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Jun 30
Bright Horizons Q2 2025 Earnings Report
Bright Horizons reported strong financial results for the second quarter of 2025, with significant increases in revenue, net income, and earnings per share compared to the same period last year.
Key Takeaways
Bright Horizons Family Solutions delivered robust performance in the second quarter of 2025, driven by increased enrollment and tuition prices in child care centers, as well as higher utilization of back-up care services. The company saw a 9% increase in revenue, a 40% rise in net income, and a 42% increase in diluted EPS, demonstrating disciplined execution and strong client relationships.
Revenue increased by 9% to $731.6 million in Q2 2025, primarily due to enrollment gains and tuition price increases.
Net income grew by 40% to $54.8 million, and diluted EPS increased by 42% to $0.95.
Adjusted EBITDA rose by 13% to $115.6 million, and adjusted net income increased by 20% to $61.5 million.
The company generated $220.4 million in cash from operations in the first six months of 2025 and ended the quarter with $179.2 million in cash and cash equivalents.
Bright Horizons
Bright Horizons
Bright Horizons Revenue by Segment
Revenue by Segment
Full service center-based child care Revenue
CapyFin.comBack-up care Revenue
CapyFin.comEducational advisory services Revenue
CapyFin.com Forward Guidance
Bright Horizons expects fiscal year 2025 revenue to be between $2.9 billion and $2.92 billion, with diluted adjusted earnings per common share projected to be in the range of $4.15 to $4.25.
Positive Outlook
- Projected full-year revenue growth indicates continued business expansion.
- Anticipated diluted adjusted EPS growth suggests ongoing profitability improvements.
- Strong performance in Q2 2025 provides a solid foundation for the rest of the fiscal year.
- Continued focus on high-quality education and care is expected to drive future growth.
- Increased utilization of services by client employees underpins growth.
Challenges Ahead
- The company does not provide a GAAP reconciliation for its forward-looking diluted adjusted EPS, citing uncertainties.
- Unpredictable items such as net excess income tax benefits, future impairments, and transaction costs could impact GAAP EPS.
- Gains or losses from early retirement of debt are uncertain and could affect financial results.
- The outcome of legal proceedings is uncertain and could impact future earnings.
- The jurisdictional mix of adjusted income before income tax will affect the estimated effective tax rate for the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income