Bright Horizons Family Solutions (BFAM) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 9% year-over-year to $734 million, with adjusted EPS up 17% to $1.15, both exceeding expectations.

• Full-year 2025 revenue reached $2.93 billion, up 9%, and adjusted EPS was $4.55, a 31% increase year-over-year.

• Adjusted EBITDA rose 12% in Q4 and 19% for the year, with strong contributions from Back-Up Care and center-based child care.

• Net income declined 25% in Q4 due to impairment and lease termination costs, but increased 38% for the full year.

• Back-Up Care generated over $725 million in revenue in 2025, remaining a standout segment.

Financial highlights

• Q4 adjusted operating income rose 14% to $91 million, with operating margins up 60 basis points to 12.3%.

• Adjusted EBITDA increased 12% to $123 million in Q4, with a 17% margin.

• Net interest expense was $12 million in Q4 and $45 million for the year; non-GAAP effective tax rate was 26.4% for Q4 and 27% for the year.

• Cash from operations for 2025 was $351 million, up from $337 million in 2024; capital investments totaled $91 million.

• Full year 2025: income from operations $315 million (+28%), net income $193 million (+38%), diluted EPS $3.36 (+40%).

Outlook and guidance

• 2026 revenue expected between $3.075 billion and $3.125 billion, representing 5%-6.5% growth.

• Adjusted EPS guidance for 2026 is $4.90-$5.10 per share.

• Q1 2026 revenue growth expected at 6%-7.5%, with adjusted EPS of $0.75-$0.80.

• Full Service segment revenue to grow 3.5%-4.5%, Back-Up Care 11%-13%, and Ed Advisory mid-single digits in 2026.