Barrett Business Services(BBSI) - 2025 Q3 - Quarterly Results

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]