Bright Horizons Family Solutions Stock Earnings Reports

Key points for investors: Bright Horizons reported Q1 2026 revenue of $712M, up 7% YoY, and adjusted EPS of $0.82 (ahead of guidance). Management reaffirmed full-year guidance: revenue $3.075B–$3.125B and adjusted EPS $4.90–$5.10. Segment highlights: Back-Up Care (largest contributor by earnings) grew 12.5% to $145M, marking its 16th consecutive quarter of double-digit revenue growth and management raised the longer-term Back-Up growth algorithm to ~11–13%; Back-Up penetration remains low (<5%), implying substantial upside from increased awareness, expanded care types, and broader adoption. Full Service revenue grew 6% to $541M, with occupancy averaging mid-60s% and ongoing portfolio rationalization (22–24 net center closures in Q1, 988 centers at quarter end). However, Australia operations underperformed materially, creating a meaningful drag on enrollment, margins and tax (management quantified Australia losses and tax effects as a notable earnings headwind). Education Advisory grew modestly (~2%) with new client wins. Cash flow was strong: Q1 operating cash $108M, free cash flow $88M, 12-month FCF conversion ~106% of adjusted net income. The company repurchased $225M of stock in Q1 and ended the quarter with $133M cash and net leverage ~1.9x adjusted EBITDA. Management emphasized a unified go-to-market, integrated account management, expanded care ecosystem and investments in CRM/data to drive deeper penetration and cross-product adoption.