Bright Horizons Reports 9% Revenue Growth to $731.6 Million in Q2 2025

Bright Horizons Family Solutions Inc. reported a notable increase in financial performance for the second quarter of 2025, with revenue reaching $731.6 million, a 9% rise from $670.1 million in the same period last year. For the first half of 2025, total revenue was $1.4 billion, up 8% from $1.3 billion in the first half of 2024. The company’s net income also saw significant growth, climbing to $54.8 million for the quarter, compared to $39.2 million a year earlier, and $92.8 million for the six-month period, up from $56.2 million in 2024. This resulted in earnings per share of $0.96 for the quarter and $1.62 for the first half of the year.

The company experienced a 19% increase in revenue from its back-up care segment, attributed to higher utilization rates, while the full-service center-based child care segment grew by 7%, supported by a 2% increase in enrollment and tuition rate hikes of approximately 4-5%. The overall gross profit margin improved to 25% for the quarter, up from 24.2% in the previous year, reflecting operational efficiencies and increased contributions from both the back-up care and child care segments.

In terms of strategic developments, Bright Horizons completed the acquisition of two centers in the United Kingdom for $5.1 million in April 2025, contributing to its growth strategy through expansion in key markets. The company also authorized a new share repurchase program of up to $500 million, which replaced a previous authorization of $400 million. During the first half of 2025, Bright Horizons repurchased approximately 0.5 million shares for $60.7 million, indicating a commitment to returning value to shareholders.

Operationally, Bright Horizons operated 1,020 early education and child care centers as of June 30, 2025, with a capacity to serve approximately 115,000 children across multiple countries, including the U.S., U.K., Netherlands, Australia, and India. The company reported a working capital deficit of $366.3 million, primarily due to long-term investments and share repurchases. Cash and cash equivalents increased to $179.2 million, up from $110.3 million at the end of 2024, bolstered by strong cash flows from operations.

Looking ahead, Bright Horizons remains focused on navigating a dynamic operating environment characterized by increased costs and a tight labor market. The company is committed to optimizing its portfolio of centers and enhancing service delivery to meet evolving client needs. Management expressed confidence in the company’s ability to adapt to market conditions and maintain its growth trajectory, supported by a strong balance sheet and liquidity position.