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 31% growth [5][14] Business Line Data and Key Metrics Changes - Backup Care revenue grew by 17% in Q4 to $183 million, driven by strong utilization across various programs [6][17] - Full Service revenue increased by 6% in Q4 to $515 million, supported by tuition increases and modest enrollment growth [9][18] - Ed Advisory revenue rose by 10% in Q4 to $36 million, with operating margins of 30% [11][19] Market Data and Key Metrics Changes - Backup Care had double-digit growth in users among existing clients, indicating deeper penetration into the eligible population [8] - Enrollment in centers open for more than one year increased by approximately 1%, with occupancy averaging in the mid-60% range [10][18] Company Strategy and Development Direction - The company aims to scale the Backup Care business by expanding unique users and increasing usage frequency among existing clients [8] - 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, expecting revenue in 2026 to be between $3.075 billion and $3.125 billion [15][21] - The company anticipates adjusted EPS for 2026 to be in the range of $4.90 to $5.10 per share [15][22] Other Important Information - The company repurchased $225 million of shares in 2025, including approximately $120 million in Q4 [20] - The 2026 fiscal year marks the 40th anniversary of the company, highlighting its evolution alongside changes in workforce and employer priorities [12] Q&A Session Summary Question: Full service margin outlook and center closures - Management indicated that most closed centers were loss-making, contributing to a projected margin improvement of 25-50 basis points in the full service business for 2026 [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 - The company expects average price increases of approximately 4% and enrollment growth of about 100 basis points for 2026 [36] Question: New York City exposure and UPK opportunities - Management expressed confidence in their relationship with the city regarding UPK contracts and the potential for future expansion into younger age groups [39][40] Question: Backup Care growth drivers - The majority of growth is expected to come from existing clients, with a focus on increasing unique users and usage frequency [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]