Revenue growth has trended downward to 4.9% in 2026Q1, while gross margins remain highly sensitive to insurance liabilities, fluctuating between 14.1% and 25.3% over the past ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.25B | 1.24B | 1.14B | 1.07B | 1.05B | 955.17M | 880.82M | 942.31M | 940.7M | 920.43M | 840.59M | 740.84M | 636.18M | 532.84M | 402.65M | 314.87M | 273.12M | 236.46M | 280.47M | 289.21M | 259.18M | 231.39M | 194.96M | 122.72M | 109.31M | 216.66M | 322.47M | 347.9M | 303M | 281M | 215.8M |
| Revenue Growth % | 7.12% | 8.37% | 7.03% | 1.42% | 10.38% | 8.44% | -6.53% | 0.17% | 2.2% | 9.5% | 13.46% | 16.45% | 19.39% | 32.33% | 27.88% | 15.29% | 15.5% | -15.69% | -3.02% | 11.59% | 12.01% | 18.68% | 58.87% | 12.27% | -49.55% | -32.81% | -7.31% | 14.82% | 7.83% | 30.21% | 20.02% |
| Cost of Goods Sold | 993.26M | 979.38M | 891.28M | 826.77M | 819.48M | 750.66M | 697.92M | 734.06M | 754.02M | 761.9M | 695.05M | 611.38M | 605.77M | 446.32M | 335.94M | 271.42M | 228.33M | 210.87M | 230.86M | 230.3M | 203.63M | 185.56M | 158.29M | 101.35M | 94.34M | 198.63M | 290.66M | 309.8M | 270.5M | 252.5M | 191.3M |
| COGS % of Revenue | - | 78.96% | 77.87% | 77.32% | 77.73% | 78.59% | 79.23% | 77.9% | 80.16% | 82.78% | 82.69% | 82.53% | 95.22% | 83.76% | 83.43% | 86.2% | 83.6% | 89.18% | 82.31% | 79.63% | 78.57% | 80.19% | 81.19% | 82.58% | 86.31% | 91.68% | 90.14% | 89.05% | 89.27% | 89.86% | 88.65% |
| Gross Profit | 261.47M | 260.91M | 253.25M | 242.53M | 234.84M | 204.51M | 182.91M | 208.25M | 186.67M | 158.53M | 145.54M | 129.46M | 30.42M | 86.52M | 66.71M | 43.45M | 44.79M | 25.59M | 49.61M | 58.91M | 55.55M | 45.83M | 36.67M | 21.37M | 14.96M | 18.04M | 31.8M | 38.1M | 32.5M | 28.5M | 24.5M |
| Gross Margin % | 20.84% | 21.04% | 22.13% | 22.68% | 22.27% | 21.41% | 20.77% | 22.1% | 19.84% | 17.22% | 17.31% | 17.47% | 4.78% | 16.24% | 16.57% | 13.8% | 16.4% | 10.82% | 17.69% | 20.37% | 21.43% | 19.81% | 18.81% | 17.42% | 13.69% | 8.32% | 9.86% | 10.95% | 10.73% | 10.14% | 11.35% |
| Gross Profit Growth % | - | 3.03% | 4.42% | 3.27% | 14.83% | 11.81% | -12.17% | 11.56% | 17.75% | 8.93% | 12.42% | 325.6% | -64.85% | 29.69% | 53.53% | -2.99% | 75% | -48.41% | -15.79% | 6.04% | 21.22% | 24.97% | 71.57% | 42.82% | -17.02% | -43.3% | -16.52% | 17.23% | 14.04% | 16.33% | 18.36% |
| Operating Expenses | 199.43M | 198.75M | 193.47M | 181.88M | 175.87M | 160.59M | 146.76M | 157.76M | 149.68M | 128.59M | 116.59M | 93.03M | 76.33M | 62.1M | 47.93M | 39.52M | 36.82M | 35.12M | 38.19M | 36.08M | 32.91M | 26.64M | 24.85M | 18.24M | 17.17M | 22.01M | 27.77M | 29.1M | 25.3M | 22.6M | 17.1M |
| OpEx % of Revenue | - | 16.02% | 16.9% | 17.01% | 16.68% | 16.81% | 16.66% | 16.74% | 15.91% | 13.97% | 13.87% | 12.56% | 12% | 11.65% | 11.9% | 12.55% | 13.48% | 14.85% | 13.62% | 12.47% | 12.7% | 11.51% | 12.75% | 14.87% | 15.71% | 10.16% | 8.61% | 8.36% | 8.35% | 8.04% | 7.92% |
| Selling, General & Admin | 193.14M | 190.49M | 185.87M | 174.77M | 169.64M | 155.26M | 141.92M | 153.88M | 145.47M | 123.14M | 113.34M | 90.18M | 73.82M | 60.06M | 46.45M | 38.17M | 35.43M | 33.48M | 36.65M | 34.69M | 31.6M | 25.67M | 23.84M | 17.19M | 16.01M | 18.74M | 24.58M | 26.6M | 23.5M | 20.9M | 16M |
| SG&A % of Revenue | - | 15.36% | 16.24% | 16.34% | 16.09% | 16.25% | 16.11% | 16.33% | 15.46% | 13.38% | 13.48% | 12.17% | 11.6% | 11.27% | 11.54% | 12.12% | 12.97% | 14.16% | 13.07% | 11.99% | 12.19% | 11.09% | 12.23% | 14% | 14.64% | 8.65% | 7.62% | 7.65% | 7.76% | 7.44% | 7.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 368K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | 0.04% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 8.26M | 7.6M | 7.11M | 6.23M | 5.33M | 4.84M | 3.89M | 7.78M | 4.44M | -3.35M | -1.28M | 573K | 476K | 672K | 39.52M | 36.82M | 35.12M | 38.19M | 36.08M | 32.91M | 26.64M | 24.85M | 18.24M | 17.17M | 3.28M | 3.19M | 2.5M | 1.8M | 1.7M | 1.1M |
| Operating Income | 59.87M | 62.16M | 59.78M | 60.65M | 58.98M | 43.92M | 36.15M | 50.49M | 36.99M | 29.94M | 28.94M | 36.43M | -45.91M | 24.43M | 18.79M | 3.93M | 7.97M | -9.53M | 11.42M | 22.84M | 22.64M | 19.18M | 11.82M | 3.13M | -2.21M | -3.98M | 4.03M | 9M | 7.2M | 5.9M | 7.4M |
| Operating Margin % | 4.77% | 5.01% | 5.22% | 5.67% | 5.59% | 4.6% | 4.1% | 5.36% | 3.93% | 3.25% | 3.44% | 4.92% | -7.22% | 4.58% | 4.67% | 1.25% | 2.92% | -4.03% | 4.07% | 7.9% | 8.74% | 8.29% | 6.06% | 2.55% | -2.02% | -1.84% | 1.25% | 2.59% | 2.38% | 2.1% | 3.43% |
| Operating Income Growth % | - | 3.98% | -1.43% | 2.84% | 34.27% | 21.51% | -28.4% | 36.49% | 23.54% | 3.46% | -20.55% | 179.35% | -287.96% | 30.02% | 377.55% | -50.62% | 183.62% | -183.42% | -49.99% | 0.85% | 18.04% | 62.32% | 277.69% | 241.9% | 44.58% | -198.73% | -55.22% | 25% | 22.03% | -20.27% | 19.35% |
| EBITDA | 68.34M | 70.42M | 67.38M | 67.76M | 65.2M | 49.25M | 40.99M | 54.37M | 41.21M | 35.39M | 32.19M | 39.28M | -43.4M | 26.46M | 20.26M | 5.28M | 9.36M | -7.89M | 12.96M | 24.22M | 23.95M | 20.16M | 12.83M | 4.19M | -1.04M | -702K | 7.22M | 11.5M | 9M | 7.6M | 8.5M |
| EBITDA Margin % | 5.45% | 5.68% | 5.89% | 6.34% | 6.18% | 5.16% | 4.65% | 5.77% | 4.38% | 3.85% | 3.83% | 5.3% | -6.82% | 4.97% | 5.03% | 1.68% | 3.43% | -3.33% | 4.62% | 8.38% | 9.24% | 8.71% | 6.58% | 3.41% | -0.95% | -0.32% | 2.24% | 3.31% | 2.97% | 2.7% | 3.94% |
| EBITDA Growth % | 0.47% | 4.51% | -0.56% | 3.92% | 32.39% | 20.15% | -24.61% | 31.95% | 16.43% | 9.94% | -18.04% | 190.5% | -264.02% | 30.59% | 283.93% | -43.62% | 218.7% | -160.87% | -46.51% | 1.14% | 18.81% | 57.16% | 206.33% | 501.44% | -48.58% | -109.72% | -37.2% | 27.78% | 18.42% | -10.59% | 21.43% |
| D&A (Non-Cash Add-back) | 8.47M | 8.26M | 7.6M | 7.11M | 6.23M | 5.33M | 4.84M | 3.89M | 4.22M | 5.45M | 3.25M | 2.85M | 2.51M | 2.04M | 1.48M | 1.34M | 1.4M | 1.64M | 1.54M | 1.39M | 1.31M | 974K | 1.01M | 1.06M | 1.16M | 3.28M | 3.19M | 2.5M | 1.8M | 1.7M | 1.1M |
| EBIT | 73.06M | 71.83M | 70.64M | 69.15M | 65.44M | 51.03M | 43.84M | 62.93M | 36.99M | 29.94M | 28.94M | 36.43M | -42.47M | 21.55M | 19.54M | 15.18M | 7.92M | -8.18M | 11.42M | 22.84M | 22.64M | 19.18M | 11.82M | 3.13M | -2.21M | 73.29M | 115.87M | 9M | 7.2M | 6.1M | 7.3M |
| Net Interest Income | 4.2M | -435K | -178K | -166K | -141K | -372K | -1.24M | -1.79M | -1.05M | -313K | -807K | -1.97M | 370K | 485K | -76K | -25K | 0 | 0 | 0 | -4K | -74K | 839K | 242K | -186K | -61K | -62K | -489K | 0 | -200K | 0 | -100K |
| Interest Income | 4.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 543K | 723K | 700K | 0 | 0 | 0 | 0 | 0 | 0 | 945K | 343K | 82K | 217K | 297K | 341K | 0 | 0 | 0 | 0 |
| Interest Expense | 85K | 435K | 178K | 166K | 141K | 372K | 1.24M | 1.79M | 1.05M | 313K | 807K | 1.97M | 173K | 238K | 776K | 25K | 0 | 0 | 0 | 4K | 74K | 106K | 101K | 268K | 278K | 359K | 830K | 0 | 200K | 0 | 100K |
| Other Income/Expense | 8.63M | 9.24M | 11.04M | 8.34M | 6.33M | 6.74M | 6.45M | 10.65M | 7.78M | 4.44M | -3.35M | -1.28M | 522K | 476K | 672K | 11.22M | 2.01M | 1.64M | -1.43M | 3.08M | 2.85M | 747K | 432K | -154K | -40K | -17K | -483K | -200K | -500K | 200K | 400K |
| Pretax Income | 68.5M | 71.4M | 70.82M | 68.99M | 65.3M | 50.66M | 42.6M | 61.14M | 44.77M | 34.38M | 25.59M | 35.15M | -45.34M | 24.9M | 19.46M | 15.15M | 9.98M | -7.89M | 9.99M | 25.92M | 25.49M | 19.93M | 12.25M | 2.98M | -2.25M | -4M | 3.55M | 8.8M | 6.7M | 6.1M | 7.8M |
| Pretax Margin % | 5.46% | 5.76% | 6.19% | 6.45% | 6.19% | 5.3% | 4.84% | 6.49% | 4.76% | 3.74% | 3.04% | 4.74% | -7.13% | 4.67% | 4.83% | 4.81% | 3.65% | -3.34% | 3.56% | 8.96% | 9.83% | 8.61% | 6.28% | 2.42% | -2.05% | -1.84% | 1.1% | 2.53% | 2.21% | 2.17% | 3.61% |
| Income Tax | 27.83M | 16.95M | 17.83M | 18.38M | 18.04M | 12.58M | 8.83M | 12.85M | 6.71M | 9.21M | 6.79M | 9.65M | -18.25M | 7.01M | 6.33M | 837K | 2.55M | -3.12M | 3.73M | 9.11M | 9.15M | 7.44M | 4.88M | 890K | -892K | -1.57M | 1.45M | 3.7M | 2.9M | 2.3M | 2.8M |
| Effective Tax Rate % | 40.63% | 23.74% | 25.17% | 26.64% | 27.62% | 24.84% | 20.73% | 21.01% | 14.98% | 26.78% | 26.53% | 27.46% | 40.26% | 28.15% | 32.52% | 5.52% | 25.57% | 39.55% | 37.31% | 35.16% | 35.91% | 37.33% | 39.83% | 29.92% | 39.73% | 39.39% | 40.77% | 42.05% | 43.28% | 37.7% | 35.9% |
| Net Income | 40.67M | 54.45M | 52.99M | 50.61M | 47.27M | 38.08M | 33.77M | 48.29M | 38.06M | 25.17M | 18.8M | 25.49M | -27.08M | 17.89M | 13.13M | 14.32M | 7.43M | -4.77M | 6.26M | 16.81M | 16.34M | 12.49M | 7.37M | 2.08M | -1.35M | -2.42M | 2.1M | 5.1M | 3.8M | 3.8M | 5M |
| Net Margin % | 3.24% | 4.39% | 4.63% | 4.73% | 4.48% | 3.99% | 3.83% | 5.12% | 4.05% | 2.73% | 2.24% | 3.44% | -4.26% | 3.36% | 3.26% | 4.55% | 2.72% | -2.02% | 2.23% | 5.81% | 6.3% | 5.4% | 3.78% | 1.7% | -1.24% | -1.12% | 0.65% | 1.47% | 1.25% | 1.35% | 2.32% |
| Net Income Growth % | -21.96% | 2.75% | 4.7% | 7.07% | 24.13% | 12.78% | -30.08% | 26.88% | 51.22% | 33.89% | -26.26% | 194.13% | -251.37% | 36.26% | -8.29% | 92.81% | 255.75% | -176.13% | -62.73% | 2.88% | 30.79% | 69.45% | 253.53% | 254.1% | 44.14% | -215.28% | -58.8% | 34.21% | 0% | -24% | 21.95% |
| Net Income (Continuing) | 40.67M | 54.45M | 52.99M | 50.61M | 47.27M | 38.08M | 33.77M | 48.29M | 38.06M | 25.17M | 18.8M | 25.49M | -25.55M | 15.67M | 13.13M | 14.32M | 7.35M | -4.77M | 6.26M | 16.81M | 16.34M | 12.49M | 7.37M | 2.08M | -1.35M | -2.42M | 2.1M | 5.1M | 3.8M | 3.8M | 5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.73M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.62 | 2.09 | 1.98 | 1.85 | 1.64 | 1.25 | 1.10 | 1.57 | 1.24 | 0.83 | 0.64 | 0.87 | -0.95 | 0.61 | 0.42 | 0.35 | 0.18 | -0.11 | 0.14 | 0.36 | 0.35 | 0.30 | 0.13 | 0.06 | -0.03 | -0.04 | 0.05 | 0.11 | 0.08 | 0.10 | 0.13 |
| EPS Growth % | -20.62% | 5.56% | 7.03% | 12.8% | 31.2% | 13.64% | -29.94% | 26.61% | 49.4% | 29.69% | -26.44% | 191.58% | -255.74% | 45.24% | 20% | 94.44% | 263.64% | -178.57% | -61.11% | 2.86% | 16.67% | 130.77% | 116.67% | 331.66% | 40.46% | -191.58% | -56.82% | 33.33% | -13.16% | -26.92% | 30% |
| EPS (Basic) | - | 2.13 | 2.03 | 1.88 | 1.66 | 1.26 | 1.12 | 1.62 | 1.30 | 0.87 | 0.65 | 0.89 | -0.95 | 0.63 | 0.43 | 0.36 | 0.18 | -0.11 | 0.14 | 0.37 | 0.37 | 0.32 | 0.14 | 0.06 | -0.03 | -0.04 | 0.05 | 0.11 | 0.08 | 0.10 | 0.13 |
| Diluted Shares Outstanding | 25.03M | 25.78M | 26.71M | 27.4M | 28.9M | 30.48M | 30.75M | 30.8M | 30.59M | 30.2M | 29.51M | 29.41M | 28.64M | 29.59M | 31.45M | 40.6M | 41.49M | 41.81M | 44.48M | 46.62M | 46.68M | 41.37M | 55.73M | 35.26M | 52.24M | 55.74M | 43.66M | 45.76M | 46.27M | 40.46M | 39.75M |
| Basic Shares Outstanding | 25.03M | 25.36M | 26.08M | 26.92M | 28.52M | 30.16M | 30.31M | 29.8M | 29.37M | 29.1M | 28.9M | 28.69M | 28.62M | 28.42M | 30.89M | 40.33M | 41.33M | 41.81M | 43.44M | 44.99M | 44.78M | 38.59M | 51.52M | 34.14M | 52.24M | 55.74M | 43.42M | 45.49M | 45.98M | 40.46M | 39.75M |
| Dividend Payout Ratio | - | 15.03% | 15.26% | 15.98% | 18.03% | 23.82% | 27.01% | 17% | 19.31% | 28.91% | 33.83% | 24.75% | - | 22.67% | 27.04% | 26.78% | 45.81% | - | 55.34% | 19.37% | 4.82% | - | - | - | - | - | - | - | - | - | - |
Workers' compensation reserve volatility
According to quarterly financial data, BBSI's revenue growth has fluctuated between 1.7% and 10.2% over the last ten quarters, reflecting a deceleration from the 10% peak observed in 2025Q2 to 4.9% in 2026Q1, suggesting sensitivity to regional economic conditions in the Western United States.
The revenue trajectory appears increasingly tied to the health of the blue-collar labor market, which has shown signs of softening. Investors should monitor whether the recent deceleration represents a structural shift in client demand or merely a temporary pause in the company's ability to capture new worksite employees.
As reported in recent income statements, BBSI's gross margin exhibits significant quarterly variance, dropping to 14.1% in 2026Q1 from a high of 25.3% in 2024Q3, which highlights the inherent instability caused by actuarial adjustments in workers' compensation reserves and shifting insurance-related liabilities.
The wide swings in gross margin suggest that the company's profitability is highly susceptible to the frequency and severity of claims within its client base. This volatility complicates the assessment of underlying pricing power, as reported margins often reflect accounting estimates rather than pure operational efficiency.
Based on the provided income statement data, BBSI's operating income has frequently turned negative during the first quarter of each fiscal year, indicating that SG&A expenses remain relatively fixed and do not scale efficiently during periods of seasonal revenue contraction or elevated insurance costs.
The inability to maintain positive operating margins during Q1 periods suggests that the company's decentralized business unit model carries a high fixed-cost burden. This structure may limit the company's ability to protect bottom-line profitability when revenue growth slows, as SG&A remains stubbornly high relative to gross profit.
Analysis of the company's historical performance reveals that net income is frequently impacted by non-cash actuarial adjustments, as evidenced by the sharp swing from a $19.6 million profit in 2024Q3 to a $136,000 loss in 2024Q1, highlighting the fragility of reported earnings.
Short-sellers may focus on the reliance on prior-year development to bolster current-period results, which can mask underlying operational weaknesses. Investors should be cautious of interpreting these accounting-driven fluctuations as indicators of sustainable business performance, as they may obscure the true cash-generating capacity of the PEO model.
Quick answers to the most common questions about buying BBSI stock.
For fiscal year 2025, Barrett Business Services, Inc. (BBSI) reported total revenue of $1.24B. This represents a 474.7% increase compared to $215.8M in 1996.
Barrett Business Services, Inc. (BBSI) is profitable, generating $54.4M in net income for the fiscal year ending 2025 with a net profit margin of 4.4%.
Barrett Business Services, Inc. (BBSI) reported an operating income of $62.2M, resulting in an operating profit margin of 5.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Barrett Business Services, Inc. (BBSI) generated $260.9M in gross profit for the year, representing a gross profit margin of 21.0%. This demonstrates the company's core pricing power and production efficiency.