Bright Horizons Posts $231 Million Loss on Impairments as Back-Up Care Grows 13%

Bright Horizons Family Solutions swung to a third-quarter net loss of $230.7 million after taking $294.0 million of impairment losses in its international full-service child care operations, even as revenue rose 5% on strong demand for back-up care, according to its earnings release filed with an 8-K on Thursday.

The loss came to $4.76 per diluted share, compared with net income of $78.6 million, or $1.37 a share, a year earlier. Excluding the impairments and other items, diluted adjusted earnings rose 15% to $1.80 per share from $1.57.

"Our third quarter results reflect the strength of our diversified portfolio, with revenue up 5%, including 13% growth in back-up care," CEO Stephen Kramer said in the release.

Impairment drives the loss

Revenue increased $38.7 million to $841.5 million. The company said growth in back-up care was partly offset by lower revenue from full-service centers it has closed over the past 12 months.

Bright Horizons reported a loss from operations of $187.1 million, compared with operating income of $120.8 million a year earlier. Its full-service center-based child care segment posted a $298.1 million operating loss, which included a $290.0 million goodwill impairment and $4.0 million of impairment losses on long-lived assets.

The company said the net loss also reflected a higher effective tax rate and higher interest expense.

Back-up care keeps growing

Back-up care revenue climbed to $286.4 million from $253.4 million, and the segment's operating income rose to $101.2 million from $95.3 million, according to segment data in the filing.

Full-service center-based child care revenue edged up to $522.0 million from $515.5 million, while educational advisory services revenue slipped to $33.1 million.

Adjusted EBITDA rose 5% to $163.3 million, and adjusted income from operations also increased 5% to $130.2 million. Adjusted net income dipped to $87.5 million from $90.1 million.

As of Sept. 30, Bright Horizons operated 979 early education and child care centers with capacity to serve about 112,500 children.

By the numbers

• Revenue: $841.5 million, up 5%
• Net loss: $230.7 million, or $4.76 a share
• Adjusted EPS: $1.80, up 15%
• Impairment losses: $294.0 million
• Shares repurchased this year: about 7.7 million for $557.7 million

Outlook, buybacks and a board change

The company now expects 2026 revenue of about $3.07 billion and diluted adjusted earnings of $4.98 to $5.03 per share, which it described as revised guidance.

In the first nine months of the year, Bright Horizons repurchased about 7.7 million shares for $557.7 million, up from roughly 0.9 million shares for $106.0 million a year earlier. It ended September with $119.2 million of cash and $436.0 million available under its revolving credit facility.

In the same 8-K, Bright Horizons said director Mary Ann Tocio informed the board on Oct. 26 of her intent to retire effective Dec. 1, and that her retirement is not due to any disagreement with the company. The board appointed Seth Siegel, former CEO of Grant Thornton, to fill the seat and join the audit committee effective Dec. 1.

Sources

1. Bright Horizons Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and board changes (Item 5.02), filed Oct. 29, 2026 (accession 0001437578-26-000022)

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