Bright Horizons (BFAM)
NYSE:BFAM
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Bright Horizons
(NYSE:BFAM)
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Rating:63Neutral
Price Target:
$82.00
▼(-2.83% Downside)
Action:ReiteratedDate:03/10/26
Improving fundamentals and a positive outlook from the latest earnings call (growth and margin momentum, strong back-up care performance, and constructive 2026 guidance) support the score. This is tempered by higher leverage on the balance sheet and weak technical trend signals (price below key moving averages and negative MACD), with valuation also on the higher side given the 29.9 P/E.
Positive Factors
Revenue & Profit Growth
Sustained top-line and EPS expansion through 2025 reflects durable demand for employer-sponsored care and pricing power. Consistent revenue growth and margin expansion provide operating leverage that supports reinvestment, service quality, and longer-term profitability across business cycles.
Negative Factors
Elevated leverage and rising debt
Higher leverage limits financial flexibility for capex, buybacks or acquisitions and raises sensitivity to interest costs. With operating cash flow modest relative to total debt, deleveraging will be gradual absent material cash-flow improvement or reduced capital return, increasing risk in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Profit Growth
Sustained top-line and EPS expansion through 2025 reflects durable demand for employer-sponsored care and pricing power. Consistent revenue growth and margin expansion provide operating leverage that supports reinvestment, service quality, and longer-term profitability across business cycles.
Read all positive factors
Bright Horizons (BFAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.65B
Dividend YieldN/A
Average Volume (3M)959.35K
Price to Earnings (P/E)29.9
Beta (1Y)0.48
Revenue Growth9.38%
EPS Growth74.27%
CountryUS
Employees32,050
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)1.15
Shares Outstanding55,113,644
10 Day Avg. Volume802,636
30 Day Avg. Volume959,350
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)4.31
Price to Sales (P/S)1.97
P/FCF Ratio22.52
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue2.15
Enterprise Value/Gross Profit9.09
Enterprise Value/Ebitda15.47
Forecast
1Y Price Target
$95.57Price Target Upside13.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.02
Revenue Forecast (FY)$3.11B
Bright Horizons Business Overview & Revenue Model
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-...
How the Company Makes Money
Bright Horizons generates revenue primarily through contracts with employers who sponsor child care and related services for their employees. The company charges fees for its child care centers, back-up care services, and other educational program...
Bright Horizons Key Performance Indicators (KPIs)
Bright Horizons Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operating and financial picture: solid revenue and EPS beats, robust back-up care growth and high margins, a profitable U.K. turnaround, strong cash generation and constructive 2026 guidance. Key operational challenges persist — notably a multi-year portfolio rationalization (45–50 expected closures), occupancy below the long-term ~70% target, closure-related lease/tail costs, and ongoing labor/benefits pressure. On balance, positive financial momentum and explicit growth guidance outweigh the operational headwinds.Positive Updates
Revenue and EPS Growth Exceeded Expectations
Q4 revenue grew 9% to $734 million and full-year revenue was $2.93 billion, up 9% year-over-year. Adjusted EPS increased 17% in Q4 to $1.15 and full-year adjusted EPS was $4.55, up 31% year-over-year — both above company expectations.
Negative Updates
Ongoing Portfolio Rationalization and Center Closures
Management expects approximately 45–50 center closures in 2026 (company already closed >20 early in the year). Net center closings are a headwind to full-service reported revenue (approximately a 200 basis point headwind) and will keep net center count negative in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and EPS Growth Exceeded Expectations
Q4 revenue grew 9% to $734 million and full-year revenue was $2.93 billion, up 9% year-over-year. Adjusted EPS increased 17% in Q4 to $1.15 and full-year adjusted EPS was $4.55, up 31% year-over-year — both above company expectations.
Read all positive updates
Company Guidance
The company guided 2026 revenue of $3.075–$3.125 billion (growth of ~5.0%–6.5%) and adjusted EPS of $4.90–$5.10; for Q1 they expect total revenue growth of 6.0%–7.5% and adjusted EPS of $0.75–$0.80. By segment, full‑service reported revenue is expected to grow 3.5%–4.5% (with ~100 bp enrollment growth, ~4% average tuition increases and an ~200 bp headwind from net center closings), full‑service operating margin is expected to improve roughly 25–50 bps, and the company plans to open ~20 centers and close ~45–50 centers in 2026. Backup care is projected to grow 11%–13% (with long‑run operating margins ~25%–30% and management expecting the upper half of that range in 2026), and ed‑advisory is expected to grow in the mid‑single digits with operating margins in the low‑20s; Q1 segment guides are: full‑service +5.5%–6.5%, backup +11%–13%, and ed‑advisory low‑ to mid‑single digits.Bright Horizons Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
54
Neutral
Cash Flow
69
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.93B | 2.69B | 2.42B | 2.02B | 1.76B |
| Gross Profit | 691.05M | 619.61M | 531.72M | 478.65M | 415.01M |
| EBITDA | 408.07M | 344.54M | 281.92M | 257.81M | 235.28M |
| Net Income | 193.12M | 140.19M | 74.05M | 80.64M | 70.46M |
Balance Sheet | |||||
| Total Assets | 4.15B | 3.85B | 3.90B | 3.80B | 3.64B |
| Cash, Cash Equivalents and Short-Term Investments | 155.98M | 122.03M | 93.57M | 53.92M | 283.69M |
| Total Debt | 1.76B | 1.79B | 1.86B | 1.97B | 1.78B |
| Total Liabilities | 2.81B | 2.57B | 2.68B | 2.72B | 2.46B |
| Stockholders Equity | 1.34B | 1.28B | 1.21B | 1.08B | 1.18B |
Cash Flow | |||||
| Free Cash Flow | 256.36M | 240.15M | 165.12M | 117.92M | 163.76M |
| Operating Cash Flow | 347.68M | 337.46M | 256.14M | 188.47M | 227.25M |
| Investing Cash Flow | -103.79M | -117.76M | -126.94M | -278.05M | -117.39M |
| Financing Cash Flow | -230.38M | -183.81M | -91.63M | -121.34M | -230.03M |
Bright Horizons Technical Analysis
Neutral
84.39
Price Trends
80.04
Positive
90.28
Negative
101.16
Negative
Market Momentum
1.01
Negative
63.67
Neutral
85.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFAM, the sentiment is Neutral. The current price of 84.39 is above the 20-day moving average (MA) of 78.89, above the 50-day MA of 80.04, and below the 200-day MA of 101.16, indicating a neutral trend. The MACD of 1.01 indicates Negative momentum. The RSI at 63.67 is Neutral, neither overbought nor oversold. The STOCH value of 85.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BFAM.
Bright Horizons Risk Analysis
Bright Horizons disclosed 29 risk factors in its most recent earnings report. Bright Horizons reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bright Horizons Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.94B | 16.54 | 101.49% | ― | 11.88% | 18.08% | |
63 Neutral | $4.65B | 29.90 | 14.07% | ― | 9.38% | 74.27% | |
63 Neutral | $4.14B | -5.69 | -166.12% | 3.67% | 4.15% | 8.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | $115.63M | -1.62 | -8.89% | ― | -36.29% | -96.65% | |
| ― | $6.30M | -51.23 | -1.53% | ― | -2.53% | 99.45% | |
47 Neutral | $120.06M | 0.28 | -2625.35% | ― | -9.32% | ― |
* Consumer Cyclical Sector Average
BFAM
Bright Horizons
84.39
-35.12
-29.39%
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Bright Horizons Corporate Events
Business Operations and StrategyStock Buyback
Bright Horizons Authorizes Expanded $600 Million Share Buyback
Positive
Mar 9, 2026
On March 9, 2026, Bright Horizons’ board approved a new share repurchase program authorizing buybacks of up to $600 million of the company’s outstanding common stock, replacing a prior $500 million plan from June 2025 that had $127.6 m...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Bright Horizons Updates Executive Long-Term Incentive Compensation Plan
Positive
Feb 12, 2026
Bright Horizons Family Solutions Inc. is a major operator of early education and child care centers and a provider of back-up care and educational advisory services for working families and employers. Its model is closely tied to corporate workfor...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.