Financial Data and Key Metrics Changes - Gross billings increased by 9.5% year-over-year to $2.09 billion in Q1 2025 compared to $1.91 billion in Q1 2024 [17] - PEO gross billings rose by 10% to $2.07 billion, while staffing revenues declined by 10% to $18 million [17] - Average billing per worksite employee (WSE) increased by 2.6% in the quarter [18] - The company reported a net loss per diluted share of $0.04 compared to a net loss of $0.01 per diluted share in the same quarter last year [23] Business Line Data and Key Metrics Changes - The number of PEO worksite employees grew by 7.6% in the quarter, driven by a record number of new client additions [18] - Staffing operations experienced a decline of 10% year-over-year, attributed to macroeconomic headwinds [6][17] - The company added approximately 7,900 worksite employees year-over-year from net new clients [5] Market Data and Key Metrics Changes - The East Coast region saw a 14% growth in PEO gross billings, while Southern California grew by 11% [19] - The Pacific Northwest region, however, experienced a decline of 1% in gross billings [19] - Total hours and overtime hours increased modestly year-over-year, indicating stability in client operations [18] Company Strategy and Development Direction - The company is focusing on geographic expansion with plans to open new physical locations in Chicago, Dallas, and Nashville by early Q3 [8][31] - Investments in technology and product enhancements are ongoing, including the launch of a new applicant tracking system [11][63] - The company aims to enhance the employee life cycle experience through additional product launches throughout the year [11] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, noting potential impacts on client hiring and investment [14][24] - Despite a strong start to the year, the company is maintaining its outlook for gross billings growth between 7% to 9% for the year [24] - The company believes that small businesses benefit from PEO relationships during challenging economic times, positioning itself for sustainable growth [15] Other Important Information - The company repurchased $9 million of shares in Q1 under its $75 million repurchase program [24] - The balance sheet remains strong with $99 million in unrestricted cash and investments and no debt [23] Q&A Session Summary Question: What percentage of clients have direct tariff exposure? - Management indicated that most clients are service businesses with indirect exposure to tariffs, primarily affecting materials and supplies [28] Question: Is there an annual goal for new physical offices? - Management stated that the number of new physical locations depends on market development rather than a fixed annual target [30] Question: How much is the benefits side driving new client growth? - The benefits offering has shifted to a more balanced contribution between existing and new clients, with significant success in attracting new clients [41][42] Question: Are there any areas that have not performed as expected? - Management acknowledged that while there are ongoing investments in technology, some products may take longer to gain traction [65]

Financial Data and Key Metrics Changes - Gross billings increased by 9.5% year-over-year to $2.09 billion in Q1 2025 compared to $1.91 billion in Q1 2024 [17] - PEO gross billings rose by 10% to $2.07 billion, while staffing revenues declined by 10% to $18 million [17] - Average billing per worksite employee (WSE) increased by 2.6% in the quarter [19] - The company reported a net loss per diluted share of $0.04, compared to a net loss of $0.01 per diluted share in the same quarter last year [24] Business Line Data and Key Metrics Changes - The number of worksite employees grew by 7.6% year-over-year, driven by a record number of new client additions [18] - Staffing operations experienced a decline of 10% compared to the prior year quarter [6] - The company added approximately 7,900 worksite employees from net new clients [5] Market Data and Key Metrics Changes - PEO gross billings growth by region showed varied performance: East Coast grew by 14%, Southern California by 11%, Mountain region by 9%, Northern California by 6%, and Pacific Northwest declined by 1% [20] - Southern California remains the largest region, achieving double-digit growth due to consistent client additions and hiring [20] Company Strategy and Development Direction - The company is focusing on geographic expansion with plans to open new physical locations in Chicago, Dallas, and Nashville by early Q3 2025 [8][32] - Investments in technology and product offerings are being prioritized, including the launch of a new applicant tracking system [12][63] - The company aims to enhance the employee life cycle experience through ongoing product launches throughout 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, noting potential impacts from trade negotiations and government initiatives [14] - Despite a strong start to the year, the company is maintaining its outlook for billings growth and WSE growth due to economic uncertainty [25] - The company believes it is well-positioned to navigate macroeconomic dynamics, emphasizing the benefits of PEO relationships for small businesses [16] Other Important Information - The company repurchased $9 million of shares in Q1 2025 under its $75 million repurchase program [25] - The company paid $2.1 million in dividends during the quarter and reaffirmed its dividend for the following quarter [25] Q&A Session Summary Question: What percentage of clients have direct tariff exposure? - Management indicated that most clients are service businesses with indirect exposure to tariffs, primarily affecting material costs [29] Question: Is there an annual goal for new physical offices? - Management stated that the number of new physical locations depends on market development rather than a fixed annual target [32] Question: How much growth could come from geographic expansion over the next five years? - Management views geographic expansion as a long-term investment, expecting profitability to materialize in year three and beyond [34] Question: Are current healthcare partnerships sufficient? - Management confirmed that while Aetna and Kaiser Permanente are key partners, they also work with regional carriers in certain states [37] Question: What factors influenced the decision to maintain guidance despite Q1 performance? - Management considered both the strong Q1 results and potential macroeconomic headwinds when deciding to maintain guidance [40] Question: How is pricing trending in the current economic backdrop? - Management noted that workers' compensation pricing has moderated, with minimal fluctuations expected [56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-21886 BARRETT BUSINESS SERVICES, INC. Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 (State or other jurisdiction of Incorporation or or ...

Financial Performance - Revenues increased by 10% to $292.6 million compared to $265.8 million in Q1 2024[4] - Total gross billings rose by 9% to $2.09 billion from $1.91 billion in the same quarter last year[5] - Total revenues for Q1 2025 reached $292,566,000, a 10.1% increase from $265,782,000 in Q1 2024[26] - Professional employer services revenue increased to $274,926,000, up from $246,189,000, representing an increase of 11.7%[26] - Staffing services revenue decreased to $17,640,000, down 10.0% from $19,593,000[26] - Total cost of revenues was $249,942,000, an increase of 10.5% compared to $226,215,000 in the previous year[26] - Gross margin improved to $42,624,000, compared to $39,567,000, reflecting a positive trend[26] - Net loss for Q1 2025 was $1,021,000, compared to a net loss of $136,000 in Q1 2024[26] - Basic loss per common share was $0.04, compared to $0.01 in the prior year[26] - The company reported a loss from operations of $4,172,000, slightly improved from a loss of $4,699,000 in Q1 2024[26] Employee Metrics - Average worksite employees (WSEs) grew by 8% year-over-year[8] - The company expects average WSE growth of 4% to 6% for 2025[14] Cash and Investments - As of March 31, 2025, unrestricted cash and investments totaled $99.1 million, down from $121.9 million at the end of 2024[9] - BBSI repurchased $9.1 million of stock in Q1 2025, with approximately $20.7 million remaining under the repurchase program[10] Expenses and Tax - Workers' compensation expense as a percentage of gross billings improved to 2.4% from 2.6% in the prior year[6] - The effective annual tax rate is projected to remain between 26% to 27%[14] Dividends - BBSI's board confirmed a quarterly cash dividend of $0.08 per share, to be paid on June 6, 2025[11] Investment Income - Investment income, net, was $2,620,000, down from $3,274,000 in the previous year[26]

Core Viewpoint - Barrett Business Services, Inc. (BBSI) reported a strong financial performance for the first quarter of 2025, with revenues increasing by 10% and gross billings rising by 9%, despite a net loss attributed to seasonal payroll tax expenses [3][4][11]. Financial Performance - Revenues for Q1 2025 reached $292.6 million, up from $265.8 million in Q1 2024 [4][11]. - Total gross billings increased to $2.09 billion, compared to $1.91 billion in the same quarter last year [5][11]. - The average number of worksite employees (WSEs) grew by 8% year-over-year [11]. Cost and Expenses - Workers' compensation expense as a percentage of gross billings was 2.4% in Q1 2025, down from 2.6% in Q1 2024, benefiting from lower costs and favorable prior year adjustments [6][11]. - The net loss for the first quarter was $1.0 million, or $(0.04) per diluted share, compared to a net loss of $0.1 million, or $(0.01) per diluted share, in the previous year [7][11]. Liquidity and Capital Allocation - As of March 31, 2025, unrestricted cash and investments totaled $99.1 million, down from $121.9 million at the end of 2024, with the company remaining debt-free [8]. - BBSI repurchased $9.1 million of stock in Q1 2025, with approximately $20.7 million remaining under the stock repurchase program [9][10]. Dividends - The company paid $2.1 million in dividends during the quarter and confirmed a quarterly cash dividend of $0.08 per share, to be paid on June 6, 2025 [10]. Outlook - BBSI anticipates continued growth in 2025, supported by strong client retention and a differentiated service model [3].

Core Viewpoint - Investors are evaluating Barrett Business Services (BBSI) and ExlService Holdings (EXLS) as potential undervalued stocks in the Outsourcing sector, with BBSI appearing to be the superior value option based on various valuation metrics [1][6]. Valuation Metrics - BBSI has a forward P/E ratio of 19.05, while EXLS has a forward P/E of 23.61, indicating that BBSI may be more attractively priced relative to its earnings [5]. - The PEG ratio for BBSI is 1.36, compared to EXLS's PEG ratio of 1.45, suggesting that BBSI offers better value when considering expected earnings growth [5]. - BBSI's P/B ratio is 4.78, whereas EXLS has a P/B ratio of 7.69, further supporting the argument that BBSI is undervalued relative to its book value [6]. Earnings Outlook - Both BBSI and EXLS currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - The Zacks Rank system emphasizes companies with improving earnings estimates, which applies to both BBSI and EXLS [2][3]. Value Grades - BBSI has received a Value grade of A, while EXLS has a Value grade of C, highlighting BBSI's stronger position as a value investment based on the analyzed metrics [6].

Core Viewpoint - Barrett Business Services, Inc. (BBSI) will hold a conference call on May 7, 2025, to discuss its financial results for Q1 2025, which ended on March 31, 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 a toll-free number or an international dial-in number, with a conference ID provided for access [2]. Group 2: Replay Information - The conference call will be broadcast live and available for replay on the BBSI website, with a replay accessible after 8:00 p.m. Eastern time on the same day until June 7, 2025 [3]. - Specific toll-free and international numbers are provided for the replay, along with a replay ID [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].

NEW YORK, April 23, 2025 /PRNewswire/ - According to a comprehensive new report from The Insight Partners, the global Applicant Tracking System (ATS) market is observing healthy growth owing to the rising recruitment volume across the globe. The report runs an in-depth analysis of market trends, key players, and future opportunities. Several key factors drive the Applicant Tracking System (ATS) market. As organizations scale operations and expand geographically, the need to manage high volumes of job applic ...

Core Insights - Barrett Business Services, Inc. (BBSI) has appointed Mark S. Finn to its board of directors, effective April 7, 2025, enhancing its leadership team with his extensive financial background [1][3]. Company Overview - BBSI is a leading provider of business management solutions, specializing in human resource outsourcing and professional management consulting, which differentiates it from competitors [4]. - The company operates an integrated platform that includes payroll processing, employee benefits, workers' compensation coverage, risk management, workplace safety programs, and human resource administration [4]. - BBSI serves over 8,100 PEO clients across all 50 states in the U.S. [4]. Leadership Background - Mark S. Finn has over 30 years of experience with T. Rowe Price Group, where he managed significant investment funds, including a $35 billion US Value Equity Strategy Fund [2]. - Finn's previous roles included working in assurance services at Price Waterhouse & Co., now known as PricewaterhouseCoopers LLP [2]. - He holds a Bachelor of Science in Accounting from the University of Delaware and was a certified public accountant and certified financial analyst until his retirement in 2023 [3]. Strategic Importance - The appointment of Finn is expected to provide critical guidance for BBSI's growth and innovation, as noted by the company's chairman, Tony Meeker [3]. - Finn expressed his commitment to contributing to the company's long-term success and believes in BBSI's potential [3].

VANCOUVER, Wash., April 02, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions, today announced the appointment of Thomas McGinn as Senior Vice President of Insurance. In this role, Mr. McGinn will oversee BBSI’s insurance operations, including underwriting strategy, risk management, and pricing. He will report directly to BBSI’s Chief Executive Officer, Gary Kramer. “This is a critical leadership role at BBSI, and Tom’s deep e ...