Free cash flow remains highly inconsistent, evidenced by a swing from a $115.4M inflow in 2025Q2 to a $42.4M outflow in 2025Q3, complicating long-term capital planning.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 369.22M | 347.68M | 337.46M | 256.14M | 188.47M | 227.25M | 209.57M | 330.35M | 294.75M | 236.27M | 211.52M | 171.08M | 174.3M | 159.68M | 106.98M | 133.57M | 77.63M | 54.66M | 50.12M | 37.27M | 30.75M | 46.07M | 31.09M | 16.95M | 15.23M | 9.2M |
| Operating CF Margin % | - | 11.85% | 12.56% | 10.59% | 9.33% | 12.95% | 13.83% | 16.02% | 15.49% | 13.57% | 13.47% | 11.73% | 12.88% | 13.1% | 9.99% | 13.72% | 10.02% | 7.83% | 8.02% | 6.76% | 6.5% | 11.31% | 8.99% | 5.82% | 6.26% | 4.4% |
| Operating CF Growth % | -29.03% | 3.03% | 31.75% | 35.9% | -17.07% | 8.44% | -36.56% | 12.08% | 24.75% | 11.7% | 23.64% | -1.85% | 9.15% | 49.26% | -19.91% | 72.05% | 42.02% | 9.07% | 34.46% | 21.23% | -33.26% | 48.21% | 83.37% | 11.33% | 65.49% | - |
| Net Income | 226.81M | 193.12M | 140.19M | 74.05M | 80.64M | 70.46M | 26.99M | 180.39M | 157.98M | 156.96M | 94.76M | 93.93M | 72.03M | 12.34M | 8.51M | 4.76M | 39.13M | 41.72M | 36.7M | 27.33M | 20.01M | 15.32M | 11.53M | 9.21M | 7.93M | 474K |
| Depreciation & Amortization | 94.76M | 93.4M | 97.92M | 110.68M | 106.14M | 108.83M | 111.66M | 108.27M | 100.94M | 94.78M | 85.28M | 78.67M | 77.45M | 72.81M | 61.35M | 55.45M | 23.74M | 18.86M | 14.51M | 12.36M | 11.03M | 9.76M | 9.78M | 7.53M | 4.91M | 3.92M |
| Stock-Based Compensation | 21.78M | 30.61M | 33.62M | 28.83M | 28.11M | 23.06M | 21M | 17.28M | 13.81M | 12.07M | 11.65M | 9.2M | 7.92M | 10.69M | 17.6M | 1.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -1.44M | -2.28M | -9.93M | -11.72M | -9.64M | -5M | -12.28M | -11.34M | -5.47M | -37.56M | -12.12M | -758K | -11.3M | -13.41M | -12.04M | -5.87M | -4.65M | 263K | -5.25M | -987K | -496K | -2.19M | -2.45M | -2.29M | -1.91M | -1.26M |
| Other Non-Cash Items | 62.12M | 47.63M | 41.38M | 48.57M | 23.4M | 22.85M | 31.75M | -555K | 3.82M | 10.66M | 17.05M | 6.9M | 6.87M | 69.3M | 31.42M | 27.32M | 3.39M | 2.64M | 6.65M | 165K | 4.84M | 7.32M | 184K | 789K | 230K | 1.25M |
| Working Capital Changes | -34.81M | -14.8M | 34.29M | 5.72M | -40.18M | 7.05M | 30.44M | 36.31M | 23.66M | -639K | 14.9M | -16.86M | 21.33M | 7.94M | 158K | 50.75M | 16.02M | -8.82M | -2.49M | -1.59M | -4.64M | 15.86M | 12.04M | 1.72M | 4.07M | 4.81M |
| Change in Receivables | -6.27M | 0 | -993K | -64.5M | -4.88M | -34.62M | -27.47M | -15.72M | -14.5M | -18.69M | -78K | -13.66M | -4.6M | -11.46M | -1.58M | -1.49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -6.24M | 10.82M | 8.2M | 10.17M | 2.82M | 3.71M | -6.9M | 3.61M | -18.78M | -218K | 28.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 14.26M | 0 | 30.64M | 26M | 19.96M | 6.24M | 23M | 9.03M | 15.91M | 5.91M | -6.86M | -6.45M | 9.59M | 365K | 1.16M | 13.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -108.76M | -103.79M | -117.76M | -126.94M | -278.05M | -117.39M | -83.83M | -189.07M | -158.54M | -105.32M | -302.84M | -156.39M | -78M | -201.13M | -180.89M | -94.99M | -50.98M | -58.13M | -64.92M | -33.87M | -35.22M | -31.61M | -22.17M | -28.33M | -20.4M | -17.23M |
| Capital Expenditures | -96.21M | -91.32M | -97.31M | -91.02M | -70.56M | -63.49M | -84.74M | -104.77M | -91.43M | -83.84M | -74.1M | -77.73M | -65.81M | -69.32M | -69.09M | -42.52M | -41.85M | -32.72M | -15.6M | -12.97M | -19.05M | -17.03M | -21M | -19.68M | -18.06M | -13.34M |
| CapEx % of Revenue | 3.23% | 3.11% | 3.62% | 3.76% | 3.49% | 3.62% | 5.59% | 5.08% | 4.8% | 4.82% | 4.72% | 5.33% | 4.86% | 5.69% | 6.45% | 4.37% | 5.4% | 4.69% | 2.49% | 2.35% | 4.03% | 4.18% | 6.07% | 6.76% | 7.42% | 6.37% |
| Acquisitions | -6.78M | -6.78M | -8.27M | -39.63M | -210.41M | -53.9M | -8.25M | -59.29M | -67.11M | -21.48M | -228.74M | -78.66M | -12.19M | -129.81M | -111.83M | -57.33M | -9.18M | -24.77M | -54.92M | -20.99M | -16.53M | -14.62M | -1.16M | -8.17M | -1.96M | -3.62M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -7.87M | 0 | 2.04M | 225K | 4.63M | 5.83M | 11.91M | -3M | 1.83M | 0 | 0 | 0 | 0 | 189K | 21K | 4.85M | 50K | -646K | 5.61M | 84K | 363K | 43K | 0 | -482K | -375K | -272K |
| Cash from Financing | -250.29M | -230.38M | -183.81M | -91.63M | -121.34M | -230.03M | 229M | -149.13M | -134.19M | -123.86M | 93.75M | -90.58M | -36.42M | 36.76M | 77.2M | -23.28M | -25.18M | -11.48M | -5.55M | 4.95M | 10.05M | 772K | -4.73M | 7.21M | -2.52M | 3.08M |
| Debt Issued (Net) | 1.13B | -1.55M | -17M | -100M | 68M | -42.39M | -10.75M | -128.61M | -19.65M | 43.04M | 186.96M | 14.45M | 153.9M | -211.01M | 76.85M | -23.43M | -4.47M | -640K | -778K | -743K | 2.09M | -1.08M | -6.54M | 4.64M | -547K | -235K |
| Equity Issued (Net) | -426.83M | -213.35M | -57.59M | 11.18M | -182.57M | -176.33M | 217.13M | -4.99M | -103.75M | -135.21M | -109.11M | -124.24M | -216.87M | 234.94M | -5.14M | 59K | -757K | -48.45M | -4.77M | 5.7M | 7.97M | 1.85M | 1.8M | 2.57M | -1.97M | 3.31M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -430.63M | -225.41M | -84.6M | 0 | -182.57M | -213.83M | -32.66M | -31.55M | -126.68M | -162.19M | -112.79M | -128.1M | -221.58M | 0 | -5.14M | 0 | -5.2M | -54.05M | -11.23M | 0 | 0 | -479K | 0 | 0 | -7.08M | -1.13M |
| Other Financing | -949.04M | -15.47M | -109.22M | -2.82M | -6.77M | -11.31M | 22.61M | -15.53M | -10.8M | -4.71M | 15.91M | 19.21M | 26.55M | 12.82M | 5.5M | 93K | -19.96M | 37.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 12.22M | 18.52M | 34.26M | 37.56M | -213.39M | -123.18M | 357.27M | -7.29M | 1.91M | 8.59M | 1.32M | -76.35M | 58.3M | -4.52M | 3.66M | 15.01M | 1.84M | -14.54M | -20.82M | 8.57M | 5.71M | 15.42M | 4.17M | -4.15M | -7.69M | -4.95M |
| Free Cash Flow | 273.02M | 256.36M | 240.15M | 165.12M | 117.92M | 163.76M | 124.83M | 225.59M | 203.31M | 152.44M | 137.42M | 93.34M | 108.49M | 90.36M | 37.9M | 91.05M | 35.79M | 21.95M | 34.52M | 24.3M | 11.7M | 29.05M | 10.08M | -2.72M | -2.83M | -4.14M |
| FCF Margin % | 9.17% | 8.74% | 8.94% | 6.83% | 5.84% | 9.33% | 8.24% | 10.94% | 10.68% | 8.76% | 8.75% | 6.4% | 8.02% | 7.41% | 3.54% | 9.35% | 4.62% | 3.15% | 5.52% | 4.41% | 2.47% | 7.13% | 2.91% | -0.94% | -1.16% | -1.98% |
| FCF Growth % | 27.48% | 6.75% | 45.44% | 40.03% | -28% | 31.19% | -44.66% | 10.95% | 33.38% | 10.93% | 47.22% | -13.96% | 20.06% | 138.44% | -58.38% | 154.43% | 63.05% | -36.42% | 42.03% | 107.77% | -59.73% | 188.15% | 470.08% | 3.78% | 31.57% | - |
| FCF per Share | 4.99 | 4.46 | 4.11 | 2.85 | 2.02 | 2.69 | 2.07 | 3.83 | 3.45 | 2.53 | 2.27 | 1.50 | 1.61 | 1.40 | 0.59 | 1.99 | 1.33 | 0.80 | 1.22 | 0.87 | 0.44 | 2.23 | 0.79 | -0.22 | -0.22 | -0.33 |
| FCF Conversion (FCF/Net Income) | 1.20x | 1.80x | 2.41x | 3.46x | 2.34x | 3.23x | 7.76x | 1.83x | 1.87x | 1.51x | 2.23x | 1.82x | 2.42x | 12.65x | 13.11x | 28.07x | 1.98x | 1.31x | 1.37x | 1.36x | 1.54x | 3.01x | 2.70x | 1.84x | 1.92x | 19.41x |
| Interest Paid | 0 | 0 | 73.9M | 74M | 40.87M | 32.24M | 35.35M | 43.05M | 46.12M | 44.46M | 37.09M | 38.11M | 32.47M | 34.93M | 51.97M | 54.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 75.65M | 58.74M | 50.2M | 31.66M | 10.98M | 50.55M | 41.94M | 31.29M | 34.67M | 49.82M | 41.71M | 13.93M | 12.82M | 3.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
According to recent financial disclosures, BFAM's OCF/NI ratio has exhibited extreme volatility, ranging from -0.22 to 17.23, which suggests that reported net income is a poor proxy for the company's actual ability to generate cash from its core child care and advisory operations.
The significant divergence between net income and operating cash flow indicates that non-cash accruals and timing differences in revenue recognition are heavily influencing the bottom line. Investors should monitor whether this instability reflects genuine operational friction or merely the accounting treatment of enterprise-level service contracts.
As reported in quarterly filings, BFAM's free cash flow trajectory remains inconsistent, with negative FCF margins of -5.3% in 2025Q3 contrasting sharply with positive margins exceeding 15% in other periods, highlighting the sensitivity of cash generation to seasonal enrollment cycles and operational cost spikes.
The inability to maintain a stable FCF margin suggests that the company's high fixed-cost base leaves little room for error during periods of lower center utilization. This erratic cash flow profile complicates the assessment of the company's long-term ability to self-fund its growth initiatives without relying on external financing.
Based on the provided cash flow statements, working capital changes have been a major source of quarterly variance, including a significant $115.0M outflow in 2025Q3, which suggests that the timing of corporate payments and tuition collections is not yet optimized for consistent cash flow generation.
These large swings in working capital appear to be the primary driver of the company's inconsistent operating cash flow. Further investigation is warranted to determine if these fluctuations are tied to the specific payment terms of enterprise contracts or if they indicate underlying inefficiencies in the collections process.
As evidenced by recent SEC filings, BFAM has prioritized share repurchases, including a $224.8M outflow in 2026Q1, even as operating cash flow remains subject to significant quarterly volatility, which may indicate a management preference for capital returns over maintaining a conservative liquidity buffer.
The decision to deploy substantial capital toward buybacks during periods of inconsistent cash generation warrants scrutiny regarding the company's long-term capital allocation strategy. This approach may limit the firm's flexibility to address potential labor cost inflation or future facility investment needs.
Quick answers to the most common questions about buying BFAM stock.
Bright Horizons Family Solutions Inc. (BFAM) generated $347.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Bright Horizons Family Solutions Inc. (BFAM) generated $256.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Bright Horizons Family Solutions Inc. (BFAM) spent $91.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Bright Horizons Family Solutions Inc. (BFAM) spent $225.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.