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31 July
Here's What Key Metrics Tell Us About Bright Horizons (BFAM) Q2 Earnings

Bright Horizons Family Solutions (BFAM) reported $731.57 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 9.2%. EPS of $1.07 for the same period compares to $0.88 a year ago.

The reported revenue represents a surprise of +1.08% over the Zacks Consensus Estimate of $723.73 million. With the consensus EPS estimate being $1.00, the EPS surprise was +7%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Bright Horizons performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Back-up care: $162.67 million compared to the $155.94 million average estimate based on two analysts. The reported number represents a change of +19.2% year over year.
  • Revenue- Full service center-based child care: $540.27 million versus $540.39 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.6% change.
  • Revenue- Educational advisory and other services: $28.63 million versus the two-analyst average estimate of $27.59 million. The reported number represents a year-over-year change of +8.1%.
  • Adjusted income from operations- Full service center-based child care: $40.28 million compared to the $36.85 million average estimate based on two analysts.
  • Adjusted income from operations- Educational advisory and other services: $4.85 million versus the two-analyst average estimate of $3.89 million.
  • Adjusted income from operations- Back-up care: $40.92 million versus the two-analyst average estimate of $37.62 million.

Shares of Bright Horizons have returned -6.1% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.