create openings for high inquiry age groups, allowing additional enrollments and expanding family access OUTCOME Highly occupied center was able to successfully drive occupancy higher to over 82%
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Appendix / Reconciliations
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6.84 7.16 7.16 7.16 9.18 7.22 7.31 7.39 7.31 7.45 7.54 7.86 7.95 10.31 10.30 10.61 11.24 11.47 13.65 14.66 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CCDF Funding, $B Resilient Subsidy Funding with Consistent Growth and Strong Bipartisan Support (1) CCDF (Federal) CCDF (State) Notes: 1. Funding for federal subsidies is primarily provided through the Child Care and Development Fund (CCDF), authorized under the Child Care & Development Block Grant (CCDBG); excludes Head Start, TANF transfers, and other pre-K spend. Years ’05-’06 ’07-’08 ’09-’10 ’11-’12 ’13-’14 ’15-’16 ‘17-’18 ’19-’20 ’21-’22 ’23-’24 WH House Senate Republican Control Democrat Control Complexity of Accessing Funds Remains a Challenge for Subscale Players and Families Appendix 14
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(In thousands, except per share data) Income Statement Three Months Ended September 27, 2025 September 28, 2024 Revenue $ 676,830 $ 671,476 Costs and expenses: Cost of services (excluding depreciation and impairment) 543,139 521,093 Depreciation and amortization 31,019 29,641 Selling, general, and administrative expenses 73,043 65,110 Impairment losses 3,309 1,257 Total costs and expenses 650,510 617,101 Income from operations 26,320 54,375 Interest expense 24,095 39,459 Interest income (1,731) (1,260) Other income, net (2,249) (1,937) Income before income taxes 6,205 18,113 Income tax expense 1,655 4,154 Net income $ 4,550 $ 13,959 Net income per common share: Basic $ 0.04 $ 0.15 Diluted $ 0.04 $ 0.15 Weighted average number of common shares outstanding: Basic 118,353 90,366 Diluted 118,413 90,366 Appendix 15
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Appendix Adjusted EBITDA Reconciliation (In thousands) Three Months Ended September 27, 2025 June 28, 2025 March 29, 2025 December 28, 2024 September 28, 2024 Net income (loss) $ 4,550 $ 38,588 $ 21,157 $ (133,583) $ 13,959 Add back: Interest expense 24,095 20,073 20,108 50,733 39,459 Interest income (1,731) (1,424) (659) (2,249) (1,260) Income tax expense 1,655 14,488 7,838 (4,264) 4,154 EBIT $ 28,569 $ 71,725 $ 48,444 $ (89,363) $ 56,312 Add back: Depreciation and amortization 31,019 31,074 29,977 30,213 29,641 EBITDA $ 59,588 $ 102,799 $ 78,421 $ (59,150) $ 85,953 Add back: Impairment losses 3,309 2,235 1,510 3,395 1,257 Stock-based compensation 2,826 3,461 4,073 123,066 (1,402) Management and advisory fee expenses — — — 119 1,216 Acquisition related costs — — — — — Non-recurring distribution and bonus expense — — — — — COVID-19 Related Stimulus, net — (26,050) (663) (4,049) (14,908) Other costs 672 — 210 2,595 (760) Adjusted EBITDA $ 66,395 $ 82,445 $ 83,551 $ 65,976 $ 71,356 Notes: See Consolidated Non-GAAP Measures table (November 12, 2025 earnings press release) for add-back explanations. 16
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(In thousands) Statement of Cash Flows and Free Cash Flow Reconciliation Nine Months Ended September 27, 2025 September 28, 2024 Cash provided by operating activities $ 234,282 $ 156,736 Cash used in investing activities (114,423) (108,702) Cash used in financing activities (7,461) (67,112) Net change in cash, cash equivalents, and restricted cash 112,398 (19,078) Cash, cash equivalents, and restricted cash at beginning of period 62,430 156,412 Cash, cash equivalents, and restricted cash at end of period $ 174,828 $ 137,334 Appendix 17 Nine Months Ended September 27, 2025 September 28, 2024 Cash provided by operating activities $ 234,282 $ 156,736 Purchase of property and equipment (95,925) (94,614) Free cash flow $ 138,357 $ 62,122