Barrett Business Services (NASDAQ:BBSI) Announces Quarterly Earnings Results, Misses Estimates By $0.36 EPS

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

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 Trading Up 0.1%

Barrett Business Services stock traded up $0.03 during mid-day trading on Wednesday, hitting $40.11. The company had a trading volume of 295,106 shares, compared to its average volume of 242,049. Barrett Business Services has a 12-month low of $25.33 and a 12-month high of $49.65. The company’s fifty day moving average is $36.35 and its 200-day moving average is $33.12. The company has a market capitalization of $985.10 million, a price-to-earnings ratio of 26.05, a P/E/G ratio of 1.33 and a beta of 0.94.

Insider Activity at Barrett Business Services

In related news, Director Anthony Meeker sold 12,000 shares of the firm’s stock in a transaction 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 sale, the director owned 44,945 shares in the company, valued at approximately $1,701,168.25. This trade represents a 21.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP James R. Potts sold 3,490 shares of Barrett Business Services stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $38.00, for a total transaction of $132,620.00. Following the completion of the transaction, the executive vice president directly owned 32,035 shares of the company’s stock, valued at $1,217,330. The trade was a 9.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 20,779 shares of company stock valued at $786,233. Insiders own 4.80% of the company’s stock.

Hedge Funds Weigh In On Barrett Business Services

Several institutional investors and hedge funds have recently modified their holdings of BBSI. Tudor Investment Corp ET AL acquired a new position in shares of Barrett Business Services during the 4th quarter worth approximately $370,000. Schonfeld Strategic Advisors LLC acquired a new stake in Barrett Business Services in the 4th quarter valued at $352,000. Polymer Capital Management US LLC acquired a new stake in Barrett Business Services in the 4th quarter valued at $265,000. Evolve Private Wealth LLC purchased a new stake in Barrett Business Services in the 4th quarter worth $244,000. Finally, Tidal Investments LLC acquired a new position in Barrett Business Services during the second quarter worth $238,000. Hedge funds and other institutional investors own 86.76% of the company’s stock.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Barrington Research reaffirmed an “outperform” rating and issued a $41.00 price objective on shares of Barrett Business Services in a report on Monday, April 27th. Zacks Research upgraded shares of Barrett Business Services from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Wall Street Zen raised shares of Barrett Business Services from a “sell” rating to a “hold” rating in a report on Saturday, June 6th. Finally, Weiss Ratings raised Barrett Business Services from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, July 13th. One 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 stock. Based on data from MarketBeat.com, Barrett Business Services presently has an average rating of “Moderate Buy” and a consensus 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.