BFAM earnings analysis
What we found in BFAM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Bright Horizons Family Solutions reported Q1 2026 results with revenue of $712 million, a 7% increase from $665.5 million in Q1 2025, while EPS improved to $0.82 from $0.77. The back-up care segment showed strong growth of 12%, countering lower contributions and challenges in the educational advisory services segment. Management remains cautious of operational headwinds related to labor costs and market conditions but maintains confidence in their business model.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 7% YoY
- Revenue increased by $46.7 million to $712.2 million from $665.5 million, reflecting a 7% increase year-over-year.
- Improved EPS Performance
- Diluted EPS increased to $0.82 from $0.77 a year prior, reflecting a 6.5% growth.
- Strong Back-Up Care Growth
- The back-up care segment revenue rose by 12% year-over-year, contributing significantly to overall growth.
- Income from Operations Up 4%
- Income from operations increased by $2.7 million to $64.9 million, illustrating operational stability.
- Cash Provided by Operating Activities Increased
- Net cash provided by operating activities rose to $107.7 million from $86.2 million, indicating stronger cash flow.
- Effective Tax Rate Increase
- The effective tax rate increased to 36% from 27% due to unbenefited losses in foreign jurisdictions.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Interest Expense
- Net interest expense increased to $12.0 million from $10.4 million, attributed to higher borrowings and interest rates.
- Rising Operating Costs
- Operational costs increased by 8% to $548.7 million, highlighting pressures from personnel costs and inflation.
- Macroeconomic Conditions
- Management cited challenges from evolving work demographics and cost management amid uncertain macroeconomic conditions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.82
- Gross margin
- 23%
- Operating margin
- 9.1%
- Segment
- Full service center-based child care
- Segment
- Back-up care
- Segment
- Educational advisory services
What they said about what is next.
Management reaffirmed 2026 revenue guidance of $3.075 billion to $3.125 billion and EPS guidance of $4.90 to $5.10.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 26, 2026
- Bright Horizons positions itself as a scaled, employer-focused provider of early education, back-up care and educational advisory services, operating 1,010 centers and serving more than 1,450 employer clients. Based on…
- 10-Q · November 5, 2025
- Bright Horizons reported Q3 revenue of $802,812,000, up from $719,099,000 in Q3 2024, with gross profit rising to $217,049,000 and operating income to $120,846,000. Diluted EPS was $1.37 (vs. $0.94 a year ago).…
- 10-Q · May 7, 2025
- Bright Horizons reported Q1 revenue of $665,527,000 (up $42,818,000 or ~6.9% year-over-year) and diluted EPS of $0.66 versus $0.29 in Q1 2024. Gross profit rose to $155,737,000 (gross margin 23.4%) and operating income…
- 10-K · February 27, 2025
- Bright Horizons positions itself as a market leader in employer-sponsored center-based child care, back-up care and educational advisory services with scale-driven advantages and high client retention. The 10-K…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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