Bright Horizons Family Solutions Inc
NYSE:BFAM
Bright Horizons Family Solutions Inc
Bright Horizons Family Solutions Inc. began its journey in 1986, rooted in a mission to revolutionize the world of early childhood education and workforce solutions. It has since then blossomed into a leading provider of employer-sponsored child care, back-up care focused on children and adults, and educational advisory services. Headquartered in Watertown, Massachusetts, the company partners with employers to design innovative solutions that help employees balance the demands of work and family life. This symbiotic relationship with corporations allows Bright Horizons to deliver tailored services that boost employee satisfaction and productivity, making it an invaluable ally to both parents and businesses.
The company generates revenue through a highly strategic business model anchored in long-term contracts with its corporate clients. It operates a network of child care centers, many of which are located at or near its clients' premises, thereby offering convenience and continuity of care for employees. Additionally, Bright Horizons taps into the education sector by providing tuition assistance and student loan repayment support, alongside its child care services. Each of these areas not only diversify its revenue streams but also ensure a steady inflow of income, as more companies recognize the importance of investing in their workforce's well-being and career progression.
Bright Horizons Family Solutions Inc. began its journey in 1986, rooted in a mission to revolutionize the world of early childhood education and workforce solutions. It has since then blossomed into a leading provider of employer-sponsored child care, back-up care focused on children and adults, and educational advisory services. Headquartered in Watertown, Massachusetts, the company partners with employers to design innovative solutions that help employees balance the demands of work and family life. This symbiotic relationship with corporations allows Bright Horizons to deliver tailored services that boost employee satisfaction and productivity, making it an invaluable ally to both parents and businesses.
The company generates revenue through a highly strategic business model anchored in long-term contracts with its corporate clients. It operates a network of child care centers, many of which are located at or near its clients' premises, thereby offering convenience and continuity of care for employees. Additionally, Bright Horizons taps into the education sector by providing tuition assistance and student loan repayment support, alongside its child care services. Each of these areas not only diversify its revenue streams but also ensure a steady inflow of income, as more companies recognize the importance of investing in their workforce's well-being and career progression.
Strong Q4 Results: Q4 revenue grew 9% to $734 million and adjusted EPS rose 17% to $1.15, both ahead of expectations.
Full-Year Outperformance: 2025 revenue increased 9% to $2.93 billion and adjusted EPS grew 31% to $4.55, surpassing initial guidance.
Back-Up Care Growth: Back-up care revenue jumped 17% in Q4 and 19% for the year, driven by higher utilization and deeper penetration at existing clients.
Portfolio Rationalization: Full-service center closures continue, mainly targeting persistent underperformers, with 45–50 closures expected in 2026.
2026 Guidance: Revenue expected between $3.075–$3.125 billion (+5–6.5%), and adjusted EPS in the range of $4.90–$5.10.
Operating Margins: Q4 adjusted operating margin rose to 12.3%, with full-service margins expected to improve 25–50 bps in 2026.
Enrollment Trends: Portfolio-wide enrollment averaged mid-60% in Q4; gradual improvement expected but not surpassing mid-60% in 2026.
Capital Allocation: $225 million in share repurchases in 2025; leverage ended at 1.7x net debt to adjusted EBITDA.
