What changed in this filing

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Item 1. Business

2025-02-27 compared with 2024-02-27 · 155 added, 188 removed, 241 unchanged (59% of the section changed)

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We are a leading provider of high-quality early education and child care, family care solutions, and workforce education services that are designed to help working families and client employees thrive personally and professionally.

We provide services primarily under multi-year contracts with employers who offer early education and child care, back-up care, and educational advisory and other services as part of their employee benefits packages.

We provide services primarily under multi-year contracts with employers who offer early education and child care, back-up care, and educational advisory services as part of their employee benefits package.

These benefits help employers support their employees across life and career stages and improve recruitment, employee engagement, productivity, retention, and career advancement.

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We are organized in three reportable segments, which are aligned with our service offerings as follows:

• Full service center-based child care (approximately 74% of our revenue in 2023);

• Back-up care (approximately 21% of our revenue in 2023);

• Educational advisory and other services (approximately 5% of our revenue in 2023).

• Full service center-based child care (73% of our revenue in 2024);

• Back-up care (23% of our revenue in 2024);

• Educational advisory services (4% of our revenue in 2024).

As of December 31, 2024, we had more than 1,450 employer client relationships across a diverse array of industries, including more than 220 Fortune 500 companies.

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Throughout our history, we have continued to grow while investing in our future.

We have extended our international footprint to become a leading provider in the center-based child care market in the United Kingdom and have expanded into the Netherlands, Australia, and India as platforms for further international expansion.

In the United States, we continue to grow our partnerships with employer clients by expanding and enhancing our back-up care and family supports, including the addition of elder care, tutoring, school-age camps, and pet care;

by developing and growing our educational advisory services;

and by adding to our other services by acquiring the Sittercity business.

We continue to invest in new technologies to better support our full suite of services as well as enhance our customers’ user experience, and we have increased our digital marketing efforts with additional focus on driving use of our services and maximizing enrollment in centers.

We have extended our international footprint to become a leading provider in the center-based child care market in the United Kingdom and have expanded into the Netherlands, Australia, and India.

In the United States, we continue to grow our partnerships with employer clients by partnering to develop child care centers, expanding and enhancing our back-up care and family supports, and by developing and growing our educational advisory services.

We continue to invest in new technologies and innovation to better support our full suite of services as well as enhance our customers’ user experience, with a focus on driving use of our services and maximizing enrollment in our centers.

Industry Overview and Trends

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The center-based child care market includes both retail and employer-sponsored centers.

The employer-sponsored model has always been central to our business and is characterized by a single employer or consortium of employers entering into a long-term contract for the provision of child care at a center located at or near the employer sponsor’s worksite.

The employer-sponsored model has always been central to our business and represents a single employer or consortium of employers entering into a long-term contract for the provision of child care at a center located at or near the employer sponsor’s worksite.

We believe we are one of the largest high-quality providers of employer-sponsored child care.

Additionally, we operate in the growing market for back-up care, which consists of center-based back-up care and in-home care as well as school-age camps, tutoring, elder care and pet care.

We also operate in the educational advisory services market, which consists of workforce education, tuition assistance, student loan repayment and related educational advising, as well as college admissions and college financial advisory services.

We believe we are one of the largest and highest-quality providers of back-up care and educational advisory services.

Additionally, we operate in the growing market for back-up care, which consists of center-based back-up care and in-home care as well as school-age programs (including camps and tutoring), senior care and pet care.

We believe we are one of the largest high-quality providers of back-up care and educational advisory services.

We believe that the following key factors contribute to growth in the markets for employer-sponsored child care, back-up care, and educational advisory services.

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We believe employers across industries look at child care solutions, including on-site and near-site child care and other dependent care solutions, to enhance their employee value proposition.

Our ability to deliver a variety of child and dependent care support services to meet the needs of children and families demonstrates the value and importance of our services to our client partners, including the role our various services can play in ensuring those partners continue to deliver on their own business priorities.

With our broad suite of solutions, we are well-positioned to assist employers looking to deploy creative solutions as part of an overall recruitment and retention strategy.

Our ability to deliver a variety of child and back-up care support services to meet the needs of children and families demonstrates the value and importance of our services to our client partners, including the role our various services can play in ensuring those client partners continue to deliver on their own business priorities.

With our broad suite of solutions, we are well-positioned to assist employers looking to deploy creative solutions as part of an overall recruitment, retention and engagement strategy.

Studies conducted through our Workforce Consulting practice indicate that employer sponsors of center-based child care and back-up care services realize strong returns on their investments, particularly in terms of reduced turnover and increased productivity.

We estimate that users of our back-up care services have been able to work an average of six additional days annually that they otherwise would have missed due to breakdowns in child care arrangements.

Additionally, according to a 2022 survey of our families, 90% of parents reported enhanced productivity as a result of their employer offering back-up care, and 86% of employees reported their back-up care benefit makes them more committed to their employer.

We believe that this return on investment for employers, demonstrated across our full suite of solutions, will result in additional growth in employer-sponsored center-based child care, back-up care and educational advisory services.

We estimate that users of our back-up care services have been able to work more than six additional days annually that they otherwise would have missed due to breakdowns in child care arrangements.

Additionally, according to a 2024 survey of our families, nearly 90% of parents reported that our childcare services have allowed them to work the necessary hours required for their job and have made them more committed to their employer.

We believe that this return on investment for employers, demonstrated across our full suite of solutions, will result in additional growth as employers recognize both the value in employer-sponsored center-based child care, back-up care and educational advisory services and the benefits such services provide.

Evolving Workforce

We believe the challenges brought on by a tight labor market have heightened employers’ sensitivity to their employee value proposition, and Bright Horizons’ services can be a significant component of an employer’s recruitment and retention strategy.

We believe the challenges employers face managing talent and the challenges brought on by a tight labor market have heightened employers’ sensitivity to their employee value proposition, and Bright Horizons’ services can be a significant component of an employer’s recruitment and retention strategy.

As work environments continue to evolve, we believe the need for center-based child care services remains robust, and back-up care continues to be a critical support for both remote and office-based employees, and we see back-up care playing an increasingly important role in this strategy.

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There is an increased need for the ongoing education and up-skilling of the existing workforce as automation, digital transformation, and other advances transpire.

We believe that the modern worker values efforts by their employer to support employees across career stages that help them thrive in the workplace by providing access to degree and non-degree education programs.

Despite enrollment and occupancy challenges due to changing workforce and workplace trends, we believe the growing needs of employers, coupled with increased competition for talent, will encourage employers to invest in solutions and supports that enable workers to realize their full professional potential.

We believe that the modern worker values efforts by their employer to support employees across career stages to help them thrive in the workplace and seek career advancement by providing access to degree and non-degree education programs.

We believe the growing needs of employers, coupled with increased competition for talent, will encourage employers to invest in solutions and supports that enable workers to realize their full professional potential.

Investments in center-based early education and child care, back-up care and educational advisory services will help employers meet their strategic goals, bolster employee engagement, recruitment and retention, and address benefit equity within their workforce.

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A significant percentage of parents currently participate in the workforce, making child care services and family supports critical to employees and employers as well as the overall health of the economy.

In 2022, women working full-time comprised approximately 50% of the workforce in the U.S., according to the most recent report by the Bureau of Labor Statistics.

Additionally, in 2022, 68% of mothers with children under the age of six participated in the workforce in the U.S., and 65% of two-parent households comprised dual career earners.

In 2023, women working full-time comprised approximately 50% of the workforce in the United States, according to the most recent report by the Bureau of Labor Statistics.

Additionally, in 2023, approximately 70% of mothers with children under the age of six participated in the workforce in the United States, and approximately 65% of two-parent households comprised dual career earners.

We believe that current workforce demographics continue to drive the ongoing need for child and dependent care, as well as other workplace solutions that support employees at each life and career stage.

Growing Demand for High-Quality Center-Based Early Education and Child Care Services

Demand for High-Quality Center-Based Early Education and Child Care Services

We believe that recognition of the importance of early education and consistent quality child care helps underpin demand for high quality center-based early education and child care.

We believe robust health and safety protocols and the social, educational and other developmental opportunities presented by center-based care are important factors for families when determining the preferred care options for their children.

In a highly fragmented market comprised largely of center operators lacking scale, we believe clients and families will favor larger industry participants with greater resources to consistently achieve the high quality standards and needs of clients and families.

We also believe that the emphasis on the importance of early education and child care, and ongoing efforts to make child care affordable and accessible for working families will contribute to further growth in the global early education and child care market as well as the developing markets for back-up care and educational advisory services.

We believe the social, educational and other developmental opportunities, along with robust health and safety protocols, presented by center-based care are important factors for families when determining the preferred care options for their children.

In a highly fragmented market, we believe clients and families will favor larger industry participants with greater resources to consistently achieve high quality standards.

Our Competitive Strengths

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Market Leading Service Provider

We believe we are a leader in employer-sponsored center-based child care, back-up care, and educational advisory services, and that the breadth, depth and quality of our service offerings — developed over a successful 35 year history — represent significant competitive advantages.

We estimate we have approximately six times more employer-sponsored centers in the United States than our closest competitor.

We believe the broad geographic reach of our early education and child care centers and workplace solutions, with targeted clusters of centers in areas where we believe employer-sponsored demand is generally higher and where demographics are attractive, provides us with a competitive platform to market our suite of services to new and existing clients.

We believe parents and clients continue to focus on the establishment of objective, standards-based methods of defining and measuring the quality of child care, such as accreditation.

Our business is anchored in our commitment to consistently provide high-quality service offerings to employers and families.

We have designed our child care centers to meet or exceed applicable accreditation and rating standards in all of our key markets, including standards set in the United States by the National Academy of Early Childhood Programs, a division of the National Association for the Education of Young Children (NAEYC), in the United Kingdom by the Office of Standards in Education, Children’s Services and Skills (OFSTED), and in Australia by the Education Council and Australian Children’s Education and Care Quality Authority (ACECQA).

We believe our commitment to achieving accreditation standards offers a competitive advantage in attracting and retaining families and in securing employer sponsorship opportunities as an increasing number of potential and existing employer clients require or expect adherence to accreditation criteria.

We believe our more than 35 year operating history positions us as a leader in employer-sponsored center-based child care, back-up care, and educational advisory services.

In our full service center-based child care segment, where we operate more than 1,000 centers globally, we estimate we have approximately six times more employer-sponsored centers in the United States than our closest competitor, with our centers strategically clustered in high-demand areas where demographics are attractive.

In our backup-care segment, where we provide services for employer clients in the United States and United Kingdom, we estimate that we are approximately three times larger than our closest competitor.

Our expansive footprint and broad geographic reach not only enhances our market presence but also provides a robust platform for delivering our comprehensive suite of services, solidifying our status as the provider and partner of choice.

As a provider in a highly fragmented market, our size and scale enable us to differentiate our offering and go-to-market strategy through significant investments in technology, marketing initiatives, and integrated solutions.

This robust infrastructure not only supports operational excellence and delivers a seamless, digitally enhanced experience for our clients and their employees but also positions us to capitalize on growth opportunities—both organically and through strategic acquisitions.

Moreover, our scale allows us to continuously enhance our education programs and curriculum, reinforcing our market leadership and ensuring long-term success.

Collaborative, Long-Term Relationships

We have built enduring partnerships with more than 1,450 employers across diverse industries, including more than 220 Fortune 500 companies, with our largest client contributing 1% of our revenue in 2024 and our largest 10 clients representing approximately 8% of our revenue in the same year.

Our full service multi-year employer sponsorship contracts typically involve employer support for both the development and ongoing operation of child care centers through operating subsidies.

In addition to full service center-based child care, we provide access to a multi-national back-up care network and educational advisory support, allowing us to offer various combinations of services and solutions to best meet the needs of clients across locations, geographies and employee life and career stages.

By engaging directly with employers and employees alike, we gain valuable insight into corporate cultures that enable us to deliver tailored, innovative solutions designed to meet our clients’ evolving needs.

This collaborative approach is reflected in an annual client retention rate of approximately 95% for employer-sponsored centers over the past 10 years, underscoring our proven ability to exceed client expectations and allowing us to cross-sell and expand our service offerings to existing clients.

High Quality Offerings

We have built a reputation as a leader in early childhood education and believe delivering a high-quality educational experience in a safe, nurturing and engaging environment offers an attractive value proposition to the children, families, and employers we serve.

We are dedicated to investing in quality to fulfill our commitment to research-based early education excellence.

Our centers are designed to meet rigorous accreditation and rating standards established by leading organizations such as the National Academy of Early Childhood Programs, a division of the National Association for the Education of Young Children (NAEYC) in the United States, by the Office of Standards in Education, Children’s Services and Skills (OFSTED) in the United Kingdom, and by the Education Council and Australian Children’s Education and Care Quality Authority (ACECQA) in Australia.

This supports our commitment to delivering high-quality, evidence-based instructional practices and personalized learning environments, which we believe offers a competitive advantage in attracting and retaining families and in securing employer sponsorship opportunities.

We have consistently achieved satisfaction ratings of more than 90% among respondents in our parent satisfaction surveys, which is a testament to our ability to deliver on our commitment to quality.

Dedicated to the highest-quality services in every category in which we operate, our standards of quality also extend to our back-up care and educational advisory services, whether care is delivered in Bright Horizons child care centers, through our proprietary back-up care network of quality child care centers and in-home care providers, or advising provided by our team of education experts.

Focus on Learning and Development

We are in the unique position of educating the next generation, and with that responsibility comes the opportunity to make a difference by modeling for children and families an environment that is open and curious, and focused on generating positive outcomes for the children in our care.

Our curriculum and teacher training programs are designed to support inclusive classrooms and create positive learning environments.

Our proprietary curriculum and educational practices are informed by the science of early learning and research on childhood development.

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Our programs provide teacher-to-child ratios and group sizes that meet or exceed licensing standards.

Dedicated to the highest-quality services in every category in which we operate, our standards of quality also extend to our back-up care and educational advisory services, whether care is delivered in Bright Horizons child care centers, through the quality child care centers and in-home care providers participating in our proprietary back-up care network, or advising provided by our team of education experts.

In addition to our annual employer client retention rate of approximately 95%, we have consistently achieved satisfaction ratings of over 90% among respondents in our parent satisfaction surveys, which is a testament to our ability to deliver on our commitment to quality.

Collaborative, Long-Term Relationships with Diverse Customer Base

We have more than 1,450 client relationships with employers across a diverse array of industries, including more than 220 of the Fortune 500 companies, with our largest client contributing 1% of our revenue in 2023 and our largest 10 clients representing approximately 8% of our revenue in the same year.

Our full service business model emphasizes multi-year employer sponsorship contracts where our clients typically fund the development of new child care centers (which are typically owned or leased by the sponsor) at or near their worksites and frequently support the ongoing operations of these centers through operating subsidies.

Our multiple service points with both employers and employees give us unique insight into the corporate culture of our clients and enables us to identify and provide innovative and tailored solutions to address our clients’ specific and evolving needs.

We believe our tailored, collaborative approach to employer-sponsored dependent care and educational advising has contributed to an annual client retention rate of approximately 95% for employer-sponsored centers over the past 10 years and has allowed us to cross-sell and expand our service offerings to existing clients.

We continuously look for opportunities to invest in quality to support our commitment to providing research-based early education excellence through enhanced curriculum and enrichment activities, teacher education and development programs, and ongoing program evaluation thereby strengthening our reputation and partnerships with our clients, their employees, and families.

For parents and families, we offer a webinar series as well as monthly podcasts that reflect current issues facing families and provide practical parenting tips.

Market Leading People Practices

Our ability to deliver high-quality care, education and other services is directly related to our ability to attract, retain, motivate and develop our skilled workforce.

During our more than 35 year history, we have consistently been named as a top employer by third-party sources in the United States, the United Kingdom and the Netherlands, including being named as one of the “100 Best Companies to Work For” by Fortune magazine 20 times, as well as a great place to work in the United Kingdom and in the Netherlands by the Great Place to Work Institute.

We have also been named one of the “Top Places to Work” by the Boston Globe 14 times and the Denver Post 9 times.

Our ability to deliver high-quality care, education and other services is enabled by our ability to attract, retain, motivate and develop skilled talent.

During our more than 35 year history, we have consistently been named as a top employer by third-party sources, including Fortune magazine, the Great Place to Work Institute, industry publications and the Boston Globe and the Denver Post recognizing the investment we make in our workforce.

We believe the education and experience of our child care center leaders and teachers exceed the industry average.

In addition to initial onboarding and ongoing in-center training, we have an in-house online training university that allows our employees to earn nationally-recognized child development credentials.

Additionally, our Horizons Teacher Degree Program provides our early educators (in the U.S.) the ability to earn an associate and bachelor’s degree in early childhood education completely paid for by Bright Horizons with no out-of-pocket expenses to the employee.

We believe this program is unique in our industry and will continue to distinguish us as an employer of choice while helping to retain and incentivize teachers to grow their careers at Bright Horizons.

For more information about our market leading people practices, please see the subsection below entitled “ Human Capital Management.”

Capital-Efficient Operating Model Provides Platform for Growth with Attractive Economics

We have a long history of proven financial results despite broader macro-economic fluctuations.

With employer sponsors funding the majority of the capital required for new centers developed on their behalf, and our back-up services provided through our own center portfolio and third party providers, we have been able to grow our business with limited capital investment, which has contributed to strong cash flows from operations.

Proven Acquisition Track Record

We have an established acquisition team that pursues targets using an established framework to effectively evaluate potential transactions with the goal of maximizing our return on investment while minimizing risk.

Over the last ten years, we have completed the acquisition of approximately 330 child care centers in the United States, the United Kingdom, Australia and the Netherlands, as well as providers of back-up care services and educational advisory and other services in the United States and the United Kingdom, helping us expand our client base, enhance the scope and reach of our service offerings, broaden our technological capabilities, and offer new services.

In 2023, we acquired 10 child care centers.

Diversity, Equity and Inclusion

We are in the unique position of educating the next generation, and with that responsibility comes the opportunity to make a difference by modeling for children and families an environment that is open, curious, and genuinely interested in what is different, and reflects broad diversity among our teaching staff.

Our curriculum and teacher training programs are designed to support inclusive classrooms and create culturally authentic learning environments that celebrate and explore all backgrounds and experiences.

We are also exploring with clients how our services can support their diversity, equity and inclusion objectives, particularly in workforce education.

We believe that our workforce education offerings, along with back-up care and early education, can be a vital element of an employer’s diversity, equity and inclusion strategy.

Our services not only help employers attract and retain employees from different backgrounds but, more importantly, can also help to propel the career growth and development of their employees.

Our employees benefit from comprehensive onboarding, ongoing in-center training, and access to an in-house online training university that offers nationally recognized child development credentials.

Furthermore, our innovative Horizons Teacher Degree Program fully funds U.S.-based educators in earning their child development associate certification, associate or bachelor’s degrees in early childhood education, reinforcing our standing as an employer of choice, while helping to retain and incentivize teachers to grow their careers at Bright Horizons.

Our Growth Strategy

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• Cross-Sell and Expand Services to Existing Employer Clients.

We believe there is a significant opportunity to increase the number of our clients that use more than one of our services and to expand the services we provide to existing clients.

Since going public in 2013, we have more than doubled the number of our clients who utilize more than one of our services to more than 480 clients as of December 31, 2023.

We believe there is a significant opportunity to increase the number of our clients that use more than one of our services through cross-selling and to expand the existing services we provide to current clients.

Over the past five years we have grown the number of clients purchasing more than one of our services by 50% to more than 480 clients at December 31, 2024.

• Continue to Expand Through the Assumption of Existing Sponsored Child Care Centers and Tuition Assistance Programs.

Periodically, we assume the management of existing child care centers or tuition assistance programs from the incumbent management which enables us to develop new client relationships, typically with no capital investment and no purchase price payment.

Enable Continued Investments in Quality

We look for opportunities to invest in quality to ensure we fulfill our commitment to research-based early education excellence through enhanced curriculum and enrichment activities, teacher education and development programs, and ongoing program evaluation.

This helps strengthen our reputation and partnerships with our clients, their employees, and families.

For parents and families, we offer webinar series and monthly podcasts that reflect current issues facing families and provide parenting tips and insights.

We also share our curriculum with families at home through our online platforms.

We believe our strong reputation for high-quality services and facilities have helped support price increases for our services.

We are continually investing in technology and customer experience across our service lines in order to proactively support our clients and their employees for their education and care needs across career and life stages.

Increase Utilization at Existing Centers and Use of Back-up Care and Educational Advisory Services

Periodically, we assume the management of existing child care centers or tuition assistance programs from self-managed programs or from the incumbent administrator which enables us to develop new client relationships, typically with no capital investment and no purchase price payment.

Capital-Efficient Operating Model

We have a long history of proven financial results despite broader macro-economic fluctuations.

Our disciplined operating model drives sustainable growth while preserving attractive economics.

By leveraging employer sponsor funding for new center development and blending in-house operations with strategic third-party provider partnerships for back-up services, we have expanded our business with minimal capital investment.

This financial prudence has generated robust operating cash flows, reinforcing our competitive position and providing a strong foundation for future growth.

Increase Utilization in all Lines of Business and Investments in Growth

We focus on increasing enrollment and utilization levels in our profit and loss centers in order to achieve continued growth and improved center economics.

We look for opportunities to increase the use of our back-up care and educational advisory services, not only by growing client relationships, but also by driving expanded use with existing clients.

In recent years, we extended our back-up care offerings to include tutoring and pet care, and broadened our school-age camp programs addressing education and care needs while extending the ages covered by our services.

In recent years, we extended our back-up care offerings to include tutoring and pet care, and broadened our school-age programs addressing education and care needs while extending the ages covered by our services.

We continue to invest in new technologies to better support our full suite of services and to enhance our customers’ user experience to further drive utilization.

We have enhanced our marketing efforts with additional focus on driving awareness and use of our services to maximize occupancy levels in centers and deepen participant usage of back-up care and educational advisory services.

We invest in technology to better support our full suite of services to enhance our customers’ user experience, improve utilization levels of our services within our client workforces and across our existing client base, and deliver more efficient and automated support services.

Investments to leverage our web and mobile functionality across all of our services are designed to ensure that our key systems deliver value and provide us with the platform for growth.

We believe we are well-positioned to continue attracting new employer sponsors due to our extensive service offerings, established reputation, position as a quality leader, and track record of serving major employer sponsors for more than 35 years.

Selectively Add New Lease/Consortium Centers and Expand Through Acquisitions

Throughout the year, we review our center portfolio to ensure our center locations continue to be aligned with our strategy and evolving customer needs and demand, which may result in identifying new locations for center openings.

Historically, we have added between 10 and 15 new lease/consortium centers (as more fully described below) annually, focusing on urban and surrounding markets where demand and income demographics are generally more supportive of our high-quality centers.

While center openings and acquisitions have slowed since the pandemic as we have focused on rebuilding enrollment in our existing portfolio of centers, we have a long track record of successfully completing and integrating selective acquisitions across all business lines.

Historically, we have added between 10 and 15 new lease/consortium centers annually, focusing on urban and surrounding markets where demand and income demographics are generally more supportive of our high-quality centers.

While center openings and acquisitions have slowed as we have focused on increasing enrollment in our existing portfolio of centers, we have a long track record of successfully completing and integrating selective acquisitions across all business lines.

We have an established acquisition framework to effectively evaluate potential transactions with the goal of maximizing our return on investment while minimizing risk.

Over the last 10 years, we have completed the acquisition of approximately 330 child care centers in the United States, the United Kingdom, Australia and the Netherlands, as well as providers of back-up care services and educational advisory services in the United States and the United Kingdom, helping us expand our client base, enhance the scope and reach of our service offerings, broaden our technological capabilities, and offer new services.

The domestic and international markets for child care and other work and family support services remain highly fragmented and, as we look to fiscal 2025 and beyond, we will continue to seek attractive opportunities both for center acquisitions and the acquisition of complementary service offerings.

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Our services are designed to help families, employers, and their employees solve the challenges of the modern workforce across life and career stages.

Our services are comprised of full service center-based child care, back-up care, and educational advisory and other services, which are also our reportable segments.

Our services are comprised of full service center-based child care, back-up care, and educational advisory services, which are also our reportable segments.

Full service center-based child care includes traditional center-based early education and child care, preschool, and elementary education.

Back-up care includes center-based back-up child care, in-home care for children and adult/elder dependents, school-age camps, tutoring, pet care and self-sourced reimbursed care.

Educational advisory and other services consist of tuition assistance and student loan repayment program management, workforce education, related educational advising, college advisory services, and Sittercity, an online marketplace for families and caregivers.

Back-up care includes 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.

Educational advisory services consist of tuition assistance and student loan repayment program management, workforce education, related educational advising, and college admissions counseling services.

The following table sets forth our segment results for the year ended December 31, 2024:

child care Back-up care Educational

other services Total

advisory services Total

(In thousands, except percentages)

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We typically enter into leases with initial terms ranging from 10 to 15 years for these centers, often with renewal options.

When we open a new P&L center, it generally takes 2 to 3 years for the center to ramp up to a steady state level of enrollment, as a center will typically enroll younger children at the outset with children aging into the older (preschool) classrooms over time.

When we open a new P&L center, it generally takes two to three years for the center to ramp up to a steady state level of enrollment, as a center will typically enroll younger children at the outset with children aging into the older (preschool) classrooms over time.

We refer to centers that have been open for three years or less as “ramping centers.” A P&L center will typically achieve breakeven operating performance between 12 to 24 months and will typically achieve a steady state level of enrollment that supports our average center operating profit by the end of three years, although the time period needed to reach a steady state level of enrollment may be longer or shorter.

Centers that have been open more than three years are referred to as “mature centers.” In addition, we routinely review our portfolio of centers for opportunities to optimize our portfolio and to accommodate changes in demand and demographic shifts in the markets we serve, including closures of underperforming centers.

In the event of a closure, where possible, we seek to shift enrollment and teachers to other centers at nearby locations.

Centers that have been open more than three years are referred to as “mature centers.”

Cost Plus Model :

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The employer sponsor typically retains responsibility for the development of the child care center (which is owned or leased by the sponsor), as well as pre-opening capital equipment and ongoing maintenance and repair, and the center is profitable from the outset.

Our cost-plus contracts typically have initial terms ranging from 3 to 5 years with varying terms, renewal and termination options.

Our cost-plus contracts typically have initial terms ranging from three to five years with varying terms, renewal and termination options.

Under all model types, we retain responsibility for all aspects of operating the child care center, including hiring and paying employees, ongoing training, curriculum, contracting with vendors, purchasing supplies, and collecting tuition.

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Tuition at most of our early education and child care centers is payable in advance and is typically due monthly.

Annual revenue for mature centers typically averages between $1.9 million and $2.4 million at our centers in North America and averages between $1.4 million and $2.1 million at our international centers, which is primarily driven by the size and capacity of centers.

Our North American early education and child care centers have an average capacity of 130 children per location, while our international centers have an average capacity of 86 children per location.

Gross margins at our mature centers typically average between 20% and 25%, with our cost-plus model centers typically at the lower end of that range and our lease centers at the higher end.

In 2023, as our center operations continue to recover from the pandemic, annual revenue per center averaged approximately $2.0 million in North America and $1.5 million internationally, which in turn contributed to a contraction in gross margins to approximately 15% for the year.

Annual revenue for mature centers typically averages between $1.5 million and $2.5 million at our centers, which is primarily driven by the size and capacity of centers.

Gross margins at our mature centers typically average between 20% and 25%, with our cost-plus model centers typically at the lower end of that range and our lease model centers at the higher end.

Cost of services consists of direct expenses associated with the operation of early education and child care centers and is primarily comprised of personnel salaries and benefits, food costs, program supplies and materials, parent marketing, and facilities costs, which include occupancy costs and depreciation.

Personnel costs are the largest component of a center’s operating costs and typically comprise approximately 70% of a center’s operating expenses.

Personnel costs in centers operating under P&L models will often represent a lower percentage of overall costs when compared to centers operating under cost-plus models as we are often responsible for additional costs that are typically paid or provided directly by an employer sponsor in centers operating under the cost-plus model.

Personnel costs in centers operating under P&L models will often represent a lower percentage of overall costs when compared to centers operating under cost-plus models as we are often responsible for additional other costs that are typically paid or provided directly by an employer sponsor in centers operating under the cost-plus model.

Selling, general and administrative expenses (“SGA”) relating to full service center-based child care consist primarily of salaries and benefits (including stock-based compensation costs) for non-center personnel, which includes corporate, regional and business development personnel;

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Back-up Care Services

Back-up care offers family support services for dependents of all ages and provides coverage when regular care breaks down, as well as care coordination tools to assist families with their short and long-term care decisions.

We provide back-up care services for children (primarily 0-12 years old) through our own full service child care centers, dedicated back-up child care centers, school-age camps and programs, and in-home caregivers, as well as through our proprietary back-up care network of quality child care centers and in-home care providers.

In addition, we provide back-up care services for adults/elders through our proprietary network of quality in-home care providers, and we offer tutoring for school-age children and adult learners through our network of tutoring service providers and pet care through third-party providers.

We also help to facilitate back-up care services through our self-sourced reimbursed care program.

We provide back-up care services for children (primarily 0-12 years old) through our own full service child care centers, dedicated back-up child care centers, school-age programs (including camps), and in-home caregivers, as well as through our proprietary back-up care network of quality child care centers, camps and in-home care providers.

In addition, we provide back-up care services for seniors through our proprietary network of quality in-home care providers, tutoring for school-age children and adult learners through our network of tutoring service providers, pet care through third-party providers, and also help to facilitate back-up care services through our self-sourced reimbursed care program.

We also own and operate Sittercity, an online marketplace that helps families and caregivers find, among other things, child care (child care providers, babysitting/nannies), senior care and pet care services.

Traditional back-up care offers families access to a contracted network of more than 5,000 in-home care agencies and center-based providers in locations where we do not otherwise have centers with available capacity or available in-home caregivers.

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Self-sourced reimbursed care is an alternative care program, available to employer sponsors typically when other network care solutions are not available, which provides payments to their employees to assist with the cost of self-sourced dependent care.

As we continue to find innovative solutions to help families with their care needs, we have expanded our back-up care solutions to include tutoring and broader school-age camp programs which primarily operate during school vacations and the summer months.

Care is arranged online or via our mobile app as well as through a 24/7 contact center, allowing users to reserve care in advance or at the last minute.

We operate our own contact center in Broomfield, Colorado and we contract with additional contact centers in other geographies to complement our ability to handle demand fluctuations, provide business continuity, and deliver seamless service.

Back-up care solutions includes broader school-age programs, such as camps and tutoring, with camps primarily operating during school vacations and the summer months.

Back-up care requests are arranged online or via our mobile app as well as through a 24/7 contact center, allowing users to reserve care in advance or at the last minute.

We operate our own contact center and we contract with additional contact centers in other geographies to complement our ability to handle demand fluctuations, provide business continuity, and deliver seamless service across time zones.

Back-up care revenue is comprised of fees paid by employer sponsors and, to a lesser extent, co-payments collected from users at the time of service.

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Fees for back-up care services are typically determined based on the number of back-up care uses purchased and may be fixed for a specified number of contracted uses or variable for pay-per-use contracts.

Cost of services consist of direct expenses associated with the operation of dedicated back-up child care centers, fees paid to providers for care delivered as part of their contractual relationships with us, personnel and related direct service costs of the contact centers, and any other expenses related to the coordination or delivery of care and service.

Cost of services consist of direct expenses associated with the operation of child care centers, fees paid to providers for care delivered as part of their contractual relationships with us, personnel and related direct service costs of the contact centers, and any other expenses related to the coordination or delivery of care and service.

SGA related to back-up care is similar to SGA for full service center-based child care, with additional expenses related to the technology necessary to operate this service, the ongoing development and maintenance of the provider network, and additional personnel needed as a result of more significant client management and reporting requirements.

Educational Advisory and Other Services

Our educational advisory services primarily consist of EdAssist and College Coach.

Educational Advisory Services

Our educational advisory services consist of EdAssist and College Coach.

Educational advisory services revenue is comprised of fees paid by employer clients for policy consulting, program management, coaching, subscription content and, to a limited extent, retail fees collected from users at the point of service.

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Program management services are provided through proprietary software for the processing of tuition reimbursement, loan repayment transactions, and analysis of data.

We provide educational advising to our client’s employees on a one-on-one basis through our team of advisors who help users make better decisions regarding their education and financial wellness.

We provide educational advising to our client’s employees on a one-on-one basis through our team of advisors who help users make informed decisions regarding their education and financial wellness.

Clients can also leverage our EdAssist Education Network of education providers and benefit from pre-negotiated tuition discounts.

Customer service is also provided through our contact center in Broomfield, Colorado.

EdAssist services derive revenue directly from fees paid by employers.

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College Coach derives revenue mainly from employer clients who contract with us for a specified number of workshops, access to our proprietary online learning center, and one-on-one advising.

Other Services.

Other services consists of Sittercity, an online marketplace for families and caregivers.

Sittercity revenue is generated from subscriptions to a proprietary online search platform and marketplace that helps families find, among other things, child care (child care providers, babysitting/nannies), elder care and pet care services.

Effective January 1, 2024, we realigned our organizational structure to better reflect synergies across certain business lines and, as a result, the Sittercity operations will now be included in the back-up care reportable segment.

We operate in two primary regions:

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As a percentage of total fixed assets, net 55 % 45 % 100 %

Our international business primarily consists of child care centers throughout the United Kingdom, the Netherlands, and Australia, with approximately 95% of the revenue generated related to the full service center-based child care segment.

Our international business primarily consists of child care centers throughout the United Kingdom, the Netherlands, and Australia, with 92% of the revenue generated related to the full service center-based child care segment.

As of December 31, 2024, we had 599 centers in North America and 420 international centers.

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Use of our back-up care services tends to be higher when schools are not in session and during holiday periods, which can increase the operating costs of the program and impact the results of operations.

Educational advisory and other services generally have limited seasonal fluctuations.

Educational advisory services generally have limited seasonal fluctuations.

Results of operations may also fluctuate from quarter to quarter as a result of, among other things, the performance of existing centers, including enrollment and staffing fluctuations, the number and timing of new center openings, additions from acquisitions and center management transitions, the timing of new client launches in our back-up and educational advisory services, the length of time required for new centers to achieve profitability, center closings, the contract model mix (P&L versus cost-plus) of new and existing centers, the level of sponsorship payments, and general economic conditions.

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Our senior leaders are involved at the national level with education, work/life and early child care advocacy, and we believe that their visibility and involvement helps attract new business.

We conduct our annual Modern Family Index and The Education Index, capturing snapshots of sentiments of critical market sectors at a particular moment in time.

We believe that o ur proprietary research, events, and the availability of uniquely knowledgeable industry leaders help sustain our brand awareness and position Bright Horizons as a thought leader in the markets where we operate.

For employer sponsors and their employees , we conduct our annual Modern Family Index and The Education Index, capturing snapshots of sentiments of critical market sectors at a particular moment in time.

For parents and families, we offer webinar series as well as monthly podcasts that reflect current issues facing families.

Timely Approaches that Evolve with the Workplace

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We partner with employer sponsors to promote our early education and child care centers and other workplace solutions as important employee benefits within their organizations.

My Bright Horizons is a portal for our clients’ employees to instantly access all their Bright Horizons benefits, and BH Central is a self-service portal for client liaisons to track real-time benefit use and access materials to support internal marketing efforts, including a newsletter with tailored resource content.

My Bright Horizons is a portal for our clients’ employees to instantly access their Bright Horizons benefits, and BH Central is a self-service portal for client liaisons to track real-time benefit use and access materials to support internal marketing efforts, including a newsletter with tailored resource content.

Other efforts include local digital advertising, partnerships with parent groups, social efforts, direct mail, and webinars.

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Our principal competitors for employer-sponsored centers include KinderCare Education in the United States and Busy Bees in the United Kingdom.

We also compete for enrollment on a center-by-center basis with these providers, along with many local and national providers, such as Affinity Education Group, Childbase, CompaNanny, G8 Education, Goddard Schools, Goodstart Early Learning, Guardian Childcare & Education, Learning Care Group, Primrose Schools, and KidsFoundation.

We also compete for enrollment on a center-by-center basis with these providers, along with many local and national providers, such as Affinity Education Group, CompaNanny, G8 Education, Goddard Schools, Goodstart Early Learning, Guardian Childcare & Education, KidsFoundation, Kids Planet, Learning Care Group, Partou, and Primrose Schools.

Competition for back-up care comes from IAC/Interactivecorp (Care.com) in addition to employee assistance programs and smaller work/life companies.

In the educational advisory segment competition comes from EdCor, Guild Education and InStride as well as other smaller providers entering the market.

In the educational advisory segment competition comes from EdCor, Guild Education, InStride, and Tuition.io as well as other smaller providers entering the market.

We believe the key factors in the competition for enrollment are quality, site convenience and cost.

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While our child care tuition levels are generally higher than our competitors, we compete primarily based on the convenience of a location at or near a worksite and a higher level of program quality.

In addition, some of our competitors may benefit from strong local name recognition (such as established regional providers) or comply, or are required to comply, with fewer or less costly health, safety, and operational regulations than those with which we comply (such as the more limited health, safety and operational regulatory requirements typically applicable to family day care operations in caregivers’ homes).

In addition, some of our competitors may benefit from strong local name recognition or comply, or are required to comply, with fewer or less costly health, safety, and operational regulations than those with which we comply (such as the more limited health, safety and operational regulatory requirements typically applicable to family day care operations in caregivers’ homes).

We believe that our primary focus on serving employer clients, underscored by our track record for achieving and maintaining high-quality standards, also distinguishes us from our competitors.

We have and continue to invest in technology to better support our full suite of services to enhance our customers’ user experience, improve utilization levels of our services within our client workforces and across our existing client base, and deliver more efficient and automated support services.

Investments to leverage our web and mobile functionality across all of our services are designed to ensure that our key systems deliver value and provide us with the platform for growth.

Human Capital Management

We know that education and care can change lives, and for over 35 years Bright Horizons has been changing the way families live and work.

Education and care can change lives, and for more than 35 years Bright Horizons has been changing the way families live and work.

To achieve this mission and to deliver results, we put our HEART principles at the forefront of everything we do.

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Corporate, divisional and regional staff members make up our “Home Team” employees, and staff members working at our early education and child care centers, including teachers and support personnel, and in-home caregivers make up our “Field” employees.

Employees who worked at one child care center, which has been closed since the pandemic and remains closed, were represented by a labor union.

We believe employers across industries are looking to deploy creative solutions to address labor challenges, enhance their employee value proposition and provide benefits for their workforce to enable their employees to excel both personally and professionally.

While our broad suite of solutions positions us well to assist employers with these strategies, our own services and solutions serve as a significant element of our own talent management strategy.

Talent Acquisition

Currently, there are no active labor unions.

Our People Practices

More than 1,450 leading employers trust us for proven solutions that support employees, advance careers, and maximize employee performance, and we offer our own employees the solutions and services we offer to our clients.

From on-site child care, to back-up care that addresses gaps in child care, to education programs that build critical skills, we believe our service offerings help our employees achieve more.

Our business is about people serving people, and our success depends on attracting, developing and retaining talented and highly qualified employees.

We are continually investing in resources and creating programs to drive diversity, equity and inclusion, to provide fair and competitive pay and benefits to support our employees’ well-being, and to foster personal growth and career development opportunities.

We endeavor to create an environment that rewards performance, enhances our culture and employee experience, and retains and engages our talent.

In 2023, we continued our talent acquisition campaign to recruit teachers and staff and have enhanced the candidate and new hire experience through ongoing initiatives such as our 100 Days of Heart onboarding program and streamlining our hiring process through an optimized candidate scheduling experience.

We continue to invest in our recruitment strategy by launching an alumni recruitment portal and establishing a dedicated campus recruitment team focused on attracting both high school graduates and college-degreed early childhood candidates.

As part of our continued commitment to support the well-being of our Bright Horizons team, and to help address the challenges in recruiting and retaining top talent, we continue to make investments with respect to eligible employees in certain markets to further strengthen our position as an employer of choice.

This includes expanding benefits such as Paid Parental Bonding Leave and increasing pay through targeted off-cycle market adjustments for teachers and staff.

Our Benefits and Total Rewards

More than 1,450 top employers trust us for proven solutions that support employees, advance careers, and maximize employee performance, and we offer our own employees the solutions and services we offer to our clients.

From on-site child care to back-up care to help handle disruptions in child care gaps, and education programs that build critical skills, we believe our service offerings help our employees achieve more.

We also offer a comprehensive total rewards program aimed at addressing varying health, home-life and financial needs.

Our total rewards package, which may vary by geography, includes:

We are continually investing in resources and creating programs to build culture, to provide fair and competitive pay, to offer benefits to support our employees’ well-being, and to foster personal growth and career development opportunities.

We endeavor to create environments that attract, retain and engage our talent, enhance our culture and employee experience, and reward performance.

Talent Acquisition and Total Rewards

We deploy proven solutions that recruit talent, support employees, advance careers, and maximize employee performance.

Through ongoing initiatives such as our 100 Days of Heart onboarding program, our employee referral program, our alumni recruitment portal, and partnerships with high schools, colleges and universities, Bright Horizons and our dedicated talent acquisition team help address the challenges in attracting top talent in our field.

We offer a comprehensive total rewards program aimed at addressing the varying health, financial and well-being needs of our employees.

Our total rewards package, which may vary by geography and employee, includes:

• Competitive pay and healthcare benefits;

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• Paid parental bonding leave.

We believe our total rewards package for teachers and center staff is robust and helps attract and retain teachers in the industry.

Our Award Winning Culture

We are honored and proud to have a long track record of being named an employer of choice.

The following represent some of our most recent awards related to culture, diversity and inclusion that we believe are a product of the strong culture we have built at Bright Horizons and the programs and benefits we offer to our employees.

These honors are awarded based largely on employee responses to surveys.

• “Top Places to Work” by the Boston Globe Awarded 14 times — most recently in 2023

• “Best Workplaces” in the United Kingdom by the Great Place to Work Institute Awarded 18 times — most recently in 2023

• Forbes 2023 Best Employers for Diversity

• 2023 “Best Workplaces for Women” by the Great Place to Work Institute in the United Kingdom

• Human Rights Campaign Foundation’s Corporate Equality Index 2023

• 2023 “Best Workplaces for Wellbeing” by the Great Place to Work Institute in the United Kingdom

• 2023 “Best Places to Work” by the Boston Business Journal

• “Best Workplaces” in the Netherlands by the Great Place to Work Institute Awarded eight times — most recently in 2022

• Named “100 Best Companies to Work For” by FORTUNE magazine 20 times — most recently in 2021

Our Diversity, Equity and Inclusion Focus

At Bright Horizons, diversity, equity and inclusion are core priorities that we believe are critical to our long-term success by improving the work we do, the services we provide, and the value we create.

We are an organization made up of employees, children and families from many cultures, backgrounds and experiences, and we believe it is vital to have a workplace where all employees feel welcome, comfortable and have a sense of belonging and where everyone's unique differences are celebrated and valued.

As an organization built around people, having diverse talent at the Board of Directors level and throughout our organization helps us recruit and retain talent, reduce turnover, and enhance all our offerings and service lines as well as the education we deliver daily to children and families.

As an organization that values our supplier partnerships, through our U.S.

Supplier Diversity Policy we seek to contract with a diverse range of suppliers and promote the participation and selection of qualifying small and diverse businesses to better support and serve our clients, employees and our overall community.

Our inclusion statement, in which we are committed to creating inclusive environments where everyone has a sense of belonging and has the opportunity to contribute and thrive in meaningful and impactful ways, guides and defines our diversity, equity and inclusion initiatives.

To bring this vision to life, we leverage the groups below to facilitate interactive activities, ignite and engage in bold conversations, and lead webinars and discussion groups:

• Inclusion Steering Committee — comprised of senior leaders and executive officers who inform the strategy for Bright Horizons’ overall diversity, equity and inclusion initiatives.

• Inclusion Council — includes representatives from Bright Horizons business units and functional departments, executive members, and co-chairs of our eight employee resource groups, and is guided by the Inclusion Steering Committee aimed at creating accountability for how we progress in this area throughout the organization.

• Employee Resource Groups — voluntary, company-sponsored, internal associations dedicated to fostering a diverse and inclusive work environment within the context of Bright Horizons’ mission, values, goals, business practices, and objectives.

As of December 31, 2023, workforce diversity representation was approximately as follows:

Career Development and our Horizons Teacher Degree Program

We invest in our employees’ career growth.

Employee training and development opportunities are critical to our success as they help develop leaders within our organization and support the delivery of quality services to our clients, and the families and learners we serve.

We provide a robust, ongoing employee training and career development program that is available to employees through our online training university.

Our blended learning approach means employees have a selection of different learning methods available to them, including live interactive online webinars, in person training, eLearning modules, and videos.

We are also invested in long-term employee success and are committed to advancing talent from within by developing the next generation of leaders at Bright Horizons.

By creating clear pathways for career development, through leadership training and development, we support and encourage upward career mobility in both our Field operations and throughout our Home Team.

A central program offering is our Horizons Teacher Degree Program .

The program, which is a first-of-its-kind offering in the early education field, removes financial barriers for employees pursuing a degree, by allowing employees to earn a CDA (“child development associate”), associate or bachelor’s degree in early childhood education at no-cost and with no out-of-pocket expenses, including tuition, fees and books.

Through the Horizons Teacher Degree Program , approximately 3,500 teachers have enrolled in the program and almost 1,000 teachers have received their associate’s or bachelor’s degrees.

Employee Engagement

At Bright Horizons gathering continuous feedback is an essential part of our culture.

We regularly listen to employees through our annual employee experience survey and through other periodic surveys and forums.

Hearing directly from our employees helps us understand the employee experience, including evolving priorities related to workplace environment, employee relations, pay and benefits, flexibility, and career growth opportunities, all of which are critical to our mission to remain an employer of choice and a great place to work.

We champion a culture of belonging and appreciation through our engagement programs, including Better Together activities and through the Bright Horizons Foundation for Children®.

Better Together

Culture and Inclusion

Bright Horizons is an organization made up of employees, children and families from many cultures, backgrounds and experiences.

We believe that fostering a workplace where all employees feel welcome and have a sense of belonging, as well as where everyone's unique differences are celebrated and valued, is vital to the Bright Horizons mission and culture.

We look to create open and inclusive environments for all of our employees by listening to our people, utilizing our employee resource groups, which are open to all employees, and deepening cultural awareness through learning opportunities.

We believe our approach to building and maintaining a strong culture and inclusive environment helps us recruit and retain talent, reduce turnover, and enhance all of our offerings and service lines as well as the education and services we deliver daily to children and families.

As of December 31, 2024, our workforce composition was approximately as follows:

Women (Global) (1)

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(4) Senior leader is defined as Vice President and equivalent, and above, and includes executive officers.

Our Board of Directors is comprised of 50% women and 20% non-white members.

Our Investment in Career Growth and Professional Development and our Horizons Teacher Degree Program

We invest in our employees’ career growth.

Employee training and development opportunities are critical to our success as they drive our employees’ growth, help develop leaders within our organization, and support the delivery of quality services to our clients, and the families and learners we serve.

We provide a robust ongoing employee training and career development program that is available to employees through our online training university.

Our blended learning approach means employees have a selection of different learning methods available to them, including live interactive online webinars, face-to-face training for a variety of topics in multiple venues, eLearning modules, and videos.

We employ targeted development programs focused on critical talent segments to create a robust pipeline for leadership positions throughout the organization.

We support our teachers’ development through a number of programs and resources, including an extensive training curriculum and, in the United States, our eCDA (“child development associate”) program to enable us to deliver high quality services.

A central program offering is our Horizons Teacher Degree Program .

The program, which is a first-of-its-kind offering in the early education field, removes financial barriers for employees pursuing a degree, including those posed by traditional tuition reimbursement programs, by allowing employees to earn an associate and bachelor’s degree in early childhood education at no-cost.

Participants do not have to pay for any expenses out-of-pocket, including tuition, fees and books.

Since its inception in 2018, more than 2,500 teachers have enrolled and more than 750 have graduated.

Our Employee Engagement

Retaining and developing our workforce starts with our employees.

At Bright Horizons gathering continuous feedback is an essential part of our culture.

We regularly listen to employees through our periodic surveys and forums, such as our employee resource groups.

Hearing directly from our employees helps us understand the employee experience, including evolving priorities related to workplace environment, employee relations, pay and benefits, flexibility, and career growth opportunities, all of which are critical to our mission to be and remain an employer of choice and a great place to work.

We survey employees annually to ensure that we continue to support their needs and focus on their priorities and we periodically deploy shorter pulse surveys to ensure our action planning is realizing the desired impact.

This approach enables us to act on real-time information and to take targeted action in response to feedback, such as expanding our benefits and compensation opportunities and creating enhanced supports for career development.

We champion a culture of belonging and appreciation and community through our engagement programs, including Better Together and the Bright Horizons Foundation for Children ® .

Our Citizenship

Our most recent Equal Employment Opportunity consolidated report is posted on our Investor Relations page of our website at investors.brighthorizons.com under “Governance & Responsibility – EEO-1.”

Community and Citizenship

We support the communities in which we work and live, and we actively encourage our employees to do the same.

We proudly stand with our many employees who give their time to non-profit organizations, awarding grants to their chosen charities in recognition of their volunteer work in their communities through the Bright Horizons Foundation for Children ® .

We also work alongside our employees to support the Foundation’s important mission to bring Bright Spaces ® to children and families in homeless shelters and other community agencies helping at-risk children and families, supporting our employees’ on service projects with Brightening Lives activity grants and Field and Home Team fundraising events.

We proudly stand with our many employees who support the Bright Horizons Employee Relief Fund which offers financial assistance to employees recovering from catastrophic events, and we proudly support our many employees who give their time to non-profit organizations, awarding grants to their chosen charities through the Bright Horizons Foundation for Children® in recognition of their volunteer work in their communities.

We collaborate with our employees to advance the Foundation’s mission of creating Bright Spaces for at risk children and families in homeless shelters and other community organizations that serve families in need.

We do this by supporting our employees’ service projects through Brightening Lives activity grants and Field and Home Team fundraising events.

Our Award Winning Culture

We are honored and proud to have a long track record of being named an employer of choice.

The following awards represent a recognition of the strong culture we have built at Bright Horizons and the programs and benefits we offer to our employees.

These honors are awarded based largely on employee responses to surveys.

• 2024 “Top Places to Work” by the Boston Globe — Awarded 15 times

• “Top Workplaces 2024” by the Denver Post — Awarded 10 times

• 2024 “Best Workplaces” in the United Kingdom by the Great Place to Work Institute — Awarded 19 times

• 2024 “Best Workplaces for Women” by the Great Place to Work Institute in the United Kingdom

• 2024 “Best Workplaces for Development” by the Great Place to Work Institute in the United Kingdom

• 2024 “Best Workplaces for Wellbeing” by the Great Place to Work Institute in the United Kingdom

• 2025 “Best Workplaces for Women” in the Netherlands by the Great Place to Work Institute

Intellectual Property

We believe our name and logo have significant value to our operations.

We own and use various registered and unregistered trademarks covering the names Bright Horizons ® and Bright Horizons Family Solutions ® , our logo, and a number of other names, slogans and designs in the U.S.

We frequently license the use of our registered trademarks to our clients in connection with the use of our services, subject to customary restrictions.

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Our protocols were developed in consideration of state and local public health guidelines and our partnership with medical professionals and experts that specialize in pediatric infectious diseases.

We have health and safety personnel and a Vice President of Global Safety dedicated to supporting our centers and other operations to ensure compliance with our policies and practices, and to ensure that we set the highest standards in all areas.

Our health and safety team is dedicated to supporting our centers and other operations to ensure compliance with our policies and practices, and to ensure that we set the highest standards in all areas.

We employ a variety of security measures at our early education and child care centers, including secure electronic access systems.

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Our early education and child care centers are designed to minimize the risk of injury to children by incorporating features such as child-sized amenities, rounded corners on furniture and fixtures, age-appropriate toys and equipment and cushioned fall zones surrounding play structures.

Each center is further guided by policies and procedures that address protocols for safe and appropriate care of children and center administration.

Each center is further guided by policies and procedures that address protocols for the safe and appropriate care of children and center administration.

These policies and procedures establish protocols in various areas, including the safe handling of food and medications, managing child illness or health emergencies, and a variety of other critical aspects of care to ensure that centers meet or exceed all mandated licensing standards.

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We have no known material environmental liabilities at this time.

In addition, we expect to be required to comply over time with new and changing legislation and regulations, both in the U.S.

and in other jurisdictions in which we operate, in response to climate change.

In addition, we expect to be required to comply over time with new and changing legislation and regulations, both in the United States and in other jurisdictions in which we operate, in response to climate change.

Our early education and child care centers vary in location as well as design and capacity in accordance with industry standards and local regulatory requirements.

Our North American early education and child care centers typically have an average capacity of 130 children, and our international locations have an average capacity of 86 children.

Our North American early education and child care centers typically have an average capacity of approximately 130 children, and our international locations have an average capacity of approximately 90 children.

As of December 31, 2024, our early education and child care centers had a total licensed capacity of approximately 115,000 children, with the smallest center having a capacity of 10 children and the largest having a capacity of approximately 500 children.

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We file or furnish reports and other information with the Securities and Exchange Commission (“SEC”) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”).

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports are available free of charge on the Investor Relations section of our website, www.brighthorizons.com , as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC.

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports are available free of charge on the Investor Relations section of our website, investors.brighthorizons.com , as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC.

Information filed electronically with, or furnished to, the SEC is also available at www.sec.gov .

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business