Bright Horizons’ Backup Care Upside: What’s Behind Its Explosive 26% Surge?

Bright Horizons Family Solutions recently reported its third-quarter financial results, delivering strong performance with notable growth across its key service segments. Revenue increased by 12% to $803 million, driven by significant demand for its education and care benefits. Adjusted earnings per share rose by 41% to $1.57, exceeding the company’s expectations. The company’s back-up care segment was a major highlight, with revenue growing 26% to $253 million. This growth was fueled by strong demand, especially during the summer months, and expanded partnerships, including notable clients like MIT and Appian Corporation. Bright Horizons sees the back-up care service as a critical growth driver, reflecting a core pillar of its long-term value strategy. Despite current success, penetration within eligible employees remains under 10%, indicating substantial potential for future growth. However, challenges remain, such as achieving higher frequency of use among existing users and increasing employer adoption.