Bright Horizons (BFAM): Q4 Revenue Up 8.8% Y/Y, Back-Up Care Growth Drives Outlook

Bright Horizons (NYSE:BFAM) reported Q4 CY2025 revenue of $733.7 million, up 8.8% year-on-year, and non-GAAP profit of $1.15 per share, 2.5% above consensus. However, full-year revenue guidance at the midpoint of $3.1 billion was 0.6% below estimates, and shares fell to $78.15 from $81.83. CEO Stephen Kramer attributed the beat to 17% growth in back-up care, with positive operating results in the U.K. and ongoing center rationalization. Management plans to close 45–50 underperforming centers in CY2026, while expanding user penetration in back-up care and leveraging employer partnerships. Looking ahead, the company expects enrollment growth, tuition increases, and margin improvement from center closures to support profitability. Key watchpoints include the pace of closures, back-up care adoption, and execution on pricing and labor/benefit cost management.