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1. Company Snapshot

1.a. Company Description

Bright Horizons Family Solutions Inc.provides early education and child care, back-up care, educational advisory, and other workplace solutions services for employers and families.The company operates through three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services.


The Full Service Center-Based Child Care segment offers traditional center-based child care and early education, preschool, and elementary education services.The Back-Up Care segment provides center-based back-up child care, in-home child and adult/elder dependent care, school-age camps, virtual tutoring, and self-sourced reimbursed care services through child care centers, school-age campuses, and in-home caregivers, as well as the back-up care network.The Educational Advisory and Other Services segment offers tuition assistance and student loan repayment program administration, workforce education, and related educational consulting services, as well as college admissions advisory services.


As of December 31, 2021, it operated 1,014 child care and early education centers in the United States, Puerto Rico, the United Kingdom, Canada, the Netherlands, and India.The company was formerly known as Bright Horizons Solutions Corp.and changed its name to Bright Horizons Family Solutions Inc.


in July 2012.Bright Horizons Family Solutions Inc.was founded in 1986 and is headquartered in Newton, Massachusetts.

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1.b. Last Insights on BFAM

Bright Horizons Family Solutions Inc.'s recent performance was negatively impacted by concerns over its core Full-Service segment. Despite a 26% year-over-year growth in Backup Care, the segment faces muted enrollment, weak pricing power, and macro risks from white-collar layoffs (Source: Nov 5, 2025 report). Additionally, Asset Management One Co. Ltd. and US Bancorp DE reduced their stakes in the company by 49% and 14.2%, respectively. However, the company beat Q3 earnings and revenue estimates with quarterly earnings of $1.57 per share (Source: Oct 30, 2025 report). Analysts have a consensus recommendation of "Moderate Buy" for the stock (Source: Marketbeat).

1.c. Company Highlights

2. Bright Horizons' Strong Q3 Earnings Driven by Back-up Care Revenue Growth

Bright Horizons reported a robust third quarter, with revenue growth of 12% to $803 million, driven primarily by a 26% increase in back-up care revenue to $253 million. Adjusted EPS grew 41% to $1.57, significantly beating estimates of $1.32. The company's full service revenue increased 6% to $516 million, mainly due to pricing increases and modest enrollment gains. The strong financial performance was underscored by Elizabeth Boland, Chief Financial Officer, who highlighted the significant operating leverage delivered in the back-up care segment.

Publication Date: Nov -04

📋 Highlights
  • Revenue & EPS Growth:: Q3 revenue rose 12% to $803M; adjusted EPS surged 41% to $1.57.
  • Back-up Care Outperformance:: Revenue grew 26% to $253M, driven by peak summer demand and user reuse.
  • Full-Year Outlook:: Projected revenue of $2.925B and adjusted EPS of $4.48–$4.53, with back-up care growth at 18%.
  • Margin Expectations:: Full service margins to end at 125 bps; back-up care at 25–30%; education advisory in low 20s.
  • 2026 Pricing Strategy:: Tuition hikes target 4% average, 100 bps above wage inflation, with localized pricing for back-up care.

Segment Performance

The back-up care segment was a standout, with revenue growth driven by strong demand over the peak summer season. Full service revenue growth was more muted, with enrollment gains slowing to low single digits. Education advisory revenue grew 10% to $34 million, driven by the continued strength of College Coach and EdAssist. The company's guidance suggests that back-up care will continue to drive growth, with expected revenue growth of around 11% to 13% next year.

Outlook and Guidance

Bright Horizons updated its full year outlook, expecting revenue to approximate $2.925 billion and adjusted EPS to be in the range of $4.48 to $4.53. The company also provided an updated outlook by segment, expecting full service revenue to grow roughly 6%, back-up care to grow roughly 18%, and education advisory growth to be in the high single digits for the full year. Analysts estimate next year's revenue growth at 6.9%, indicating a continued strong performance.

Valuation Metrics

With a P/E Ratio of 29.56 and an EV/EBITDA of 18.43, the market appears to be pricing in a significant level of growth. The company's ROE of 14.77% and ROIC of 7.03% suggest a strong return on equity, but the Net Debt / EBITDA ratio of 4.0 indicates a relatively high level of debt. The current valuation metrics suggest that the market has a positive outlook on the company's future prospects, but investors should be cautious about the potential risks associated with the high debt levels.

3. NewsRoom

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2026 Workforce Outlook: Employers That Prioritize AI Literacy and Education Benefits Can Lead the Talent Race

Dec -04

Source: businesswire.com

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Bright Horizons Family Solutions Inc. $BFAM Stock Position Lessened by American Century Companies Inc.

Nov -29

Source: defenseworld.net

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Head to Head Comparison: Bright Horizons Family Solutions (NYSE:BFAM) vs. VCI Global (NASDAQ:VCIG)

Nov -29

Source: defenseworld.net

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Artisan Global Discovery Fund: Q3 Delivers Strong Results Amid Trimming And Exits

Nov -20

Source: seekingalpha.com

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Reviewing Bright Horizons Family Solutions (NYSE:BFAM) & comScore (NASDAQ:SCOR)

Nov -18

Source: defenseworld.net

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Bright Horizons Family Solutions Inc. $BFAM Holdings Decreased by Bank of New York Mellon Corp

Nov -16

Source: defenseworld.net

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Parents Face Tough Choices: Career Ambitions Versus Family Needs

Nov -11

Source: businesswire.com

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Bright Horizons Family: Valuation Unlikely To See An Upgrade Until The Core Segment Recovers

Nov -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.42%)

6. Segments

Full Service Center-based Child Care

Expected Growth: 9%

Strong demand for high-quality child care, increasing female workforce participation, and growing corporate investments in employee benefits drive growth. Bright Horizons' full-service centers offer a unique value proposition, combining early childhood education with convenient, employer-sponsored care. This resonates with working parents, leading to high occupancy rates and revenue growth.

Back-up Care

Expected Growth: 7%

The 7% growth of Back-up Care from Bright Horizons Family Solutions Inc. is driven by increasing demand for work-life balance, rising female labor force participation, and growing need for elder care support. Additionally, the service's ability to reduce employee turnover and increase productivity resonates with employers, leading to higher adoption rates.

Educational Advisory and Other Services

Expected Growth: 6%

Bright Horizons Family Solutions Inc.'s Educational Advisory and Other Services segment growth is driven by increasing demand for early childhood education, rising female labor force participation, and growing need for employer-sponsored childcare benefits. Additionally, the company's expansion into new markets, strategic partnerships, and investments in digital platforms also contribute to its 6% growth.

7. Detailed Products

Child Care Centers

Bright Horizons operates a network of high-quality child care centers, providing early childhood education and care for children from infancy to kindergarten age.

Back-Up Care

Bright Horizons offers back-up care services, providing temporary care for children, adults, and seniors when regular caregivers are unavailable.

EdAssist Solutions

EdAssist provides education and tuition assistance programs, helping employees balance work and education goals.

Consulting Services

Bright Horizons offers consulting services to help organizations develop and implement family-friendly benefits and policies.

Dependent Care Advantage

This program provides resources and support for employees caring for adult or elderly loved ones, including counseling and referral services.

Employee Benefits

Bright Horizons offers a range of employee benefits, including fertility benefits, adoption assistance, and parental leave support.

8. Bright Horizons Family Solutions Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bright Horizons Family Solutions Inc. has a low threat of substitutes due to its unique services and high-quality childcare programs, making it difficult for substitutes to enter the market.

Bargaining Power Of Customers

Bright Horizons Family Solutions Inc. has a medium bargaining power of customers due to the presence of some large corporate clients, but the company's high-quality services and strong brand reputation mitigate this power.

Bargaining Power Of Suppliers

Bright Horizons Family Solutions Inc. has a low bargaining power of suppliers due to its large scale of operations and ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

Bright Horizons Family Solutions Inc. has a medium threat of new entrants due to the moderate barriers to entry in the childcare industry, but the company's strong brand reputation and high-quality services make it difficult for new entrants to gain market share.

Intensity Of Rivalry

Bright Horizons Family Solutions Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.71%
Debt Cost 7.11%
Equity Weight 53.29%
Equity Cost 10.86%
WACC 9.11%
Leverage 87.67%

11. Quality Control: Bright Horizons Family Solutions Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
H&R Block

A-Score: 5.8/10

Value: 5.6

Growth: 6.1

Quality: 5.5

Yield: 7.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Rollins

A-Score: 5.8/10

Value: 0.7

Growth: 7.1

Quality: 7.5

Yield: 2.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
SCI

A-Score: 5.7/10

Value: 3.5

Growth: 6.4

Quality: 4.7

Yield: 4.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
United Parks & Resorts

A-Score: 5.3/10

Value: 7.6

Growth: 6.9

Quality: 6.3

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Frontdoor

A-Score: 5.2/10

Value: 3.5

Growth: 6.7

Quality: 6.6

Yield: 0.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Bright Horizons Family Solutions

A-Score: 3.7/10

Value: 2.5

Growth: 6.0

Quality: 5.5

Yield: 0.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

103.91$

Current Price

103.91$

Potential

-0.00%

Expected Cash-Flows