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 rose 31% to $4.55, surpassing initial guidance.

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

• Strong performance was driven by growth in Back-Up Care, steady Full Service results, and expansion in Ed Advisory.

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

Financial highlights

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

• Adjusted EBITDA for Q4 was $123 million (17% margin), up 12% year-over-year.

• Back-Up Care Q4 revenue grew 17% to $183 million with a 32% operating margin.

• Full Service Q4 revenue rose 6% to $515 million, aided by tuition increases and FX tailwinds.

• Full-year cash from operations was $351 million; capital investments totaled $91 million.

Outlook and guidance

• 2026 revenue expected at $3.075–$3.125 billion (5–6.5% growth); adjusted EPS forecasted at $4.90–$5.10.

• Full Service revenue to grow 3.5–4.5%, offset by a 200 bps headwind from net center closures.

• Back-Up Care revenue projected to increase 11–13%; Ed Advisory to grow mid-single digits.

• Q1 2026 guidance: total revenue up 6–7.5%, adjusted EPS $0.75–$0.80.