Revenue

Q1 2025

$665 million to $675 million "

$660 million to $670 million "

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Adjusted EPS

Q1 2025

$0.88 to $0.93 per share "

$0.63 to $0.68 per share "

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Pricing Strategy and Enrollment Growth

In earlier quarters (Q1–Q3 2024), discussions emphasized increased tuition pricing (around 5% in Q1 and Q2, tapering to about 4% in Q3) and consistent low-to-mid single‐digit enrollment growth, with detailed segmentation by center cohorts. " " " " " "

In Q4 2024, pricing is projected in the 4%–5% range along with enrollment growth expected between 2.5% and 3.5%, continuing steady growth but with an increased focus on improving underperforming centers. " " "

Consistent emphasis across periods, with a slight recalibration in pricing and targeted enrollment efforts in Q4.

Backup Care Revenue Growth and Utilization

Across Q1–Q3 2024, Backup Care revenue growth was strong (ranging from 15% to 18%) with solid utilization and incremental service innovations (e.g. additional care types and targeted marketing). " " " "

Q4 2024 maintained solid growth at 15% with continued strong utilization and further developments in service adoption, confirming the robustness of the segment. " "

Stable and consistently positive performance with robust revenue growth and utilization across all periods.

Operational Improvements and Margin Expansion Initiatives

Q1–Q3 2024 saw multiple initiatives in Full Service, Backup Care, and Educational Advisory—with discussions about improved enrollments, pricing power, staff efficiency, and margin gains, including targeted actions in the U.K. operations. " " " " " "

In Q4 2024, efforts continue with detailed updates on enrollment improvements, center cohort performance, and margin expansion targets reinforced by operational progress, especially in the U.K. and Backup Care segments. " " "

A clear, ongoing focus that shows gradual operational and margin improvements throughout 2024.

Underperforming Centers and Occupancy Challenges

Earlier quarters highlighted persistent occupancy challenges in centers (especially under 40% occupancy) with targeted closures and identification of problematic urban centers, and noted modest improvements in occupancy metrics. " " " " " "

Q4 2024 discussions confirm that underperforming centers remain a challenge with consistent occupancy in the low 60s, though some improvements in high-performing cohorts and early return-to-office trends in urban areas were noted. " " " "

A recurring concern with modest progress; slight improvements in some areas but overall challenges remain.

Center Closings, Rationalization, and Outsourcing Transition Pipeline

Q1 and Q2 2024 saw active closures (with 11 centers closed in Q1 and 19 in Q2) and strategic rationalization combined with an emerging discussion on an outsourcing transition pipeline for self-managed centers. " " " " " "

In Q4 2024, the focus remains on rationalizing the portfolio with continued closures (16 closings) and a targeted reduction in low-performing centers, though mention of outsourcing transitions was absent. " " "

A steady effort to optimize the center portfolio; the outsourcing transition pipeline was prominent earlier but is less discussed in Q4, indicating a possible integration into overall rationalization strategies.

Wage Inflation and Cost Pressures

Q1 2024 saw post-pandemic moderation in wage increases with improved U.S. retention; Q2 reported wage inflation around 4% with pricing power maintained, while Q3 emphasized balancing tuition increases with costs. " " " " "

In Q4 2024, executives expressed comfort with wage investments and reaffirmed their ability to adjust prices if needed, suggesting continued manageability of wage inflation and cost pressures. "

Consistent vigilance on wage inflation across periods with evolving confidence as post-pandemic conditions stabilize.

FX Headwinds Impact

There was no discussion of FX headwinds in Q1–Q2 2024.

Q3 2024 introduced a negative impact of about 100 basis points, while Q4 2024 reported a 50 basis point tailwind in the quarter but signaled a 115 basis point headwind for 2025. " "

FX considerations emerged later; sentiment shifted from no mention to defined impacts, highlighting increased attention to currency fluctuations.

UK Business Performance and Headwinds

In Q1 2024, the U.K. business was noted for significant challenges with staffing and occupancy, prompting closures; Q2 focused on gradual enrollment gains and reduced losses; Q3 showed measurable improvements though challenges remained. " " " " " "

Q4 2024 reinforced continued progress—with narrowed losses, improved staffing efficiency, and expectations of breakeven in 2025—yet the U.K. remains a headwind to overall margins. " " "

Steady improvement with ongoing headwinds; the U.K. story is characterized by gradual recovery but still a drag on margins.

EdAssist Segment Performance Concerns

In Q1 2024, the segment reported flat revenue and contract margins due to heavy investments, with concerns about participant growth; Q2 continued to show margin pressure and participant challenges; Q3 highlighted muted participant growth prompting strategic investments. " " " " " "

In Q4 2024, the segment was presented in positive terms with increased revenue and improved operating margins, and no significant concerns were raised. " "

A turnaround is evident—from early concerns and investments to improved performance in Q4—indicating a positive shift in the segment’s outlook.

Seasonal and Comparative (Comp) Enrollment Challenges

Q1 acknowledged traditional seasonality impacting full service and back-up care, noting tough comps from prior strong growth periods; Q2 reiterated seasonal step-down trends and difficult comparisons; Q3 described typical summer low occupancy and variable cohort growth. " " " " "

Q4 continued to address seasonal enrollment challenges with an emphasis on urban challenges and slower enrollment improvements in underperforming centers, consistent with prior seasonal patterns. " " " "

Seasonal and comp challenges have been a persistent theme across all periods, indicating that while seasonality is predictable, the tough comps remain an ongoing issue.