Bright Horizons Family Solutions (BFAM) Q2 2025 earnings summary

Executive summary

• Revenue grew 9% year-over-year to $732 million in Q2 2025, driven by enrollment gains, tuition increases, and higher back-up care utilization.

• Net income rose 40% to $55 million, with diluted EPS up 42% to $0.95, reflecting improved operating leverage and lower interest expense.

• Adjusted EBITDA increased 13% to $116 million, with margin expansion to 16% of revenue.

• Operated 1,020 centers as of June 30, 2025, with improved occupancy rates and capacity for 115,000 children.

• A new $500 million share repurchase program was authorized in June 2025, replacing the prior $400 million program.

Financial highlights

• Q2 2025 revenue: $732 million (up 9% year-over-year); net income: $55 million (up 40%); adjusted EPS: $1.70 (up 22%).

• Adjusted operating income increased 25% to $86 million, with operating margins up 150 bps to 11.8%.

• Adjusted EBITDA margin was 16% in Q2 2025, up from 15% in Q2 2024.

• Cash from operations for the first half of 2025 was $220.4 million; cash balance at quarter-end: $179 million.

• Net interest expense fell to $10.5 million; effective tax rate: 27%.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $2.9–$2.92 billion, with 8%-9% growth expected.

• Adjusted EPS guidance increased to $4.15–$4.25 for 2025.

• Q3 revenue expected at $775–$785 million (8%-9% growth), with adjusted EPS of $1.29–$1.34.

• Full-service revenue growth expected at 5.75%-6.75% for the year; backup care at 14%-16%; education advisory mid-single digits.

• No material impact from foreign currency expected on net earnings or liquidity for the remainder of 2025.