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Mar 31

Bright Horizons Q1 2025 Earnings Report

Bright Horizons reported strong Q1 2025 results with growth in revenue, net income, and adjusted EPS.

Key Takeaways

Bright Horizons posted a solid first quarter driven by enrollment gains and increased use of services, with revenue up 7% and adjusted EPS rising over 50%.

Revenue reached $665,527,000, a 7% increase year-over-year.

Net income more than doubled to $38,049,000 from $16,989,000 last year.

Diluted EPS was $0.66 and adjusted EPS climbed to $0.77.

All core segments contributed to growth, particularly back-up care with strong margin expansion.

Total Revenue
$666M
Previous year: $623M
+6.9%
EPS
$0.77
Previous year: $0.51
+51.0%
Adjusted EBITDA
$92.3M
Previous year: $75M
+23.1%
Adjusted Net Income
$44.7M
Previous year: $29.6M
+51.0%
Operating Margin
9.4%
Gross Profit
$156M
Previous year: $135M
+15.3%
Cash and Equivalents
$112M
Previous year: $63.7M
+75.9%
Free Cash Flow
$71.6M
Previous year: $96.9M
-26.1%
Total Assets
$3.82B
Previous year: $3.79B
+0.8%

Bright Horizons

Bright Horizons

Bright Horizons Revenue by Segment

Forward Guidance

Bright Horizons expects FY2025 revenue between $2.865 billion and $2.915 billion, and adjusted EPS between $3.95 and $4.15.

Positive Outlook

  • Anticipated revenue growth supported by higher enrollment and service utilization.
  • Adjusted EPS guided to increase further from Q1 levels.
  • Company sees strong execution across all segments.
  • Improved interest expense profile expected to continue.
  • Operating leverage from scale and margin expansion expected.

Challenges Ahead

  • Macroeconomic uncertainty may impact demand.
  • Labor market pressures could affect staffing and costs.
  • Variability in employer-sponsored client demand.
  • Currency fluctuations may impact international operations.
  • Seasonal fluctuations could affect quarter-over-quarter performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income