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1. Company Snapshot

1.a. Company Description

Bright Horizons Family Solutions Inc.provides early education and child care, back-up care, educational advisory, and other workplace solutions services for employers and families.The company operates through three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services.


The Full Service Center-Based Child Care segment offers traditional center-based child care and early education, preschool, and elementary education services.The Back-Up Care segment provides center-based back-up child care, in-home child and adult/elder dependent care, school-age camps, virtual tutoring, and self-sourced reimbursed care services through child care centers, school-age campuses, and in-home caregivers, as well as the back-up care network.The Educational Advisory and Other Services segment offers tuition assistance and student loan repayment program administration, workforce education, and related educational consulting services, as well as college admissions advisory services.


As of December 31, 2021, it operated 1,014 child care and early education centers in the United States, Puerto Rico, the United Kingdom, Canada, the Netherlands, and India.The company was formerly known as Bright Horizons Solutions Corp.and changed its name to Bright Horizons Family Solutions Inc.


in July 2012.Bright Horizons Family Solutions Inc.was founded in 1986 and is headquartered in Newton, Massachusetts.

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1.b. Last Insights on BFAM

Breaking News: Bright Horizons Family Solutions Inc reported its Q4 2025 earnings on February 13 2026. The companys key metrics were compared to Wall Street estimates and the year-ago actuals. Management discussed the results in a earnings call. Analysts have not provided a clear recommendation however some have rated the stock as a hold. The earnings release showed the companys performance in the quarter ended December 2025. Further analysis of the transcript and estimates are required to gauge future performance. Several firms have issued reports on the stock.

1.c. Company Highlights

2. Bright Horizons' Strong Q4 2025 Earnings Reflects Diversified Growth

Bright Horizons Family Solutions reported a robust fourth quarter 2025, with revenue increasing 9% to $734 million and adjusted EPS rising 17% to $1.15, surpassing estimates of $1.13. For the full year, revenue reached $2.93 billion, up 9% from the prior year, and adjusted EPS grew 31% to $4.55. The company's adjusted operating income rose 14% to $91 million, with operating margins expanding approximately 60 basis points to 12.3%. Adjusted EBITDA increased 12% to $123 million, representing an adjusted EBITDA margin of 17%. The strong performance was driven by the company's diversified business model, with back-up care revenue growing 17% in Q4.

Publication Date: Feb -14

📋 Highlights
  • Q4 Revenue & EPS Growth:: Revenue rose 9% to $734M; adjusted EPS up 17% to $1.15.
  • Full-Year Performance:: Revenue reached $2.93B (+9% YoY); adjusted EPS surged 31% to $4.55.
  • Segment Strength:: Back-up care revenue grew 17% to $183M; full-service revenue hit $515M (+6%).
  • 2026 Guidance:: Revenue projected at $3.075B–$3.125B (5–6.5% growth), with back-up care expected to grow 11–13%.
  • Margin Improvements:: Adjusted EBITDA margin at 17% (+12% YoY); full-service margin target of 27–28% in 2026.

Segment Performance

The company's segment results were robust, with back-up care revenue driving growth, full service revenue benefiting from pricing increases and modest enrollment gains, and ed advisory showing steady performance. Back-up care revenue grew 17% in Q4 to $183 million, while full service revenue increased 6% to $515 million. The company's guidance for 2026 expects revenue to grow between 5% to 6.5%, with back-up care revenue expected to increase 11% to 13%.

Outlook and Valuation

Looking ahead to 2026, Bright Horizons is expected to continue its growth trajectory, driven by its diversified business model and expanding back-up care segment. With a current P/E Ratio of 19.47 and EV/EBITDA of 14.96, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate revenue growth at 6.2% for the next year, which is in line with the company's guidance. The company's long-term average operating margin is expected to be 25-30%, and it is making progress towards achieving its target of 70% average enrollment in its centers.

Operational Highlights

The company is making progress in addressing underperforming centers, with plans to close around 45-50 centers in 2026. The top group of centers is performing well, with enrollment above 80%, while the middle cohort of 40% of centers has a real opportunity to add 5-15 percentage points of enrollment. The company's focus on achieving critical mass and the right mix of age groups is expected to drive growth. With a strong track record of delivering value to shareholders, Bright Horizons is well-positioned for continued success.

3. NewsRoom

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Bright Horizons (BFAM) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -13

Source: zacks.com

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Bright Horizons Family Solutions Inc. (BFAM) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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Bright Horizons Family Solutions (BFAM) Beats Q4 Earnings and Revenue Estimates

Feb -12

Source: zacks.com

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Bright Horizons Family Solutions Reports Financial Results for the Fourth Quarter and Full Year of 2025

Feb -12

Source: businesswire.com

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BRIGHT HORIZONS FAMILY SOLUTIONS INC. INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigates Bright Horizons Family Solutions Inc.'s Directors and Officers for Breach of Fiduciary Duties – BFAM

Feb -12

Source: businesswire.com

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Bright Horizons Family Solutions Announces Date of Fourth Quarter 2025 Earnings Release and Conference Call

Jan -29

Source: businesswire.com

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Reviewing BrightView (NYSE:BV) & Bright Horizons Family Solutions (NYSE:BFAM)

Jan -12

Source: defenseworld.net

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JPMorgan's Top 3 Stocks to Crush the Market in 2026

Dec -27

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.42%)

6. Segments

Full Service Center-based Child Care

Expected Growth: 9%

Strong demand for high-quality child care, increasing female workforce participation, and growing corporate investments in employee benefits drive growth. Bright Horizons' full-service centers offer a unique value proposition, combining early childhood education with convenient, employer-sponsored care. This resonates with working parents, leading to high occupancy rates and revenue growth.

Back-up Care

Expected Growth: 7%

The 7% growth of Back-up Care from Bright Horizons Family Solutions Inc. is driven by increasing demand for work-life balance, rising female labor force participation, and growing need for elder care support. Additionally, the service's ability to reduce employee turnover and increase productivity resonates with employers, leading to higher adoption rates.

Educational Advisory and Other Services

Expected Growth: 6%

Bright Horizons Family Solutions Inc.'s Educational Advisory and Other Services segment growth is driven by increasing demand for early childhood education, rising female labor force participation, and growing need for employer-sponsored childcare benefits. Additionally, the company's expansion into new markets, strategic partnerships, and investments in digital platforms also contribute to its 6% growth.

7. Detailed Products

Child Care Centers

Bright Horizons operates a network of high-quality child care centers, providing early childhood education and care for children from infancy to kindergarten age.

Back-Up Care

Bright Horizons offers back-up care services, providing temporary care for children, adults, and seniors when regular caregivers are unavailable.

EdAssist Solutions

EdAssist provides education and tuition assistance programs, helping employees balance work and education goals.

Consulting Services

Bright Horizons offers consulting services to help organizations develop and implement family-friendly benefits and policies.

Dependent Care Advantage

This program provides resources and support for employees caring for adult or elderly loved ones, including counseling and referral services.

Employee Benefits

Bright Horizons offers a range of employee benefits, including fertility benefits, adoption assistance, and parental leave support.

8. Bright Horizons Family Solutions Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bright Horizons Family Solutions Inc. has a low threat of substitutes due to its unique services and high-quality childcare programs, making it difficult for substitutes to enter the market.

Bargaining Power Of Customers

Bright Horizons Family Solutions Inc. has a medium bargaining power of customers due to the presence of some large corporate clients, but the company's high-quality services and strong brand reputation mitigate this power.

Bargaining Power Of Suppliers

Bright Horizons Family Solutions Inc. has a low bargaining power of suppliers due to its large scale of operations and ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

Bright Horizons Family Solutions Inc. has a medium threat of new entrants due to the moderate barriers to entry in the childcare industry, but the company's strong brand reputation and high-quality services make it difficult for new entrants to gain market share.

Intensity Of Rivalry

Bright Horizons Family Solutions Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.71%
Debt Cost 7.11%
Equity Weight 53.29%
Equity Cost 10.86%
WACC 9.11%
Leverage 87.67%

11. Quality Control: Bright Horizons Family Solutions Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
H&R Block

A-Score: 6.3/10

Value: 7.8

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Rollins

A-Score: 5.8/10

Value: 0.5

Growth: 7.1

Quality: 7.7

Yield: 2.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
SCI

A-Score: 5.5/10

Value: 3.7

Growth: 6.4

Quality: 4.7

Yield: 4.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Frontdoor

A-Score: 4.7/10

Value: 4.8

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
United Parks & Resorts

A-Score: 4.4/10

Value: 8.0

Growth: 7.0

Quality: 6.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Bright Horizons Family Solutions

A-Score: 4.0/10

Value: 3.1

Growth: 5.9

Quality: 5.0

Yield: 0.0

Momentum: 4.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.9$

Current Price

66.9$

Potential

-0.00%

Expected Cash-Flows