Bright Horizons cuts 2026 revenue and EPS forecast; Q3 revenue misses

Bright Horizons Family Solutions Inc. (NYSE: BFAM) reported a third-quarter net loss and cut its 2026 forecasts, the company said in a filing on Oct. 29.

Revenue rose $38.7 million, or 5%, to $841.47 million in the quarter ended Sept. 30, the company said. That figure missed the $859.53 million consensus estimate compiled by Finnhub.

Adjusted diluted earnings per share were $1.80, up 15% from $1.57 a year earlier and in line with the $1.79 estimate compiled by Finnhub.

Here's how the company did:

• Revenue: $841.47 million vs. $802.81 million a year earlier, missing the $859.53 million consensus estimate compiled by Finnhub
• Adjusted EPS: $1.80 vs. $1.57 a year earlier, in line with the $1.79 estimate compiled by Finnhub
• Diluted loss per share: $4.76 vs. earnings of $1.37 a year earlier
• Net loss: $230.7 million vs. net income of $78.6 million a year earlier

The company recorded a $290.0 million goodwill impairment, primarily related to its operations in Australia, within its full service center-based child care segment.

Loss from operations was $187.1 million, compared with income from operations of $120.8 million a year earlier.

Chief Executive Officer Stephen Kramer said the quarter reflected the strength of the company's portfolio. "Our third quarter results reflect the strength of our diversified portfolio, with revenue up 5%, including 13% growth in back-up care," said Stephen Kramer, Chief Executive Officer.

2026 guidance

The company now expects fiscal 2026 revenue of approximately $3.07 billion. That is below the $3.085 billion to $3.115 billion range it gave on July 30.

It also lowered its diluted adjusted EPS forecast to $4.98 to $5.03, from the $5.05 to $5.15 range it gave on July 30.

The company said it will provide more information on its outlook during an earnings conference call on Oct. 29 at 5:00 p.m. ET.

Board change

Director Mary Ann Tocio informed the board on Oct. 26 that she intends to retire, effective Dec. 1, 2026. Tocio serves on the Audit Committee, and the company said her retirement is not due to any disagreement.

The board on Oct. 28 appointed Seth Siegel, 53, to fill the seat effective Dec. 1. Siegel served as Chief Executive Officer of Grant Thornton from August 2022 through January 2025, and will join the Audit Committee, according to the filing.