Bright Horizons Reports 7% Revenue Growth to $665.5 Million in Q1 2025

Bright Horizons Family Solutions Inc. reported a notable increase in financial performance for the first quarter of 2025, with revenue reaching $665.5 million, a 7% rise from $622.7 million in the same period last year. The company's net income also saw significant growth, climbing to $38.0 million, compared to $17.0 million in the prior year, resulting in earnings per share of $0.66, up from $0.29. The increase in revenue was driven primarily by a 12% increase in the back-up care segment and a 6% rise in the full-service center-based child care segment, which included a 2% net enrollment growth.

In terms of operational metrics, Bright Horizons operated 1,023 early education and child care centers as of March 31, 2025, with a capacity to serve approximately 115,000 children across various countries, including the U.S., U.K., Netherlands, Australia, and India. The company reported improved occupancy rates, with 47% of centers exceeding 70% enrollment, reflecting a positive trend compared to previous periods. The gross profit margin also improved to 23.4%, up from 21.7% in the prior year, indicating enhanced operational efficiency.

The company’s balance sheet showed total assets of $3.82 billion, slightly down from $3.85 billion at the end of 2024. Total liabilities decreased to $2.50 billion from $2.57 billion, primarily due to a reduction in long-term debt, which fell to $872.7 million from $918.4 million. Bright Horizons repurchased 0.2 million shares for $19.7 million during the quarter, with $94.0 million remaining under its share repurchase program. The company’s cash and cash equivalents increased to $112.0 million, up from $110.3 million at the end of 2024.

Strategically, Bright Horizons has focused on optimizing its portfolio by closing underperforming centers and reallocating resources to meet changing market demands. The company has also amended its senior secured credit facilities, increasing its revolving credit facility from $400 million to $900 million, which enhances its liquidity position. Looking ahead, Bright Horizons remains committed to navigating a dynamic operating environment characterized by rising costs and labor market challenges while continuing to expand its service offerings and improve client engagement. The company anticipates that its cash flows from operations will continue to grow as enrollment improves, supporting its strategic investments and financial obligations.