Bright Horizons Family Solutions (BFAM) Q4 2025 earnings summary

Executive summary

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

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

• 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.

• The company repurchased $225 million in shares and strengthened its balance sheet.

Financial highlights

• Q4 adjusted operating income rose 14% to $91 million; operating margin increased 60 bps to 12.3%.

• Adjusted EBITDA for Q4 was $123 million, up 12%, with a 17% margin.

• Net interest expense for Q4 was $12 million; full-year net interest expense totaled $45 million.

• Cash from operations in 2025 was $351 million, up from $337 million in 2024.

• Capital investments/net investments totaled $91 million/$104 million in 2025.

Outlook and guidance

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

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

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

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