The Company tests goodwill for impairment on an annual basis in the fourth quarter, or more frequently if impairment indicators exist. During the first quarter of the fiscal year ending January 2, 2027, the Company's market capitalization deteriorated due to a decline in stock price, which was considered to be an impairment indicator for goodwill. The Company used the market approach based on market capitalization and determined the fair value of the early childhood education centers reporting unit did not exceed its carrying value. The excess of the reporting unit’s carrying value over its fair value of $273.5 million was recognized as an impairment to goodwill. As of the April 4, 2026 measurement date, the adjusted balance of goodwill related to the early childhood education centers reporting unit was $644.5 million. Additionally, during the third quarter of the fiscal year ending January 2, 2027, the Company's market capitalization deteriorated further in relation to the testing performed during the first quarter, and $71.4 million was recognized as an impairment to goodwill equal to the excess of the early childhood education centers reporting unit's carrying value over its fair value. As of October 3, 2026, the adjusted balance of goodwill related to the early childhood education centers reporting unit was $574.4 million. The before- and after-school reporting unit had an estimated fair value that substantially exceeded its carrying value in both the first and third quarters of the fiscal year ending January 2, 2027, resulting in no impairment to the reporting unit.

During the three and nine months ended October 3, 2026, goodwill impairment of $71.4 million and $344.9 million, respectively, was recognized within impairment losses in the unaudited condensed consolidated statements of operations and comprehensive (loss) income. No goodwill impairment was recognized during the three and nine months ended September 27, 2025. As of October 3, 2026 and January 3, 2026, goodwill recorded on the unaudited condensed consolidated balance sheets is net of accumulated impairment losses of $522.9 million and $178.0 million, respectively.

The Company tests indefinite-lived trade names and trademarks for impairment on an annual basis on the first day of the fourth quarter, or more frequently if impairment indicators exist. During the third quarter of the fiscal year ending January 2, 2027, the sustained decline in enrollment at early childhood education centers as well as the Company’s lower market capitalization resulting in a higher weighted average cost of capital were considered impairment indicators for the KinderCare and other legacy brand indefinite-lived trade names and trademarks. The Company estimates the fair value of indefinite-lived trade names and trademarks using the relief-from-royalty method. Based on this quantitative analysis, the Company determined that the fair value of the KinderCare indefinite-lived trade name and trademark exceeded its carrying value, resulting in no impairment for that asset. The Company recognized $3.7 million of impairment losses related to certain legacy trade names and trademarks, resulting in no remaining carrying value for these certain legacy trade names and trademarks. These impairment losses were recognized within impairment losses in the unaudited condensed consolidated statements of operations and comprehensive

(loss) income during the three and nine months ended October 3, 2026. There was no impairment of indefinite-lived trade names or trademarks recognized during the three and nine months ended September 27, 2025.

Adverse changes in the Company’s market capitalization as well as changes in key assumptions, including higher discount rates or weaker operating results, could result in impairment in future periods, which could be material to the unaudited condensed consolidated statements of operations and comprehensive (loss) income. Refer to Note 10, Fair Value Measurements, for further information regarding the inputs utilized in the estimation of reporting unit and indefinite-lived trade names and trademarks fair values.