Barrett Business Services, Inc. (BBSI) reported fourth‑quarter 2025 earnings on February 25, 2026, with earnings per share of $0.64, exactly matching the consensus estimate of $0.64 and representing a 1.6% year‑over‑year increase from $0.63 in Q4 2024. Revenue for the quarter was $321.1 million, falling $2.3 million short of the $323.4 million consensus estimate and up 5.5% from the $304.8 million reported in Q4 2024.
The company’s core PEO business continued to drive growth, with gross billings rising 6.4% year‑over‑year to $2.4 billion. In contrast, staffing revenue declined, and client workforce reductions in California and the construction sector weighed on overall revenue. These headwinds, combined with broader macro‑economic uncertainty, explain the modest revenue miss despite the company’s ability to keep earnings on target through disciplined cost management.
BBSI’s guidance for 2026 reflects a cautious outlook. Management expects gross billings to grow 3%–5% and average WSEs to rise 2%–4%, while gross margin is projected to be 2.7%–2.85%. The guidance signals confidence in maintaining profitability amid pricing pressure and cost inflation, but also acknowledges slower growth in client hiring trends.
The results underscore BBSI’s resilience: earnings met expectations thanks to effective cost controls, even as revenue slipped under consensus. The continued expansion of the PEO platform and the company’s disciplined capital allocation—returning $50 million to shareholders in 2025—support a positive long‑term trajectory, though the staffing decline and macro headwinds remain risks to near‑term growth.
The earnings announcement provides a timely update on BBSI’s financial performance and sets the stage for analysts to reassess the company’s outlook in light of its strategic focus on technology, asset‑light expansion, and the sale and service of BBSI Benefits.
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