"Bright Horizons provides employer-sponsored child care and backup care, sitting inside the HR benefits packages of thousands of large corporations. Think of it as the utility bill employers pay to keep working parents productive. That model has real staying power."
"Full-year 2025 numbers were solid. Revenue hit $2.93 billion, up 9% year over year. Adjusted EPS came in at $4.55, representing 31% growth year over year. The Back-Up Care segment was the standout, with CEO Stephen Kramer noting: 'Back-Up Care remained a standout all year, generating more than $725 million in revenue in 2025.'"
"At a forward P/E of roughly 15x and an analyst target price of $97.11 against a current price of $77.21, the valuation looks compressed. But headwinds are real. The stock is down nearly 24% year to date and off about 39% over the past year."
Bright Horizons Family Solutions provides employer-sponsored child care and backup care services, generating $2.93 billion in revenue with 31% adjusted EPS growth in 2025. The Back-Up Care segment exceeded $725 million in revenue. Management guides 2026 revenue between $3.075-$3.125 billion with adjusted EPS of $4.90-$5.10. The stock trades at a forward P/E of 15x with analyst targets suggesting upside, though it has declined 24% year-to-date. Headwinds include planned closure of 45-50 full-service centers, securities fraud investigations, and structural challenges in the full-service child care segment with thin margins and occupancy issues.
#service-sector-stocks #bright-horizons #child-care-benefits #valuation-opportunity #growth-investing
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