Barrett Business Services (BBSI) Q4 2025 earnings summary

Executive summary

• Achieved strong full-year results with earnings and revenues exceeding guidance, driven by increased professional employer services, higher average worksite employees (WSEs), and new client wins, despite Q4 revenue coming in slightly below forecast due to moderated same-customer sales trends.

• Record growth in WSE base, up 26% year-over-year, supported by operationalized sales initiatives and expanded referral partner network.

• Expanded into new geographies with an asset-light model, converting two emerging markets to traditional branches and opening new locations in Chicago, Dallas, and Nashville.

• Maintained high client satisfaction, with Net Promoter Score in the high 60s for the third consecutive year and strong client retention.

• Advanced technology roadmap with new product launches and earned Great Place to Work designation for the fifth consecutive year.

Financial highlights

• Full-year gross billings increased 8.6% to $9 billion; Q4 gross billings up 6.4% to $2.4 billion year-over-year.

• Diluted EPS rose 5% to $2.08 for the year and 2% to $0.64 for Q4, with full-year net income up 3% to $54.4 million.

• Average WSEs increased 5% in Q4 and 7% for the year, reaching 138,218.

• Gross margin as a percent of gross billings was 2.8% in Q4 and 2.9% for the year.

• Unrestricted cash and investments at year-end totaled $157 million, with no debt.

Outlook and guidance

• 2026 gross billings expected to grow 3%-5%; average WSEs to increase 2%-4%.

• Gross margin projected between 2.7% and 2.85% for 2026, with an effective annual tax rate anticipated between 26%-27%.

• Expect continued controllable growth, offset by weak client hiring trends, especially early in the year.