Bright Horizons Family Solutions (NYSE:BFAM) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Bright Horizons Family Solutions (NYSE:BFAM) announced its quarterly earnings data on Thursday. The company reported $1.80 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.04, FiscalAI reports. Bright Horizons Family Solutions had a return on equity of 20.09% and a net margin of 5.78%. The firm had revenue of $841.47 million during the quarter, compared to analyst estimates of $842.69 million.

Here are the key takeaways from Bright Horizons Family Solutions’ conference call:

• Third-quarter results were solid: revenue rose 5% to $841 million, adjusted EPS increased 15% to $1.80, and adjusted EBITDA grew 5% to $163 million.
• Back-Up Care remained a key growth driver, with revenue up 13% to $286 million as employee users and usage per user increased; management continues to see long-term runway with penetration below 5% of eligible employees.
• Bright Horizons lowered its 2026 outlook to approximately $3.07 billion of revenue and adjusted EPS of $4.98-$5.03, citing expected fourth-quarter moderation in Back-Up Care usage and weaker-than-expected Full Service enrollment.
• Full Service enrollment was pressured by softer new-family starts, particularly in the U.K., where a regulator’s safeguarding notice has been extended; management expects the larger enrollment impact in the fourth quarter and until the notice is lifted.
• Continued weakness in Australia led to a $294 million non-cash impairment charge related to goodwill and intangible assets, and the company is urgently reviewing strategic alternatives for the market.

Bright Horizons Family Solutions Stock Down 3.1%

NYSE:BFAM traded down $2.12 during trading hours on Thursday, reaching $67.17. The company’s stock had a trading volume of 2,271,558 shares, compared to its average volume of 971,395. The company has a market cap of $3.27 billion, a price-to-earnings ratio of 21.25, a price-to-earnings-growth ratio of 1.09 and a beta of 1.18. Bright Horizons Family Solutions has a one year low of $57.63 and a one year high of $109.86. The business’s 50-day moving average is $68.85 and its 200-day moving average is $74.68. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.48 and a quick ratio of 0.48.

Insider Buying and Selling at Bright Horizons Family Solutions

In other news, Director Mary Tocio sold 6,000 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $72.65, for a total transaction of $435,900.00. Following the completion of the sale, the director owned 14,329 shares in the company, valued at approximately $1,041,001.85. This represents a 29.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Mary Burke sold 1,200 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $75.00, for a total value of $90,000.00. Following the transaction, the chief operating officer directly owned 30,945 shares in the company, valued at approximately $2,320,875. This represents a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,400 shares of company stock worth $616,584 over the last three months. Company insiders own 1.42% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on BFAM shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of Bright Horizons Family Solutions in a report on Tuesday. Morgan Stanley reduced their price target on Bright Horizons Family Solutions from $66.00 to $64.00 and set an “underweight” rating for the company in a report on Tuesday, October 13th. BMO Capital Markets lowered their price target on Bright Horizons Family Solutions from $93.00 to $83.00 and set an “outperform” rating for the company in a research note on Monday, October 5th. Finally, UBS Group dropped their price objective on Bright Horizons Family Solutions from $88.00 to $78.00 and set a “neutral” rating on the stock in a report on Wednesday, October 14th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $92.00.

About Bright Horizons Family Solutions

Bright Horizons Family Solutions Inc provides employer-sponsored child care and workplace support services. The company operates early education and preschool centers that serve infants, toddlers, preschoolers and school-age children, with programs designed to support children’s development and learning.

Its services also include back-up care for children and other dependents, typically provided through a network of child care centers, in-home caregivers and other providers. Through its Bright Horizons EdAssist Solutions business, the company offers education advising, tuition assistance administration, student loan support and related workforce education services for employers and their employees.

Founded in 1986, Bright Horizons serves families and corporate clients primarily in the United States and also has operations in the United Kingdom and other international markets.