Do You Believe in the Long-Term Growth of Bright Horizons Family Solutions (BFAM)?

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Bright Horizons Family Solutions Inc. (NYSE:BFAM). Bright Horizons Family Solutions Inc. (NYSE:BFAM), with a market capitalization of $6.486 billion, provides early education and childcare, back-up care, educational advisory, and other workplace solutions. The one-month return of The Bright Horizons Family Solutions Inc. (NYSE:BFAM) was -7.38%, and its shares lost 5.88% of their value over the last 52 weeks. On July 24, 2025, Bright Horizons Family Solutions Inc. (NYSE:BFAM) stock closed at $113.28 per share.

Conestoga Capital Advisors stated the following regarding Bright Horizons Family Solutions Inc. (NYSE:BFAM) in its second quarter 2025 investor letter:

“A long-time holding of our SMid Cap Growth strategy, Bright Horizons Family Solutions Inc. (NYSE:BFAM) is a provider of corporate-sponsored childcare services. As more employees return to the office, BFAM’s centers have experienced rising occupancy rates, and we expect their long-term revenue and earnings growth to resume to their pre-pandemic trajectories. The company’s solid competitive position and stable business model make it an appropriate holding for Small Cap.”

Young children smiling widely as they have lunch in a bright and fun educational center.

Bright Horizons Family Solutions Inc. (NYSE:BFAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Bright Horizons Family Solutions Inc. (NYSE:BFAM) at the end of the first quarter, which was 30 in the previous quarter. In Q1 2025, Bright Horizons Family Solutions Inc.’s (NYSE:BFAM) revenue increased 7% to $666 million, and adjusted EPS grew 51% to $0.77 per share. While we acknowledge the risk and potential of Bright Horizons Family Solutions Inc. (NYSE:BFAM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Bright Horizons Family Solutions Inc. (NYSE:BFAM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Bright Horizons Family Solutions Inc. (NYSE:BFAM) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.