Key Highlights

  • Third quarter Revenue rose 5% to $841.5 million, with back-up care up 13%.
  • The company posted a net loss of $231 million, or $4.76 per diluted share.
  • Impairment losses of $294.0 million hit international full service operations.
  • Adjusted EPS was $1.80, up 15%, and adjusted EBITDA was $163.3 million, up 5%.
  • 2026 adjusted EPS guidance is $4.98 to $5.03 on revenue of about $3.07 billion.

Revenue rises 5% on back-up care growth

Bright Horizons (NYSE:BFAM), based in Newton, Massachusetts, provides early education and child care, back-up care solutions and educational advisory services, and operated 979 centers at September 30, 2026 with capacity for about 112,500 children. It reported third quarter 2026 results on October 29, 2026.

Revenue increased by $38.7 million, or 5%, to $841.5 million. CEO Stephen Kramer said the quarter reflected the strength of a diversified portfolio, including 13% growth in back-up care. Growth was partly offset by lower revenue from full service centers closed over the past twelve months.

The company also marked 40 years of partnering with employers to support working families.

Impairments push the GAAP result into a loss

Loss from operations was $187.1 million, against income from operations of $120.8 million a year earlier. The swing was mainly due to Impairment losses of $294.0 million within the international full service operations, partly offset by higher service levels and back-up care contributions.

The net loss was $231 million, and the diluted loss per common share was $4.76. That contrasts with positive Earnings in the prior year quarter.

The size of the impairment relative to operating results shows how much of the GAAP loss comes from a single non-cash item. Excluding it, the company reported higher adjusted measures.

Adjusted measures show steady growth

Adjusted EBITDA increased $7.2 million, or 5%, to $163.3 million, and adjusted income from operations rose $5.7 million, or 5%, to $130.2 million, which the company tied to increased service levels and back-up care contributions.

Adjusted Net Income was $87.5 million, down 3%, but diluted adjusted EPS was $1.80, up 15%. The faster per-share growth reflects a lower share count after repurchases.

The company defines adjusted figures as non-GAAP measures that exclude items such as impairment, and the release includes reconciliations to GAAP.

Calculated margins and the scale of the impairment

On a calculated basis, adjusted EBITDA of $163.3 million equals about 19.4% of revenue and adjusted income from operations of $130.2 million equals about 15.5%. The $294.0 million impairment is equivalent to roughly 35% of the quarter's revenue.

The swing from income from operations of $120.8 million to a loss of $187.1 million is about $307.9 million, of which the impairment accounts for most. Liquidity of $119.2 million in cash plus $436.0 million of revolver availability totals about $555.2 million, and the 7.7 million shares repurchased for $557.7 million imply an average price near $72 per share.

Cash, Buybacks and the revised 2026 outlook

At September 30, 2026, the company held $119.2 million of cash and cash equivalents, with $436.0 million available under its revolving Credit facility. Operating Cash Flow for the nine months was $208.1 million, compared with $202.8 million a year earlier.

In the nine months, the company repurchased about 7.7 million shares for $557.7 million.

The updated 2026 outlook calls for revenue of approximately $3.07 billion and diluted adjusted EPS of $4.98 to $5.03. A conference call was scheduled for 5:00 p.m. Eastern Time on October 29, 2026.

Readers tracking the name will likely follow back-up care growth, the pace of international center closures and further buybacks.