Barrett Business Services (NASDAQ:BBSI) Releases Earnings Results, Meets Expectations

Barrett Business Services (NASDAQ:BBSI) posted its quarterly earnings data on Wednesday. The business services provider reported $0.64 earnings per share for the quarter, hitting the consensus estimate of $0.64, FiscalAI reports. Barrett Business Services had a net margin of 4.39% and a return on equity of 24.05%. The firm had revenue of $2.40 billion during the quarter, compared to analysts’ expectations of $323.43 million. During the same quarter in the previous year, the company posted $0.63 EPS. Barrett Business Services’s revenue was up 5.3% on a year-over-year basis.

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 Trading Up 2.2%

NASDAQ:BBSI traded up $0.60 during trading hours on Friday, hitting $27.43. The stock had a trading volume of 86,881 shares, compared to its average volume of 200,636. The business’s 50 day moving average is $35.93 and its 200-day moving average is $39.77. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.27 and a current ratio of 1.27. The company has a market cap of $702.63 million, a price-to-earnings ratio of 13.11, a P/E/G ratio of 0.78 and a beta of 0.99. Barrett Business Services has a one year low of $25.33 and a one year high of $49.65.

Barrett Business Services Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Investors of record on Friday, March 13th will be issued a dividend of $0.08 per share. The ex-dividend date is Friday, March 13th. This represents a $0.32 dividend on an annualized basis and a yield of 1.2%. Barrett Business Services’s payout ratio is currently 15.31%.

Key Headlines Impacting Barrett Business Services

Here are the key news stories impacting Barrett Business Services this week:

• Positive Sentiment: Q4 earnings: EPS of $0.64 matched consensus and management highlighted strong fourth‑quarter and full‑year results, supporting fundamentals. BBSI Reports Strong Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Company press release / transcript: Management discussed record sales volume and provided detail on key metrics on the earnings call — supportive for medium‑term growth expectations. View Press Release
• Positive Sentiment: Analysts still bullish despite cuts: Barrington Research trimmed its target from $46 to $41 but kept an Outperform rating; Roth MKM cut from $54 to $42 but kept a Buy — both still imply large upside versus the current share price, which can limit downside. Analyst Price Target Moves
• Neutral Sentiment: Dividend declared: BBSI announced a quarterly dividend of $0.08 per share (ex‑dividend Mar 13), yielding roughly 1.2% — modest income support but not a major catalyst. Dividend Announcement
• Negative Sentiment: Revenue / sales confusion and misses: Some outlets flagged that sales missed expectations (reporting discrepancies across sources), creating uncertainty about top‑line momentum. Barrett (NASDAQ:BBSI) Misses Q4 CY2025 Sales Expectations
• Negative Sentiment: Rising short interest: Data show a notable increase in short positions in February (reported ~717,409 shares, roughly 2.9% of float as of Feb 13), which can add selling pressure and volatility. Note: some short‑interest feeds show inconsistent zero values — treat recent 2.9% as the more actionable figure. Earnings Call Transcript / Short Interest Context

Institutional Trading of Barrett Business Services

Several hedge funds have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC acquired a new position in Barrett Business Services in the fourth quarter valued at about $39,000. Tripletail Wealth Management LLC lifted its holdings in shares of Barrett Business Services by 152.6% during the 4th quarter. Tripletail Wealth Management LLC now owns 1,920 shares of the business services provider’s stock valued at $70,000 after purchasing an additional 1,160 shares in the last quarter. NewEdge Advisors LLC grew its position in shares of Barrett Business Services by 270.2% in the 2nd quarter. NewEdge Advisors LLC now owns 1,999 shares of the business services provider’s stock valued at $83,000 after purchasing an additional 1,459 shares during the period. Parkside Financial Bank & Trust acquired a new stake in Barrett Business Services during the 4th quarter worth approximately $109,000. Finally, Los Angeles Capital Management LLC bought a new position in Barrett Business Services in the fourth quarter valued at approximately $124,000. Institutional investors and hedge funds own 86.76% of the company’s stock.

Wall Street Analysts Forecast Growth

BBSI has been the subject of a number of recent research reports. CJS Securities upgraded Barrett Business Services to a “strong-buy” rating in a research report on Thursday, December 11th. Roth Mkm lowered their price objective on Barrett Business Services from $54.00 to $42.00 and set a “buy” rating for the company in a research report on Thursday. Barrington Research dropped their price objective on Barrett Business Services from $46.00 to $41.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Barrett Business Services in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Barrett Business Services has a consensus rating of “Buy” and a consensus price target of $41.50.

About Barrett Business Services

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.