Total Revenue

6.9% increase

Total Revenue grew from $622.709M in Q1 2024 to $665.527M in Q1 2025. This increase is driven by continued strong performance across business segments with persistent enrollment gains and pricing improvements in key areas, mirroring the drivers observed in previous periods. " "

Full Service Child Care Revenue

5.6% increase

Full Service Child Care revenue climbed from $483.640M to $510.547M. The growth is supported by ongoing enrollment and tuition rate increases, reflecting a continuation of the factors that boosted performance in prior periods, albeit at a slightly moderated pace. " "

Back-Up Care Revenue

12.2% increase

Back-Up Care revenue rose from $114.672M to $128.612M. The significant jump is attributable to enhanced utilization of back-up care services, an expanded client base, and previous period initiatives—such as service line integration—that are now fully contributing to a stronger topline. " "

Educational Advisory Services

8.0% increase

Educational Advisory Services revenue increased from $24.397M to $26.368M. This moderate growth is driven by increased utilization of advisory services, building steadily on previous period trends that reflect incremental client adoption. " "

Net Income

124% increase

Net Income more than doubled, rising from $16.989M to $38.049M. This dramatic improvement results from better operating leverage, boosted revenue across segments, reduced interest expenses, and enhanced cost management, building on prior period operational improvements. " "

Income from Operations

55.8% increase

Income from Operations increased from $39.937M to $62.272M. Enhanced margins predominantly driven by increased revenue from back-up care and full-service child care, coupled with improved cost efficiency relative to Q1 2024, contributed to this robust jump. " "

Basic Earnings per Share (EPS)

127% increase

Basic EPS surged from 0.29 to 0.66. With stable weighted-average shares, the sharp rise in net income has been fully passed through to the EPS, reflecting the cumulative effects of higher revenue and improved operating margins observed during the period. " "

Overall Revenue Growth

FY 2025

no prior guidance

6.5% to 8.5% " "

no prior guidance

Adjusted EPS

FY 2025

$3.95 to $4.15 per share " "

$3.95 to $4.15 per share " "

no change

Full Service Segment Revenue Growth

FY 2025

4.5% to 6.5% "

5% to 7% "

raised

Backup Care Segment Revenue Growth

FY 2025

11% to 13% "

12% to 14% "

raised

Educational Advisory Segment Revenue Growth

FY 2025

low to mid-single digits "

low to mid-single digits "

no change

Backup Care Business Growth

Q4 2024 reported 15% revenue growth with new client launches and strong center/in‐home utilization. " " Q3 2024 showed an 18% increase to $202 million driven by higher employee utilization. " " Q2 2024 noted 15% growth to $136 million, with robust enrollment and operating income improvements. " "

Q1 2025 achieved a 12% increase to $129 million, maintained 95% client retention, introduced new clients, and delivered a 21% operating margin, with early summer camp bookings supporting improved outlook. " " " " "

Moderation in percentage growth alongside steady operational efficiency and strong client retention; overall consistent performance despite a lower growth percentage compared to some prior quarters.

Full-Service Center Enrollment and Occupancy Trends

Previous periods (Q2, Q3, Q4 2024) consistently reported low to mid-single-digit enrollment growth in centers open >1 year, with average occupancy in the low 60s and detailed cohort segmentation highlighting opportunities and constraints. " " " " "

Q1 2025 continued to show low single-digit enrollment growth (expected 2–3% for the year) and mid-60s occupancy, but noted some slower enrollment velocity due to families’ caution amid broader economic uncertainty. " " " " "

Metrics remain consistent; however, macro uncertainty has begun to temper enrollment velocity, adding a new nuance compared to prior periods.

Effective Pricing Strategy and Margin Expansion

Earlier quarters featured tuition increases in the 4–5% range, a strategic gap of about 100 basis points above wage inflation, and margin improvements in both the full-service and backup care segments, with upgrades in operational efficiency. " " " " "

In Q1 2025, tuition increases of 4–5% were reiterated alongside margin expansion—with full-service margins up to 6.5% and Backup Care achieving a 21% margin—indicating continued success in cost management and pricing discipline. " " " " "

Consistent, robust pricing strategy that continues to drive margin expansion; execution remains strong with sustained discipline in matching pricing to wage costs.

Operational Improvements and Center Rationalization

Q2, Q3, and Q4 2024 showed active initiatives to enhance enrollment, improve staffing, rationalize center portfolios through targeted closures (especially low occupancy centers) combined with new openings, and overall operational refinements. " " " " " " " " "

Q1 2025 maintained a disciplined approach with an emphasis on improving operating leverage, particularly in underperforming centers, and projected approximately equal numbers of new openings and closures, supporting operational efficiency. " " "

Steady, ongoing focus on enhancing operational efficiency and rationalizing centers; the approach remains consistent with a patient, disciplined strategy to optimize the portfolio.

UK Business and Margin Headwinds

Previous periods (Q2, Q3, Q4 2024) described the UK business as gradually improving in enrollment and operational performance—with narrowed losses—but continuing to pose margin challenges (contributing headwinds of 100–200 basis points). " " " "

Q1 2025 highlighted meaningful enrollment and staff retention improvements in the UK, projecting a clear path to breakeven; however, the UK business still contributed a roughly 100 basis point margin headwind to full-service profitability. " " " "

Gradual operational and enrollment improvements in the UK, yet it remains a persistent margin drag as it works toward breakeven; sentiment is cautiously optimistic.

Wage Inflation Pressures

Q2 2024 noted wage inflation around 4% with tuition increases outpacing wage costs by 100 basis points. Q3 2024 and Q4 2024 reiterated disciplined wage investments and confidence in managing these pressures, with executives affirming current estimates. " " " "

Q1 2025 emphasized that wage inflation continues at previously observed rates, with management remaining comfortable by staying about 1% ahead of wage inflation and achieving 2019-level retention, thereby mitigating recruiting pressures. "

Consistent underlying wage inflation pressures with effective management through tuition adjustments; overall sentiment remains stable and confident.

Disciplined Capital Allocation and Share Repurchases

Q4 2024 detailed a disciplined capital allocation approach with an $85 million share repurchase, and Q3 2024 referenced a commitment to valuation discipline; Q2 2024 did not mention these issues. " " "

Q1 2025 reaffirmed this disciplined approach with an active share repurchase program, while emphasizing that investment in growth (M&A, new centers, technology) remains the top priority. "

Consistent capital allocation strategy with continued share repurchase activity; the emphasis on strict discipline and flexible execution remains unchanged.

Integrated Service Offering Expansion and Cross-Selling

Not discussed in Q2, Q3, or Q4 2024.

Q1 2025 introduced an integrated “One Bright Horizon” strategy by cross-selling services across segments, citing examples where backup care clients expanded to include EdAssist and College Coach services (e.g., Phillips 66, Vertex, Aflac). " "

A new theme emerging in Q1 2025, representing an expansion of integrated offerings and cross-selling strategies to deepen customer relationships and enhance revenue mix.

Macro Uncertainty Impacting Enrollment

There was no explicit discussion of macro uncertainty in Q2, Q3, or Q4 2024, though enrollment trends were monitored.

Q1 2025 directly attributed slower enrollment commitment velocity and delayed start dates in certain U.S. markets to ongoing macroeconomic uncertainty, marking a more cautious tone among new families. " "

A new and explicitly mentioned concern in Q1 2025; macro uncertainty is beginning to impact enrollment decisions, adding a cautious note compared to earlier periods.

FX Headwinds

Q3 2024 noted an FX impact of around 100 basis points on full-service revenue growth; Q4 2024 discussed a 115 basis point headwind affecting 2025 revenue, with some tailwinds noted in Q4, while Q2 2024 did not address FX issues. " " "

Q1 2025 confirmed FX headwinds of roughly 100 basis points impacting revenue, with adjustments leading to a favorable change of about $30 million in the guidance, reinforcing the mixed but steady impact of currency fluctuations. " "

FX headwinds remain a consistent, moderate factor across the periods; while the impact varies slightly, overall sentiment and guidance adjustments are in line with prior observations.

Decline in EdAssist Participation

Q3 2024 discussed muted or declining participation in the EdAssist program, attributing it partly to market conditions and lower incentive factors during stronger economic times. "

Q1 2025 explicitly did not mention any decline; instead, it highlighted encouraging growth in participation and improvements in the Education Advisory segment, suggesting a reversal of earlier trends. "

A reversal from earlier concerns: Q3 2024 observed muted growth in EdAssist participation, while Q1 2025 noted a recovery with improved engagement, reflecting a positive shift in the Education Advisory business outlook.