Bright Horizons Family Solutions Inc. Q1 FY2026 earnings call

• 2026 off to positive start, revenue up 7%, earnings slightly ahead. • Strategy post-COVID focused on long-term growth, integrating services, unifying go-to-market strategy, developing connected service continuum. • Highlighted BackupCare segment, low penetration across client base, wide variation within industries, broad care network, opportunity in SMB and Fortune 500 markets. • On the Horizon Summit hosted clients to discuss future of employer-sponsored education and care. • Closed 24 centers in Q1, made progress in education advisory with new client launches.

Backup care: Revenue increased 12.5% to $145 million in Q1, 16th consecutive quarter of double-digit top line growth; adjusted operating margins 18% in Q1, expecting full-year target of 28 - 30%. Full service: Revenue grew 6% to $541 million, driven by tuition increases, enrollment gains, foreign exchange tailwind, partially offset by center closures and Australia enrollment decline; adjusted operating income $37 million, margin expansion constrained by Australia but excluding it would be more. Education advisory: Revenue $27 million, up 2% y-o-y, adjusted operating margins 9%

• Reaffirming 2026 full-year revenue guidance range $3.075 billion to $3.125 billion and adjusted EPS range $4.90 to $5.10. • Full service expected reported revenue growth 2.5 - 3.5% with enrollment gains and tuition increases, offset by ~200 basis points from net center closings and ~100 basis points from Australia. • Backup care now expects reported revenue increase 12 - 14% driven by continued use expansion. • Education advisory expects mid single-digit growth. • Full-year interest expense estimated 50 - 52 million, adjusted effective tax rate 28 - 28.5%. • Q2 top line growth range 5.25 - 6.5%, full service 2.5 - 3.5%, backup 15 - 17%, ed advisory low to single digits; adjusted EPS range $1.17

• Australia operations facing significant enrollment decline, broader Australian ECE industry weakness, challenging performance outlook. • Risks associated with forward-looking statements, actual results may differ from expectations. • Impact of closed centers and operating challenges in Australia on full service margins.

Q: Jeff Mueller asked about backup care annual revenue guidance and summer usage visibility.

A: Guidance raised to 12 - 14% due to momentum in active users and use patterns, good visibility on summer reservations.

Q: Jeff Mueller asked about Australia's fundamental issue.

A: Entered Australia in 2022, enrollment degradation since then, post-COVID supply acceleration, sharper enrollment degradation in Q1.

Q: Andrew Slaterman asked about non-Australia business performing better and Australia's size.

A: Share repurchase adding tailwind, Australia's position has non-deductible losses, impact on guide close to $0.20.

Q: Jeff Silver asked about backup care margins and full-service center sign-ups.

A: Backup care margins mixed due to quarter mix, full-service center sign-ups similar to last year's second half.

Q: Tony Kaplan asked about center closures and openings.

A: Expect 25 - 30 net center reduction, openings governed by construction cycles.

Q: Tony Kaplan asked about backup care penetration.

A: Employee benefit space noisy, account management team repositioned, personalized messaging.

Q: George Tom asked about unified client engagement and backup care long-term growth.

A: Separated enterprise and geographic approaches, deployed new sales training/tools, backup care longer-term growth target 11 - 13%.

Q: Josh Chan asked about backup care penetration differences.

A: Differences due to employee demographics between industries, within industries due to studying highly/lowly utilized clients.

Q: Faiza Alway asked about full service margin impact from Australia and UK business.

A: Australia impacts margin, UK business making progress but still a headwind, 45F not moving needle.

Q: Stephanie Moore asked about backup care clients using multiple services.

A: Almost all clients offer in-center and in-home for adult and child, majority offer tutoring, lesser pet care.