Barrett Business Services(US:BBSI)2025-08-06 21:42Financial Performance - For Q2 2025, net income was $18.5 million, up from $16.7 million in Q2 2024, with diluted net income per share increasing to $0.70 from $0.62[104] - Revenue for Q2 2025 reached $307.7 million, a 10.0% increase from $279.6 million in Q2 2024, driven by an 11.7% increase in PEO services revenue[105] - Net income for the first six months of 2025 was $17.4 million, an increase of 4.8% from $16.6 million in the same period of 2024[113] - Revenue for the first six months of 2025 totaled $600.2 million, reflecting a 10.0% increase from $545.4 million in the first six months of 2024[114] Employee Metrics - Average worksite employees (WSEs) grew by 8.0% year-over-year to 138,969 in Q2 2025, while ending WSEs increased by 8.2% to 140,671[103] Cost and Expenses - Gross margin for Q2 2025 was $73.3 million, representing 23.8% of revenue, compared to 24.2% in Q2 2024[106] - Direct payroll costs decreased to $13.2 million or 4.3% of revenue in Q2 2025, down from 5.3% in Q2 2024[107] - Payroll taxes and benefits increased to $173.3 million or 56.3% of revenue in Q2 2025, up from 53.2% in Q2 2024, due to expanded client benefit programs[108] - Workers' compensation expense was $48.0 million or 15.6% of revenue in Q2 2025, a decrease from 17.3% in Q2 2024[109] - SG&A expenses rose to $48.2 million or 15.7% of revenue in Q2 2025, compared to $45.6 million or 16.3% in Q2 2024[110] - Gross margin for the first six months of 2025 was $115.9 million, representing 19.3% of revenue, down from 19.7% in the same period of 2024[115] - Payroll taxes and benefits for the first six months of 2025 amounted to $360.3 million, or 60.0% of revenue, compared to 57.0% in the first six months of 2024[117] - Workers' compensation expense for the first six months of 2025 was $97.6 million, or 16.3% of revenue, a decrease from 17.9% in the same period of 2024[118] - SG&A expense for the first six months of 2025 totaled $93.0 million, or 15.5% of revenue, compared to 16.1% in the first six months of 2024[119] Cash Flow and Balance Sheet - The company's cash balance decreased by $45.4 million for the six months ended June 30, 2025, compared to a decrease of $4.8 million for the same period in 2024[123] - Net cash used in operating activities for the first six months of 2025 was $48.6 million, compared to $42.4 million in the same period of 2024[124] - The trust account balance decreased to $153.9 million at June 30, 2025, from $197.1 million at December 31, 2024[127] Business Operations - The company began offering additional employee benefit programs in 2023, including medical, dental, and vision plans[99] - The company operates a decentralized delivery model with teams located within 50 miles of client companies, enhancing local engagement and decision-making[92]