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Bright Horizons Family Solutions Reports Financial Results for the Third Quarter of 2025
NEWTON, MA - (BUSINESS WIRE) - October 30, 2025 - Bright Horizons Family Solutions® Inc. (NYSE: BFAM) today announced financial results for the third quarter of 2025 and provided updated financial guidance for 2025. Bright Horizons is a leading provider of high-quality early education and child care, family care solutions, and workforce education services designed to support working families and client employees across life and career stages.
Third Quarter 2025 Highlights (compared to Third Quarter 2024):
•Revenue of $803 million (increase of 12%)
•Income from operations of $121 million (increase of 35%)
•Net income of $79 million and diluted earnings per common share of $1.37 (increases of 43% and 46%, respectively)
Non-GAAP financial measures
•Adjusted EBITDA* of $156 million (increase of 29%)
•Adjusted income from operations* of $124.5 million (increase of 39%)
•Adjusted net income* of $90 million and diluted adjusted earnings per common share* of $1.57 (increases of 39% and 41%, respectively)
“We posted a strong third quarter that again highlights the value of our unique employer sponsored model,” said Stephen Kramer, Chief Executive Officer. “Back-Up Care outperformance was driven by higher utilization among client employees supported by increased supply of owned and third-party care providers. Full-Service also progressed with improvements in enrollment and margins. As we close out the year, our scale of client partners, growing diversity of offerings and broad supply network provide us with a strong foundation to reach more employees and deepen relationships with employers heading into 2026.”
Third Quarter 2025 Results
Revenue increased by $83.7 million, or 12%, to $802.8 million in the third quarter of 2025 from the third quarter of 2024, primarily due to increased utilization of back-up care, as well as enrollment gains and tuition price increases at our centers.
Income from operations was $120.8 million for the third quarter of 2025 compared to $89.4 million for the third quarter of 2024, an increase of 35%. The increase in income from operations is primarily related to incremental gross profit contributions resulting from higher utilization of services in our back-up care segment, as well as enrollment growth and margin improvement in our full service center-based child care segment. Net income was $78.6 million for the third quarter of 2025 compared to $54.9 million for the third quarter of 2024, an increase of 43%, due to the increase in income from operations noted above and a lower effective tax rate. Diluted earnings per common share was $1.37 for the third quarter of 2025 compared to $0.94 for the third quarter of 2024.
In the third quarter of 2025, adjusted EBITDA* increased by $35.1 million, or 29%, to $156.1 million, and adjusted income from operations* increased by $35.1 million, or 39%, to $124.5 million from the third quarter of 2024, due to increased contributions from both the back-up care segment and full service center-based child care segment. Adjusted net income* increased by $25.2 million, or 39%, to $90.1 million, as a result of the increase in adjusted income from operations and lower debt interest expense. Diluted adjusted earnings per common share* was $1.57 for the third quarter of 2025 compared to $1.11 for the third quarter of 2024.
As of September 30, 2025, the Company operated 1,013 early education and child care centers with the capacity to serve approximately 115,000 children.
*Adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share are financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), which are commonly referred to as “non-GAAP financial measures.” Adjusted EBITDA represents EBITDA (which is net income, as determined in accordance with GAAP, before interest expense, income tax expense, depreciation, and amortization) adjusted to exclude stock-based compensation expense and non-recurring costs, such as debt refinancing costs, and lease termination costs, and, at times, other non-recurring costs such as transaction costs and impairment costs. Adjusted income from operations represents income from operations, as determined in accordance with GAAP, adjusted to exclude non-recurring costs, such as debt refinancing costs, and lease termination costs and, at times, other non-recurring costs such as transaction costs and impairment costs. Adjusted net income represents net income, as determined in accordance with GAAP, adjusted to exclude amortization, stock-based compensation expense, and non-recurring costs, such as debt refinancing costs, lease termination costs, interest related to pre-acquisition obligations, and the income tax provision (benefit) thereon, and, at times, other non-recurring costs such as transaction costs and impairment costs. Diluted adjusted earnings per common share is calculated using adjusted net income. These non-GAAP financial measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations,” respectively.
Balance Sheet and Liquidity
At September 30, 2025, the Company had $116.6 million of cash and cash equivalents and $411.8 million available for borrowing under our revolving credit facility. In the nine months ended September 30, 2025, we generated $202.8 million of cash from operations, compared to $216.8 million for the same period in 2024, and made net investments totaling $63.5 million, compared to $92.7 million for the same period in the prior year.
2025 Outlook
Based on current trends and expectations, we currently expect fiscal year 2025 revenue to be approximately $2.925 billion and diluted adjusted earnings per common share to be in the range of $4.48 to $4.53. The Company will provide additional information on its outlook during its earnings conference call.
Conference Call
Bright Horizons Family Solutions will host an investor conference call today at 5:00 pm ET to discuss the results for the third quarter of 2025, as well as the Company’s updated business outlook and strategy. Interested parties are invited to listen to the conference call by dialing 1-844-539-3703, or for international callers, 1-412-652-1273, and asking for the Bright Horizons Family Solutions conference call moderated by Chief Executive Officer Stephen Kramer. Replays of the entire call will be available through November 13, 2025 at 1-844-512-2921, or for international callers, at 1-412-317-6671, conference ID #13752642. A link to the audio webcast of the conference call and a copy of this press release are also available through the Investor Relations section of the Company’s web site, investors.brighthorizons.com.
Forward-Looking Statements
This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s actual results may vary significantly from the results anticipated in these forward-looking statements, which can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, operating expectations, execution and delivery of our services and solutions, business trends, value of our model, our offerings, our future growth opportunities, enrollment levels and full-service margins, back-up care use, our provider network, long-term growth strategy, estimated effective tax rate, tax expense, our future business and financial performance, client partners and relationships, use and impact of our services, and our 2025 financial guidance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, changes in the demand for child care, dependent care and other workplace solutions, including variations in enrollment trends and lower than expected demand from employer sponsor clients as well as variations in workforce demographics and work environments; the constrained labor market for teachers and staff and ability to hire and retain talent, including the impact of increased compensation and labor costs; the availability or lack of government support programs, and the impact of available government child care benefit programs; our ability to respond to changing client and customer needs; competition in our industry, the possibility that acquisitions may disrupt our operations and expose us to additional risk; our ability to pass on our increased costs; our indebtedness and the terms of such indebtedness; our ability to withstand seasonal fluctuations in the demand for our services; our ability to implement our growth strategies successfully; changes in general economic, political, business and financial market conditions and other macroeconomic events and uncertainty, including the impact of inflation and interest rate fluctuations; fluctuations in currency exchange rates; the effects of a cyber-attack, data breach or other security incident on our information technology system or software or those of our third party vendors; changes in tax rates or policies; impacts to our brand or reputation; litigation-related and insurance risks, changes in laws and regulations; and other risks and uncertainties more fully described in the “Risk Factors” section of our Annual Report on Form 10-K filed on February 27, 2025, and other factors disclosed from time to time in our other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with GAAP throughout this press release, the Company has provided certain non-GAAP financial measures that present operating results on a basis adjusted for certain items. The Company uses these non-GAAP financial measures as key performance indicators for the purpose of evaluating performance internally, and in connection with determining incentive compensation for Company management, including executive officers. Adjusted EBITDA is also used in connection with the determination of certain ratio requirements under our credit agreement. We believe that these non-GAAP financial measures provide investors with useful information with respect to our historical operations. These non-GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of our financial results in accordance with GAAP. The use of the terms adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.
With respect to our outlook for diluted adjusted earnings per common share, we do not provide the most directly comparable GAAP financial measure or corresponding reconciliation to such GAAP financial measure on a forward-looking basis. We are unable to predict with reasonable certainty and without unreasonable effort certain items such as the timing and amount of net excess income tax benefits or shortfalls, future impairments, lease termination costs, transaction costs, and other non-recurring costs, as well as gains or losses from the early retirement of debt and the outcome from legal proceedings. These items are uncertain, depend on various factors outside our management’s control, and could significantly impact, either individually or in the aggregate, our future period earnings per common share as calculated and presented in accordance with GAAP.
For more information regarding adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share, refer to the reconciliation of GAAP financial measures to the non-GAAP financial measures in the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”
About Bright Horizons Family Solutions Inc.
Bright Horizons® is a leading global provider of high-quality early education and child care, back-up care, and workforce education services. For more than 35 years, we have partnered with employers to support workforces by providing services that help working families and employees thrive personally and professionally. Bright Horizons operates more than 1,000 early education and child care centers in the United States, the United Kingdom, the Netherlands, Australia and India, and serves more than 1,450 of the world’s leading employers. Bright Horizons’ early education and child care centers, back-up child and senior care, and workforce education programs help employees succeed at each life and career stage. For more information, go to www.brighthorizons.com.
Contacts:
Investors:
Elizabeth Boland
Chief Financial Officer - Bright Horizons
eboland@brighthorizons.com
617-673-8125
Michael Flanagan
Group Vice President - Strategic Finance - Bright Horizons
michael.flanagan@brighthorizons.com
617-673-8720
Media:
Ilene Serpa
Vice President - Communications - Bright Horizons
iserpa@brighthorizons.com
617-673-8044



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
(Unaudited)

Three Months Ended September 30,
2025%2024%
Revenue$802,812 100.0 %$719,099 100.0 %
Cost of services585,763 73.0 %537,564 74.8 %
Gross profit217,049 27.0 %181,535 25.2 %
Selling, general and administrative expenses94,726 11.8 %89,499 12.4 %
Amortization of intangible assets1,477 0.1 %2,640 0.4 %
Income from operations120,846 15.1 %89,396 12.4 %
Interest expense — net(12,212)(1.6)%(11,613)(1.6)%
Income before income tax108,634 13.5 %77,783 10.8 %
Income tax expense(30,082)(3.7)%(22,878)(3.2)%
Net income$78,552 9.8 %$54,905 7.6 %
Earnings per common share:
Common stock — basic$1.38 $0.95 
Common stock — diluted$1.37 $0.94 
Weighted average common shares outstanding:
Common stock — basic56,927,187 58,062,009 
Common stock — diluted57,377,773 58,701,618 



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
(Unaudited)

Nine Months Ended September 30,
2025%2024%
Revenue$2,199,909 100.0 %$2,011,867 100.0 %
Cost of services1,644,573 74.8 %1,532,792 76.2 %
Gross profit555,336 25.2 %479,075 23.8 %
Selling, general and administrative expenses281,421 12.8 %264,544 13.1 %
Amortization of intangible assets4,745 0.2 %16,139 0.8 %
Income from operations269,170 12.2 %198,392 9.9 %
Interest expense — net(33,118)(1.5)%(37,307)(1.9)%
Income before income tax236,052 10.7 %161,085 8.0 %
Income tax expense(64,676)(2.9)%(50,017)(2.5)%
Net income$171,376 7.8 %$111,068 5.5 %
Earnings per common share:
Common stock — basic$3.00 $1.92 
Common stock — diluted$2.97 $1.90 
Weighted average common shares outstanding:
Common stock — basic57,188,938 57,970,587 
Common stock — diluted57,680,543 58,483,404 



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

September 30, 2025December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents$116,604 $110,327 
Accounts receivable — net246,653 283,336 
Prepaid expenses and other current assets91,441 102,368 
Total current assets454,698 496,031 
Fixed assets — net585,534 572,939 
Goodwill1,819,238 1,762,683 
Other intangible assets — net194,727 197,575 
Operating lease right-of-use assets721,201 725,897 
Other assets108,749 95,194 
Total assets$3,884,147 $3,850,319 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$— $28,500 
Current portion of revolving credit facility169,321 — 
Accounts payable and accrued expenses280,913 304,541 
Current portion of operating lease liabilities107,328 102,090 
Deferred revenue243,404 305,098 
Other current liabilities40,171 39,170 
Total current liabilities841,137 779,399 
Long-term debt — net747,525 918,449 
Operating lease liabilities724,327 743,562 
Other long-term liabilities117,681 110,214 
Deferred income taxes26,024 20,299 
Total liabilities2,456,694 2,571,923 
Total stockholders’ equity1,427,453 1,278,396 
Total liabilities and stockholders’ equity$3,884,147 $3,850,319 



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Nine Months Ended September 30,
20252024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$171,376 $111,068 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization68,655 75,601 
Stock-based compensation expense22,512 24,607 
Deferred income taxes8,491 (6,844)
Non-cash interest and other — net5,190 10,464 
Changes in assets and liabilities(73,432)1,917 
Net cash provided by operating activities202,792 216,813 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets — net(58,907)(65,254)
Proceeds from debt securities and other investments10,287 23,908 
Purchases of debt securities and other investments(9,760)(43,049)
Payments and settlements for acquisitions — net of cash acquired(5,106)(8,267)
Net cash used in investing activities(63,486)(92,662)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit facility — net469,282 — 
Principal payments of long-term debt(501,000)(12,000)
Payments of debt issuance costs(3,046)— 
Purchase of treasury stock(104,671)— 
Proceeds from issuance of common stock upon exercise of options11,826 24,808 
Taxes paid related to the net share settlement of stock options and restricted stock(15,229)(4,758)
Payments of deferred and contingent consideration for acquisitions— (103,872)
Net cash used in financing activities(142,838)(95,822)
Effect of exchange rates on cash, cash equivalents and restricted cash5,786 1,307 
Net increase in cash, cash equivalents and restricted cash2,254 29,636 
Cash, cash equivalents and restricted cash — beginning of period123,715 89,451 
Cash, cash equivalents and restricted cash — end of period$125,969 $119,087 



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)

Full service
center-based
child care		Back-up careEducational
advisory services		Total
Three Months Ended September 30, 2025
Revenue$515,507 $253,372 $33,933 $802,812 
Income from operations16,750 95,332 8,764 120,846 
Adjusted income from operations (1)
20,400 95,332 8,764 124,496 
As a percentage of revenue4 %38 %26 %16 %
Three Months Ended September 30, 2024
Revenue$486,567 $201,783 $30,749 $719,099 
Income from operations12,465 70,487 6,444 89,396 
Adjusted income from operations12,465 70,487 6,444 89,396 
As a percentage of revenue3 %35 %21 %12 %
(1)For the three months ended September 30, 2025, adjusted income from operations represents income from operations excluding $1.3 million of costs incurred in connection with August 2025 debt refinancing and $2.4 million of net lease termination costs allocated to the full service center-based child care segment.
Full service
center-based
child care		Back-up careEducational
advisory services		Total
Nine Months Ended September 30, 2025
Revenue$1,566,321 $544,654 $88,934 $2,199,909 
Income from operations90,284 162,639 16,247 269,170 
Adjusted income from operations (1)
93,934 162,639 16,247 272,820 
As a percentage of revenue6 %30 %18 %12 %
Nine Months Ended September 30, 2024
Revenue$1,477,284 $452,945 $81,638 $2,011,867 
Income from operations66,553 118,063 13,776 198,392 
Adjusted income from operations66,553 118,063 13,776 198,392 
As a percentage of revenue5 %26 %17 %10 %
(1)For the nine months ended September 30, 2025, adjusted income from operations represents income from operations excluding $1.3 million of costs incurred in connection with August 2025 debt refinancing and $2.4 million of net lease termination costs allocated to the full service center-based child care segment.



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
NON-GAAP RECONCILIATIONS
(In thousands, except share data)
(Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Net income$78,552$54,905$171,376$111,068
Interest expense — net12,21211,61333,11837,307
Income tax expense30,08222,87864,67650,017
Depreciation22,56919,86263,91059,462
Amortization of intangible assets (a)
1,4772,6404,74516,139
EBITDA144,892111,898337,825273,993
As a percentage of revenue18%16%15%14%
Additional adjustments:
Stock-based compensation expense (b)
7,5269,09122,51224,607
Other costs (c)
3,650—3,650—
Total adjustments11,1769,09126,16224,607
Adjusted EBITDA$156,068$120,989$363,987$298,600
As a percentage of revenue19 %17 %17 %15 %
Income from operations$120,846$89,396$269,170$198,392
Other costs (c)
3,650—3,650—
Adjusted income from operations$124,496$89,396$272,820$198,392
As a percentage of revenue16 %12 %12 %10 %
Net income$78,552$54,905$171,376$111,068
Income tax expense30,08222,87864,67650,017
Income before income tax108,63477,783236,052161,085
Amortization of intangible assets (a)
1,4772,6404,74516,139
Stock-based compensation expense (b)
7,5269,09122,51224,607
Other costs (c)
3,650—3,650—
Other interest costs (d)
2,186—2,737—
Adjusted income before income tax123,47389,514269,696201,831
Adjusted income tax expense (e)
(33,338)(24,613)(73,338)(56,008)
Adjusted net income $90,135$64,901$196,358$145,823
As a percentage of revenue11 %9 %9 %7 %
Weighted average common shares outstanding — diluted57,377,77358,701,61857,680,54358,483,404
Diluted adjusted earnings per common share$1.57$1.11$3.40$2.49


(a)Amortization of intangible assets represents total amortization expense, including $0.1 million and $8.4 million for the three and nine months ended September 30, 2024, respectively, associated with intangible assets recorded in connection with our going private transaction in May 2008.
(b)Stock-based compensation expense represents non-cash stock-based compensation expense in accordance with Accounting Standards Codification Topic 718, Compensation-Stock Compensation.
(c)Other costs in the three and nine months ended September 30, 2025 consist of $1.3 million related to the August 2025 debt refinancing recorded to selling, general and administrative expenses and net lease termination costs of $2.4 million recorded to cost of services.
(d)Other interest costs in the three months ended September 30, 2025 consist of $1.6 million in interest incurred related to a pre-acquisition obligation, as well as $0.6 million related to the August 2025 debt refinancing, which were recorded to interest expense. Other interest costs in the nine months ended September 30, 2025 consist of $1.6 million in interest incurred related to a pre-acquisition obligation, as well as $1.1 million of debt refinancing costs related to the April 2025 and August 2025 debt refinancings, which were recorded to interest expense.
(e)Adjusted income tax expense represents income tax expense calculated on adjusted income before income tax at an effective tax rate of approximately 27% for the three and nine months ended September 30, 2025 and approximately 28% for the three and nine months ended September 30, 2024. The jurisdictional mix of the expected adjusted income before income tax for the full year will affect the estimated effective tax rate for the year.