VANCOUVER, Wash., Dec. 16, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions and one of the largest professional employer organizations (PEO) in the U.S., today announced the promotion of Larry Lewis to Regional Vice President of Northern California. In his expanded role, Lewis will provide strategic leadership and guidance to branch management teams across Northern California, supporting the company’s ongoing growth in these ...

VANCOUVER, Wash., Dec. 09, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions and one of the largest professional employer organizations (PEO) in the U.S., announced it has opened a physical branch location in Nashville, Tennessee. This expansion further strengthens BBSI’s national presence and underscores the company’s commitment to supporting small and mid-sized businesses across the Southeast. “There’s no better place than N ...

Core Insights - Barrett Business Services, Inc. (BBSI) has been recognized as a Great Place To Work for the fifth consecutive year, reflecting its commitment to employee satisfaction and workplace culture [1][2]. Company Overview - BBSI is a leading provider of business management solutions and one of the largest professional employer organizations (PEO) in the U.S. [1][5]. - The company combines human resource outsourcing and professional management consulting to create a unique operational platform [5]. - BBSI serves over 8,100 PEO clients across all 50 states [5]. Employee Experience - The Great Place To Work certification is based on employee feedback, indicating a positive work environment [1][2]. - Employees at certified workplaces are 93% more likely to look forward to coming to work and are twice as likely to feel they are paid fairly and have a fair chance at promotion [4]. - Job seekers are 15 times more likely to apply to companies with a workplace certification [4]. Leadership Commitment - BBSI's CEO, Gary Kramer, emphasized the company's dedication to a culture that prioritizes people, which is essential for fostering innovation and exceptional service [2]. - The recognition as a Great Place To Work underscores BBSI's value-driven approach to business [2].

What Happened? Shares of business management solutions provider Barrett Business Services (NASDAQ:BBSI) fell 8.2% in the morning session after the company reported third-quarter 2025 financial results that fell short of analyst expectations on profitability. The business management solutions provider disclosed earnings per share (EPS) of $0.79, which missed the consensus estimate of $0.80. Additionally, its adjusted EBITDA of $26.88 million fell 7.7% short of expectations. On the other hand, the company's ...

Core Insights - Barrett Business Services (BBSI) reported quarterly earnings of $0.79 per share, missing the Zacks Consensus Estimate of $0.81 per share, but showing an increase from $0.74 per share a year ago, resulting in an earnings surprise of -2.47% [1] - The company posted revenues of $2.32 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.52%, but an increase from $2.14 billion year-over-year [2] - Barrett shares have underperformed the market, losing about 7.4% since the beginning of the year compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $2.46 billion, and for the current fiscal year, it is $2.19 on revenues of $9.12 billion [7] - The estimate revisions trend for Barrett was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Outsourcing industry, to which Barrett belongs, is currently in the top 8% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of ranked industries [8]

Financial Data and Key Metrics Changes - Gross billings increased by 8.6% year-over-year to $2.32 billion in Q3 2025 compared to $2.14 billion in Q3 2024 [11] - PEO gross billings rose by 8.8% to $2.3 billion, while staffing revenues declined by 10% to $19 million [11] - Net income per diluted share grew by 7% to $0.79 compared to $0.74 in the prior year [16] - Average billing per Worksite Employee (WSE) per day increased by 2.5% due to rising wages [11] Business Line Data and Key Metrics Changes - Staffing operations experienced a decline of 10.3% year-over-year, aligning with expectations amid macroeconomic uncertainty [4][5] - PEO Worksite employees grew by 6.1%, driven by a record number of new client additions [11] - The company added approximately 1,300 participants to its benefits products in Q3, with over 20,000 total participants by October [6][7] Market Data and Key Metrics Changes - Southern California saw a 9% growth, while Northern California grew by 3%. The Mountain region grew by 13%, and the East Coast by 14%. The Pacific Northwest declined by 3% [12] - Asset light markets experienced significant growth of 132% [12] Company Strategy and Development Direction - The company is focusing on expanding into new markets with an asset-light model, having opened new branches in Chicago and Dallas [5][51] - Investments in technology and product enhancements are aimed at improving client service and retention [9][54] - The company plans to launch new products in January and March, enhancing its comprehensive human resource information system [54] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in client hiring, particularly in California, due to macroeconomic uncertainties [4][10] - The company remains optimistic about future growth, expecting gross billings growth between 8.5% and 9.5% for the year [17] - Management anticipates a strong controllable growth trend and an increase in WSEs between 6% and 8% for the year [17] Other Important Information - The company repurchased $8 million of shares in Q3 at an average price of $47 per share and paid $2.1 million in dividends [16] - The balance sheet remains strong with $110 million in unrestricted cash and no debt [16] Q&A Session Summary Question: How are BBSI benefits policies performing amid rising claims costs? - Management stated that they do not take on risk for health insurance and have de-risked their workers' compensation, noting that rates are increasing across the board [20][21] Question: How much is BBSI benefits driving the record WSE additions? - Management indicated that multiple factors contribute to growth, including technology, product offerings, and sales efforts [24] Question: What are the expectations for WSE growth in 2026? - Management expressed optimism about growth acceleration due to approved rate increases in California, but noted that the impact on WSE growth is still uncertain [28][31] Question: What key variables could affect gross billings in 2026? - Management highlighted controllable growth, wage inflation, and client workforce changes as key variables [34] Question: What is the outlook for new client pipeline compared to last year? - Management confirmed that the new client pipeline is healthier than the previous year, with more business in the funnel [40] Question: How did the openings in Chicago and Dallas perform? - Management reported successful grand openings with strong community engagement and client participation [51] Question: Are there specific areas of opportunity in IT product objectives? - Management emphasized the development of AI-enabled technology to enhance the employee life cycle experience [54]

Financial Performance - Net income for Q3 2025 was $20.6 million, an increase from $19.6 million in Q3 2024, with diluted net income per share rising to $0.79 from $0.74[104] - Revenue for Q3 2025 totaled $318.9 million, reflecting an increase of $24.7 million or 8.4% compared to Q3 2024, driven by a 9.9% increase in PEO services revenue[105] - Net income for the first nine months of 2025 was $38.1 million, an increase of 5.2% from $36.2 million in the same period of 2024, with diluted net income per share rising to $1.45 from $1.35[113] - Revenue for the first nine months of 2025 reached $919.2 million, reflecting a 9.5% increase from $839.7 million in 2024, driven by an 11.0% increase in PEO services revenue[114] Margins and Costs - Gross margin for Q3 2025 was $76.8 million, representing 24.0% of revenue, down from 25.3% in Q3 2024[106] - Gross margin for the first nine months of 2025 was $192.6 million, or 20.9% of revenue, down from $181.9 million, or 21.6% of revenue in 2024[115] - Direct payroll costs for Q3 2025 were $14.6 million, or 4.6% of revenue, compared to 5.5% in Q3 2024[107] - Direct payroll costs decreased to $41.1 million, or 4.5% of revenue, compared to $45.6 million, or 5.4% of revenue in 2024[116] - Payroll taxes and benefits for Q3 2025 totaled $176.3 million, or 55.3% of revenue, up from 52.4% in Q3 2024, attributed to higher payroll tax rates and increased client benefit costs[108] - Payroll taxes and benefits increased to $536.6 million, or 58.4% of revenue, from $464.8 million, or 55.4% of revenue in 2024, due to higher average payroll tax rates[117] - Workers' compensation expense for Q3 2025 was $51.3 million, or 16.1% of revenue, down from 16.8% in Q3 2024[109] - Workers' compensation expense was $148.9 million, or 16.2% of revenue, compared to $147.4 million, or 17.6% of revenue in 2024, reflecting lower costs[118] - SG&A expenses for Q3 2025 were $49.9 million, or 15.6% of revenue, compared to 16.7% in Q3 2024[110] - SG&A expense rose to $142.9 million, or 15.5% of revenue, from $137.1 million, or 16.3% of revenue in 2024, primarily due to increased employee-related costs[119] Taxation - The effective income tax rate for Q3 2025 was 22.9%, a decrease from 23.6% in Q3 2024[112] - The effective income tax rate for the first nine months of 2025 was 24.7%, slightly higher than 24.2% in 2024[121] Employee Metrics - Average worksite employees (WSEs) for Q3 2025 increased by 6.1% year-over-year to 141,492, while ending WSEs grew by 5.8% to 140,409[103] Cash Flow - Net cash used in operating activities for the first nine months of 2025 was $10.2 million, significantly improved from $43.3 million in 2024[124] - The company's cash balance decreased to $66.0 million as of September 30, 2025, down from a decrease of $46.1 million in the same period of 2024[123] Gross Billings - Gross billings for Q3 2025 reached $2.32 billion, up from $2.14 billion in Q3 2024, with PEO and staffing wages totaling $2.02 billion[101]

Financial Performance - Revenues increased by 8% to $318.9 million compared to $294.3 million in Q3 2024[3] - Net income for Q3 2025 was $20.6 million, or $0.79 per diluted share, up from $19.6 million, or $0.74 per diluted share in Q3 2024[6] - Total revenues for the three months ended September 30, 2025, increased to $318,949,000, up from $294,278,000 in the same period of 2024, representing a growth of 8.5%[25] - Professional employer services revenue rose to $299,685,000, compared to $272,793,000 in the prior year, reflecting an increase of 9.8%[25] - Net income for the three months ended September 30, 2025, was $20,619,000, up from $19,628,000 in 2024, marking a growth of 5.1%[25] - Basic income per common share increased to $0.80 for the three months ended September 30, 2025, compared to $0.75 in the same period of 2024, a rise of 6.7%[25] - Total revenues for the nine months ended September 30, 2025, reached $919,172,000, compared to $839,711,000 in 2024, showing a growth of 9.4%[25] - Diluted income per common share for the three months ended September 30, 2025, was $0.79, up from $0.74 in the same period of 2024, an increase of 6.8%[25] Operational Metrics - Gross billings rose by 9% to $2.32 billion from $2.14 billion in the same quarter last year[4] - Average worksite employees (WSEs) increased by 6% year-over-year[6] - The average number of WSEs is projected to grow by 6% to 8%[14] Cost and Expenses - Workers' compensation expense as a percentage of gross billings was 2.2%, down from 2.3% in Q3 2024[5] - Total cost of revenues for the three months ended September 30, 2025, was $242,184,000, up from $219,866,000 in 2024, reflecting an increase of 10.1%[25] - Income from operations for the three months ended September 30, 2025, was $24,782,000, compared to $23,453,000 in 2024, representing a growth of 5.6%[25] - Provision for income taxes for the three months ended September 30, 2025, was $6,133,000, slightly up from $6,076,000 in 2024, an increase of 0.9%[25] - Gross margin for the three months ended September 30, 2025, was $76,765,000, compared to $74,412,000 in 2024, indicating an increase of 3.2%[25] Shareholder Actions - The company repurchased $7.5 million of stock in Q3 2025, with approximately $92.5 million remaining under the repurchase program[9] Future Outlook - BBSI expects gross billings growth of 8.5% to 9.5% for 2025[14] - The company remains debt-free as of the end of Q3 2025[7] - Total current assets increased to $516.9 million as of September 30, 2025, compared to $475.4 million at the end of 2024[23]

Core Insights - Barrett Business Services, Inc. (BBSI) reported a strong financial performance for Q3 2025, with revenues increasing by 8% to $318.9 million and gross billings rising by 9% to $2.32 billion, driven by new client additions and growth in professional employer services [1][3][4]. Financial Performance - Revenues for Q3 2025 were $318.9 million, up from $294.3 million in Q3 2024, reflecting an 8% year-over-year increase [3]. - Gross billings increased to $2.32 billion in Q3 2025, compared to $2.14 billion in the same quarter of the previous year, marking a 9% growth [4]. - Net income for the quarter rose to $20.6 million, or $0.79 per diluted share, compared to $19.6 million, or $0.74 per diluted share, in Q3 2024 [6][11]. Operational Metrics - The average number of worksite employees (WSEs) increased by 6% year-over-year, reaching 141,492 in Q3 2025 [11][19]. - Workers' compensation expense as a percentage of gross billings was 2.2% in Q3 2025, a slight decrease from 2.3% in Q3 2024, benefiting from lower costs [5][18]. Liquidity and Capital Allocation - As of September 30, 2025, BBSI had unrestricted cash and investments totaling $109.8 million, up from $90.4 million as of June 30, 2025, and remained debt-free [7]. - The company authorized a stock repurchase program of up to $100 million, with $7.5 million of stock repurchased in Q3 2025 [8][9]. - BBSI paid $2.1 million in dividends during the quarter, confirming a quarterly cash dividend of $0.08 per share [10]. Strategic Outlook - BBSI's management emphasized a focus on disciplined execution and investment in technology and service delivery to support long-term growth, despite a cautious economic environment [2].

Core Viewpoint - Barrett Business Services, Inc. (BBSI) will hold a conference call on November 5, 2025, to discuss its financial results for Q3 2025, which ended on September 30, 2025 [1][2]. Group 1: Conference Call Details - The conference call will be hosted by CEO Gary Kramer and CFO Anthony Harris, followed by a Q&A session [2]. - The call is scheduled for 5:00 p.m. Eastern time (2:00 p.m. Pacific time) [2]. - Participants can join the call using the toll-free number 1-800-717-1738 or the international number 1-646-307-1865, with a Conference ID of 10829 [2]. Group 2: Replay Information - The conference call will be broadcast live and available for replay on the BBSI website and through a dedicated replay number [3]. - A replay will be accessible after 8:00 p.m. Eastern time on the same day until December 5, 2025 [3]. - The toll-free replay number is 1-844-512-2921, and the international replay number is 1-412-317-6671, with a Replay ID of 1110829 [3]. Group 3: Company Overview - BBSI is a leading provider of business management solutions, specializing in human resource outsourcing and professional management consulting [3]. - The company serves over 8,100 PEO clients across all 50 states, focusing on improving operational efficiency through its integrated platform [3].