Bright Horizons Family Solutions (NYSE:BFAM) Announces Quarterly Earnings Results

Key Points

• Bright Horizons beat earnings expectations: Third-quarter adjusted EPS rose 15% to $1.80, exceeding the $1.76 consensus, while revenue increased 5% to $841 million and adjusted EBITDA reached $163 million.
• Back-Up Care remained a growth engine, with revenue up 13% to $286 million, but softer Full Service enrollment and expected moderation in usage prompted the company to lower its 2026 outlook.
• International challenges weighed on the business: Weakness in Australia led to a $294 million non-cash impairment charge, while a continuing U.K. safeguarding notice pressured enrollment; analysts’ average rating remained “Hold.”

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $1.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.76 by $0.04, FiscalAI reports. The company had revenue of $841.47 million during the quarter, compared to analysts' expectations of $842.69 million. Bright Horizons Family Solutions had a net margin of 5.78% and a return on equity of 20.09%.

Here are the key takeaways from Bright Horizons Family Solutions' conference call:

• Third-quarter results were solid: revenue rose 5% to $841 million, adjusted EPS increased 15% to $1.80, and adjusted EBITDA grew 5% to $163 million.
• Back-Up Care remained a key growth driver, with revenue up 13% to $286 million as employee users and usage per user increased; management continues to see long-term runway with penetration below 5% of eligible employees.
• Bright Horizons lowered its 2026 outlook to approximately $3.07 billion of revenue and adjusted EPS of $4.98-$5.03, citing expected fourth-quarter moderation in Back-Up Care usage and weaker-than-expected Full Service enrollment.
• Full Service enrollment was pressured by softer new-family starts, particularly in the U.K., where a regulator’s safeguarding notice has been extended; management expects the larger enrollment impact in the fourth quarter and until the notice is lifted.
• Continued weakness in Australia led to a $294 million non-cash impairment charge related to goodwill and intangible assets, and the company is urgently reviewing strategic alternatives for the market.

Bright Horizons Family Solutions Price Performance

Bright Horizons Family Solutions stock traded down $2.12 during mid-day trading on Thursday, hitting $67.17. 2,271,558 shares of the company were exchanged, compared to its average volume of 971,395. The company has a market capitalization of $3.27 billion, a PE ratio of 21.25, a price-to-earnings-growth ratio of 1.09 and a beta of 1.18. The business has a fifty day moving average of $68.85 and a 200 day moving average of $74.68. Bright Horizons Family Solutions has a 1-year low of $57.63 and a 1-year high of $109.86. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 1.14.

Insider Buying and Selling at Bright Horizons Family Solutions

In other news, Director Mary Tocio sold 6,000 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $72.65, for a total value of $435,900.00. Following the sale, the director owned 14,329 shares of the company's stock, valued at approximately $1,041,001.85. This represents a 29.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Mary Burke sold 1,200 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $75.00, for a total transaction of $90,000.00. Following the sale, the chief operating officer owned 30,945 shares of the company's stock, valued at $2,320,875. This trade represents a 3.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 8,400 shares of company stock worth $616,584 in the last 90 days. 1.42% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on BFAM. BMO Capital Markets decreased their target price on shares of Bright Horizons Family Solutions from $93.00 to $83.00 and set an "outperform" rating on the stock in a research report on Monday, October 5th. Weiss Ratings reissued a "sell (d+)" rating on shares of Bright Horizons Family Solutions in a research report on Tuesday. UBS Group cut their price target on shares of Bright Horizons Family Solutions from $88.00 to $78.00 and set a "neutral" rating for the company in a research note on Wednesday, October 14th. Finally, Morgan Stanley decreased their price objective on Bright Horizons Family Solutions from $66.00 to $64.00 and set an "underweight" rating on the stock in a report on Tuesday, October 13th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $92.00.

Bright Horizons Family Solutions Company Profile

Bright Horizons Family Solutions Inc provides employer-sponsored child care and workplace support services. The company operates early education and preschool centers that serve infants, toddlers, preschoolers and school-age children, with programs designed to support children's development and learning.

Its services also include back-up care for children and other dependents, typically provided through a network of child care centers, in-home caregivers and other providers. Through its Bright Horizons EdAssist Solutions business, the company offers education advising, tuition assistance administration, student loan support and related workforce education services for employers and their employees.

Founded in 1986, Bright Horizons serves families and corporate clients primarily in the United States and also has operations in the United Kingdom and other international markets.

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