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Bright Horizons (NYSE: BFAM) Q2 2026 results and 2026 guidance

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Bright Horizons Family Solutions reported second quarter 2026 revenue of $779.2 million, up 7% year over year, driven mainly by growth in back-up care and full service center-based child care. However, income from operations declined 7% to $79.8 million, and net income fell 26% to $40.6 million, or $0.79 diluted EPS, reflecting $19.1 million of impairment losses plus a higher effective tax rate and higher interest expense.

On a non-GAAP basis, adjusted EBITDA increased 13% to $130.6 million, adjusted income from operations rose 15% to $99.0 million, and adjusted net income grew to $66.3 million, with diluted adjusted EPS up 20% to $1.28. Back-up care revenue increased 19% to $193.6 million, while full service centers generated $557.3 million of revenue and continued margin expansion excluding impairments. As of June 30, 2026, Bright Horizons operated 988 centers with capacity for about 112,500 children, held $163.7 million in cash and $520.1 million of revolver availability, and had repurchased approximately 6.6 million shares for $473.2 million year to date. For 2026, it expects revenue of $3.085–$3.115 billion and diluted adjusted EPS of $5.05–$5.15.

Positive

  • Adjusted performance strengthened: Q2 2026 adjusted EBITDA rose 13% to $130.6 million and diluted adjusted EPS increased 20% to $1.28, supported by higher service levels and strong back-up care contributions.
  • Significant cash generation and buybacks: in the first half of 2026 the company generated $202.8 million of operating cash flow and repurchased approximately 6.6 million shares for $473.2 million, while maintaining $163.7 million cash and $520.1 million of revolver capacity.

Negative

  • GAAP profitability declined: Q2 2026 net income decreased 26% year over year to $40.6 million and diluted EPS fell 17% to $0.79, driven in part by $19.1 million of impairment losses and higher tax and interest expense.

Filing Explained

The June 1 credit amendment added a $375 million term loan and raised revolver capacity to $1.0 billion.

The company reports that its June 1, 2026 amendment to existing senior secured credit facilities was completed, adding a term-loan facility and expanding its revolving facility; the financing structure now includes additional debt and greater borrowing capacity.

The filing distinguishes the term loan as a facility issued by the company from the revolver as borrowing capacity, rather than reporting those two amounts in the same state. It separately reports current revolving-credit debt at June 30, 2026.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $779.2 million Second quarter 2026; increase of 7% from second quarter 2025
Q2 2026 Net Income $40.6 million Second quarter 2026; decrease of 26% from second quarter 2025
Q2 2026 Diluted EPS $0.79 Second quarter 2026 diluted earnings per common share; down 17% year over year
Q2 2026 Adjusted EBITDA $130.6 million Second quarter 2026; adjusted EBITDA increased 13% versus second quarter 2025
H1 2026 Cash from Operations $202.8 million Net cash provided by operating activities for six months ended June 30, 2026
H1 2026 Share Repurchases $473.2 million Approximately 6.6 million shares repurchased in the six months ended June 30, 2026
Liquidity at June 30, 2026 $163.7 million cash; $520.1 million revolver availability Cash and cash equivalents plus available borrowing capacity under revolving credit facility
2026 Revenue Guidance $3.085–$3.115 billion Expected fiscal year 2026 revenue range provided by management
Adjusted EBITDA financial
"Adjusted EBITDA* of $131 million (increase of 13%)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
impairment losses financial
"impairment losses of $19.1 million related to centers in certain markets"
An impairment loss is an accounting write-down when a company determines an asset (like equipment, buildings, patents, or goodwill) is worth less than its recorded value, so its book value is reduced. For investors, impairments matter because they lower reported profits and asset balance, similar to recognizing that a car is worth far less than you expected; frequent or large impairments can signal poor returns on investments or deteriorating business prospects.
revolving credit facility financial
"increase the borrowing capacity of its revolving credit facility from $900 million to $1.0 billion"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
non-GAAP financial measures financial
"financial measures that are not calculated in accordance with GAAP, commonly referred to as non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
term loan A facility financial
"issue $375 million of a term loan A facility as well as increase the borrowing capacity"
A Term Loan A facility is a scheduled, bank-style loan that a company repays over time in regular installments, often as part of a larger syndicated loan package. Think of it like a mortgage within a bigger borrowing plan: it reduces steadily and usually has higher priority for lenders, so investors watch it because its size, repayment schedule and security affect a company’s cash flow, credit risk and ability to take on additional debt.
deferred revenue financial
"Deferred revenue $287,695 at June 30, 2026"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
Revenue Q2 2026 $779 million increase of 7% compared to second quarter 2025
Income from operations Q2 2026 $80 million decrease of 7% compared to second quarter 2025
Net income Q2 2026 $41 million decrease of 26% compared to second quarter 2025
Diluted EPS Q2 2026 $0.79 decrease of 17% compared to second quarter 2025
Adjusted EBITDA Q2 2026 $131 million increase of 13% compared to second quarter 2025
Adjusted income from operations Q2 2026 $99 million increase of 15% compared to second quarter 2025
Adjusted net income Q2 2026 $66 million increase of 8% compared to second quarter 2025
Diluted adjusted EPS Q2 2026 $1.28 increase of 20% compared to second quarter 2025
2026 Revenue Guidance $3.085–$3.115 billion
2026 Diluted Adjusted EPS Guidance $5.05–$5.15
Guidance

For fiscal year 2026, management expects revenue between $3.085 billion and $3.115 billion and diluted adjusted earnings per common share between $5.05 and $5.15.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Bright Horizons (BFAM) perform financially in Q2 2026?
Bright Horizons reported Q2 2026 revenue of $779.2 million, up 7% year over year. Net income was $40.6 million, with diluted EPS of $0.79, both down versus 2025 primarily due to $19.1 million of impairments and higher tax and interest expense.

What were Bright Horizons (BFAM) key non-GAAP results for Q2 2026?
Non-GAAP metrics improved: Q2 2026 adjusted EBITDA was $130.6 million, up 13%, adjusted income from operations was $99.0 million, up 15%, and adjusted net income reached $66.3 million, with diluted adjusted EPS of $1.28, up 20% from Q2 2025.

What 2026 guidance did Bright Horizons (BFAM) provide?
For fiscal 2026, Bright Horizons expects revenue between $3.085 billion and $3.115 billion. It also projects diluted adjusted earnings per common share in the range of $5.05 to $5.15, based on current trends and expectations discussed on its earnings call.

How did Bright Horizons (BFAM) segments perform in Q2 2026?
In Q2 2026, full service center-based child care generated $557.3 million of revenue, back-up care delivered $193.6 million with 19% revenue growth, and educational advisory services contributed $28.3 million. Back-up care provided a major share of operating income and adjusted margin strength.

What was Bright Horizons (BFAM) cash flow, debt, and liquidity profile?
For the first half of 2026, Bright Horizons produced $202.8 million of operating cash flow and invested $39.4 million net in fixed assets and investments. At June 30, 2026, it held $163.7 million in cash and had $520.1 million available under its revolving credit facility.

How much stock did Bright Horizons (BFAM) repurchase in the first half of 2026?
During the six months ended June 30, 2026, Bright Horizons repurchased approximately 6.6 million shares of its common stock for a total of $473.2 million, compared with about 0.5 million shares for $60.7 million in the same period of 2025.
false000143757800014375782026-07-302026-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 30, 2026
bfamcompanylogo2.gif
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
(Exact name of registrant as specified in its charter)
Delaware001-3578080-0188269
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(I.R.S. Employer
Identification Number)
  2 Wells Avenue
Newton, Massachusetts
02459
(Address of principal executive offices)(Zip code)
Registrant’s telephone number, including area code: (617) 673-8000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareBFAMNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐


Item 2.02Results of Operations and Financial Condition
On July 30, 2026, Bright Horizons Family Solutions Inc. issued a press release announcing its financial results for the fiscal quarter ended June 30, 2026 and updated financial guidance for the year 2026. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information contained in this Item, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, regardless of any general incorporation language in any such filing.
Any website addresses included herein are inactive textual references only. The information contained on any such website referenced herein is not incorporated into this Current Report on Form 8-K. Important information may be disseminated initially or exclusively via the Company’s Investor Relations website; investors should consult the site to access this information.
Item 9.01Financial Statements and Exhibits
(d)    Exhibits
99.1
Press Release of Bright Horizons Family Solutions Inc. dated July 30, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
Date:July 30, 2026By:/s/ Elizabeth Boland
Elizabeth Boland
Chief Financial Officer


Exhibit 99.1
Bright Horizons Family Solutions Reports Financial Results for the Second Quarter of 2026
NEWTON, MA - (BUSINESS WIRE) - July 30, 2026 - Bright Horizons Family Solutions® Inc. (NYSE: BFAM) today announced financial results for the second quarter of 2026 and provided updated financial guidance for 2026. Bright Horizons is a leading provider of high-quality early education and child care, comprehensive back-up care solutions, and educational advisory services. Our offerings support both working families and employers’ workforce strategies by supporting their employees across life and career stages, and improving employee recruitment, engagement, productivity, retention, and career advancement.
Second Quarter 2026 Highlights (compared to Second Quarter 2025):
•Revenue of $779 million (increase of 7%)
•Income from operations of $80 million (decrease of 7%)
•Net income of $41 million and diluted earnings per common share of $0.79 (decreases of 26% and 17%, respectively)
Non-GAAP financial measures
•Adjusted EBITDA* of $131 million (increase of 13%)
•Adjusted income from operations* of $99 million (increase of 15%)
•Adjusted net income* of $66 million and diluted adjusted earnings per common share* of $1.28 (increases of 8% and 20%, respectively)
“Our second quarter performance was solid, with 7% revenue growth and 20% adjusted EPS growth,” said Stephen Kramer, Chief Executive Officer. “Back-up care revenue grew 19% as we entered the summer with strong utilization, while full service delivered another quarter of solid operating margin expansion. Our differentiated employer-centric model and singular focus on quality continue to drive strong financial results and position us to deepen our impact for the families and employers we serve.”
Second Quarter 2026 Results
Revenue increased by $47.6 million, or 7%, to $779.2 million in the second quarter of 2026 from the second quarter of 2025, primarily due to growth in back-up care and full service center-based child care, partially offset by the reductions in revenue from centers that have closed over the last 12 months.
Income from operations was $79.8 million for the second quarter of 2026 compared to $86.1 million for the second quarter of 2025, a decrease of 7%. The decrease in income from operations is primarily related to impairment losses of $19.1 million related to centers in certain markets, partially offset by increased service levels and contributions from our back-up care segment. Net income was $40.6 million for the second quarter of 2026 compared to $54.8 million for the second quarter of 2025, a decrease of 26%, due to the decrease in income from operations noted above, a higher effective tax rate and higher interest expense. Diluted earnings per common share was $0.79 for the second quarter of 2026 compared to $0.95 for the second quarter of 2025.
In the second quarter of 2026, adjusted EBITDA* increased by $14.9 million, or 13%, to $130.6 million, and adjusted income from operations* increased by $12.9 million, or 15%, to $99.0 million from the second quarter of 2025, primarily due to increased service levels and contributions from the back-up care segment. Adjusted net income* was $66.3 million, an increase from adjusted net income of $61.5 million in the same period in the prior year, as a result of the increase in adjusted income from operations noted above partially offset by higher interest expense and an increase to the adjusted effective tax rate. Diluted adjusted earnings per common share* was $1.28 for the second quarter of 2026 compared to $1.07 for the second quarter of 2025.
As of June 30, 2026, the Company operated 988 early education and child care centers with the capacity to serve approximately 112,500 children and their families.
*Adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share are financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), which are commonly referred to as “non-GAAP financial measures.” Adjusted EBITDA represents EBITDA (which is net income, as determined in accordance with GAAP, before interest expense, income tax expense, depreciation, and amortization) adjusted to exclude stock-based compensation expense, impairment losses, and, at times, non-recurring costs, such as debt refinancing costs, lease termination costs, and transaction costs. Adjusted income from operations represents income from operations, as determined in accordance with GAAP, adjusted to exclude impairment losses, and, at times, non-recurring costs, such as debt refinancing costs, lease termination costs, and transaction costs. Adjusted net income represents net income, as determined in accordance with GAAP, adjusted to exclude amortization, stock-based compensation expense, impairment losses, debt refinancing costs and, at times, non-recurring costs, such as lease termination costs and transaction costs, and the income tax provision (benefit) thereon. Diluted adjusted earnings per common share is calculated using adjusted net income. These non-GAAP financial measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations,” respectively.
Balance Sheet and Liquidity
At June 30, 2026, the Company had $163.7 million of cash and cash equivalents and $520.1 million available for borrowing under our revolving credit facility. In the six months ended June 30, 2026, we generated $202.8 million of cash from operations, compared to $220.4 million for the same period in 2025, repurchased approximately 6.6 million shares totaling $473.2 million compared to approximately 0.5 million shares totaling $60.7 million for the same period in the prior year, and made net investments totaling $39.4 million, compared to $38.0 million for the same period in the prior year. On June 1, 2026, the Company amended its existing senior secured credit facilities to, among other changes, issue $375 million of a term loan A facility as well as increase the borrowing capacity of its revolving credit facility from $900 million to $1.0 billion.
2026 Outlook
Based on current trends and expectations, we currently expect fiscal year 2026 revenue to be in the range of $3.085 billion to $3.115 billion and diluted adjusted earnings per common share to be in the range of $5.05 to $5.15. The Company will provide additional information on its outlook during its earnings conference call.
Conference Call
Bright Horizons Family Solutions will host an investor conference call today at 5:00 pm ET to discuss the results for the second quarter of 2026, as well as the Company’s updated business outlook and strategy. Interested parties are invited to listen to the conference call by dialing 1-844-539-3703, or for international callers, 1-412-652-1273, and asking for the Bright Horizons Family Solutions conference call moderated by Chief Executive Officer Stephen Kramer. Replays of the entire call will be available through August 13, 2026 at 1-844-512-2921, or for international callers, at 1-412-317-6671, conference ID #13758193. A link to the audio webcast of the conference call and a copy of this press release are also available through the Investor Relations section of the Company’s web site, investors.brighthorizons.com.
Forward-Looking Statements
This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s actual results may vary significantly from the results anticipated in these forward-looking statements, which can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, operating expectations, execution and delivery of our services and solutions, our model, business trends, value and quality of our service offerings, market penetration, our future growth opportunities, enrollment levels and trends in jurisdictions, utilization of services, margins, back-up care contributions, our investments, long-term growth strategy, cash flows, estimated effective tax rate, tax expense, our future business and financial performance, client partners and relationships, use and impact of our services, share repurchase activity and our 2026 financial guidance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, changes in the demand for child care, dependent care and other workplace solutions, including variations in enrollment trends and lower than expected demand from employer sponsor clients as well as variations in workforce demographics and work environments; the constrained labor market for teachers and staff and ability to hire and retain talent, including the impact of increased compensation and labor costs; the availability or lack of government support programs, and the impact of available government child care benefit programs; our ability to respond to changing client and customer needs; competition in our industry; the possibility that acquisitions may disrupt our operations and expose us to additional risk; our ability to pass on our increased costs; our indebtedness and the terms of such indebtedness; our ability to withstand seasonal fluctuations in the demand for our services; our ability to implement our growth strategies successfully; our ability to close underperforming centers; changes in general economic, political, business and financial market conditions and other macroeconomic events and uncertainty, including the impact of inflation and interest rate fluctuations; fluctuations in currency exchange rates; the effects of a cyber-attack, data breach or other security incident on our information technology system or software or those of our third party vendors; changes in tax rates or policies; damage or harm to our brand or reputation, including as a result of recent incidents and media coverage; outcome of litigation, legal matters and regulatory investigations; insurance risks; changes in laws and regulations; and other risks and uncertainties more fully described in the “Risk Factors” section of our Annual Report on Form 10-K filed on February 26, 2026, and other factors disclosed from time to time in our other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with GAAP throughout this press release, the Company has provided certain non-GAAP financial measures that present operating results on a basis adjusted for certain items. The Company uses these non-GAAP financial measures as key performance indicators for the purpose of evaluating performance internally, and in connection with determining incentive compensation for Company management, including executive officers. Adjusted EBITDA is also used in connection with the determination of certain ratio requirements under our credit agreement. We believe that these non-GAAP financial measures provide investors with useful information with respect to our historical operations. These non-GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of our financial results in accordance with GAAP. The use of the terms adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.
With respect to our outlook for diluted adjusted earnings per common share, we do not provide the most directly comparable GAAP financial measure or corresponding reconciliation to such GAAP financial measure on a forward-looking basis. We are unable to predict with reasonable certainty and without unreasonable effort certain items such as the timing and amount of net excess income tax benefits or shortfalls, future impairments, lease termination costs, transaction costs, and other non-recurring costs, as well as gains or losses from the early retirement of debt and the outcome from legal proceedings. These items are uncertain, depend on various factors outside our management’s control, and could significantly impact, either individually or in the aggregate, our future period earnings per common share as calculated and presented in accordance with GAAP.
For more information regarding adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share, refer to the reconciliation of GAAP financial measures to the non-GAAP financial measures in the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”
About Bright Horizons Family Solutions Inc.
Bright Horizons® is a leading provider of high-quality early education and child care, back-up care, and workforce education services. For 40 years, we have partnered with employers to support workforces by providing services that help working families and employees thrive personally and professionally. Bright Horizons operates approximately 1,000 early education and child care centers in the United States, the United Kingdom, the Netherlands, Australia and India, and serves more than 1,450 of the world’s leading employers. Bright Horizons’ early education and child care centers, back-up child and elder care, and workforce education programs help employees succeed at each life and career stage. For more information, go to www.brighthorizons.com.
Contacts:
Investors:
Elizabeth Boland
Chief Financial Officer - Bright Horizons
eboland@brighthorizons.com
617-673-8125
Michael Flanagan
Group Vice President - Strategic Finance - Bright Horizons
michael.flanagan@brighthorizons.com
617-673-8720
Jordan Bertier
Director - Investor Relations - Bright Horizons
jordan.bertier@brighthorizons.com
617-673-8192
Media:
Ilene Serpa
Vice President - Communications - Bright Horizons
iserpa@brighthorizons.com
617-673-8044



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
(Unaudited)

Three Months Ended June 30,
2026%2025%
Revenue$779,178 100.0 %$731,570 100.0 %
Cost of services590,215 75.7 %549,020 75.0 %
Gross profit188,963 24.3 %182,550 25.0 %
Selling, general and administrative expenses108,002 13.9 %94,834 13.0 %
Amortization of intangible assets1,144 0.2 %1,664 0.2 %
Income from operations79,817 10.2 %86,052 11.8 %
Interest expense — net(14,023)(1.8)%(10,555)(1.5)%
Income before income tax65,794 8.4 %75,497 10.3 %
Income tax expense(25,159)(3.2)%(20,722)(2.8)%
Net income$40,635 5.2 %$54,775 7.5 %
Earnings per common share:
Common stock — basic$0.79 $0.96 
Common stock — diluted$0.79 $0.95 
Weighted average common shares outstanding:
Common stock — basic51,538,729 57,255,841 
Common stock — diluted51,757,065 57,713,111 


BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
(Unaudited)

Six Months Ended June 30,
2026%2025%
Revenue$1,491,400 100.0 %$1,397,097 100.0 %
Cost of services1,138,947 76.4 %1,058,810 75.8 %
Gross profit352,453 23.6 %338,287 24.2 %
Selling, general and administrative expenses205,355 13.8 %186,695 13.4 %
Amortization of intangible assets2,332 0.1 %3,268 0.2 %
Income from operations144,766 9.7 %148,324 10.6 %
Interest expense — net(26,045)(1.7)%(20,906)(1.5)%
Income before income tax118,721 8.0 %127,418 9.1 %
Income tax expense(43,978)(3.0)%(34,594)(2.5)%
Net income$74,743 5.0 %$92,824 6.6 %
Earnings per common share:
Common stock — basic$1.41 $1.62 
Common stock — diluted$1.40 $1.61 
Weighted average common shares outstanding:
Common stock — basic52,938,352 57,319,814 
Common stock — diluted53,230,622 57,831,930 



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

June 30, 2026December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents$163,691 $140,091 
Accounts receivable — net208,829 293,983 
Prepaid expenses and other current assets92,530 69,899 
Total current assets465,050 503,973 
Fixed assets — net559,728 574,200 
Goodwill1,818,900 1,824,175 
Other intangible assets — net191,366 193,452 
Operating lease right-of-use assets636,188 682,069 
Other assets118,818 111,734 
Total assets$3,790,050 $3,889,603 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$9,375 $— 
Current portion of revolving credit facility205,953 199,552 
Accounts payable and accrued expenses310,318 292,812 
Current portion of operating lease liabilities110,405 110,229 
Deferred revenue287,695 330,647 
Other current liabilities47,926 32,925 
Total current liabilities971,672 966,165 
Long-term debt — net1,072,058 747,614 
Operating lease liabilities656,996 702,845 
Other long-term liabilities122,123 118,815 
Deferred income taxes23,682 14,873 
Total liabilities2,846,531 2,550,312 
Total stockholders’ equity943,519 1,339,291 
Total liabilities and stockholders’ equity$3,790,050 $3,889,603 



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Six Months Ended June 30,
20262025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$74,743 $92,824 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization47,802 44,609 
Impairment losses and other non-cash items22,934 856 
Stock-based compensation expense14,456 14,986 
Deferred income taxes8,083 5,175 
Changes in assets and liabilities34,774 61,924 
Net cash provided by operating activities202,792 220,374 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets — net(39,081)(34,043)
Proceeds from debt securities and other investments8,896 7,503 
Purchases of debt securities and other investments(9,219)(6,322)
Payments and settlements for acquisitions — net of cash acquired— (5,106)
Net cash used in investing activities(39,404)(37,968)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit facility — net(31,071)401,500 
Borrowings of long-term debt — net of issuance costs373,748 — 
Principal payments of long-term debt— (451,000)
Payments of revolving credit facility debt issuance costs(334)(2,878)
Purchase of treasury stock(471,531)(60,330)
Taxes paid related to the net share settlement of stock options and restricted stock(7,817)(13,609)
Proceeds from issuance of common stock upon exercise of options— 10,230 
Net cash used in financing activities(137,005)(116,087)
Effect of exchange rates on cash, cash equivalents and restricted cash(1,744)7,045 
Net increase in cash, cash equivalents and restricted cash24,639 73,364 
Cash, cash equivalents and restricted cash — beginning of period143,158 123,715 
Cash, cash equivalents and restricted cash — end of period$167,797 $197,079 



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)

Full service
center-based
child care		Back-up careEducational
advisory services		Total
Three Months Ended June 30, 2026
Revenue$557,297 $193,586 $28,295 $779,178 
Income from operations25,060 50,278 4,479 79,817 
Adjusted income from operations (1)
44,198 50,278 4,479 98,955 
As a percentage of revenue8 %26 %16 %13 %
Three Months Ended June 30, 2025
Revenue$540,267 $162,670 $28,633 $731,570 
Income from operations40,280 40,923 4,849 86,052 
Adjusted income from operations40,280 40,923 4,849 86,052 
As a percentage of revenue7 %25 %17 %12 %
(1)For the three months ended June 30, 2026, adjusted income from operations represents income from operations excluding $19.1 million of impairment losses related to the full service center-based child care segment, of which $12.8 million was recorded to cost of services and $6.3 million was recorded to selling, general and administrative expenses.
Full service
center-based
child care		Back-up careEducational
advisory services		Total
Six Months Ended June 30, 2026
Revenue$1,097,931 $338,255 $55,214 $1,491,400 
Income from operations61,965 75,850 6,951 144,766 
Adjusted income from operations (1)
81,103 75,850 6,951 163,904 
As a percentage of revenue7 %22 %13 %11 %
Six Months Ended June 30, 2025
Revenue$1,050,814 $291,282 $55,001 $1,397,097 
Income from operations73,534 67,307 7,483 148,324 
Adjusted income from operations73,534 67,307 7,483 148,324 
As a percentage of revenue7 %23 %14 %11 %
(1)For the six months ended June 30, 2026, adjusted income from operations represents income from operations excluding $19.1 million of impairment losses related to the full service center-based child care segment, of which $12.8 million was recorded to cost of services and $6.3 million was recorded to selling, general and administrative expenses.



BRIGHT HORIZONS FAMILY SOLUTIONS INC.
NON-GAAP RECONCILIATIONS
(In thousands, except share data)
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net income$40,635$54,775$74,743$92,824
Interest expense — net14,02310,55526,04520,906
Income tax expense25,15920,72243,97834,594
Depreciation23,42521,07045,47041,341
Amortization of intangible assets1,1441,6642,3323,268
EBITDA104,386108,786192,568192,933
As a percentage of revenue13%15%13%14%
Additional adjustments:
Impairment losses (a)
19,138—19,138—
Stock-based compensation expense (b)
7,0326,82914,45614,986
Total adjustments26,1706,82933,59414,986
Adjusted EBITDA$130,556$115,615$226,162$207,919
As a percentage of revenue17 %16 %15 %15 %
Income from operations$79,817$86,052$144,766$148,324
Impairment losses (a)
19,138—19,138—
Adjusted income from operations$98,955$86,052$163,904$148,324
As a percentage of revenue13 %12 %11 %11 %
Net income$40,635$54,775$74,743$92,824
Income tax expense25,15920,72243,97834,594
Income before income tax65,79475,497118,721127,418
Amortization of intangible assets1,1441,6642,3323,268
Impairment losses (a)
19,138—19,138—
Stock-based compensation expense (b)
7,0326,82914,45614,986
Other interest costs (c)
—551—551
Adjusted income before income tax93,10884,541154,647146,223
Adjusted income tax expense (d)
(26,769)(23,037)(43,692)(40,000)
Adjusted net income $66,339$61,504$110,955$106,223
As a percentage of revenue9 %8 %7 %8 %
Weighted average common shares outstanding — diluted51,757,06557,713,11153,230,62257,831,930
Diluted adjusted earnings per common share (e)
$1.28$1.07$2.08$1.84
(a)Impairment losses represent charges related to long-lived assets and goodwill arising from center closures, changes in market assumptions and reduced operating performance at certain centers. For the three and six months ended June 30, 2026, impairment losses totaled $19.1 million related to the full service center-based child care segment, of which $12.8 million was recorded to cost of services and $6.3 million was recorded to selling, general and administrative expenses.
(b)Stock-based compensation expense represents non-cash stock-based compensation expense in accordance with Accounting Standards Codification Topic 718, Compensation-Stock Compensation.
(c)Other interest costs in the three and six months ended June 30, 2025 consist of costs incurred in connection with the April 2025 debt refinancing of $0.6 million, which are included in interest expense on the statement of income.
(d)Adjusted income tax expense represents income tax expense calculated on adjusted income before income tax at an effective tax rate of approximately 29% and 28% for the three and six months ended June 30, 2026, respectively, and of approximately 27% for both the three and six months ended June 30, 2025. The jurisdictional mix of the expected adjusted income before income tax for the full year will affect the estimated effective tax rate for the year.
(e)The sum of the quarterly earnings per share amounts does not equal the year-to-date earnings per share amounts due to the independent calculation of the weighted-average number of common shares outstanding for each discrete period, as well as rounding. This variance is primarily due to the seasonal fluctuations in our net income and changes in the weighted-average shares outstanding, including the cumulating effect of treasury repurchases during individual quarters.

Source: View Original Filing on SEC EDGAR

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