Bright Horizons Family Solutions (BFAM) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenue rose 10% to $674 million, with adjusted EBITDA up 12% and adjusted EPS up 18% to $0.98 per share, surpassing expectations.

• Full-year revenue increased 11% to $2.69 billion and adjusted EPS grew 22%, with record operating income, driven by strong Back-Up Care segment performance.

• Back-Up Care segment generated $170 million EBIT and over $600 million in revenue, exceeding pre-pandemic Full Service segment contributions.

• Operated 1,019 centers with capacity for 115,000 children as of year-end 2024.

• Enrollment in centers open more than one year grew at a low single-digit rate, with average occupancy in the low 60s%.

Financial highlights

• Q4 adjusted operating income was $79 million (11.8% of revenue), up 25% year-over-year.

• Q4 net income increased 427% to $29.1 million; full year net income up 89% to $140.2 million.

• Q4 diluted EPS was $0.50 (up 456%); full year diluted EPS $2.40 (up 88%).

• Adjusted EBITDA for Q4 was $111 million (16.4% of revenue), up 12% year-over-year; full year $409 million (up 16%).

• Full-year cash from operations was $337.5 million, up from $256.1 million in 2023.

Outlook and guidance

• 2025 revenue expected at $2.85–$2.9 billion, representing 6%-8% growth (7%-9% constant currency).

• 2025 adjusted EPS projected at $3.95–$4.15, or 15%-20% growth.

• Q1 2025 revenue guidance is $660–$670 million, with adjusted EPS of $0.63–$0.68.

• Full Service revenue expected to grow 4.5%-6.5% (6%-8% constant currency); Back-Up Care to grow 11%-13%; Education Advisory in low to mid-single digits.