KinderCare Learning Companies, Inc.

Investing in our common stock involves a high degree of risk. You should carefully review and consider the information regarding certain factors that could materially affect our business, financial condition or future results set forth under Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 as filed with the SEC on March 21, 2025 and as set forth below.

Our business may be affected by any disruptions to federally funded childcare subsidies or tuition reimbursements.

A portion of our revenue and reimbursement of certain center operating expenses are derived from various federal, state and local government programs. When the federal government funds such programs, it directs funds to state and local governments for specified purposes, such as full or partial tuition subsidies, funding for certain universal pre-K programs and support for food programs. Some families depend on these programs to be able to afford to use our centers. During a United States federal government shutdown, appropriations may lapse, and the administration of grant and reimbursement programs may be delayed, curtailed or suspended. A government shutdown may result in delayed or reduced pass-through funding to the state and local child care and education programs. Because a portion of our business depends, directly and indirectly, on the continued availability and timely disbursement of these federal government funds, a prolonged United States government shutdown or continued delays in funding these programs even after the end of a shutdown may negatively impact enrollment at our centers, our tuition revenue or our costs to operate our centers. In general, the alteration, suspension or pause of government assistance programs, particularly those related to child care, could affect the ability of some families to use our centers.

While we strive to mitigate these risks through contingency planning and industry government affairs efforts, the duration, scope and ultimate impact of any government shutdown is difficult to predict and largely outside our control. Adverse effects resulting from a prolonged government shutdown could have a negative impact on our business, financial position, and results of operations.