BBSI Reports Strong Second Quarter 2025 Financial Results
BBSI (NASDAQ: BBSI) reported strong Q2 2025 financial results, with revenues increasing 10% to $307.7 million and gross billings up 10% to $2.23 billion. The company achieved net income of $18.5 million, or $0.70 per diluted share, compared to $16.7 million in Q2 2024. Average worksite employees (WSEs) grew 8% to 138,969.
The Board authorized a new $100 million stock repurchase program over two years, replacing the July 2023 program. In Q2, BBSI repurchased $8.0 million of stock and paid $2.0 million in dividends. The company raised its 2025 outlook, projecting gross billings growth of 9-10% and WSE growth of 6-8%.
BBSI maintained a strong financial position with $90.4 million in unrestricted cash and investments, remaining debt-free at quarter end.
BBSI (NASDAQ: BBSI) ha riportato solidi risultati finanziari nel secondo trimestre del 2025, con ricavi in crescita del 10% a 307,7 milioni di dollari e fatturato lordo aumentato del 10% a 2,23 miliardi di dollari. L'azienda ha registrato un utile netto di 18,5 milioni di dollari, pari a 0,70 dollari per azione diluita, rispetto ai 16,7 milioni di dollari del secondo trimestre 2024. Il numero medio di dipendenti presso i siti di lavoro (WSE) è cresciuto dell’8% raggiungendo 138.969.
Il Consiglio di Amministrazione ha autorizzato un nuovo programma di riacquisto azionario da 100 milioni di dollari da realizzare in due anni, in sostituzione di quello di luglio 2023. Nel secondo trimestre, BBSI ha riacquistato azioni per 8,0 milioni di dollari e ha distribuito dividendi per 2,0 milioni di dollari. L’azienda ha rivisto al rialzo le previsioni per il 2025, prevedendo una crescita del fatturato lordo tra il 9 e il 10% e una crescita dei WSE tra il 6 e l’8%.
BBSI ha mantenuto una solida posizione finanziaria con 90,4 milioni di dollari in liquidità e investimenti non vincolati, rimanendo senza debiti alla fine del trimestre.
BBSI (NASDAQ: BBSI) reportó sólidos resultados financieros en el segundo trimestre de 2025, con ingresos que aumentaron un 10% hasta 307,7 millones de dólares y facturación bruta que creció un 10% hasta 2,23 mil millones de dólares. La compañía logró un ingreso neto de 18,5 millones de dólares, o 0,70 dólares por acción diluida, en comparación con 16,7 millones en el segundo trimestre de 2024. El promedio de empleados en los sitios de trabajo (WSE) creció un 8% hasta 138,969.
La Junta autorizó un nuevo programa de recompra de acciones de 100 millones de dólares para dos años, reemplazando el programa de julio de 2023. En el segundo trimestre, BBSI recompró acciones por 8,0 millones de dólares y pagó 2,0 millones en dividendos. La compañía elevó sus perspectivas para 2025, proyectando un crecimiento de la facturación bruta del 9-10% y un crecimiento de WSE del 6-8%.
BBSI mantuvo una sólida posición financiera con 90,4 millones de dólares en efectivo e inversiones no restringidas, manteniéndose sin deuda al cierre del trimestre.
BBSI (NASDAQ: BBSI)는 2025년 2분기 강력한 재무 실적을 보고했으며, 매출은 10% 증가하여 3억 7770만 달러, 총 청구액은 10% 증가하여 22억 3천만 달러를 기록했습니다. 회사는 순이익 1850만 달러, 희석 주당순이익 0.70달러를 달성했으며, 이는 2024년 2분기의 1670만 달러와 비교됩니다. 평균 근무지 직원 수(WSE)는 8% 증가하여 138,969명에 달했습니다.
이사회는 2년간 진행되는 새로운 1억 달러 규모의 자사주 매입 프로그램을 승인했으며, 이는 2023년 7월 프로그램을 대체합니다. 2분기 동안 BBSI는 800만 달러 상당의 주식을 재매입하고 200만 달러의 배당금을 지급했습니다. 회사는 2025년 전망을 상향 조정하여 총 청구액이 9-10% 성장하고 WSE가 6-8% 성장할 것으로 예상합니다.
BBSI는 분기 말 현재 9040만 달러의 제한 없는 현금 및 투자 자산을 보유하며 부채 없이 강한 재무 상태를 유지했습니다.
BBSI (NASDAQ : BBSI) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un chiffre d'affaires en hausse de 10 % à 307,7 millions de dollars et un chiffre d'affaires brut en augmentation de 10 % à 2,23 milliards de dollars. La société a réalisé un bénéfice net de 18,5 millions de dollars, soit 0,70 dollar par action diluée, contre 16,7 millions au deuxième trimestre 2024. Le nombre moyen d'employés sur site (WSE) a augmenté de 8 % pour atteindre 138 969.
Le conseil d'administration a autorisé un nouveau programme de rachat d'actions de 100 millions de dollars sur deux ans, remplaçant celui de juillet 2023. Au deuxième trimestre, BBSI a racheté pour 8,0 millions de dollars d'actions et versé 2,0 millions de dollars de dividendes. La société a relevé ses prévisions pour 2025, prévoyant une croissance du chiffre d'affaires brut de 9 à 10 % et une croissance des WSE de 6 à 8 %.
BBSI a maintenu une solide position financière avec 90,4 millions de dollars en liquidités et investissements non restreints, restant sans dette à la fin du trimestre.
BBSI (NASDAQ: BBSI) meldete starke Finanzergebnisse für das zweite Quartal 2025, mit einem Umsatzanstieg von 10% auf 307,7 Millionen US-Dollar und Bruttorechnungen, die um 10% auf 2,23 Milliarden US-Dollar zunahmen. Das Unternehmen erzielte einen Nettogewinn von 18,5 Millionen US-Dollar bzw. 0,70 US-Dollar pro verwässerter Aktie, verglichen mit 16,7 Millionen im zweiten Quartal 2024. Die durchschnittliche Anzahl der Beschäftigten an den Arbeitsplätzen (WSE) stieg um 8% auf 138.969.
Der Vorstand genehmigte ein neues Aktienrückkaufprogramm in Höhe von 100 Millionen US-Dollar über zwei Jahre, das das Programm vom Juli 2023 ersetzt. Im zweiten Quartal kaufte BBSI Aktien im Wert von 8,0 Millionen US-Dollar zurück und zahlte 2,0 Millionen US-Dollar an Dividenden. Das Unternehmen hob seine Prognose für 2025 an und erwartet ein Wachstum der Bruttorechnungen von 9-10% sowie ein WSE-Wachstum von 6-8%.
BBSI behielt eine starke Finanzlage mit 90,4 Millionen US-Dollar an uneingeschränkten Barmitteln und Investitionen bei und war zum Quartalsende schuldenfrei.
- Revenue and gross billings both increased 10% year-over-year
- Net income grew to $18.5 million, with EPS increasing to $0.70 from $0.62
- Average WSEs grew 8% driven by net new client growth
- New $100 million stock repurchase program authorized
- Company remains debt-free with $90.4 million in cash and investments
- Improved 2025 outlook with higher growth projections
- Workers' compensation expense decreased to 2.1% from 2.5% of gross billings
- Cash position decreased from $99.1 million to $90.4 million quarter-over-quarter
- Existing-customer hiring was modest due to cautious macroeconomic environment
Insights
BBSI's Q2 shows robust 10% revenue growth, strong client acquisition, and an aggressive $100M share repurchase program signaling management confidence.
BBSI delivered an impressive
Looking at profitability, BBSI posted a net income of
The company's workers' compensation expense as a percentage of gross billings decreased to
From a capital allocation perspective, BBSI is demonstrating confidence in its future with a new
Management has also raised their 2025 outlook, now expecting gross billings growth of
The company remains debt-free with
- Revenues and Gross Billings up
- Announces New
VANCOUVER, Wash., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (“BBSI” or the “Company”) (NASDAQ: BBSI), a leading provider of business management solutions, reported financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Financial Summary vs. Year-Ago Quarter
- Revenues up
10% to$307.7 million . - Gross billings up
10% to$2.23 billion . - Average worksite employees (“WSEs”) up
8% . - Net income of
$18.5 million , or$0.70 per diluted share, compared to net income of$16.7 million , or$0.62 per diluted share.
“BBSI sustained its positive momentum, delivering another strong quarter of net new client growth,” said Gary Kramer, President and CEO of BBSI. “This controllable growth, combined with continued strong client retention and sustained momentum in BBSI Benefits, demonstrates the strength of our model and the value we deliver to our clients. While existing-customer hiring was modest in the quarter, reflecting a more cautious macroeconomic environment, our ability to drive growth through client additions highlights the resilience of our business and the demand for our differentiated service offering. We remain focused on execution and are confident in our ability to deliver long-term, sustainable growth.”
Second Quarter 2025 Financial Results
Revenues in the second quarter of 2025 increased
Total gross billings in the second quarter of 2025 increased
Workers’ compensation expense as a percent of gross billings was
Net income for the second quarter of 2025 was
Liquidity
As of June 30, 2025, unrestricted cash and investments were
Capital Allocation
Continuing under the Company’s stock repurchase program established in July 2023, BBSI repurchased
On August 4, 2025, the Board of Directors authorized the repurchase of up to
The Company paid
Through a combination of stock repurchases and dividends, year-to-date capital returned to shareholders totaled more than
Outlook
BBSI expects the following for 2025:
- Gross billings growth of
9% to10% (previously7% to9% ). - Growth in the average number of WSEs of
6% to8% (previously4% to6% ). - Gross margin as a percent of gross billings of
2.9% to3.05% (previously2.85% to3.10% ). - Effective annual tax rate to remain at
26% to27% .
Conference Call
BBSI will conduct a conference call on Wednesday, August 6, 2025, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results for the second quarter ended June 30, 2025.
BBSI’s CEO Gary Kramer and CFO Anthony Harris will host the conference call, followed by a question and answer period.
Date: Wednesday, August 6, 2025
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: 94609
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 September 6, 2025.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1194609
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 six months ended June 30, 2025 and 2024.
| (Unaudited) | (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Gross billings | $ | 2,234,472 | $ | 2,029,036 | $ | 4,323,141 | $ | 3,936,584 | ||||||||
| PEO and staffing wages | $ | 1,939,966 | $ | 1,764,182 | $ | 3,749,434 | $ | 3,420,626 | ||||||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| PEO and staffing wages | 86.8 | % | 86.9 | % | 86.7 | % | 86.9 | % | ||||||||
| Payroll taxes and benefits | 7.8 | % | 7.3 | % | 8.3 | % | 7.9 | % | ||||||||
| Workers' compensation | 2.1 | % | 2.5 | % | 2.3 | % | 2.5 | % | ||||||||
| Gross margin | 3.3 | % | 3.3 | % | 2.7 | % | 2.7 | % | ||||||||
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 June 30, | ||||||||||||||||
| 2025 | Year-over-year % Growth | 2024 | Year-over-year % Growth | |||||||||||||
| Average WSEs | 138,969 | 8.0 | % | 128,734 | 3.7 | % | ||||||||||
| Ending WSEs | 140,671 | 8.2 | % | 130,046 | 2.1 | % | ||||||||||
| (Unaudited) | ||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||
| 2025 | Year-over-year % Growth | 2024 | Year-over-year % Growth | |||||||||||||
| Average WSEs | 135,714 | 7.8 | % | 125,892 | 3.4 | % | ||||||||||
| Ending WSEs | 140,671 | 8.2 | % | 130,046 | 2.1 | % | ||||||||||
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 8,100 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 of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could affect future results include: economic conditions in the Company’s service areas and the potential effects of changing governmental policies, including those related to immigration and tariffs; natural disasters; the effects of inflation on our operating expenses and those of our clients; the availability of certain fully insured medical and other health and welfare benefits to qualifying worksite employees; the effect of changes in the Company’s mix of services on gross margin; the Company’s ability to attract and retain clients and to achieve revenue growth; the availability of financing or other sources of capital; the Company’s relationship with its primary bank lender; 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 benefits costs, particularly with regard to health insurance benefits; litigation costs; security breaches or failures in the Company’s information technology systems; the collectability of accounts receivable; changes in executive management; changes in effective payroll tax rates and federal and state income tax rates; the carrying value of deferred income tax assets and goodwill; the outcome of tax audits; the effect of changing interest rates and conditions in the global capital markets on the Company’s investment portfolio; and the potential for and effect of acquisitions, among others. 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) | ||||||||
| June 30, | December 31, | |||||||
| (in thousands) | 2025 | 2024 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 26,348 | $ | 55,367 | ||||
| Investments | 64,097 | 66,492 | ||||||
| Trade accounts receivable, net | 264,175 | 234,533 | ||||||
| Income taxes receivable | — | 2,662 | ||||||
| Prepaid expenses and other | 25,769 | 18,698 | ||||||
| Restricted cash and investments | 91,042 | 97,690 | ||||||
| Total current assets | 471,431 | 475,442 | ||||||
| Property, equipment and software, net | 61,695 | 56,781 | ||||||
| Operating lease right-of-use assets | 24,343 | 20,329 | ||||||
| Restricted cash and investments | 99,701 | 134,454 | ||||||
| Goodwill | 47,820 | 47,820 | ||||||
| Other assets | 6,076 | 6,205 | ||||||
| Deferred income taxes | 2,562 | 4,477 | ||||||
| Total assets | $ | 713,628 | $ | 745,508 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,933 | $ | 6,787 | ||||
| Accrued payroll and related benefits | 239,444 | 215,648 | ||||||
| Payroll taxes payable | 41,026 | 49,685 | ||||||
| Income taxes payable | 324 | — | ||||||
| Current operating lease liabilities | 6,682 | 6,231 | ||||||
| Current premium payable | 39,805 | 31,134 | ||||||
| Other accrued liabilities | 11,066 | 10,330 | ||||||
| Workers' compensation claims liabilities | 35,368 | 39,081 | ||||||
| Total current liabilities | 378,648 | 358,896 | ||||||
| Long-term workers' compensation claims liabilities | 78,534 | 89,365 | ||||||
| Long-term premium payable | — | 49,840 | ||||||
| Long-term operating lease liabilities | 18,828 | 15,215 | ||||||
| Customer deposits and other long-term liabilities | 11,801 | 10,788 | ||||||
| Stockholders' equity | 225,817 | 221,404 | ||||||
| Total liabilities and stockholders' equity | $ | 713,628 | $ | 745,508 | ||||
| Barrett Business Services, Inc. Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenues: | ||||||||||||||||
| Professional employer services | $ | 290,170 | $ | 259,887 | $ | 565,096 | $ | 506,076 | ||||||||
| Staffing services | 17,487 | 19,764 | 35,127 | 39,357 | ||||||||||||
| Total revenues | 307,657 | 279,651 | 600,223 | 545,433 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Direct payroll costs | 13,165 | 14,693 | 26,471 | 29,410 | ||||||||||||
| Payroll taxes and benefits | 173,277 | 148,810 | 360,283 | 310,705 | ||||||||||||
| Workers' compensation | 47,956 | 48,251 | 97,586 | 97,854 | ||||||||||||
| Total cost of revenues | 234,398 | 211,754 | 484,340 | 437,969 | ||||||||||||
| Gross margin | 73,259 | 67,897 | 115,883 | 107,464 | ||||||||||||
| Selling, general and administrative expenses | 48,188 | 45,577 | 93,026 | 87,991 | ||||||||||||
| Depreciation and amortization | 2,038 | 1,912 | 3,996 | 3,764 | ||||||||||||
| Income from operations | 23,033 | 20,408 | 18,861 | 15,709 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Investment income, net | 2,300 | 3,069 | 4,920 | 6,343 | ||||||||||||
| Interest expense | (44 | ) | (44 | ) | (88 | ) | (88 | ) | ||||||||
| Other, net | 41 | 27 | 99 | 93 | ||||||||||||
| Other income, net | 2,297 | 3,052 | 4,931 | 6,348 | ||||||||||||
| Income before income taxes | 25,330 | 23,460 | 23,792 | 22,057 | ||||||||||||
| Provision for income taxes | 6,876 | 6,759 | 6,359 | 5,492 | ||||||||||||
| Net income | $ | 18,454 | $ | 16,701 | $ | 17,433 | $ | 16,565 | ||||||||
| Basic income per common share | $ | 0.72 | $ | 0.64 | $ | 0.68 | $ | 0.63 | ||||||||
| Weighted average number of basic common shares outstanding | 25,592 | 26,067 | 25,700 | 26,174 | ||||||||||||
| Diluted income per common share | $ | 0.70 | $ | 0.62 | $ | 0.66 | $ | 0.62 | ||||||||
| Weighted average number of diluted common shares outstanding | 26,215 | 26,765 | 26,309 | 26,794 | ||||||||||||
Investor Relations:
Gateway Group, Inc.
Cody Slach
Tel 1-949-574-3860
BBSI@gateway-grp.com
FAQ
What were BBSI's key financial results for Q2 2025?
How much is BBSI's new stock repurchase program and when was it authorized?
What is BBSI's updated guidance for 2025?
How many worksite employees (WSEs) does BBSI manage as of Q2 2025?
What is BBSI's dividend payment schedule for Q3 2025?
