Bright Horizonsfamily Solution — Financial Results

Revenue Grew 9% to $2.9 Billion, Led by Back-Up Care

Total revenue increased by $247.6 million year-over-year. The standout performer was back-up care — the service employers offer so workers can arrange last-minute child, senior, or pet care — which grew 19% purely from more people using it more often. The core child care centers grew a steadier 6%, driven by tuition rate increases of 4–5% and modest enrollment growth of 1%.

Profitability Improved Meaningfully Across the Board

The company converted its revenue growth into even faster profit growth. Operating income (revenue minus all operating costs) rose 28%, and net income jumped 38% to $193 million. Margins expanded because the back-up care business — which scales efficiently — grew fastest, and because a large amortization (the gradual write-down of acquired assets) charge of $18.3 million in 2024 fell to just $6.1 million in 2025.

Child Care Centers Continue Closing at an Elevated Rate

The company closed 29 centers in 2025 and 56 in 2024, and has explicitly signaled more closures to come in 2026. These closures reflect underperforming locations amid a challenging mix of rising labor costs, uneven enrollment demand, and shifting work patterns. Impairment and lease termination costs — charges taken when an asset is worth less than its book value — totalled $47.5 million in 2025, up from $30.3 million in 2024. As of year-end, only 40% of the tracked 746-center cohort was more than 70% enrolled, meaning the majority of centers are still running below a level typically associated with strong profitability.

Back-Up Care Is the Engine of Earnings Growth

Back-up care generated $221.6 million in operating income in 2025, representing a 30.4% profit margin on its revenue — far above the 3.2% margin in the core child care segment. This one segment now accounts for about 70% of total company operating income despite being only 25% of revenue. Its growth is driven by greater utilization from both new and existing employer clients, making it the clearest indicator of the company's improving earnings quality.

Debt Restructured and Share Buybacks Accelerated

The company refinanced its debt twice in 2025, consolidating into a simplified structure: a $450 million term loan (a fixed borrowing due in 2032) and a $900 million revolving credit facility (like a large corporate credit card, maturing 2030). It also voluntarily paid down $133.5 million of debt during the year. Separately, the board authorized a $500 million share repurchase program (buying back its own stock), of which $225.4 million was used in 2025 alone — nearly three times the $84.6 million spent in 2024. With $329.4 million still authorized, buybacks remain an active use of cash going forward.