Core Insights - Bright Horizons Family Solutions reported strong financial performance for 2025, with a notable growth in Back-Up Care revenue and overall revenue increase [5][7][21] Financial Performance - For 2025, Bright Horizons achieved total revenue of $2.93 billion, reflecting a 9% year-over-year increase, and adjusted EPS of $4.55, a 31% increase [3][7] - In Q4, revenue rose 9% year-over-year to $734 million, with adjusted EPS increasing 17% to $1.15, both exceeding management's expectations [4][7] - The Back-Up Care segment saw revenue growth of 19% to $728 million for the year, with Q4 revenue rising 17% to $183 million [1][2][7] Segment Performance - Back-Up Care continued to be a key growth driver, supported by increased utilization across various programs [2][5] - Full Service revenue increased 6% to $515 million in Q4, driven by tuition increases and modest enrollment gains, but faced headwinds from center closures [10][21] - Educational Advisory revenue rose 10% to $36 million in Q4, with a consistent operating margin of 30% [16] Future Guidance - For 2026, management guided revenue expectations of $3.075 billion to $3.125 billion, representing a growth of 5% to 6.5%, with adjusted EPS projected between $4.90 and $5.10 [6][17] - Back-Up Care is expected to grow by 11% to 13%, while Full Service is projected to grow by approximately 3.5% to 4.5% [6][21] - Management anticipates about 45 to 50 center closures in 2026, which may impact overall growth [14][19] Operational Insights - The company repurchased $225 million of shares in 2025, including approximately $120 million in Q4 [3][7] - Adjusted operating margins expanded by 200 basis points during 2025, with a Q4 adjusted operating margin of 12.3% [4][7] - Enrollment at centers open for more than one year rose about 1% in the quarter, with occupancy averaging in the mid-60% range [11][19]