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Bright Horizons Family Solutions Reports Financial Results for the Second Quarter of 2025

Bright Horizons Family Solutions® Inc. (NYSE: BFAM) today announced financial results for the second 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.

Second Quarter 2025 Highlights (compared to Second Quarter 2024):

  • Revenue of $732 million (increase of 9%)
  • Income from operations of $86 million (increase of 25%)
  • Net income of $55 million and diluted earnings per common share of $0.95 (increases of 40% and 42%, respectively)

Non-GAAP financial measures

  • Adjusted EBITDA* of $116 million (increase of 13%)
  • Adjusted income from operations* of $86 million (increase of 25%)
  • Adjusted net income* of $62 million and diluted adjusted earnings per common share* of $1.07 (increases of 20% and 22%, respectively)

“We generated strong results this quarter, driven by disciplined execution and a continued focus on delivering high-quality education and care,” said Stephen Kramer, Chief Executive Officer. “Our client relationships are a core strength of our model and the continued increase in usage of our services by client employees underpins the growth of our impact and financial performance.”

Second Quarter 2025 Results

Revenue increased by $61.5 million, or 9%, to $731.6 million in the second quarter of 2025 from the second quarter of 2024, primarily due to enrollment gains and tuition price increases at our centers, as well as increased utilization of back-up care.

Income from operations was $86.1 million for the second quarter of 2025 compared to $69.1 million for the second quarter of 2024, an increase of 25%. 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 in our full service center-based child care segment. Net income was $54.8 million for the second quarter of 2025 compared to $39.2 million for the second quarter of 2024, an increase of 40%, due to the increase in income from operations noted above, lower interest expense and a lower effective tax rate. Diluted earnings per common share was $0.95 for the second quarter of 2025 compared to $0.67 for the second quarter of 2024.

In the second quarter of 2025, adjusted EBITDA* increased by $13.0 million, or 13%, to $115.6 million, and adjusted income from operations* increased by $17.0 million, or 25%, to $86.1 million from the second 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 $10.2 million, or 20%, to $61.5 million, as a result of the increase in adjusted income from operations and lower interest expense. Diluted adjusted earnings per common share* was $1.07 for the second quarter of 2025 compared to $0.88 for the second quarter of 2024.

As of June 30, 2025, the Company operated 1,020 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, as applicable, such as debt refinancing costs, 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, as applicable, 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, as applicable, such as debt refinancing costs, transaction costs, impairment costs, and the income tax provision (benefit) thereon. 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 June 30, 2025, the Company had $179.2 million of cash and cash equivalents and $483.3 million available for borrowing under our revolving credit facility. In the six months ended June 30, 2025, we generated $220.4 million of cash from operations, compared to $225.8 million for the same period in 2024, and made net investments totaling $38.0 million, compared to $64.1 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 in the range of $2.9 billion to $2.92 billion and diluted adjusted earnings per common share to be in the range of $4.15 to $4.25. 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 second 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 August 14, 2025 at 1-844-512-2921, or for international callers, at 1-412-317-6671, conference ID #13752641. 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, our future growth opportunities, enrollment levels, back-up care use, long-term growth strategy, estimated effective tax rate, tax expense, our future business and financial performance, client 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, future impairments, 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.

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

2025

 

%

 

2024

 

%

Revenue

$

731,570

 

 

100.0

%

 

$

670,059

 

 

100.0

%

Cost of services

 

549,020

 

 

75.0

%

 

 

507,647

 

 

75.8

%

Gross profit

 

182,550

 

 

25.0

%

 

 

162,412

 

 

24.2

%

Selling, general and administrative expenses

 

94,834

 

 

13.0

%

 

 

87,499

 

 

13.1

%

Amortization of intangible assets

 

1,664

 

 

0.2

%

 

 

5,854

 

 

0.8

%

Income from operations

 

86,052

 

 

11.8

%

 

 

69,059

 

 

10.3

%

Interest expense — net

 

(10,555

)

 

(1.5

)%

 

 

(12,013

)

 

(1.8

)%

Income before income tax

 

75,497

 

 

10.3

%

 

 

57,046

 

 

8.5

%

Income tax expense

 

(20,722

)

 

(2.8

)%

 

 

(17,872

)

 

(2.7

)%

Net income

$

54,775

 

 

7.5

%

 

$

39,174

 

 

5.8

%

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

Common stock — basic

$

0.96

 

 

 

 

$

0.68

 

 

 

Common stock — diluted

$

0.95

 

 

 

 

$

0.67

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Common stock — basic

 

57,255,841

 

 

 

 

 

57,971,350

 

 

 

Common stock — diluted

 

57,713,111

 

 

 

 

 

58,438,186

 

 

 

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)

 

 

Six Months Ended June 30,

 

2025

 

%

 

2024

 

%

Revenue

$

1,397,097

 

 

100.0

%

 

$

1,292,768

 

 

100.0

%

Cost of services

 

1,058,810

 

 

75.8

%

 

 

995,228

 

 

77.0

%

Gross profit

 

338,287

 

 

24.2

%

 

 

297,540

 

 

23.0

%

Selling, general and administrative expenses

 

186,695

 

 

13.4

%

 

 

175,045

 

 

13.5

%

Amortization of intangible assets

 

3,268

 

 

0.2

%

 

 

13,499

 

 

1.1

%

Income from operations

 

148,324

 

 

10.6

%

 

 

108,996

 

 

8.4

%

Interest expense — net

 

(20,906

)

 

(1.5

)%

 

 

(25,694

)

 

(2.0

)%

Income before income tax

 

127,418

 

 

9.1

%

 

 

83,302

 

 

6.4

%

Income tax expense

 

(34,594

)

 

(2.5

)%

 

 

(27,139

)

 

(2.1

)%

Net income

$

92,824

 

 

6.6

%

 

$

56,163

 

 

4.3

%

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

Common stock — basic

$

1.62

 

 

 

 

$

0.97

 

 

 

Common stock — diluted

$

1.61

 

 

 

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Common stock — basic

 

57,319,814

 

 

 

 

 

57,924,875

 

 

 

Common stock — diluted

 

57,831,930

 

 

 

 

 

58,374,296

 

 

 

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

June 30, 2025

 

December 31, 2024

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

179,222

 

$

110,327

Accounts receivable — net

 

197,888

 

 

283,336

Prepaid expenses and other current assets

 

95,686

 

 

102,368

Total current assets

 

472,796

 

 

496,031

Fixed assets — net

 

591,152

 

 

572,939

Goodwill

 

1,824,479

 

 

1,762,683

Other intangible assets — net

 

196,264

 

 

197,575

Operating lease right-of-use assets

 

737,048

 

 

725,897

Other assets

 

98,058

 

 

95,194

Total assets

$

3,919,797

 

$

3,850,319

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

 

$

28,500

Current portion of revolving credit facility

 

101,500

 

 

Accounts payable and accrued expenses

 

308,085

 

 

304,541

Current portion of operating lease liabilities

 

106,291

 

 

102,090

Deferred revenue

 

282,576

 

 

305,098

Other current liabilities

 

40,650

 

 

39,170

Total current liabilities

 

839,102

 

 

779,399

Long-term debt — net

 

796,956

 

 

918,449

Operating lease liabilities

 

746,160

 

 

743,562

Other long-term liabilities

 

114,797

 

 

110,214

Deferred income taxes

 

23,661

 

 

20,299

Total liabilities

 

2,520,676

 

 

2,571,923

Total stockholders’ equity

 

1,399,121

 

 

1,278,396

Total liabilities and stockholders’ equity

$

3,919,797

 

$

3,850,319

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Six Months Ended June 30,

 

2025

 

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income

$

92,824

 

 

$

56,163

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

44,609

 

 

 

53,099

 

Stock-based compensation expense

 

14,986

 

 

 

15,516

 

Deferred income taxes

 

5,175

 

 

 

(3,921

)

Non-cash interest and other — net

 

856

 

 

 

7,411

 

Changes in assets and liabilities

 

61,924

 

 

 

97,482

 

Net cash provided by operating activities

 

220,374

 

 

 

225,750

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Purchases of fixed assets — net

 

(34,043

)

 

 

(42,016

)

Proceeds from debt securities and other investments

 

7,503

 

 

 

17,713

 

Purchases of debt securities and other investments

 

(6,322

)

 

 

(36,281

)

Payments and settlements for acquisitions — net of cash acquired

 

(5,106

)

 

 

(3,548

)

Net cash used in investing activities

 

(37,968

)

 

 

(64,132

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Revolving credit facility — net

 

401,500

 

 

 

 

Principal payments of long-term debt

 

(451,000

)

 

 

(8,000

)

Payments of debt issuance costs

 

(2,878

)

 

 

 

Purchase of treasury stock

 

(60,330

)

 

 

 

Proceeds from issuance of common stock upon exercise of options

 

10,230

 

 

 

6,901

 

Taxes paid related to the net share settlement of stock options and restricted stock

 

(13,609

)

 

 

(1,786

)

Payments of deferred and contingent consideration for acquisitions

 

 

 

 

(103,872

)

Net cash used in financing activities

 

(116,087

)

 

 

(106,757

)

Effect of exchange rates on cash, cash equivalents and restricted cash

 

7,045

 

 

 

(723

)

Net increase in cash, cash equivalents and restricted cash

 

73,364

 

 

 

54,138

 

Cash, cash equivalents and restricted cash — beginning of period

 

123,715

 

 

 

89,451

 

Cash, cash equivalents and restricted cash — end of period

$

197,079

 

 

$

143,589

 

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

 

 

Full service

center-based

child care

 

Back-up care

 

Educational

advisory services

 

Total

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

Revenue

$

540,267

 

 

$

162,670

 

 

$

28,633

 

 

$

731,570

 

Income from operations

 

40,280

 

 

 

40,923

 

 

 

4,849

 

 

 

86,052

 

Adjusted income from operations

 

40,280

 

 

 

40,923

 

 

 

4,849

 

 

 

86,052

 

As a percentage of revenue

 

7

%

 

 

25

%

 

 

17

%

 

 

12

%

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2024

 

 

 

 

 

 

 

Revenue

$

507,077

 

 

$

136,490

 

 

$

26,492

 

 

$

670,059

 

Income from operations

 

32,644

 

 

 

31,593

 

 

 

4,822

 

 

 

69,059

 

Adjusted income from operations

 

32,644

 

 

 

31,593

 

 

 

4,822

 

 

 

69,059

 

As a percentage of revenue

 

6

%

 

 

23

%

 

 

18

%

 

 

10

%

 

Full service

center-based

child care

 

Back-up care

 

Educational

advisory services

 

Total

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

Revenue

$

1,050,814

 

 

$

291,282

 

 

$

55,001

 

 

$

1,397,097

 

Income from operations

 

73,534

 

 

 

67,307

 

 

 

7,483

 

 

 

148,324

 

Adjusted income from operations

 

73,534

 

 

 

67,307

 

 

 

7,483

 

 

 

148,324

 

As a percentage of revenue

 

7

%

 

 

23

%

 

 

14

%

 

 

11

%

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

 

Revenue

$

990,717

 

 

$

251,162

 

 

$

50,889

 

 

$

1,292,768

 

Income from operations

 

54,088

 

 

 

47,576

 

 

 

7,332

 

 

 

108,996

 

Adjusted income from operations

 

54,088

 

 

 

47,576

 

 

 

7,332

 

 

 

108,996

 

As a percentage of revenue

 

5

%

 

 

19

%

 

 

14

%

 

 

8

%

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

NON-GAAP RECONCILIATIONS

(In thousands, except share data)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2025

 

2024

 

2025

 

2024

Net income

$

54,775

 

 

$

39,174

 

 

$

92,824

 

 

$

56,163

 

Interest expense — net

 

10,555

 

 

 

12,013

 

 

 

20,906

 

 

 

25,694

 

Income tax expense

 

20,722

 

 

 

17,872

 

 

 

34,594

 

 

 

27,139

 

Depreciation

 

21,070

 

 

 

19,612

 

 

 

41,341

 

 

 

39,600

 

Amortization of intangible assets (a)

 

1,664

 

 

 

5,854

 

 

 

3,268

 

 

 

13,499

 

EBITDA

 

108,786

 

 

 

94,525

 

 

 

192,933

 

 

 

162,095

 

As a percentage of revenue

 

15

%

 

 

14

%

 

 

14

%

 

 

13

%

Additional adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense (b)

 

6,829

 

 

 

8,105

 

 

 

14,986

 

 

 

15,516

 

Total adjustments

 

6,829

 

 

 

8,105

 

 

 

14,986

 

 

 

15,516

 

Adjusted EBITDA

$

115,615

 

 

$

102,630

 

 

$

207,919

 

 

$

177,611

 

As a percentage of revenue

 

16

%

 

 

15

%

 

 

15

%

 

 

14

%

 

 

 

 

 

 

 

 

Income from operations

$

86,052

 

 

$

69,059

 

 

 

148,324

 

 

$

108,996

 

Adjusted income from operations

$

86,052

 

 

$

69,059

 

 

$

148,324

 

 

$

108,996

 

As a percentage of revenue

 

12

%

 

 

10

%

 

 

11

%

 

 

8

%

 

 

 

 

 

 

 

 

Net income

$

54,775

 

 

$

39,174

 

 

$

92,824

 

 

$

56,163

 

Income tax expense

 

20,722

 

 

 

17,872

 

 

 

34,594

 

 

 

27,139

 

Income before income tax

 

75,497

 

 

 

57,046

 

 

 

127,418

 

 

 

83,302

 

Amortization of intangible assets (a)

 

1,664

 

 

 

5,854

 

 

 

3,268

 

 

 

13,499

 

Stock-based compensation expense (b)

 

6,829

 

 

 

8,105

 

 

 

14,986

 

 

 

15,516

 

Other costs (c)

 

551

 

 

 

 

 

 

551

 

 

 

 

Adjusted income before income tax

 

84,541

 

 

 

71,005

 

 

 

146,223

 

 

 

112,317

 

Adjusted income tax expense (d)

 

(23,037

)

 

 

(19,704

)

 

 

(40,000

)

 

 

(31,395

)

Adjusted net income

$

61,504

 

 

$

51,301

 

 

$

106,223

 

 

$

80,922

 

As a percentage of revenue

 

8

%

 

 

8

%

 

 

8

%

 

 

6

%

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted

 

57,713,111

 

 

 

58,438,186

 

 

 

57,831,930

 

 

 

58,374,296

 

Diluted adjusted earnings per common share

$

1.07

 

 

$

0.88

 

 

$

1.84

 

 

$

1.39

 

(a)

Amortization of intangible assets represents amortization expense, including amortization expense of $3.3 million and $8.3 million for the three and six months ended June 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 six months ended June 30, 2025 consist of costs incurred in connection with the April 2025 debt refinancing of $0.6 million, which are included in interest expense on the statement of income.

(d)

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 six months ended June 30, 2025 and approximately 28% for the three and six months ended June 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.

 

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