Barrett Business Services Posts 5% Revenue Growth, 3% Billings Rise, $14.8M Loss
BBSI•Barrett Business Services reported revenues up 5% to $307.0 million and gross billings up 3% to $2.16 billion, with average worksite employees rising 1.9%. The company incurred a $14.8 million net loss ($0.59 per share), including an $11.6 million one-time tax court charge that trimmed adjusted loss to $3.2 million ($0.13 per share).
1. First-Quarter Financial Highlights
In Q1 ended March 31, 2026, revenues increased 5% year-over-year to $307.0 million, while gross billings rose 3% to $2.16 billion. Average worksite employees climbed 1.9%, driven by net new clients and higher billings per employee per day.
2. One-Time Tax Charge Impact
The company reported a net loss of $14.8 million, or $0.59 per diluted share, compared with a $1.0 million loss in the prior year. This included an $11.6 million non-recurring charge related to disallowed tax credits from 2017-2022, yielding an adjusted net loss of $3.2 million, or $0.13 per share.
3. Liquidity and Capital Allocation
As of March 31, unrestricted cash and investments stood at $91.9 million, down from $157.2 million at year-end 2025, with the balance sheet remaining debt-free. Under its stock repurchase program, the company spent $20.1 million to buy 700,926 shares at an average of $28.68, and it paid $2.0 million in dividends, leaving $55.3 million available for buybacks.
4. Outlook and Guidance
Management reaffirmed full-year 2026 targets including 3%-5% gross billings growth, 2%-4% worksite employee growth, and a gross margin of 2.70%-2.85% of billings. The effective tax rate is expected at 26%-27%, and the quarterly dividend remains $0.08 per share.
