Bright Horizons Family Solutions (BFAM) investor relations material

Executive summary

• Revenue grew 7% year-over-year to $779–$779.2 million in Q2 2026, led by strong back-up care and tuition increases in full service, partially offset by center closures.

• Adjusted EBITDA rose 13% to $131 million, and adjusted EPS increased 20% to $1.28, reflecting improved operating efficiency and higher utilization.

• Net income declined 26% year-over-year to $40.6–$41 million, mainly due to $19.1 million in impairment losses, higher tax rate, and increased operating costs.

• The company operated 988 centers with capacity for 112,500 children as of June 30, 2026.

• Employer-sponsored model and diversified care solutions continue to drive durable performance.

Financial highlights

• Q2 2026 revenue: $779–$779.2 million (+7% YoY); six months: $1.49 billion (+7% YoY).

• Adjusted EBITDA margin was 17% in Q2 2026, up from 16% in Q2 2025.

• Gross margin for Q2 2026 was 24–24.3%, down from 25% YoY; operating margin decreased to 10.2% from 11.8%.

• Adjusted net income for Q2 2026: $66–$66.3 million (+8% YoY); adjusted net income margin was 9% in Q2 2026.

• Cash from operations for the first half of 2026 was $202.8 million, down from $220.4 million YoY.

Outlook and guidance

• Full-year 2026 revenue outlook is $3.085–$3.115 billion; adjusted EPS guidance raised to $5.05–$5.15.

• Q3 revenue expected at $835–$845 million (4–5% growth), with adjusted EPS of $1.73–$1.78.

• Full service revenue to grow 2.5–3% for the year, with 200 bps headwind from closures and 100 bps from Australia.

• Back-up Care revenue growth expected at 13–15% for the year; Ed advisory to grow low single digits.

• Ongoing portfolio optimization with further closures of underperforming centers anticipated over the next 12 months.