Bright Horizons Family Solutions (BFAM) Investor presentation summary

Investment thesis and strategic positioning

• Delivers essential care and education solutions supporting workforce participation amid strong secular tailwinds.

• Differentiated by decades of employer trust, a scaled network, and broad service suite.

• Back-Up Care segment drives profitability, contributing over 60% of 2025 adjusted operating income.

• Large growth runway exists via increased client penetration, new partnerships, and expanded offerings.

• Consistent free cash flow generation and a strong balance sheet support disciplined execution.

Business segments and growth drivers

• Back-Up Care offers asset-light, high-margin economics with 25-30% long-term adjusted operating margin.

• Full-Service Child Care provides foundational brand trust and stable revenue through employer-supported models.

• EdAdvisory delivers high-value, low-cost education benefits, supporting client retention and cross-sell opportunities.

• All segments show strong revenue growth, with Back-Up Care and EdAdvisory outpacing Full-Service in margin.

• Significant white space remains across industry verticals and employer landscape, with <5% user penetration.

Financial performance and capital allocation

• Achieved 9% revenue CAGR and 12% adjusted EPS CAGR since IPO.

• 2025 revenue reached $2.93B, with adjusted operating income of $363M and margin of 12.4%.

• Free cash flow conversion consistently above 100% over the past decade.

• Net leverage reduced to 1.7x by 2025, reflecting a strengthened balance sheet.

• Capital deployment balanced between reinvestment, selective M&A, and shareholder returns via buybacks.