Barrett Business Services (BBSI) reported $2.4 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 6.4%. EPS of $0.64 for the same period compares to $0.63 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.42 billion, representing a surprise of -1.08%. The company delivered an EPS surprise of -0.39%, with the consensus EPS estimate being $0.64.While investors closely watch year-over-year changes in headline numbers -- revenue and ear ...

During the quarter, BBSI added approximately 8,300 WSEs year-over-year from net new clients , which management described as the result of its “sale and service” engine and other top-of-funnel initiatives. Still, reductions across “all geographies and nearly all industries” tempered growth, with California clients and construction having the most pronounced impact on gross billings.Kramer said the company produced record growth in its worksite employee (WSE) base, powered by sales execution and retention, bu ...

Financial Data and Key Metrics Changes - For the full year 2025, gross billings increased by 8.6% to $9 billion, compared to $8.3 billion in the prior year, while diluted earnings per share rose by 5% to $2.08 from $1.98 [15] - In Q4 2025, gross billings increased by 6.4% to $2.4 billion, compared to $2.25 billion in Q4 2024, and diluted earnings per share increased by 2% to $0.64 from $0.60 [15][16] - Average billing per worksite employee (WSE) per day increased by 1.5% in the quarter, driven by sustained wage growth [16] Business Line Data and Key Metrics Changes - The staffing business declined by 13% year-over-year in Q4 and 11% for the full year, reflecting client reluctance to place staffing orders amid macroeconomic uncertainty [8] - PEO gross billings increased by 6.6% in Q4 to $2.38 billion, while staffing revenues declined to $18 million [15][16] - PEO worksite employees grew by 5.1% in Q4, driven by record WSEs added from new clients, despite client workforce reductions [16] Market Data and Key Metrics Changes - Southern and Northern California both grew by 5%, while the Mountain and East Coast regions grew by 10%. The Pacific Northwest declined by 4%, and asset-light markets grew by 95% [16] - Client net hiring has been below historical norms throughout 2025, with reductions across all geographies and nearly all industries, particularly in California and construction [7][16] Company Strategy and Development Direction - The company is focusing on expanding its asset-light model and has successfully converted two emerging markets to traditional branches [4] - Continued investment in technology and product development, including enhancements to the myBBSI platform and new IT products, is a key part of the strategy [10][12] - The company aims to maintain controllable growth despite macroeconomic headwinds, with expectations for gross billings to increase between 3% and 5% in 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth despite macroeconomic uncertainties, with a focus on client needs and retention [3][14] - The company anticipates that negative hiring trends will continue into 2026, but expects improvements as the year progresses [27] - Wage growth is expected to moderate, with clients facing challenges in finding skilled labor [29][30] Other Important Information - The company repurchased $17 million of shares in Q4 2025, with a total of $42 million repurchased throughout the year [23] - The company paid $8.2 million in dividends for the year, returning a total of $50 million to shareholders [23] - The balance sheet remains strong with $157 million of unrestricted cash and investments and no debt [20] Q&A Session Summary Question: What are you hearing from your clients in terms of being able to improve growth throughout 2026? - Management anticipates that negative hiring trends will continue into 2026, with a potential for improvement later in the year [26][27] Question: What are you hearing from clients regarding the ability to pay higher wages in 2026? - Wage growth is real and has moderated, with clients still facing challenges in finding skilled labor [29][30] Question: Is there any improvement in sight for 2026 on the payroll tax side? - Payroll tax rates are expected to see a modest increase, but mechanisms are in place to manage these costs [33] Question: Are you expecting margins to improve as the year progresses relative to the workers' compensation pricing environment? - Management is cautiously optimistic about margin improvements, particularly in California, where rates are expected to increase [34][35] Question: How does the new client pipeline of qualified leads look currently? - The pipeline remains strong, with good volume and consistency in client acquisition [43] Question: Is the hiring trend improving this year, and is it broad-based? - The deterioration in hiring trends has been broad across industries, with construction remaining particularly weak [45]

Barrett Business Services (NasdaqGS:BBSI) Q4 2025 Earnings call February 25, 2026 05:00 PM ET Company ParticipantsAnthony Harris - CFOGary Kramer - President and CEOConference Call ParticipantsChristopher Moore - Senior Research AnalystJeff Martin - Co-Director of Research and Senior Research AnalystMarc Riddick - Senior Research AnalystVincent Colicchio - Senior Investment AnalystOperatorGood afternoon, everyone, and thank you for participating in today's conference call to discuss BBSI's financial results ...

Financial Data and Key Metrics Changes - For the full year 2025, gross billings increased by 8.6% to $9 billion, compared to $8.3 billion in the prior year, while diluted earnings per share rose by 5% to $2.08 from $1.98 [13][14] - In Q4 2025, gross billings increased by 6.4% to $2.4 billion, compared to $2.25 billion in Q4 2024, with diluted earnings per share increasing by 2% to $0.64 from $0.60 [14][15] - Average billing per worksite employee (WSE) per day increased by 1.5% in the quarter, driven by sustained wage growth [15] Business Line Data and Key Metrics Changes - PEO gross billings increased by 6.6% in Q4 to $2.38 billion, while staffing revenues declined by 13% to $18 million [14][15] - The staffing business declined by 13% year-over-year, reflecting client reluctance to place staffing orders amid macroeconomic uncertainty [7] - The company added approximately 8,300 WSEs year-over-year from net new clients, achieving a 5.1% increase in worksite employees for the quarter [6][15] Market Data and Key Metrics Changes - Southern and Northern California both grew by 5%, while the Mountain and East Coast regions grew by 10%. The Pacific Northwest declined by 4%, and asset-light markets grew by 95% [15][16] - Client workforce reductions were noted across all geographies and nearly all industries, with the construction industry and California clients being most affected [6][15] Company Strategy and Development Direction - The company is focusing on expanding its asset-light model and has successfully converted two emerging markets to traditional branches [4] - Continued investment in technology and product development is a priority, with multiple product releases planned for 2026 [10][20] - The company aims to maintain controllable growth despite macroeconomic headwinds, with expectations for gross billings to increase between 3% and 5% in 2026 [21][22] Management's Comments on Operating Environment and Future Outlook - Management anticipates that client hiring will continue to grow at a rate below historical norms due to macroeconomic uncertainties [11][21] - The workers' compensation market is expected to experience a positive shift with recent premium rate increases, which may help improve margins [17][22] - The company remains cautious in its planning for margins in 2026, balancing top-line growth with margin protection [22] Other Important Information - The company repurchased $17 million of shares in Q4 2025, with a total of $42 million repurchased throughout the year [21] - The company paid $8.2 million in dividends for the year, returning a total of $50 million to shareholders [21] Q&A Session Summary Question: What are you hearing from your clients in terms of being able to improve growth throughout 2026? - Management noted that they anticipate a continuation of negative hiring trends into 2026, with a potential for improvement later in the year as macroeconomic conditions stabilize [24][25] Question: What are you hearing from clients regarding the ability to pay higher wages in 2026? - Wage growth is real and has moderated to a range of 2%-4%. Clients are still facing challenges in finding skilled labor [26] Question: Is there any improvement in sight for 2026 on the payroll tax side? - Management indicated that payroll tax rates are modestly higher but manageable through pricing mechanisms [31] Question: Are you expecting margins to improve as the workers' compensation pricing environment evolves? - Management expressed cautious optimism about margin improvement, particularly in California, where rates are expected to rise [32][33] Question: How does the new client pipeline of qualified leads look currently? - The pipeline remains strong, with good volume and consistency in client acquisition, particularly in the benefits sector [42][43] Question: What impact do you anticipate from artificial intelligence on the business? - Management believes AI will enhance internal efficiency but does not foresee it replacing the human element in complex business operations [51][55]

BARRETT BUSINESS SERVICES, INC. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 Commission File Number 0-21886 Maryland 52-0812977 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 8100 NE Parkway Drive, Suite 200 Vancouver, Washington 98662 (Ad ...

- Fourth Quarter Revenues up 5% to $321.1 Million With Net Income of $16.4 Million, or $0.64 per Diluted Share - EXHIBIT 99.1 BBSI Reports Strong Fourth Quarter and Full Year 2025 Financial Results Workers' compensation expense as a percent of gross billings was 2.3% in the fourth quarter of 2025 and benefited from lower workers' compensation costs, including favorable prior year liability and premium adjustments of $2.2 million. This compares to 2.3% in the fourth quarter of 2024, which included favorable ...

- Fourth Quarter Revenues up 5% to $321.1 Million With Net Income of $16.4 Million, or $0.64 per Diluted Share - VANCOUVER, Wash., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (“BBSI” or the “Company”) (NASDAQ: BBSI), a leading provider of business management solutions, reported financial results for the fourth quarter and full year ended December 31, 2025. Fourth Quarter 2025 Financial Summary vs. Year-ago Quarter Revenues up 5% to $321.1 million.Gross billings up 6% to $2.40 billion.A ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Barrett Business Services (BBSI) due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.64 per share, reflecting a +1.6% change year-over-year, and revenues of $2.42 billion, which is a 7.6% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +4.28% for Barrett, suggesting analysts have recently become more optimistic about the company's earnings prospects [12]. Historical Performance - In the last reported quarter, Barrett was expected to post earnings of $0.81 per share but delivered $0.79, resulting in a surprise of -2.47%. Over the last four quarters, the company has beaten consensus EPS estimates two times [13][14]. Investment Considerations - While Barrett is seen as a strong candidate for an earnings beat, other factors may influence stock performance, making it essential for investors to consider the broader context [15][17].

VANCOUVER, Wash., Feb. 11, 2026 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions and one of the largest professional employer organizations (PEO) in the U.S., will conduct a conference call on Wednesday, February 25, 2026, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results for the fourth quarter and full year ended December 31, 2025. The company will report its financial results in a press release ...