BBSI Reports Strong Second Quarter 2025 Financial Results

Core Insights - Barrett Business Services, Inc. (BBSI) reported a 10% increase in revenues to $307.7 million and gross billings to $2.23 billion for the second quarter of 2025 compared to the same quarter in 2024 [3][4][10] - The company announced a new $100 million stock repurchase program, replacing the previous program established in July 2023 [8] Financial Performance - Revenues increased by 10% from $279.7 million in Q2 2024 to $307.7 million in Q2 2025 [3][10] - Gross billings rose by 10% from $2.03 billion in Q2 2024 to $2.23 billion in Q2 2025, driven by growth in professional employer services and increased worksite employees (WSEs) [4][10] - Net income for Q2 2025 was $18.5 million, or $0.70 per diluted share, compared to $16.7 million, or $0.62 per diluted share, in Q2 2024 [6][10] Operational Metrics - Average WSEs increased by 8% year-over-year, from 128,734 in Q2 2024 to 138,969 in Q2 2025 [18] - Workers' compensation expense as a percentage of gross billings decreased to 2.1% in Q2 2025 from 2.5% in Q2 2024, benefiting from lower costs [5][17] Capital Allocation - The company repurchased $8.0 million of stock in Q2 2025, comprising 197,200 shares at an average price of $40.80 [8] - BBSI paid $2.0 million in dividends during the quarter, with a confirmed quarterly cash dividend of $0.08 per share to be paid on September 5, 2025 [9] Liquidity Position - As of June 30, 2025, BBSI had unrestricted cash and investments totaling $90.4 million, down from $99.1 million as of March 31, 2025 [7]