BBSI Reports Strong First Quarter 2025 Financial Results

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].