v3.26.3
SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Schedule of Revenue and Income from Operations by Segment
Revenue, cost of services, other segment items and income (loss) from operations by reportable segment were as follows:
Full service
center-based
child care		Back-up careEducational
advisory services		Total
(In thousands)
Three months ended September 30, 2026
Revenue$521,973 $286,364 $33,134 $841,471 
Cost of services (1)
477,183 144,398 15,064 636,645 
Goodwill impairment (2)
290,000 — — 290,000 
Other segment items (3)
52,918 40,732 8,309 101,959 
Income (loss) from operations$(298,128)$101,234 $9,761 $(187,133)
Interest expense — net(17,195)
Loss before income tax$(204,328)
Three months ended September 30, 2025
Revenue$515,507 $253,372 $33,933 $802,812 
Cost of services (1)
446,292 123,785 15,686 585,763 
Other segment items (3)
52,465 34,255 9,483 96,203 
Income from operations$16,750 $95,332 $8,764 $120,846 
Interest expense — net(12,212)
Income before income tax$108,634 
(1)As a result of recent safeguarding matters and associated claims, the Company incurred incremental expense of $23.4 million in the three months ended September 30, 2026, related to general liability reserves for legal matters and insurance claims. This incremental expense is included in cost of services for the full service center-based child care segment. The liability recorded reflects the minimum amount of loss that can be reasonably estimated based on the information currently available. The range of possible losses cannot be reasonably estimated at this time, and additional losses may be incurred for such claims in future periods. For the three months ended September 30, 2025, cost of services includes $2.4 million of net lease termination costs allocated to the full service center-based child care segment.
(2)During the three months ended September 30, 2026, the Company recorded goodwill impairment losses of $290.0 million as a result of its annual goodwill impairment assessment, which related to the full service center-based child care segment. Refer to Note 5, Goodwill and Intangible Assets, and Note 9, Fair Value Measurements, for additional information about impairment losses.
(3)Other segment items for each reportable segment includes selling, general and administrative expenses and amortization expense. For the three months ended September 30, 2026, selling, general and administrative expenses includes $4.0 million of long-lived asset impairment losses related to the full service center-based child care segment. Refer to Note 5, Goodwill and Intangible Assets, and Note 9, Fair Value Measurements, for additional information on impairment losses. For the three months ended September 30, 2025, selling, general and administrative expenses includes $1.3 million of costs incurred in connection with the August 2025 debt refinancing. Refer to Note 6, Credit Arrangements and Debt Obligations, for additional information on the August 2025 debt refinancing.
Full service
center-based
child care		Back-up careEducational
advisory services		Total
(In thousands)
Nine months ended September 30, 2026
Revenue$1,619,904 $624,619 $88,348 $2,332,871 
Cost of services (1)
1,395,895 334,293 45,404 1,775,592 
Goodwill impairment losses (2)
296,275 — — 296,275 
Other segment items (3)
163,897 113,242 26,232 303,371 
Income (loss) from operations $(236,163)$177,084 $16,712 $(42,367)
Interest expense — net(43,240)
Loss before income tax$(85,607)
Nine months ended September 30, 2025
Revenue$1,566,321 $544,654 $88,934 $2,199,909 
Cost of services (1)
1,314,155 285,282 45,136 1,644,573 
Other segment items (3)
161,882 96,733 27,551 286,166 
Income from operations$90,284 $162,639 $16,247 $269,170 
Interest expense — net(33,118)
Income before income tax$236,052 
(1)As a result of recent safeguarding matters and associated claims, the Company incurred incremental expense of $23.4 million in the nine months ended September 30, 2026, related to general liability reserves for legal matters and insurance claims. This incremental expense is included in cost of services for the full service center-based child care segment. The liability recorded reflects the minimum amount of loss that can be reasonably estimated based on the information currently available. The range of possible losses cannot be reasonably estimated at this time, and additional losses may be incurred for such claims in future periods. Cost of services for the nine months ended September 30, 2026, also includes $12.8 million of long-lived asset impairment losses related to the full service center-based child care segment. Refer to Note 3, Leases, Note 5, Goodwill and Intangible Assets, and Note 9, Fair Value Measurements, for additional information on impairment losses. For the nine months ended September 30, 2025, cost of services includes $2.4 million of net lease termination costs allocated to the full service center-based child care segment.
(2)During the nine months ended September 30, 2026, the Company recorded goodwill impairment losses of $296.3 million as a result of interim and annual goodwill impairment assessments, which related to the full service center-based child care segment. Refer to Note 5, Goodwill and Intangible Assets, and Note 9, Fair Value Measurements, for additional information about impairment losses.
(3)Other segment items for each reportable segment includes selling, general and administrative expenses and amortization expense. For the nine months ended September 30, 2026, selling, general and administrative expenses includes $4.0 million of long-lived asset impairment losses related to the full service center-based child care segment. Refer to Note 5, Goodwill and Intangible Assets, and Note 9, Fair Value Measurements, for additional information on impairment losses. For the nine months ended September 30, 2025, selling, general and administrative expenses includes $1.3 million of costs incurred in connection with the August 2025 debt refinancing. Refer to Note 6, Credit Arrangements and Debt Obligations, for additional information on the August 2025 debt refinancing.