Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 9% to $734 million, and Adjusted EPS rose by 17% to $1.15, both exceeding expectations [5][16] - For the full year, revenue reached $2.93 billion, up 9% year-over-year, and Adjusted EPS was $4.55, representing a 31% growth [5][14] Business Line Data and Key Metrics Changes - Back-Up Care revenue grew by 17% in Q4 to $183 million, with full-year revenue increasing by 19% to $728 million [6][7] - Full Service revenue increased by 6% in Q4 to $515 million, driven by tuition increases and enrollment growth [9][18] - Ed Advisory revenue rose by 10% in Q4 to $36 million, with full-year revenue growing by 9% to $125 million [11][19] Market Data and Key Metrics Changes - Back-Up Care's utilization was driven by both unplanned care disruptions and predictable needs, indicating strong demand [6][17] - Enrollment in centers open for more than one year increased by approximately 1% in Q4, with occupancy averaging in the mid-60% range [10][18] Company Strategy and Development Direction - The company aims to scale the Back-Up Care business by expanding unique users and increasing frequency of use among existing clients [8] - The focus remains on serving families where they work and live, while continuing to rationalize locations that do not meet strategic criteria [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the business model and long-term growth opportunities, highlighting a strong finish to 2025 [5][15] - For 2026, the company expects revenue in the range of $3.075 billion to $3.125 billion, with Adjusted EPS projected between $4.90 and $5.10 [15][21] Other Important Information - The company repurchased $225 million of shares in 2025, strengthening its balance sheet [14][20] - The 2026 outlook includes expected revenue growth of 5%-6.5% and continued focus on improving operating margins [21][22] Q&A Session Summary Question: Full Service margin outlook and center closures - Management indicated an expected margin improvement of 25-50 basis points in Full Service for 2026, with most closed centers being loss-making [25][26] Question: Health and safety protocols and local market risks - Management emphasized a commitment to high-quality care and strong communication with families, noting stability in client relationships despite recent incidents [28][29] Question: Pricing and enrollment growth assumptions - Pricing increases for 2026 are expected to average around 4%, with enrollment growth projected at approximately 100 basis points [36] Question: New York City exposure and UPK opportunities - Management highlighted a strong relationship with the city regarding UPK and expressed confidence in future opportunities for younger age groups [39][40] Question: Drivers of growth in Back-Up Care - The majority of growth is expected to come from existing clients, with a focus on increasing unique users and frequency of use [61] Question: Enrollment season and center count - Management noted a stable fall enrollment season and plans to open around 20 centers in 2026 while closing 45-50 underperforming centers [70][71]