KBRA assigns preliminary ratings to Mathnasium Funding LLC (the Issuer), Series 2026-1 (Mathnasium 2026-1 or Series 2026-1) Class A-1-LR, Revolving Class A-1 VFN, Growth Class A-1 VFN and Class A-2 Notes, a whole business securitization (WBS). The transaction represents the Issuer’s inaugural securitization in which Mathnasium Center Licensing, LLC (Mathnasium, the Manager, or the Company) has contributed substantially all of its revenue-generating assets to the securitization as collateral for the offered notes. The collateral includes existing and future franchise agreements and associated royalties and fees, development agreements under the brand, company-owned royalties, other fees (including tech fees, initial franchise fees, and transfer fees), intellectual property, transaction accounts, and pledge of the equity interests in the Issuer, and other securitization entities. The proceeds from the offered notes will be used to refinance existing debt, pay transaction expenses, and for general corporate purposes.

Headquartered in Los Angeles, California, Mathnasium operates a predominantly franchised network of under 1,300 learning centers, approximately 1,067 of which are located across 44 U.S. states and Washington, D.C., with an additional 223 international centers, all across 11 countries. Mathnasium operates in the large, growing and highly fragmented global private tutoring industry. The Company generated approximately $461 million of system-wide sales during the last twelve months ended June 30, 2026 and served an average of more than 120,000 enrolled students through its network of learning centers utilizing the proprietary Mathnasium Method curriculum.

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Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016979

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