On April 8, 2026, the Company's subsidiary, KinderCare Education LLC, entered into a Fifth Amendment (the "Fifth Amendment") to the Master Lease Agreement dated August 1, 2015, as amended ("Lease Agreement") with landlord KCP RE LLC (the "Landlord") relating to 545 early childhood education centers. The Fifth Amendment did not become effective or binding on the parties, and KinderCare Education LLC and the Landlord entered into an Amended and Restated Fifth Amendment ("A&R Fifth Amendment") as of and effective August 11, 2026. The A&R Fifth Amendment amends, restates and supersedes the Fifth Amendment in its entirety and amends the Lease Agreement.

Under the A&R Fifth Amendment, the lease terms for 13 centers were reduced and will now expire on December 31, 2029. Additionally, the lease terms of the remaining 532 centers were extended, with 51 expiring on December 31, 2033, 37 expiring on December 31, 2036, 177 expiring on December 31, 2038, 237 expiring on December 31, 2040, and 30 expiring on December 31, 2042. No annual rent amounts were changed, however, the escalation percentage for relevant rent adjustment dates increased from the lesser of 10% to the lesser of 12.5% or the applicable index increase. Under the A&R Fifth Amendment, total minimum lease payments will increase by approximately $600 million over the amended lease terms. The Company expects to account for the A&R Fifth Amendment as a lease modification in the third quarter of the fiscal year ending January 2, 2027 and is in the process of determining the impact the A&R Fifth Amendment will have on the consolidated financial statements.