Bright Horizons Q2 2025: Unraveling Key Contradictions in Enrollment, Occupancy, and Regulatory Impact

Enrollment growth and utilization trends, impact of Inflation Reduction Act on 45F, center closures and enrollment growth, occupancy levels and enrollment growth, impact of Inflation Reduction Act are the key contradictions discussed in Bright Horizons Family Solutions' latest 2025Q2 earnings call.



Strong Financial Performance:
- Bright Horizons Family Solutions reported revenue of $732 million for Q2 2025, up 9% year-on-year, with adjusted EPS growing 22% to $1.07.
- The growth was driven by solid execution across all segments, particularly in full service and back-up care.

Back-up Care Growth:
- The back-up care segment's revenue increased by 19% to $163 million in Q2, driven by strong client engagement and user demand.
- This growth was fueled by the strategic expansion of supply and high demand for youth summer programs.

Full Service Segment Performance:
- Full service revenue reached $540 million, up 7%, due to enrollment growth, tuition increases, and new center openings.
- The increase in enrollment was particularly notable in centers below 40% occupancy, reflecting improved performance in underperforming centers.

U.S. Market Recovery and U.K. Momentum:
- The U.S. market demonstrated recovery with a low single-digit enrollment growth in centers open for more than a year.
- In the U.K., the company observed operational and financial momentum, with enrollment and margins improving due to investments in staffing and programming.