BBSI Reports Strong Fourth Quarter and Full Year 2025 Financial Results

Rhea-AI Summary

Barrett Business Services (NASDAQ: BBSI) reported fourth-quarter and full-year 2025 results. Q4 revenues rose 5% to $321.1 million and Q4 net income was $16.4 million ($0.64 diluted EPS). Full-year 2025 revenues increased 8% to $1.24 billion and net income rose 3% to $54.4 million ($2.08 diluted EPS).

Liquidity strengthened with $157.2 million cash and investments and the company remained debt free. BBSI repurchased $17 million of stock in Q4 under a $100 million program and declared a $0.08 quarterly dividend. 2026 outlook: gross billings growth 3%–5%, WSE growth 2%–4%, and gross margin 2.70%–2.85%.

Positive

• Repurchased $17 million of stock in Q4 under a $100 million program
• Ended 2025 debt free with $157.2 million of unrestricted cash and investments
• Provided 2026 guidance: gross billings +3%–5%, WSEs +2%–4%, gross margin 2.70%–2.85%

Negative

• Q4 net income fell to $16.4 million from $16.8 million year-over-year
• Management noted moderated same-customer sales trends and Q4 revenue slightly below expectations

Key Figures

Q4 2025 revenue: $321.1M Q4 2025 net income: $16.4M Q4 2025 diluted EPS: $0.64 +5 more

8 metrics

Q4 2025 revenue $321.1M Fourth quarter 2025, up 5% vs. Q4 2024

Q4 2025 net income $16.4M Fourth quarter 2025 vs. $16.8M year-ago

Q4 2025 diluted EPS $0.64 Fourth quarter 2025, up from $0.63 year-ago

FY 2025 revenue $1.24B Full year 2025, up 8% vs. 2024

FY 2025 net income $54.4M Full year 2025, up from $53.0M in 2024

Unrestricted cash & investments $157.2M As of December 31, 2025; up from $121.9M in 2024

Q4 2025 share repurchases $17M 450,492 shares at $37.80 avg under $100M program

Quarterly dividend $0.08 per share Next regular cash dividend payable March 27, 2026

Market Reality Check

Price: $31.47 Vol: Volume 179,906 is slightl...

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$31.47 Last Close

Volume Volume 179,906 is slightly below the 20-day average of 204,812 (relative volume 0.88x). normal

Technical Shares at $31.06 trade below the 200-day MA of $40.92, sitting 2.71% above the 52-week low and 37.44% below the 52-week high.

Peers on Argus

Among key staffing peers, MAN (-1.94%) and KFRC (-1.07%) were down, KELYA fell (...

1 Down

Among key staffing peers, MAN (-1.94%) and KFRC (-1.07%) were down, KELYA fell (-3.71%) while KELYB rose sharply (+27.08%). With BBSI up 0.45% pre-release and only one peer in momentum scans, moves appear stock-specific rather than a broad sector rotation.

Previous Earnings Reports

5 past events · Latest: Nov 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 05	Quarterly earnings	Positive	+1.2%	Q3 2025 growth in revenue, billings, WSEs, and higher EPS year-over-year.
Aug 06	Quarterly earnings	Positive	+5.6%	Q2 2025 double-digit revenue and billings growth plus higher net income and EPS.
May 07	Quarterly earnings	Positive	-0.9%	Q1 2025 revenue and billings growth with higher WSEs but small net loss.
Feb 26	Annual results	Positive	-0.5%	Strong Q4 and full-year 2024 growth in revenue, billings, and net income.
Nov 06	Quarterly earnings	Positive	+2.0%	Q3 2024 revenue and billings up with higher net income and reduced comp costs.

Pattern Detected

Earnings releases have generally been received positively, with three clear price gains and two modest pullbacks despite broadly solid operating trends.

Recent Company History

Recent BBSI earnings reports show consistent growth in revenues, gross billings, and worksite employees, alongside steady dividends and active share repurchases. Prior updates highlighted strong Q1–Q3 2025 results, rising WSEs, and maintained debt-free status, plus an expanded repurchase program. The current Q4 and full-year 2025 report extends this pattern with continued top-line growth, stable workers’ compensation ratios, and further capital returns, reinforcing the multi-quarter earnings trajectory.

Historical Comparison

+1.5% avg move · In the past 5 earnings releases, BBSI’s stock moved on average about ±1.49%, typically reacting mode...

earnings

+1.5%

Average Historical Move earnings

In the past 5 earnings releases, BBSI’s stock moved on average about ±1.49%, typically reacting modestly to steady revenue, WSE, and cash growth highlighted in these updates.

Across Q1–Q4 and full-year 2024–2025 earnings, BBSI has shown consistent revenue and gross billings expansion, growing worksite employees, stable workers’ compensation ratios, and ongoing dividends and buybacks, marking a steady multi-period financial progression.

Market Pulse Summary

This announcement details another year of revenue and gross billings growth, expanding to $1.24B in ...

Analysis

This announcement details another year of revenue and gross billings growth, expanding to $1.24B in revenue and $9.04B in gross billings, with net income of $54.4M. BBSI closed 2025 debt-free with $157.2M in unrestricted cash, while returning over $50M via buybacks and dividends. Investors may watch 2026 gross billings and WSE growth versus guidance, gross margin in the 2.70–2.85% range, and workers’ compensation trends.

Key Terms

gross billings, professional employer, peo, gross margin, +2 more

6 terms

gross billings financial

"Gross billings up 6% to $2.40 billion."

Gross Billings is the total amount of money a company earns from selling its products or services before any expenses or discounts are taken out. It shows how much business the company is doing overall and helps investors understand its growth or size. Think of it as the total sales receipt before deducting costs or returns.

professional employer technical

"growth in professional employer (“PEO”) services, primarily resulting from increased WSEs"

A professional employer is a firm that formally hires and manages workers on behalf of another company, handling payroll, benefits, taxes, and regulatory compliance while the client company directs day‑to‑day work. Think of it like hiring a property manager to handle bills, staff and legal paperwork so the owner can focus on running the property; investors watch this arrangement because it shifts costs, legal liability and hiring flexibility, which can affect a company’s expenses and growth prospects.

peo technical

"growth in professional employer (“PEO”) services, primarily resulting from increased WSEs"

A professional employer organization (PEO) is a firm companies hire to handle payroll, benefits, tax withholding, workers' compensation and other human-resources tasks — think of renting an experienced HR and payroll department instead of running one yourself. For investors, use of a PEO can change how labor costs, liabilities and compliance risks appear in financial reports, affect margins and cash flow, and signal how a company is managing hiring and administrative overhead.

gross margin financial

"Gross margin as a percent of gross billings of 2.70% to 2.85%."

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

worksite employees technical

"Average worksite employees (“WSEs”) up 5%."

Worksite employees are people who perform their jobs at a specific physical location owned or operated by an employer—think of staff working on a factory floor, in a retail store, or at an office building rather than remotely. Investors care because the number, skills and stability of these on-site workers affect production capacity, operating costs, safety risk and the ability to scale or respond to disruptions—similar to how the health of a team determines the performance of a sports club.

wse technical

"We refer to employees of our PEO clients as WSEs."

The WSE is the Warsaw Stock Exchange, Poland’s main marketplace where companies list shares and investors buy and sell securities. Think of it as a busy market or mall for stocks: it sets rules, provides price information, and creates the pool of buyers and sellers that makes it possible to convert ownership in a company into cash. Investors watch the WSE for liquidity, regulatory practices and market signals that affect valuation and access to regional growth opportunities.

AI-generated analysis. Not financial advice.

- Fourth Quarter Revenues up 5% to $321.1 Million With Net Income of $16.4 Million, or $0.64 per Diluted Share -

VANCOUVER, Wash., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (“BBSI” or the “Company”) (NASDAQ: BBSI), a leading provider of business management solutions, reported financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Summary vs. Year-ago Quarter

• Revenues up 5% to $321.1 million.
• Gross billings up 6% to $2.40 billion.
• Average worksite employees (“WSEs”) up 5%.
• Net income of $16.4 million compared to $16.8 million.
• Diluted earnings per share up 2% to $0.64 compared to $0.63.
  

Full Year 2025 Financial Summary vs. 2024

• Revenues up 8% to $1.24 billion.
• Gross billings up 9% to $9.04 billion.
• Average WSEs up 7%.
• Net income up 3% to $54.4 million compared to $53.0 million.
• Diluted earnings per share up 5% to $2.08 compared to $1.98.
  

“BBSI closed 2025 with another quarter of solid execution, finishing in line with our earnings expectations and delivering one of our strongest years of controllable growth in recent history,” said Gary Kramer, President and CEO of BBSI. “While fourth quarter same-customer sales trends moderated and revenue came in slightly below our expectations, our ability to drive new client wins and achieve 93% benefits retention reflects the strength of our client value proposition. As we enter 2026, we remain focused on disciplined growth, operational execution, and navigating evolving workers’ compensation market dynamics to position BBSI for continued long-term success. We are also looking forward to advancing our technology roadmap in 2026, including several new IT product launches designed to strengthen our service model.”

Fourth Quarter 2025 Financial Results

Revenues in the fourth quarter of 2025 increased 5% to $321.1 million compared to $304.8 million in the fourth quarter of 2024.

Total gross billings in the fourth quarter increased 6% to $2.40 billion compared to $2.25 billion in the same year-ago quarter (see “Key Performance Metrics” below). The increase was driven by growth in professional employer (“PEO”) services, primarily resulting from increased WSEs from net new clients, as well as higher average billings per WSE per day.

Workers’ compensation expense as a percent of gross billings was 2.3% in the fourth quarter of 2025 and benefited from lower workers’ compensation costs, including favorable prior year liability and premium adjustments of $2.2 million. This compares to 2.3% in the fourth quarter of 2024, which included favorable prior year liability and premium adjustments of $2.4 million.

Net income for the fourth quarter of 2025 was $16.4 million compared to $16.8 million in the year-ago quarter. Diluted earnings per share increased 2% to $0.64 compared to $0.63 in the year-ago quarter.

Full Year 2025 Financial Results

Revenues in 2025 increased 8% to $1.24 billion compared to $1.14 billion in 2024.

Total gross billings in 2025 increased 9% to $9.04 billion compared to $8.33 billion in 2024 (see “Key Performance Metrics” below). The increase was driven by growth in PEO services, primarily resulting from increased WSEs from net new clients, as well as higher average billings per WSE per day.

Workers’ compensation expense as a percent of gross billings was 2.3% in 2025 and benefited from lower workers’ compensation costs, including favorable prior year liability and premium adjustments of $18.7 million. This compares to 2.4% in 2024, which included favorable prior year liability and premium adjustments of $18.5 million.

Net income in 2025 increased 3% to $54.4 million, or $2.08 per diluted share, compared to net income of $53.0 million, or $1.98 per diluted share, in 2024.

Liquidity

As of December 31, 2025, unrestricted cash and investments were $157.2 million compared to $121.9 million at December 31, 2024. BBSI remained debt free at year end.

Capital Allocation

Continuing under the Company’s stock repurchase program established in August 2025, BBSI repurchased $17 million of stock in the fourth quarter comprising 450,492 shares at an average price of $37.80. At December 31, 2025, approximately $75 million remained available under the $100 million repurchase program.

The Company paid $2.0 million of dividends in the quarter, and BBSI’s board of directors confirmed its next regular quarterly cash dividend at $0.08 per share. The cash dividend will be paid on March 27, 2026, to all stockholders of record as of March 13, 2026.

Through a combination of stock repurchases and dividends, year-to-date capital returned to shareholders totaled more than $50 million.

Outlook

In 2026, BBSI expects the following:

• Gross billings growth of 3% to 5%.
• Growth in the average number of WSEs of 2% to 4%.
• Gross margin as a percent of gross billings of 2.70% to 2.85%.
• Effective annual tax rate of 26% to 27%.

Conference Call

BBSI will conduct a conference call on Wednesday, February 25, 2026, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results for the fourth quarter and full year ended December 31, 2025.

BBSI’s CEO Gary Kramer and CFO Anthony Harris will host the conference call, followed by a question and answer period.

Date: Wednesday, February 25, 2026
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-800-717-1738
International dial-in number: 1-646-307-1865
Conference ID: 1197652

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the Investors section of the BBSI website at ir.bbsi.com.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through March 25, 2026.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1197652

Key Performance Metrics

We report PEO revenues net of direct payroll costs because we are not the primary obligor for wage payments to our clients’ employees. However, management believes that gross billings and wages are useful in understanding the volume of our business activity and serve as important performance metrics in managing our operations, including the preparation of internal operating forecasts and establishing executive compensation performance goals. We therefore present for purposes of analysis gross billings and wage information for the three and twelve months ended December 31, 2025 and 2024.

		(Unaudited)								(Unaudited)
		Three Months Ended December 31,								Year Ended December 31,
(in thousands)		2025				2024				2025				2024
Gross billings		$	2,397,139			$	2,251,997			$	9,042,132			$	8,327,091
PEO and staffing wages		$	2,089,388			$	1,964,001			$	7,856,320			$	7,245,093

In monitoring and evaluating the performance of our operations, management also reviews the following ratios, which represent selected amounts as a percentage of gross billings. Management believes these ratios are useful in understanding the efficiency and profitability of our service offerings.

		(Unaudited)						(Unaudited)
		Percentage of Gross Billings						Percentage of Gross Billings
		Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025			2024
PEO and staffing wages		87.2	%		87.2	%		86.9	%		87.0	%
Payroll taxes and benefits		7.7	%		7.3	%		7.9	%		7.6	%
Workers' compensation		2.3	%		2.3	%		2.3	%		2.4	%
Gross margin		2.8	%		3.2	%		2.9	%		3.0	%

We refer to employees of our PEO clients as WSEs. Management reviews average and ending WSE growth to monitor and evaluate the performance of our operations. Average WSEs are calculated by dividing the number of unique individuals paid in each month by the number of months in the period. Ending WSEs represents the number of unique individuals paid in the last month of the period.

		(Unaudited)
		Three Months Ended December 31,
		2025				Year-over-year % Growth			2024				Year-over-year % Growth			2023
Average WSEs			139,944			5.1	%			133,124			5.2	%			126,492
Ending WSEs			138,605			4.9	%			132,069			4.4	%			126,446

		(Unaudited)
		Year Ended December 31,
		2025				Year-over-year % Growth			2024				Year-over-year % Growth			2023
Average WSEs			138,218			6.7	%			129,577			4.2	%			124,306
Ending WSEs			138,605			4.9	%			132,069			4.4	%			126,446

About BBSI

BBSI (NASDAQ: BBSI) is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting to create a unique operational platform that differentiates it from competitors. The Company’s integrated platform is built upon expertise in payroll processing, employee benefits, workers’ compensation coverage, risk management and workplace safety programs, and human resource administration. BBSI’s partnerships help businesses of all sizes improve the efficiency of their operations. The company works with more than 8,200 PEO clients in all 50 states. For more information, please visit www.bbsi.com.

Forward-Looking Statements

Statements in this release about future events and financial outlook are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could affect future results include: our ability to retain current clients and attract new clients; technology disruption, including the displacement of employees through the adoption of AI and automation by our clients; difficulties associated with integrating clients into our operations; economic trends in the Company’s service areas and the potential effects of changing governmental policies, including those related to immigration, tariffs, other trade policies, or climate regulation; risks to our business and the business of our clients arising from current or future tariffs or other trade restrictions, supply chain issues, changes in labor force, or geopolitical instability, including the war in Ukraine, conflicts in the Middle East, and the potential for future conflicts or disruptions in other parts of the world; natural disasters; the potential for material deviations from expected future workers’ compensation claims experience; changes in the workers’ compensation regulatory environment in the Company’s primary markets; PEO client benefit costs, particularly with regard to health insurance benefits; security breaches or failures in the Company’s information technology systems; collectability of accounts receivable; changes in executive management; changes in effective payroll tax rates and federal and state income tax rates; the carrying values of deferred income tax assets and goodwill (which may be affected by our future operating results); the effects of inflation on our operating expenses and those of our clients; the impact of and potential changes to the Patient Protection and Affordable Care Act, escalating medical costs, and other health care legislative initiatives on our business; the effect of changing monetary policy, interest rates and conditions in the global capital markets on the Company’s investment portfolio; and the availability of capital, borrowing capacity on our revolving credit facility, or letters of credit necessary to meet state-mandated surety deposit requirements for maintaining our status as a qualified self-insured employer for workers' compensation coverage or our insured program. Other important factors that may affect the Company’s prospects are described in the Company’s 2024 Annual Report on Form 10-K and in subsequent reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Although forward-looking statements help to provide complete information about the Company, readers should keep in mind that forward-looking statements are less reliable than historical information. The Company undertakes no obligation to update or revise forward-looking statements in this release to reflect events or changes in circumstances that occur after the date of this release.

Barrett Business Services, Inc. Condensed Consolidated Balance Sheets (Unaudited)
		December 31,				December 31,
(in thousands)		2025				2024
ASSETS
Current assets:
Cash and cash equivalents		$	95,033			$	55,367
Investments			62,154				66,492
Trade accounts receivable, net			248,626				234,533
Income taxes receivable			2,965				2,662
Prepaid expenses and other			18,652				18,698
Restricted cash and investments			97,210				97,690
Total current assets			524,640				475,442
Property, equipment and software, net			67,230				56,781
Operating lease right-of-use assets			23,218				20,329
Restricted cash and investments			106,216				134,454
Goodwill			47,820				47,820
Other assets			9,869				6,205
Deferred income taxes			74				4,477
Total assets		$	779,067			$	745,508
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	7,433			$	6,787
Accrued payroll and related benefits			237,783				215,648
Payroll taxes payable			62,463				49,685
Current operating lease liabilities			6,969				6,231
Current premium payable			38,992				31,134
Other accrued liabilities			19,357				10,330
Workers' compensation claims liabilities			32,875				39,081
Total current liabilities			405,872				358,896
Long-term workers' compensation claims liabilities			75,709				89,365
Long-term premium payable			26,025				49,840
Long-term operating lease liabilities			17,484				15,215
Customer deposits and other long-term liabilities			12,977				10,788
Stockholders' equity			241,000				221,404
Total liabilities and stockholders' equity		$	779,067			$	745,508

Barrett Business Services, Inc. Consolidated Statements of Operations (Unaudited)
	Three Months Ended								Year Ended
	December 31,								December 31,
(in thousands, except per share amounts)	2025				2024				2025				2024
Revenues:
Professional employer services	$	303,553			$	284,517			$	1,168,334			$	1,063,386
Staffing services		17,573				20,303				71,964				81,145
Total revenues		321,126				304,820				1,240,298				1,144,531
Cost of revenues:
Direct payroll costs		13,368				15,392				54,443				61,010
Payroll taxes and benefits		184,245				163,720				720,798				628,534
Workers' compensation		55,248				54,333				204,144				201,736
Total cost of revenues		252,861				233,445				979,385				891,280
Gross margin		68,265				71,375				260,913				253,251
Selling, general and administrative expenses		47,582				48,818				190,494				185,869
Depreciation and amortization		2,163				1,938				8,256				7,601
Income from operations		18,520				20,619				62,163				59,781
Other income (expense):
Investment income, net		2,356				2,522				9,259				11,130
Interest expense		(38	)			(45	)			(171	)			(178	)
Other, net		17				(35	)			148				89
Other income, net		2,335				2,442				9,236				11,041
Income before income taxes		20,855				23,061				71,399				70,822
Provision for income taxes		4,459				6,261				16,951				17,829
Net income	$	16,396			$	16,800			$	54,448			$	52,993
Basic income per common share	$	0.65			$	0.65			$	2.13			$	2.03
Weighted average number of basic common shares outstanding		25,362				25,907				25,613				26,076
Diluted income per common share	$	0.64			$	0.63			$	2.08			$	1.98
Weighted average number of diluted common shares outstanding		25,777				26,626				26,141				26,708

Investor Relations:
Gateway Group, Inc.
Cody Slach
Tel 1-949-574-3860
BBSI@gateway-grp.com

FAQ

What were BBSI's reported Q4 2025 revenues and EPS (NASDAQ: BBSI)?

BBSI reported Q4 2025 revenues of $321.1 million and diluted EPS of $0.64. According to the company, revenue rose 5% year-over-year while diluted EPS increased 2% from $0.63 to $0.64.

How did Barrett Business Services perform for the full year 2025 (BBSI)?

Full-year 2025 revenues were $1.24 billion and net income was $54.4 million. According to the company, revenues grew 8% and diluted EPS rose to $2.08 from $1.98 in 2024.

What capital returns did BBSI announce for Q4 2025 and what remains available?

BBSI repurchased $17 million of stock in Q4 and reported about $75 million remaining under a $100 million program. According to the company, year-to-date capital returned exceeded $50 million via repurchases and dividends.

What is BBSI's cash position and debt status at year-end 2025?

BBSI held $157.2 million of unrestricted cash and investments and was debt free at December 31, 2025. According to the company, liquidity improved from $121.9 million a year earlier.

What guidance did BBSI provide for 2026 regarding billings, WSEs, and margin?

BBSI expects gross billings growth of 3%–5%, average WSE growth of 2%–4%, and gross margin of 2.70%–2.85% in 2026. According to the company, these are the primary operational targets for the year.