BFAM
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
Next earnings Jul 29, 2026 (after close) · consensus $1.22 EPS, $790M rev
Last earnings +0.9% on 2026-05-05
$75.14
▲ +6.00%$75.14▼ -39.20%
over 1Y
L $59.18H $125.10
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+6.0%
1W+12.3%
1M+23.1%
3M-10.3%
YTD-24.3%
1Y-39.2%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 16 analysts
Buy
Quality compounder with accelerating earnings, but 20x P/E on cyclical childcare leaves limited margin of safety at $67.90.
Revenue (FY2025) $2.93B · FY2025
The read
Middling fundamentals offset by an attractive price (~70% below fair value) — worth a look on the value angle.
Bright Horizons is executing well across all three segments: full-service center-based childcare grew 6% with 1% net enrollment growth, back-up care surged 19% on higher utilization, and educational advisory rose 9%. The result is a clean fundamental inflection — FY2025 revenue of $2.93B (+9.2%) translated into net income of $193M (+37.8%) and diluted EPS of $3.36 (+40.0%), evidence that operating leverage is finally kicking in after the post-COVID enrollment recovery. Operating margin expanded to 10.7% and ROE reached 14.4%, while management returned cash aggressively via $225M in buybacks (up 166% YoY), shrinking the share count by 3.9%.
The balance sheet is also healthier: long-term debt fell 18.6% to $748M, current debt is zero, and cash grew 27% to $140M. Operating cash flow of $351M comfortably covers $92M in capex, leaving real free cash flow for continued buybacks and deleveraging. The 1,010-center footprint with 220+ Fortune 500 clients and multi-year employer contracts is a genuine moat — the kind of embedded B2B benefit relationship that doesn't churn easily.
Is BFAM a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~60d expiry
- Long 100 shares @ ~75.14
- Short call 79 @ ~4.49 est
debit $7,065max +$835max −$7,064BE 70.65
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $1.76B | $2.02B | $2.42B | $2.69B | $2.93B |
| Gross profit | $415M | $479M | $532M | $620M | $697M |
| Operating income | $129M | $158M | $171M | $247M | $315M |
| Net income | $70.5M | $80.6M | $74.2M | $140M | $193M |
| Diluted EPS | $1.15 | $1.37 | $1.28 | $2.40 | $3.36 |
| Net margin | 4.0% | 4.0% | 3.1% | 5.2% | 6.6% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$4.56B
EV / EBITDA11.2
EV / Sales1.6
EV / FCF17.6
P / FCF15.3
PEG (trailing)0.59
Earnings yield4.9%
FCF yield6.5%
Quality & risk
ROIC (est.)11.9%
Free cash flow$259M
Total debt$748M
Net cash-$608M
Altman Z-Score2.15 grey
Piotroski F-Score8/9
Capital returns
Buyback yield5.7%
Dividend yield (est.)—
Shareholder yield5.7%
Shares Δ YoY-3.9%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 8-K Shareholder vote2026-06-03
Annual meeting vote results disclosed; routine director and say-on-pay outcomes.
- 8-K Material agreement2026-06-01
New credit agreement / debt obligation entered — refinancing as long-term debt fell 19%.
- 10-Q Quarterly report2026-05-07
Q1'26 10-Q confirms continued occupancy gains and operating leverage post-FY25.
- 8-K Earnings results2026-05-05
Q1'26 earnings release; momentum from FY25 (EPS +40%, back-up care +19%) extending.
- DEF 14A Proxy statement2026-04-20
Proxy: routine director slate, exec comp and auditor ratification for 2026 meeting.
- 8-K Other event2026-03-09
Other-events disclosure outside earnings cycle; no material financial impact flagged.
- 10-K Annual report2026-02-26
FY25 10-K: op income +28%, EPS +40%, $225M buybacks, 1,010 centers, debt down.
- 8-K Officer / director change2026-02-12
FY25 results: rev $2.93B (+9%), EPS $3.36 (+40%); also an officer transition disclosed.
- 10-Q Quarterly report2025-11-05
Q3'25 10-Q: same-center occupancy improving; back-up care driving outsized growth.
Recent filings
all on EDGAR ↗4Period ending 2026-06-032026-06-05open ↗4Period ending 2026-06-032026-06-05open ↗4Period ending 2026-06-032026-06-05open ↗4Period ending 2026-06-032026-06-05open ↗4Period ending 2026-06-032026-06-05open ↗4Period ending 2026-06-032026-06-05open ↗4Period ending 2026-06-032026-06-05open ↗4Period ending 2026-06-032026-06-05open ↗SCHEDULE 13GFiling2026-06-04open ↗8-KPeriod ending 2026-06-032026-06-03open ↗8-KPeriod ending 2026-06-012026-06-01open ↗SCHEDULE 13GFiling2026-05-15open ↗
Frequently asked
- Is BRIGHT HORIZONS FAMILY SOLUTIONS INC. (BFAM) a buy?
- BFAM currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Quality compounder with accelerating earnings, but 20x P/E on cyclical childcare leaves limited margin of safety at $67.90.
- What is BFAM's fair value?
- A Modified-Graham model based on BFAM's SEC fundamentals estimates a fair value of about $127.68. It is an estimate from reported earnings, not a price target.
- Is BFAM overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, BFAM currently appears undervalued relative to its SEC-grounded earnings power.
- What is BRIGHT HORIZONS FAMILY SOLUTIONS INC.'s quality score?
- BFAM scores 69.30811957230331/100 (grade B-) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001437578, latest 10-Q filed 2026-05-07) · EODHD · Proprietary analysis · as of 6/25/2026, 1:25:07 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 25, 2026, 9:25 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.