Barrett Business Services (BBSI)
NASDAQ:BBSI
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Barrett Business Services
(NASDAQ:BBSI)
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Rating:65Neutral
Price Target:
$31.00
â–²(3.82% Upside)
Action:ReiteratedDate:04/01/26
The score is supported by strong balance-sheet quality and solid multi-year revenue/profitability, plus a reasonable valuation. It is held back primarily by weak technical trend signals and business near-term uncertainty reflected in conservative 2026 guidance, with an added near-term drag from the tax court-related expense.
Positive Factors
Conservative balance sheet and strong liquidity
Very low leverage and a stronger equity base give BBSI durable financial flexibility. Ample liquidity and minimal debt support underwriting volatility in workers’ comp, ongoing buybacks/dividends, and capacity to invest in technology or M&A without stressing the balance sheet.
Negative Factors
Adverse tax-court ruling and material one-time charge
A confirmed tax liability and related interest are a tangible near-term cash and EPS headwind and create legal and reserve uncertainty. Even as operations remain intact, the ruling increases financial volatility and could affect free cash flow and capital-return plans over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and strong liquidity
Very low leverage and a stronger equity base give BBSI durable financial flexibility. Ample liquidity and minimal debt support underwriting volatility in workers’ comp, ongoing buybacks/dividends, and capacity to invest in technology or M&A without stressing the balance sheet.
Read all positive factors
Barrett Business Services (BBSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$738.95M
Dividend Yield0.88%
Average Volume (3M)253.93K
Price to Earnings (P/E)16.9
Beta (1Y)0.71
Revenue Growth9.64%
EPS Growth9.93%
CountryUS
Employees135,727
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.64
Shares Outstanding25,203,090
10 Day Avg. Volume287,688
30 Day Avg. Volume253,932
Financial Highlights & Ratios
PEG Ratio3.42
Price to Book (P/B)3.81
Price to Sales (P/S)0.74
P/FCF Ratio19.47
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda8.70
Forecast
1Y Price Target
$41.50Price Target Upside38.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.86
Revenue Forecast (FY)$1.34B
Barrett Business Services Business Overview & Revenue Model
Company Description
Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting ind...
How the Company Makes Money
BBSI primarily makes money through its PEO model by charging client companies for a packaged set of employer-related services. A major revenue stream is fees associated with payroll and HR administration, generally tied to client payroll levels an...
Barrett Business Services Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a mix of solid execution and measurable achievements — strong full-year revenue and EPS growth, record net new WSE additions, benefits and product momentum, asset-light expansion and a healthy balance sheet — alongside notable near-term headwinds: accelerated client workforce reductions, a pronounced decline in staffing revenues, regional weakness (Pacific Northwest and construction), and margin/pricing uncertainty in workers' compensation. Management provided conservative 2026 guidance reflecting these risks while highlighting levers (pricing, benefits growth, product rollouts and cost discipline) that could drive improvement if market trends stabilize.Positive Updates
Full-Year Revenue and EPS Growth
Gross billings for FY2025 increased 8.6% to $9.0 billion (from $8.3 billion), and diluted EPS rose 5% to $2.08 (from $1.98), exceeding full year guidance.
Negative Updates
Moderation in Same-Customer Sales and Slight Revenue Miss
Management noted Q4 same-customer sales trends moderated and revenue came in slightly below internal forecast, signaling near-term organic growth softness.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and EPS Growth
Gross billings for FY2025 increased 8.6% to $9.0 billion (from $8.3 billion), and diluted EPS rose 5% to $2.08 (from $1.98), exceeding full year guidance.
Read all positive updates
Company Guidance
BBSI’s 2026 guidance calls for gross billings growth of 3%–5%, average worksite employees (WSEs) up 2%–4%, gross margin of 2.70%–2.85% and an effective tax rate of 26%–27%, with management expecting weaker same‑customer sales early in the year and improvement later while closely monitoring workers’ compensation pricing and payroll tax timing; the company plans continued IT investments (with higher depreciation), ongoing share repurchases and dividends. For context, 2025 results included gross billings of ~$9.0B (+8.6%), diluted EPS $2.08 (+5%), Q4 billings $2.4B (+6.4%) and Q4 EPS $0.64 (+2%); PEO gross billings +6.6% in Q4 (to $2.38B) while staffing revenues fell 13% (to $18M), PEO WSEs +5.1% in Q4 (average WSEs +6.7% for the year), average billing per WSE/day +1.5% in Q4, Q4 favorable prior‑year WC adjustments $2.2M (vs. $2.4M prior year), investment income $2.3M in Q4 (down ~$0.2M), $157M cash & investments, ~$42M repurchased in 2025 (~4% of shares) with $75M remaining under a $100M program, and $8.2M of dividends for $50M total capital returned in 2025.Barrett Business Services Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.24B | 1.14B | 1.07B | 1.05B | 955.17M |
| Gross Profit | 260.91M | 253.25M | 242.53M | 234.84M | 204.51M |
| EBITDA | 80.09M | 78.25M | 76.26M | 71.67M | 56.36M |
| Net Income | 54.45M | 52.99M | 50.61M | 47.27M | 38.08M |
Balance Sheet | |||||
| Total Assets | 779.07M | 745.51M | 721.54M | 686.94M | 746.95M |
| Cash, Cash Equivalents and Short-Term Investments | 192.24M | 121.86M | 152.19M | 159.75M | 166.17M |
| Total Debt | 24.45M | 21.45M | 21.21M | 21.18M | 25.30M |
| Total Liabilities | 538.07M | 524.10M | 522.40M | 509.10M | 538.42M |
| Stockholders Equity | 241.00M | 221.40M | 199.14M | 177.84M | 208.53M |
Cash Flow | |||||
| Free Cash Flow | 47.18M | -4.07M | 55.40M | 11.80M | -22.26M |
| Operating Cash Flow | 65.95M | 10.09M | 67.22M | 27.78M | -15.46M |
| Investing Cash Flow | 30.76M | 38.78M | -55.19M | 61.15M | -112.86M |
| Financing Cash Flow | -52.97M | -41.13M | -44.57M | -60.18M | -26.89M |
Barrett Business Services Technical Analysis
Neutral
29.86
Price Trends
29.88
Negative
33.24
Negative
38.34
Negative
Market Momentum
-0.09
Negative
54.63
Neutral
82.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBSI, the sentiment is Neutral. The current price of 29.86 is above the 20-day moving average (MA) of 29.16, below the 50-day MA of 29.88, and below the 200-day MA of 38.34, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 82.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BBSI.
Barrett Business Services Risk Analysis
Barrett Business Services disclosed 42 risk factors in its most recent earnings report. Barrett Business Services reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Barrett Business Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $738.95M | 16.87 | 23.66% | 0.88% | 9.64% | 9.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $341.33M | -1.20 | -22.10% | 3.53% | 0.46% | -477.90% | |
55 Neutral | $561.78M | 15.78 | 26.32% | 5.12% | -5.91% | -23.01% | |
53 Neutral | $1.43B | -104.17 | -0.81% | 4.96% | -2.44% | -156.01% | |
45 Neutral | $1.05B | -210.19 | -7.69% | 6.37% | 3.19% | -86.21% |
* Industrials Sector Average
BBSI
Barrett Business Services
29.86
-8.78
-22.72%
NSP
Insperity
28.90
-43.07
-59.84%
KELYA
Kelly Services
9.51
-1.23
-11.47%
KFRC
Kforce
30.56
-10.78
-26.08%
MAN
ManpowerGroup
31.13
-7.17
-18.72%
Barrett Business Services Corporate Events
Financial DisclosuresLegal Proceedings
Barrett Business Faces Adverse Tax Court Ruling, Added Expenses
Negative
Mar 31, 2026
On March 30, 2026, the U.S. Tax Court granted the IRS’s motion for partial summary judgment and denied Barrett Business Services, Inc.’s competing motion in a dispute over wage-based tax credits, including the Work Opportunity Tax Cred...
Stock BuybackDividendsFinancial Disclosures
Barrett Business Services Reports Strong 2025 Results, Dividend
Positive
Feb 25, 2026
Barrett Business Services, Inc. reported that fourth-quarter 2025 revenues rose 5% to $321.1 million and gross billings increased 6% to $2.40 billion, driven by growth in PEO services and a 5% increase in average worksite employees, while net inco...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.