Bright Horizons Family Solutions (BFAM) Q3 2025 earnings summary

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.