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Bright Horizons Family Solutions (BFAM) investor relations material
Bright Horizons Family Solutions Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue grew 12% year-over-year to $803 million, driven by strong back-up care (up 26%), steady full-service center gains (up 6%), and higher tuition and enrollment.
Net income rose 43% to $79 million, with diluted EPS up 46% to $1.37, and adjusted EPS up 41% to $1.57.
Adjusted EBITDA increased 29% to $156 million, with margin expansion to 19.4% of revenue.
The company operated 1,013 centers as of September 30, 2025, with improved occupancy and capacity for 115,000 children.
Strong demand for education and care benefits, especially Back-Up Care, drove results and positions the company for a strong year-end.
Financial highlights
Gross profit for Q3 2025 increased 20% to $217 million, with gross margin rising to 27% from 25% in Q3 2024.
Adjusted operating income rose 39% to $124 million; operating margin up to 15.5%.
Recurring interest expense was $10 million, down from $12 million year-over-year.
Cash from operations YTD was $203 million; $59 million invested in fixed assets; $105 million in stock repurchases.
Ended Q3 with $117 million in cash and $412 million available under the credit facility.
Outlook and guidance
Upgraded full-year 2025 guidance: revenue expected at $2.925 billion (9% growth), Adjusted EPS $4.48–$4.53.
Q4 revenue expected between $720–$730 million, Adjusted EPS $1.07–$1.12.
By segment: full-service revenue to grow ~6%, Back-Up Care ~18%, education advisory high single digits for the year.
Back-Up Care growth expected to normalize to low double digits (11–13%) in 2026.
Full-service tuition pricing for 2026 planned at a 4% average increase.
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