BRIGHT HORIZONS FAMILY SOLUTIONS INC.BFAM
BRIGHT HORIZONS FAMILY SOLUTIONS INC. Segments Disclosure
SEGMENT AND GEOGRAPHIC INFORMATION
The Company is primarily organized based on the types of services it offers. Its reportable segments are comprised of (1) full service center-based child care, (2) back-up care, and (3) educational advisory services. The full service center-based child care segment includes the traditional center-based early education and child care, preschool, and elementary education. The Company’s back-up care segment consists of center-based back-up child care, in-home care for children and seniors, school-age programs (including camps and tutoring), pet care, self-sourced reimbursed care, and Sittercity, an online marketplace for families and caregivers. The Company’s educational advisory services segment consists of tuition assistance and student loan repayment program management, workforce education, related educational advising, and college admissions counseling services.
Our Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”), is responsible for allocating resources and evaluating performance. The CODM assesses segment performance and allocates resources based on factors such as revenue, cost of services, gross profit, and income from operations. Additionally, the CODM utilizes segment gross profit and income from operations in the annual budgeting and forecasting process.
The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies. Intercompany activity is eliminated in the segment results. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; therefore, no segment asset information is produced or included herein.
Revenue, cost of services, other segment items and income from operations by reportable segment were as follows:
| Full service center-based child care | Back-up care | Educational advisory services | Total | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Year ended December 31, 2025 | |||||||||||||||||||||||
| Revenue | $ | 2,081,119 | $ | 727,988 | $ | 124,500 | $ | 2,933,607 | |||||||||||||||
| Cost of services | 1,802,508 | 373,744 | 60,168 | 2,236,420 | |||||||||||||||||||
Other segment items (1) | 212,518 | 132,634 | 37,370 | 382,522 | |||||||||||||||||||
Income from operations (2) | $ | 66,093 | $ | 221,610 | $ | 26,962 | $ | 314,665 | |||||||||||||||
| Interest expense — net | (44,758) | ||||||||||||||||||||||
| Income before income tax | $ | 269,907 | |||||||||||||||||||||
| Year ended December 31, 2024 | |||||||||||||||||||||||
| Revenue | $ | 1,961,785 | $ | 610,112 | $ | 114,116 | $ | 2,686,013 | |||||||||||||||
| Cost of services | 1,685,730 | 322,151 | 58,526 | 2,066,407 | |||||||||||||||||||
Other segment items (1) | 222,356 | 118,350 | 32,281 | 372,987 | |||||||||||||||||||
Income from operations (3) | $ | 53,699 | $ | 169,611 | $ | 23,309 | $ | 246,619 | |||||||||||||||
| Interest expense — net | (48,761) | ||||||||||||||||||||||
| Income before income tax | $ | 197,858 | |||||||||||||||||||||
| Year ended December 31, 2023 | |||||||||||||||||||||||
| Revenue | $ | 1,780,615 | $ | 525,910 | $ | 111,732 | $ | 2,418,257 | |||||||||||||||
| Cost of services | 1,542,484 | 287,294 | 56,755 | 1,886,533 | |||||||||||||||||||
Other segment items (1) | 228,735 | 102,912 | 28,836 | 360,483 | |||||||||||||||||||
Income from operations (4) | $ | 9,396 | $ | 135,704 | $ | 26,141 | $ | 171,241 | |||||||||||||||
| Interest expense — net | (51,609) | ||||||||||||||||||||||
| Income before income tax | $ | 119,632 | |||||||||||||||||||||
(1)Other segment items for each reportable segment includes selling, general and administrative expenses and amortization expense.
(2)For the year ended December 31, 2025, income from operations for the full service center-based child care segment includes $47.0 million of impairment and net lease termination costs and $1.3 million of costs incurred in connection with the August 2025 debt refinancing. Income from operations for the back-up care segment included $0.5 million of impairment and net lease termination costs. Refer to Note 13, Fair Value Measurements, for additional information on impairment losses and Note 11, Credit Arrangements and Debt Obligations, for additional information on the debt refinancing.
(3)For the year ended December 31, 2024, income from operations for the full service center-based child care segment included $32.8 million of impairment losses and $0.8 million of other costs incurred in connection with the December 2024 debt refinancing. Income from operations for the back-up care segment included $1.1 million of impairment losses. Refer to Note 13, Fair Value Measurements, for additional information on impairment losses and Note 11, Credit Arrangements and Debt Obligations, for additional information on the debt refinancing.
(4)For the year ended December 31, 2023, income from operations for the full service center-based child care segment included $32.0 million of impairment losses and $1.5 million of value-added tax expense related to prior periods, and income from operations for the back-up care segment included $3.9 million of impairment losses and $4.0 million of value-added tax expense related to prior periods. Refer to Note 13, Fair Value Measurements, for additional information on impairment losses.
Depreciation and amortization expense totaled $93.4 million, $97.9 million, and $110.7 million for the years ended December 31, 2025, 2024, and 2023, respectively, of which approximately 85% related to the full service center-based child care segment.
Refer to Note 3, Revenue Recognition, for revenue by geographic region. Fixed assets by geographic region were as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| North America | $ | 291,754 | $ | 313,839 | |||||||
| Outside North America | 282,446 | 259,100 | |||||||||
| Total fixed assets | $ | 574,200 | $ | 572,939 | |||||||
The classification “North America” is comprised of the Company’s operations in the United States (including Puerto Rico) and the classification “Outside North America” includes the Company’s operations in the United Kingdom, the Netherlands, Australia and India. All of the fixed assets in North America were located in the United States, and fixed assets located in the United Kingdom were $222.2 million and $205.9 million at December 31, 2025 and 2024, respectively. Fixed assets associated with each of the other countries in which the Company operates were less than 10% of total fixed assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.