Financial Data and Key Metrics Changes - Revenue increased by 9% to $732 million, with adjusted EPS growing by 22% to $1.70, both exceeding expectations [5][15] - Adjusted operating income rose by 25% to $86 million, with operating margins up 150 basis points to 11.8% [15] - Adjusted EBITDA increased by 13% to $116 million, representing an adjusted EBITDA margin of 16% [15] Business Line Data and Key Metrics Changes - Full service segment revenue was $540 million, up 7%, driven by enrollment growth, tuition increases, and new center openings [5][15] - Backup Care revenue grew by 19% to $163 million, reflecting strong client engagement and demand [9][18] - Education Advisory segment revenue increased by 8% to $29 million, with solid participant growth [10][18] Market Data and Key Metrics Changes - In the UK, operational and financial momentum continued, with solid growth in both enrollment and margins [7][9] - Average occupancy in centers increased to the high 60% range, with improvements noted in underperforming centers [6][17] Company Strategy and Development Direction - The company is focused on its "One Bright Horizon" strategy to expand offerings and deepen employer engagement [11][12] - Continued investments in staffing, technology, and programming are aimed at improving efficiency and experience across centers [8][9] - The company is exploring the benefits of the updated 45F program, which emphasizes employer-supported childcare [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued low single-digit enrollment growth and highlighted the importance of enhancing the enrollment process [7][32] - The company raised its full-year revenue guidance to a range of $2.9 billion to $2.92 billion, reflecting an 8% to 9% growth expectation [14][20] - Management noted that the UK segment is on track to break even by the end of the year, supported by improved demand and government funding [66] Other Important Information - The company opened five new centers and closed eight, resulting in a net decrease of three centers for the quarter [63] - Cash generated from operations was $134 million, with $41 million used for stock repurchases [19] Q&A Session Summary Question: Margin expectations by segment for the full year - Management expects backup care margins to be in the range of 25% to 30%, with full service margins expanding by approximately 125 basis points [24][26] Question: Insights on the 45F program - The updated 45F program could significantly benefit existing accounts, although new client demand may not see immediate stimulation [28][29] Question: Enrollment growth specifics - Management anticipates low single-digit growth, around 2%, for the remainder of the year, with strong marketing efforts in place [31][32] Question: Sales cycle dynamics - The company is enhancing the inquiry-to-enrollment process through technology and personalized support [37][38] Question: M&A pipeline status - The company has been less active in M&A, focusing on high-quality programs in strategic locations, with a current imbalance between seller expectations and fair pricing [56][58] Question: UK segment performance - The UK segment is on track to break even, with improved operating execution and demand supported by expanded government funding [66] Question: Backup care growth and client behavior - Growth in backup care is driven by increased user engagement rather than changes in program design, with extended booking windows for summer care [47][48]