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Sep 30, 2025
Bright Horizons Q3 2025 Earnings Report
Bright Horizons reported strong third quarter 2025 results with double-digit revenue growth and significant increases in profitability across all segments.
Key Takeaways
Bright Horizons Family Solutions delivered robust Q3 2025 results driven by higher utilization in back-up care and improved enrollment in full-service child care. Revenue rose 12% year-over-year to $802.8 million, while adjusted EBITDA and adjusted net income grew 29% and 39%, respectively. The company strengthened its balance sheet and reaffirmed confidence in its full-year outlook.
Revenue increased 12% year-over-year to $802.8 million.
Net income rose 43% to $78.6 million, with diluted EPS of $1.37.
Adjusted EBITDA grew 29% to $156.1 million.
Back-up care segment drove growth with 38% operating margin.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For fiscal year 2025, Bright Horizons expects revenue of approximately $2.925 billion and diluted adjusted EPS between $4.48 and $4.53, supported by continued growth in back-up care and margin expansion in full-service child care.
Positive Outlook
- Strong back-up care utilization trends expected to continue.
- Enrollment and pricing improvements in full-service centers.
- Stable operating margins supported by scale efficiencies.
- Expansion of client partnerships across employer base.
- Healthy liquidity with over $400 million available under credit facility.
Challenges Ahead
- Labor market constraints may pressure hiring and retention.
- Rising compensation and benefit costs could impact margins.
- Foreign currency fluctuations may affect international earnings.
- Macroeconomic uncertainty and inflation pose risks to demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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