Bright Horizons Family Solutions(BFAM) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $802.8 million, an increase of 12% compared to Q3 2024[3] - Income from operations rose to $120.8 million, reflecting a 35% increase year-over-year[4] - Net income for Q3 2025 was $78.6 million, a 43% increase from $54.9 million in Q3 2024[4] - Adjusted EBITDA increased by 29% to $156.1 million, driven by higher contributions from both back-up care and full-service segments[5] - Adjusted net income for Q3 2025 was $90.1 million, a 39% increase compared to the same period in 2024[5] - Diluted adjusted earnings per share for Q3 2025 was $1.57, up 41% from $1.11 in Q3 2024[5] - Revenue for the nine months ended September 30, 2025, was $2,199,909, representing a 9.3% increase from $2,011,867 in 2024[21] - Net income for the nine months ended September 30, 2025, was $171,376, a 54.3% increase from $111,068 in 2024[21] - Earnings per share (diluted) rose to $2.97, up from $1.90 in the same period last year[21] - Adjusted income from operations for the nine months ended September 30, 2025, was $272,820, compared to $198,392 in 2024[28] - Adjusted EBITDA for the nine months ended September 30, 2025, was $363.987 million, up 22% from $298.600 million in the same period of 2024[30] Operational Metrics - The company operated 1,013 early education and child care centers, with a capacity to serve approximately 115,000 children as of September 30, 2025[6] - Cash and cash equivalents as of September 30, 2025, were $116.6 million, with $411.8 million available for borrowing[9] - The company generated $202.8 million in cash from operations in the first nine months of 2025, compared to $216.8 million in the same period of 2024[9] - Total assets as of September 30, 2025, were $3,884,147, an increase from $3,850,319 at the end of 2024[23] - Total liabilities decreased to $2,456,694 from $2,571,923 at the end of 2024[23] - Cash and cash equivalents at the end of the period were $125,969, compared to $119,087 at the end of September 2024[25] - Operating income for the nine months ended September 30, 2025, was $269,170, up from $198,392 in 2024[21] - The company reported a net cash provided by operating activities of $202,792 for the nine months ended September 30, 2025, down from $216,813 in 2024[25] Profitability Ratios - Gross profit increased to $555,336, with a gross margin of 25.2%, compared to $479,075 and a margin of 23.8% in the previous year[21] - EBITDA margin improved to 19% in Q3 2025, compared to 17% in Q3 2024[30] - Total interest expense for the nine months ended September 30, 2025, was $33.118 million, down from $37.307 million in 2024[30] - The effective tax rate for adjusted income before income tax was approximately 27% for Q3 2025, compared to 28% for Q3 2024[31] Other Costs - Other costs in Q3 2025 included $1.3 million related to debt refinancing and $2.4 million in net lease termination costs[31]