Core Insights - Bright Horizons Family Solutions (BFAM) reported quarterly earnings of $1.57 per share, exceeding the Zacks Consensus Estimate of $1.32 per share, and up from $1.11 per share a year ago [1] - The company achieved an earnings surprise of +18.94% and has surpassed consensus EPS estimates in all four quarters over the past year [2] - Revenues for the quarter reached $802.81 million, surpassing the Zacks Consensus Estimate by 2.95%, and increased from $719.1 million year-over-year [3] Earnings Performance - The earnings surprise of +18.94% indicates strong performance relative to expectations, with a previous quarter's earnings of $1.07 also exceeding estimates [2] - The company has consistently outperformed consensus revenue estimates over the last four quarters [3] Stock Performance and Outlook - Bright Horizons shares have declined approximately 16.4% year-to-date, contrasting with the S&P 500's gain of 17.2% [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings results [4][5] Earnings Estimates and Industry Context - Current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $731.42 million, and for the current fiscal year, it is $4.28 on revenues of $2.91 billion [8] - The Zacks Industry Rank places the Business - Services sector in the bottom 25% of over 250 Zacks industries, which may impact stock performance [9]

Financial Data and Key Metrics Changes - Revenue increased by 12% to $803 million, with adjusted EPS growing by 41% to $1.57, both exceeding expectations [4][12] - Adjusted operating income rose by 39% to $124 million, with operating margins up approximately 300 basis points to 15.5% [12] - Adjusted EBITDA increased by 29% to $156 million, representing an adjusted EBITDA margin of 19% [12] Business Line Data and Key Metrics Changes - Backup Care revenue grew by 26% to $253 million, driven by strong demand during the peak summer season [4][13] - Full-service revenue increased by 6% to $516 million, supported by enrollment growth, tuition increases, and new center openings [7][14] - Education advisory revenue grew by 10% to $34 million, led by the strength of College Coach and an expanded participant base in EdAssist [9][15] Market Data and Key Metrics Changes - Enrollment in centers open for more than one year increased at a low single-digit rate, with average occupancy in the mid-60% range [7][14] - UK full-service business showed enrollment growth and improved demand among working families, contributing positively to the overall segment [8][68] Company Strategy and Development Direction - The company aims to build a more integrated model that aligns delivery, technology, and client partnerships, with Backup Care as a cornerstone of this strategy [11] - Plans to continue investing in Backup Care to expand capacity and deepen personalization, reinforcing its value proposition [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to sustain growth in Backup Care, projecting an 18% growth for the year, with expectations for low double-digit growth in the following year [20][22] - The company is upgrading its full-year earnings guidance, expecting revenue of approximately $2.925 billion and adjusted EPS in the range of $4.48 to $4.53 [11][17] Other Important Information - The UK segment is expected to contribute modestly positive earnings in 2025, with ongoing improvements in operational performance [8][68] - The company has generated $203 million in cash from operations and repurchased $105 million of stock [16] Q&A Session Summary Question: Sustainability of Backup Care growth rates - Management noted that while current growth is strong, they expect to return to a sustainable growth rate of 11% to 13% in the following year [20][22] Question: Clarification on enrollment growth - Management indicated that enrollment growth is expected to taper to around 1% for the year, with low single-digit growth being a temporary measure [26][27] Question: Impact of economic conditions on tuition pricing - The company plans to implement an average tuition increase of around 4%, with localized pricing strategies based on demand [33][72] Question: Performance of the UK segment - The UK segment is improving and is expected to contribute positively to margins, although it still trails behind the US business [68] Question: Pricing strategy in relation to wage inflation - Management expressed confidence in maintaining a pricing strategy that outpaces wage inflation, targeting a 100 basis point spread [71][72] Question: Net center openings for next year - The company anticipates being a net closer of centers, with plans to close 5 to 10 centers due to underperformance [74][76]

Core Insights - The article discusses the Q3 earnings release of a company, highlighting its financial performance and key metrics [1] Financial Performance - The company reported significant revenue growth in Q3, with a year-over-year increase of 15% [1] - Net income for the quarter reached $200 million, representing a 10% increase compared to the same period last year [1] - Earnings per share (EPS) rose to $1.50, up from $1.36 in Q3 of the previous year, indicating a 10% growth [1] Operational Highlights - The company expanded its market share in key segments, contributing to the overall revenue increase [1] - Cost management strategies were effective, leading to a reduction in operating expenses by 5% [1] - The company launched new products that received positive market feedback, enhancing its competitive position [1]

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]

Core Insights - Bright Horizons Family Solutions Inc. (NYSE:BFAM) has been experiencing a steady decline despite broader market stability, indicating a lack of momentum [1] Group 1: Adhishthana Cycle - The stock is currently in Phase 18, the final stage of its 18-phase Adhishthana cycle, and is in a persistent downtrend [2] - The Guna Triads, consisting of Phases 14, 15, and 16, are crucial in determining whether the stock can reach Nirvana in Phase 18 [2] - For a Nirvana move to occur, the triads must exhibit Satoguna, which is absent in the current formation, leading to a bearish outlook [3][5] Group 2: Investor Outlook - The lack of Satoguna in the triads suggests that Bright Horizons is expected to remain sluggish through Phase 18, which concludes in June 2026 [6] - While occasional rebounds may happen, they are unlikely to be sustained, and the overall outlook remains dim for investors [6]

Core Insights - Stride, Inc. (LRN) and Bright Horizons Family Solutions Inc. (BFAM) are pursuing distinct expansion strategies in the education sector, with Stride focusing on virtual K-12 education and Bright Horizons on childcare and family support services [1][2] Stride, Inc. (LRN) - Stride is experiencing significant growth in the school choice market, with Q4 fiscal 2025 revenues increasing by 22% year-over-year to $654 million, driven by enrollment growth in both General Education and Career Learning [4] - Career Learning enrollments rose by 33% year-over-year to over 96,000, while General Education enrollments increased by 13% to nearly 138,000, contributing to full-year revenues of $2.4 billion, an 18% increase year-over-year [4][8] - The company is heavily investing in technology to enhance student outcomes, expanding tutoring programs and focusing on responsible artificial intelligence to create engaging online learning experiences [5] - Despite growth, Stride's adult learning business faced challenges, particularly in technology-related programs, and the company anticipates moderated margin expansion in fiscal 2026 due to new investments [6] - The outlook for fiscal 2026 is positive, with projected enrollment growth of 10-15% in Q1, supported by strong application volumes and favorable funding conditions [7] Bright Horizons Family Solutions Inc. (BFAM) - Bright Horizons reported a 9% year-over-year revenue growth to $732 million in Q2 2025, driven by steady enrollment gains and tuition increases [8] - Full-service childcare accounted for the majority of revenues, growing by 7%, while backup care and educational advisory services increased by 19% and 8%, respectively [8][9] - The company is expanding its network by opening new centers and strengthening employer partnerships, which enhances client engagement and deepens its market position [10] - However, Bright Horizons faces challenges with occupancy rates in childcare centers, which remain below pre-pandemic levels, impacting overall utilization [11] - The company raised its full-year revenue guidance to $2.9-$2.92 billion, reflecting an expected 8-9% year-over-year growth, with continued strength anticipated in backup care services [12] Stock Performance & Valuation - Year-to-date, Stride's share price performance has outpaced that of Bright Horizons [13] - Stride is currently trading at a premium compared to Bright Horizons based on a forward 12-month price-to-sales ratio [15] - Stride's trailing 12-month return on equity (ROE) stands at 25.5%, significantly higher than Bright Horizons' 16.9%, indicating stronger efficiency in generating shareholder returns [20] Investment Outlook - Stride is positioned as a growth leader in the education sector, supported by strong enrollment momentum and a favorable funding environment, making it a more attractive investment opportunity compared to Bright Horizons [22][24] - Bright Horizons benefits from resilient demand for employer-sponsored childcare services but continues to face occupancy challenges in its centers [23]

Company Overview - Bright Horizons Family Solutions Inc. (NYSE:BFAM) is a provider of early education and childcare, operating in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory services [4] Financial Performance - The company is experiencing a recovery phase, surpassing pre-pandemic revenue levels with strong cash flow and a positive growth outlook [2] - DRW Securities LLC recently acquired 3,400 shares of BFAM, valued at approximately $432,000, indicating investor interest [1] Market Trends - The childcare sector has evolved structurally, with increasing female participation in the labor force and the rise of dual-income households driving demand for quality early education [3] - The company is expanding its revenue-generating services, such as backup care and educational advisory, while leveraging B2B contracts to enhance growth [2]

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, reflect increased total assets to $3.92 billion, total stockholders' equity to $1.40 billion, and strong revenue and net income growth to $1.40 billion and $92.8 million respectively, with robust operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $3.92 billion from $3.85 billion at year-end 2024, driven by higher cash and goodwill, while total liabilities decreased slightly to $2.52 billion, and total stockholders' equity grew to $1.40 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,919,797** | **$3,850,319** | | Cash and cash equivalents | $179,222 | $110,327 | | Goodwill | $1,824,479 | $1,762,683 | | **Total Liabilities** | **$2,520,676** | **$2,571,923** | | Current portion of revolving credit facility | $101,500 | $— | | Long-term debt — net | $796,956 | $918,449 | | **Total Stockholders' Equity** | **$1,399,121** | **$1,278,396** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q2 2025, revenue grew 9.2% to $731.6 million and net income increased 39.8% to $54.8 million, with six-month revenue reaching $1.40 billion and net income rising 65.3% to $92.8 million, resulting in diluted EPS of $1.61 Statement of Income Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $731,570 | $670,059 | $1,397,097 | $1,292,768 | | Gross Profit | $182,550 | $162,412 | $338,287 | $297,540 | | Income from Operations | $86,052 | $69,059 | $148,324 | $108,996 | | Net Income | $54,775 | $39,174 | $92,824 | $56,163 | | Diluted EPS | $0.95 | $0.67 | $1.61 | $0.96 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operations was $220.4 million, with decreased investing activities and increased financing activities driven by debt repayments and treasury stock purchases, resulting in a net cash increase of $73.4 million Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $220,374 | $225,750 | | Net cash used in investing activities | ($37,968) | ($64,132) | | Net cash used in financing activities | ($116,087) | ($106,757) | | **Net increase in cash** | **$73,364** | **$54,138** | - Financing activities in H1 2025 included **$405 million** in borrowings under the revolving credit facility, offset by **$451 million** in principal payments on long-term debt and **$60.3 million** in treasury stock purchases[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail operations, revenue recognition, debt, acquisitions, and segment performance, highlighting revenue growth, a new $500 million share repurchase program, a $900 million revolving credit facility, and the impact of a new U.S. tax law - The company provides early education, back-up care, and educational advisory services, operating **1,020** early education and child care centers as of June 30, 2025[27](index=27&type=chunk)[28](index=28&type=chunk) Revenue by Segment - Six Months Ended June 30 (in thousands) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Full service center-based child care | $1,050,814 | $990,717 | | Back-up care | $291,282 | $251,162 | | Educational advisory services | $55,001 | $50,889 | | **Total** | **$1,397,097** | **$1,292,768** | - In April 2025, the company acquired two centers in the United Kingdom for **$5.1 million**, recording **$3.6 million** in goodwill[41](index=41&type=chunk) - On April 17, 2025, the company amended its credit facilities, increasing the revolving credit facility to **$900 million** and repaying the term loan A facility[49](index=49&type=chunk) - A new U.S. tax law, the One Big Beautiful Bill Act (OBBBA), was signed on July 4, 2025, with the company currently assessing its impact on financial statements[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong H1 2025 performance to growth across all segments, particularly 19% in back-up care, alongside successful debt refinancing, increased liquidity, and a new $500 million share repurchase program, navigating a dynamic environment with strategic focus [Results of Operations](index=25&type=section&id=Results%20of%20Operations) For Q2 2025, revenue increased 9.2% to $731.6 million, driven by 19.2% growth in back-up care and 6.5% in full-service child care, improving gross profit margin to 25.0%, with H1 2025 income from operations rising 36.1% to $148.3 million Q2 2025 vs Q2 2024 Revenue Growth by Segment | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Full service center-based child care | $540,267 | $507,077 | +6.5% | | Back-up care | $162,670 | $136,490 | +19.2% | | Educational advisory services | $28,633 | $26,492 | +8.1% | | **Total Revenue** | **$731,570** | **$670,059** | **+9.2%** | - Full service child care revenue growth in Q2 was driven by a **2% net increase in enrollment** and average tuition rate increases of **4-5%**[110](index=110&type=chunk) - Personnel costs, representing approximately **70%** of costs for the full service segment, increased **10%** in Q2 year-over-year due to enrollment growth and a **3-4%** increase in average hourly wages[114](index=114&type=chunk) - For the six months ended June 30, 2025, income from operations increased **36%** for the full-service child care segment and **41%** for the back-up care segment compared to the prior year[141](index=141&type=chunk) [Non-GAAP Financial Measures and Reconciliation](index=31&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliation) For Q2 2025, Adjusted EBITDA increased 12.7% to $115.6 million and Adjusted Net Income rose 19.9% to $61.5 million, with six-month Adjusted EBITDA growing 17.1% to $207.9 million and Adjusted Net Income increasing 31.3% to $106.2 million Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $54,775 | $39,174 | $92,824 | $56,163 | | Adjustments | $60,840 | $63,456 | $115,095 | $121,448 | | **Adjusted EBITDA** | **$115,615** | **$102,630** | **$207,919** | **$177,611** | Reconciliation of Net Income to Adjusted Net Income (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $54,775 | $39,174 | $92,824 | $56,163 | | Adjustments | $6,729 | $12,127 | $13,399 | $24,759 | | **Adjusted Net Income** | **$61,504** | **$51,301** | **$106,223** | **$80,922** | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $179.2 million in cash and $483.3 million available under its upsized $900 million revolving credit facility, supported by a new $500 million share repurchase program and sufficient funds for future obligations - As of June 30, 2025, the company had **$179.2 million** in cash and **$483.3 million** available for borrowing under its revolving credit facility[151](index=151&type=chunk)[152](index=152&type=chunk) - A new **$500 million** share repurchase program was authorized on June 3, 2025. During H1 2025, the company repurchased approximately **0.5 million shares** for **$60.7 million**[156](index=156&type=chunk) - In April 2025, the company amended its credit facilities, increasing the revolving credit facility from **$400 million** to **$900 million** and used proceeds to repay the term loan A facility[166](index=166&type=chunk) - The company uses interest rate caps to mitigate risk on its variable-rate debt, with agreements covering a total notional value of **$1.15 billion** with various strike rates and expiration dates[169](index=169&type=chunk)[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its exposure to market risks, including interest rate and foreign currency exchange rate fluctuations, since December 31, 2024 - The company is exposed to market risk from changes in interest rates and foreign currency exchange rates, but reports no material changes in this exposure since year-end 2024[175](index=175&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[176](index=176&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[177](index=177&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various ordinary course legal claims and suits, but does not anticipate a material adverse effect on its financial position or results from their resolution - The company is involved in ordinary course legal matters and believes their resolution will not have a material adverse effect on its financial results[178](index=178&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have been made to the company's risk factors as disclosed in its 2024 Form 10-K[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 348,375 shares of common stock under board-authorized programs, with a new $500 million share repurchase program becoming effective on June 3, 2025 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | April 2025 | 249,178 | $115.48 | 245,654 | | May 2025 | 58,570 | $123.13 | 54,500 | | June 2025 | 48,221 | $122.15 | 48,221 | | **Total** | **355,969** | | **348,375** | - A new **$500 million** share repurchase program was authorized effective June 3, 2025, replacing the prior program. As of June 30, 2025, **$494.1 million** remained available for future repurchases[181](index=181&type=chunk)[185](index=185&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) The company reports that no directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading plan during the three months ended June 30, 2025[184](index=184&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Refinancing Amendment dated April 17, 2025, officer certifications, and XBRL data files - Exhibits filed include the Refinancing Amendment for the credit facility, CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and Inline XBRL documents[186](index=186&type=chunk)

Core Insights - Bright Horizons Family Solutions (BFAM) reported revenue of $731.57 million for the quarter ended June 2025, marking a year-over-year increase of 9.2% and an EPS of $1.07 compared to $0.88 a year ago, exceeding the Zacks Consensus Estimate of $723.73 million by 1.08% [1] - The EPS surprise was +7% against the consensus estimate of $1.00 [1] Revenue Breakdown - Revenue from Back-up care was $162.67 million, surpassing the average estimate of $155.94 million by two analysts, reflecting a year-over-year change of +19.2% [4] - Revenue from Full service center-based child care was $540.27 million, slightly below the estimated $540.39 million, with a year-over-year increase of +6.6% [4] - Revenue from Educational advisory and other services reached $28.63 million, exceeding the average estimate of $27.59 million, representing a year-over-year change of +8.1% [4] Adjusted Income from Operations - Adjusted income from operations for Full service center-based child care was $40.28 million, compared to the average estimate of $36.85 million [4] - Adjusted income from operations for Educational advisory and other services was $4.85 million, exceeding the average estimate of $3.89 million [4] - Adjusted income from operations for Back-up care was $40.92 million, surpassing the average estimate of $37.62 million [4] Stock Performance - Shares of Bright Horizons have returned -6.1% over the past month, while the Zacks S&P 500 composite has changed by +2.7% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Bright Horizons Family Solutions (BFAM) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1 per share, and up from $0.88 per share a year ago [1] - The company achieved a revenue of $731.57 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.08% and increasing from $670.06 million year-over-year [3] Earnings Performance - The quarterly earnings surprise was +7.00%, and the company has surpassed consensus EPS estimates for four consecutive quarters [2] - In the previous quarter, the company reported earnings of $0.77 per share against an expectation of $0.63, resulting in a surprise of +22.22% [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $773.76 million, and for the current fiscal year, it is $4.10 on revenues of $2.89 billion [8] - The estimate revisions trend prior to the earnings release was unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Business - Services industry, to which Bright Horizons belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]