Barrett Business Services (NASDAQ:BBSI) Posts Earnings Results, Misses Expectations By $0.36 EPS

Barrett Business Services (NASDAQ:BBSI) posted its earnings results on Wednesday. The business services provider reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.36), FiscalAI reports. The company had revenue of $319.27 million during the quarter, compared to analysts’ expectations of $321.55 million. Barrett Business Services had a net margin of 3.24% and a return on equity of 22.89%.

Here are the key takeaways from Barrett Business Services’ conference call:

• New-client momentum remained strong: Q2 acquisitions increased 17% year over year, adding approximately 4,500 worksite employees from net new clients, while client retention remained solid.
• BBSI reported encouraging progress in its benefits and expansion initiatives, adding about 70 benefits clients and more than 2,000 participants in Q2; asset-light markets grew 73% and added approximately 400 worksite employees.
• Management believes California workers’ compensation pricing has reached an inflection point, with eight consecutive months of rate increases that are expected to offset claims-cost inflation and support gross-margin improvement in 2027.
• Macroeconomic and geopolitical pressures continued to drive workforce reductions among existing clients, particularly in construction, limiting overall growth; staffing revenue declined 18% year over year.
• The company narrowed its 2026 outlook to 3%–4% gross-billings growth, 2%–3% average worksite-employee growth, and a 2.70%–2.75% gross margin range. Q2 diluted EPS fell to $0.52 from $0.70 in the prior-year quarter.

Barrett Business Services Price Performance

Barrett Business Services stock traded up $0.03 during midday trading on Wednesday, reaching $40.11. The company’s stock had a trading volume of 295,106 shares, compared to its average volume of 242,049. The stock has a market capitalization of $985.10 million, a P/E ratio of 26.05, a PEG ratio of 1.33 and a beta of 0.94. The stock’s 50-day simple moving average is $36.35 and its 200-day simple moving average is $33.12. Barrett Business Services has a 52-week low of $25.33 and a 52-week high of $49.65.

Insider Transactions at Barrett Business Services

In other news, EVP James R. Potts sold 3,490 shares of the company’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $38.00, for a total transaction of $132,620.00. Following the transaction, the executive vice president owned 32,035 shares in the company, valued at $1,217,330. This represents a 9.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Anthony Meeker sold 12,000 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $37.85, for a total transaction of $454,200.00. Following the completion of the transaction, the director directly owned 44,945 shares of the company’s stock, valued at $1,701,168.25. The trade was a 21.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 20,779 shares of company stock worth $786,233 in the last 90 days. Insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On Barrett Business Services

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Swiss National Bank increased its position in shares of Barrett Business Services by 1.0% in the 3rd quarter. Swiss National Bank now owns 49,800 shares of the business services provider’s stock valued at $2,207,000 after acquiring an additional 500 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Barrett Business Services by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,219 shares of the business services provider’s stock worth $626,000 after acquiring an additional 633 shares during the period. Legal & General Group Plc lifted its position in Barrett Business Services by 1.9% during the 3rd quarter. Legal & General Group Plc now owns 37,091 shares of the business services provider’s stock worth $1,644,000 after acquiring an additional 708 shares during the period. Deutsche Bank AG grew its stake in Barrett Business Services by 4.3% during the 4th quarter. Deutsche Bank AG now owns 24,236 shares of the business services provider’s stock valued at $878,000 after purchasing an additional 997 shares during the last quarter. Finally, Kestra Advisory Services LLC purchased a new stake in Barrett Business Services during the 4th quarter valued at about $39,000. 86.76% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

BBSI has been the topic of a number of recent analyst reports. Weiss Ratings upgraded shares of Barrett Business Services from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 13th. Zacks Research upgraded shares of Barrett Business Services from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. Wall Street Zen raised shares of Barrett Business Services from a “sell” rating to a “hold” rating in a research report on Saturday, June 6th. Finally, Barrington Research restated an “outperform” rating and issued a $41.00 target price on shares of Barrett Business Services in a research note on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average 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.