Bright Horizons Family Solutions Inc.
BFAM Consumer Cyclical Personal Services
Bright Horizons Family Solutions Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.9 billion, up 9.22% from fiscal 2024. In the quarter to June 2026, revenue grew 6.51%, EPS fell 17.7%, free cash flow fell 34.0% and total debt rose 43.3%, each against the same quarter a year earlier. Revenue growth for five consecutive years, operating cash flow growth for three.
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Bright Horizons Family Solutions Inc. (BFAM) Altman Z-score
Bright Horizons Family Solutions Inc.'s Altman Z-score for fiscal 2025 is 2.58, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.58 | (0.02) |
| FY2024 | 2.60 | 0.50 |
| FY2023 | 2.10 | 0.55 |
| FY2022 | 1.55 | (1.06) |
| FY2021 | 2.60 | (0.56) |
| FY2020 | 3.16 | 0.00 |
| FY2019 | 3.16 | (0.09) |
| FY2018 | 3.25 | 0.45 |
| FY2017 | 2.80 | 0.56 |
| FY2016 | 2.24 | (0.20) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.12) | — | −0.14 | |
| Retained earnings / total assets | 0.25 | — | 0.35 | |
| EBIT / total assets | 0.08 | — | 0.27 | |
| Market value of equity / total liabilities | 2.26 | — | 1.36 | |
| Sales / total assets | 0.75 | — | 0.75 | |
| Altman Z-score | Grey zone | 2.58 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.12 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ROL Rollins, Inc. compare | 12.0× |
| MED MEDIFAST INC compare | 4.5× |
| FTDR Frontdoor Inc. compare | 3.6× |
| HRB H&R Block, Inc. compare | 3.1× |
| BFAM Bright Horizons Family Solutions Inc. | 2.6× |
| CSV Carriage Services, Inc. compare | 1.2× |
| ANDG Andersen Group Inc. compare | 1.1× |
| RGS Regis Corporation compare | 0.9× |
| SCI Service Corporation International compare | 0.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets