Barrett Business Services (NASDAQ:BBSI) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

by · The Markets Daily

Barrett Business Services (NASDAQ:BBSI – Get Free Report) announced its quarterly earnings data on Wednesday. The business services provider reported $0.64 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.01, FiscalAI reports. Barrett Business Services had a net margin of 4.48% and a return on equity of 24.36%. The business had revenue of $2.40 billion during the quarter, compared to analyst estimates of $323.43 million.

Here are the key takeaways from Barrett Business Services’ conference call:

  • Full-year results were strong: gross billings rose 8.6% to $9.0 billion and diluted EPS increased 5% to $2.08, with Q4 EPS of $0.64.
  • 2026 guidance is conservative — management expects 3%–5% gross billings growth, 2%–4% average WSE growth and gross margin of 2.7%–2.85%, citing uncertainty in workers’ compensation pricing.
  • BBSI Benefits and tech momentum: clients on benefits rose from ~575 to ~800 (24,000+ participants) with a 93% renewal rate (97% adjusted) and multiple product launches (ATS, Employee File Cabinet, performance module in beta).
  • Operational headwinds: staffing revenues declined ~13% and client workforce reductions — particularly in California and construction — accelerated in Q4, which moderated same-customer sales.
  • Capital position supports returns: $157 million of cash and investments, no debt, ~$42 million repurchased in 2025 with $75 million remaining under the buyback program, and $8.2 million paid in dividends (≈$50M returned total).

Barrett Business Services Price Performance

NASDAQ:BBSI traded up $0.41 during trading hours on Wednesday, reaching $31.47. The company had a trading volume of 267,636 shares, compared to its average volume of 183,109. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.31. The stock has a 50-day moving average of $36.24 and a two-hundred day moving average of $39.92. Barrett Business Services has a one year low of $30.24 and a one year high of $49.65. The firm has a market capitalization of $806.26 million, a PE ratio of 15.13, a PEG ratio of 0.77 and a beta of 0.99.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on BBSI shares. Barrington Research reissued an “outperform” rating and set a $46.00 price objective on shares of Barrett Business Services in a report on Thursday, February 19th. CJS Securities raised Barrett Business Services to a “strong-buy” rating in a research report on Thursday, December 11th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Barrett Business Services in a report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Barrett Business Services presently has a consensus rating of “Buy” and an average price target of $46.00.

Read Our Latest Stock Report on Barrett Business Services

Institutional Investors Weigh In On Barrett Business Services

Large investors have recently made changes to their positions in the company. EP Wealth Advisors LLC acquired a new stake in shares of Barrett Business Services during the 4th quarter worth about $708,000. NewEdge Advisors LLC grew its stake in Barrett Business Services by 479.5% during the fourth quarter. NewEdge Advisors LLC now owns 11,022 shares of the business services provider’s stock worth $399,000 after buying an additional 9,120 shares during the last quarter. XTX Topco Ltd acquired a new stake in shares of Barrett Business Services during the fourth quarter worth approximately $848,000. Wellington Management Group LLP increased its holdings in shares of Barrett Business Services by 15.3% during the fourth quarter. Wellington Management Group LLP now owns 821,560 shares of the business services provider’s stock worth $29,749,000 after buying an additional 109,069 shares in the last quarter. Finally, Tudor Investment Corp ET AL bought a new position in shares of Barrett Business Services in the fourth quarter valued at approximately $370,000. Institutional investors own 86.76% of the company’s stock.

Barrett Business Services Company Profile

(Get Free Report)

Barrett Business Services, Inc (NASDAQ: BBSI) is a professional employer organization (PEO) headquartered in Northridge, California. Founded in 1971 by Barrett K. Levesque, the company provides comprehensive human resources outsourcing solutions to small and mid-sized businesses. Through its consultative model, Barrett Business Services helps clients streamline administrative processes, mitigate regulatory risk and focus on core operations.

The company’s core offerings include payroll administration, employee benefits management, workers’ compensation and risk management services.

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