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olivLaw · US equity research

Barrett Business Services, Inc. BBSI

Services-Help Supply Services · SIC 7363 · Vertical: Services-Help Supply Services (SIC 7363)

33.10USD+1.13% · 1 dayClose 04 Nov 2026

Barrett Business Services provides business management services to small and mid-sized companies, mainly through PEO co-employment outsourcing of HR and payroll functions, plus staffing services. Revenues rose 4% in the second quarter of 2026 to 319.3 million USD, while management says soft client hiring remains the main growth headwind.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Barrett Business Services, Inc. (BBSI) stock was 33.10 USD (+1.13% on the day), with market capitalisation 802.2 m USD, P/E 24.4 on diluted EPS of 1.36 USD over the last 12 months, dividend yield 0.97%, beta 0.52, 52-week range 26.83–41.05 USD. Latest reported quarter (Q2 2026): revenue of 319.3 m USD (+3.8% YoY), net income of 12.9 m USD (−30.3% YoY), diluted EPS 0.52 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
802.2 m USD
shares as of 22 Jul 2026
P/E (TTM)
24.4
Diluted EPS TTM 1.36 · TTM to 30 Jun 2026
E/P (TTM)
4.10%
TTM to 30 Jun 2026
Dividend yield
0.97%
DPS 12m 0.32
Beta (2y)
0.52
Volatility (1y) 43%
52-week range
26.8341.05

Price history

Loading chart…

Technical reading

RSI (14)
55.1
strong (55–70)
Bollinger (20, 2)
31.33 – 33.50
in the upper half of the band · %B 0.82 · band width 6.7%
SMA 50 / 200
32.57 / 32.89
mixed trend
MACD (12, 26, 9)
0.17 / 0.05
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+6.0%−1.1%+7.1 pp—
3 months−17.5%−0.5%−17.0 pp—
6 months+12.4%+4.4%+8.0 pp—
Year to date−8.6%+12.3%−20.9 pp—
1 year−17.7%+13.5%−31.3 pp+54.7%
3 years+35.8%+76.4%−40.6 pp−38.8%
5 years+60.8%+63.7%−2.8 pp—
Max drawdown (1y)
−34.1%
05 Nov 2025 → 26 Feb 2026
Max drawdown (5y)
−45.4%
04 Sept 2025 → 26 Feb 2026
Compound annual growth (5y)
+10.0%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
319.3 m USD
+3.8% YoY
Net income
12.9 m USD
−30.3% YoY
Diluted EPS
0.52
−25.7% YoY
net / operating
4.0% / 4.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue294.3 m304.8 m292.6 m307.7 m318.9 m321.1 m307.0 m319.3 m
Cost of revenue219.9 m233.4 m249.9 m234.4 m242.2 m252.9 m263.8 m254.4 m
Gross profit74.4 m71.4 m42.6 m73.3 m76.8 m68.3 m43.2 m64.9 m
SG&A49.1 m48.8 m44.8 m48.2 m49.9 m47.6 m47.5 m47.2 m
Operating income23.5 m20.6 m-4.2 m23.0 m24.8 m18.5 m-6.5 m15.4 m
Depreciation & amortisation1.9 m1.9 m2.0 m2.0 m2.1 m2.2 m2.2 m2.3 m
Interest expense45.0 k45.0 k44.0 k44.0 k45.0 k38.0 k42.0 k42.0 k
Pre-tax income25.7 m23.1 m-1.5 m25.3 m26.8 m20.9 m-4.4 m17.3 m
Income tax6.1 m6.3 m-517.0 k6.9 m6.1 m4.5 m10.4 m4.5 m
Net income19.6 m16.8 m-1.0 m18.5 m20.6 m16.4 m-14.8 m12.9 m
Diluted EPS0.740.63 ≈-0.040.700.790.64 ≈-0.590.52
Operating cash flow-935.0 k ≈53.4 m5.2 m-53.8 m ≈38.4 m ≈76.1 m-22.1 m-55.9 m ≈
Capex3.3 m ≈3.2 m4.5 m4.4 m ≈4.4 m ≈5.5 m5.7 m5.5 m ≈
Dividends paid2.1 m ≈2.1 m2.1 m2.0 m ≈2.1 m ≈2.0 m2.0 m1.9 m ≈
Share repurchases8.0 m ≈7.0 m9.2 m8.1 m ≈7.5 m ≈17.1 m20.3 m15.2 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 97 percentile of its own 35-quarter history (min 2.9, median 5.8, max 26.2; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue940.7 m942.3 m880.8 m955.2 m1.1 bn1.1 bn1.1 bn1.2 bn
Revenue YoY+2.2%+0.2%−6.5%+8.4%+10.4%+1.4%+7.0%+8.4%
Net income38.1 m48.3 m33.8 m38.1 m47.3 m50.6 m53.0 m54.4 m
Net income YoY+51.2%+26.9%−30.1%+12.8%+24.1%+7.1%+4.7%+2.7%
Diluted EPS4.986.274.395.001.641.851.982.08
Diluted EPS YoY+49.5%+25.9%−30.0%+13.9%−67.2%+12.8%+7.0%+5.1%
net %4.0%5.1%3.8%4.0%4.5%4.7%4.6%4.4%
Free cash flow64.1 m66.3 m-36.5 m-22.3 m11.8 m55.4 m-4.1 m47.2 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
95.0 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
241.0 m USD
Total assets
779.1 m USD
Debt / equity
unavailable
Current ratio
1.29x
ROE
23.5%
ROA
7.1%
FCF margin
3.8%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
1.1 bn
2024
1.1 bn
2025
1.2 bn

SEC (XBRL)· 26 Feb 2026verified

Cost of revenue
2023
826.8 m
2024
891.3 m
2025
979.4 m

SEC (XBRL)· 26 Feb 2026verified

Gross profit
2023
242.5 m
2024
253.3 m
2025
260.9 m

SEC (XBRL)· 26 Feb 2026verified

SG&A
2023
174.8 m
2024
185.9 m
2025
190.5 m

SEC (XBRL)· 26 Feb 2026verified

Operating income
2023
60.7 m
2024
59.8 m
2025
62.2 m

SEC (XBRL)· 26 Feb 2026verified

Depreciation & amortisation
2023
7.1 m
2024
7.6 m
2025
8.3 m

SEC (XBRL)· 26 Feb 2026verified

EBITDA
2023
67.8 m ≈
2024
67.4 m ≈
2025
70.4 m ≈

SEC (XBRL)· 26 Feb 2026derived

Interest expense
2023
166.0 k
2024
178.0 k
2025
171.0 k

SEC (XBRL)· 26 Feb 2026verified

Pre-tax income
2023
69.0 m
2024
70.8 m
2025
71.4 m

SEC (XBRL)· 26 Feb 2026verified

Income tax
2023
18.4 m
2024
17.8 m
2025
17.0 m

SEC (XBRL)· 26 Feb 2026verified

Net income
2023
50.6 m
2024
53.0 m
2025
54.4 m

SEC (XBRL)· 26 Feb 2026verified

Diluted EPS
2023
1.85
2024
1.98
2025
2.08

SEC (XBRL)· 26 Feb 2026verified

Weighted average diluted shares
2023
27.4 m
2024
26.7 m
2025
26.1 m

SEC (XBRL)· 26 Feb 2026verified

Dividend per share
2023
0.30
2024
0.31
2025
0.32

SEC (XBRL)· 26 Feb 2026verified

Balance sheet · USD

Cash
2023
71.2 m
2024
55.4 m
2025
95.0 m

SEC (XBRL)· 26 Feb 2026verified

Receivables
2023
171.4 m
2024
234.5 m
2025
248.6 m

SEC (XBRL)· 26 Feb 2026verified

Current assets
2023
447.5 m
2024
475.4 m
2025
524.6 m

SEC (XBRL)· 26 Feb 2026verified

Property, plant & equipment, net
2023
50.3 m
2024
56.8 m
2025
67.2 m

SEC (XBRL)· 26 Feb 2026verified

Goodwill
2023
47.8 m
2024
47.8 m
2025
47.8 m

SEC (XBRL)· 26 Feb 2026verified

Total assets
2023
721.5 m
2024
745.5 m
2025
779.1 m

SEC (XBRL)· 26 Feb 2026verified

Accounts payable
2023
6.6 m
2024
6.8 m
2025
7.4 m

SEC (XBRL)· 26 Feb 2026verified

Long-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 08 Mar 2021verified

Current liabilities
2023
343.3 m
2024
358.9 m
2025
405.9 m

SEC (XBRL)· 26 Feb 2026verified

Total liabilities
2023
522.4 m
2024
524.1 m
2025
538.1 m

SEC (XBRL)· 26 Feb 2026verified

Equity
2023
199.1 m †
2024
221.4 m †
2025
241.0 m †

SEC (XBRL)· 26 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
67.2 m
2024
10.1 m
2025
66.0 m

SEC (XBRL)· 26 Feb 2026verified

Capex
2023
11.8 m
2024
14.2 m
2025
18.8 m

SEC (XBRL)· 26 Feb 2026verified

Free cash flow
2023
55.4 m ≈
2024
-4.1 m ≈
2025
47.2 m ≈

SEC (XBRL)· 26 Feb 2026derived

Investing cash flow
2023
-55.2 m
2024
38.8 m
2025
30.8 m

SEC (XBRL)· 26 Feb 2026verified

Financing cash flow
2023
-44.6 m
2024
-41.1 m
2025
-53.0 m

SEC (XBRL)· 26 Feb 2026verified

Dividends paid
2023
8.1 m
2024
8.1 m
2025
8.2 m

SEC (XBRL)· 26 Feb 2026verified

Share repurchases
2023
34.2 m
2024
29.1 m
2025
42.0 m

SEC (XBRL)· 26 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
8.4%
computed by olivLawFY 2025
Revenue CAGR 3Y
5.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
7.1%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
4.0%
computed by olivLawFY 2025
Net income growth (YoY)
2.7%
computed by olivLawFY 2025
Net income CAGR 3Y
4.8%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
10.0%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
5.1%
computed by olivLawFY 2025
EPS CAGR 3Y
8.2%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
-13.9%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
20.0%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
4.8%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
4.1%
computed by olivLawTTM to 30 Jun 2026
Net margin
2.8%
computed by olivLawTTM to 30 Jun 2026
FCF margin
1.2%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
16.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
4.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
17.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
23.6%
computed by olivLawTTM to 30 Jun 2026
Payout ratio (FCF)
51.5%
computed by olivLawTTM to 30 Jun 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
312.8x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
1.1x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
36.6 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
21.1 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
15.5 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
44.3%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
60.1%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
82 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
2 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
802.2 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
22.9x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
24.4x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
4.1%
computed by olivLawTTM to 30 Jun 2026
P/B
3.9x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.6x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
51.7x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
1.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
1.0%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
8.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 57 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

33.10 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 802.2 m USD

Key indicators

Market capitalisation
802.2 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
24.4x
computed by olivLawTTM to 30 Jun 2026
P/B
3.9x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
16.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
2.8%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
8.4%
computed by olivLawFY 2025
Dividend yield
1.0%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 22 Jul 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 2621derived 184

Score by group

  • Balance sheet71
  • Valuation39
  • Quality48
  • Growth51
  • Returns99

Estimated value range

Low
24.61
USD per share
Mid
30.76
USD per share
High
37.50
USD per share
Price: 33.10 USD
The price is within the range
Potential to the central value: -7.1% (value / price − 1)
Margin of safety: -7.6% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 24.61 – 37.50 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E24.61 – 37.50 (Mid 30.76)
    7 companies used · median multiple 22.7x · quartiles 18.1x – 27.7x
    AMN, EFOR, HQI, KFRC, MAN, RCMT, RHI
  • Dividend discount (DDM)outside the aggregate4.21 – 5.66 (Mid 4.82)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Services-Help Supply Services (SIC 7363)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 57/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality2.8%75 (vs peers)9%
FCF conversion · Quality44.3%20 (on a fixed band)9%
Revenue CAGR 3Y · Growth5.6%46 (on a fixed band)12%
EPS CAGR 3Y · Growth8.2%55 (on a fixed band)12%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet312.8x100 (on a fixed band)9%
Current ratio · Balance sheet1.1x29 (on a fixed band)6%
P/E (TTM) · Valuation24.4x50 (vs peers)15%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation1.9%24 (on a fixed band)12%
Shareholder yield (distributions) · Returns8.5%100 (on a fixed band)9%
Payout ratio (FCF) · Returns51.5%98 (on a fixed band)6%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet71/100 · 2/3 factors with a value
  • Growth51/100 · 2/2 factors with a value
  • Quality48/100 · 2/3 factors with a value
  • Returns99/100 · 2/2 factors with a value
  • Valuation39/100 · 2/3 factors with a value

Memo

BARRETT BUSINESS SERVICES, INC. (BBSI). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 1.2 bn USD in 2025; YoY growth 8.4%; net margin 2.8%; ROE 16.3%.

The estimated value range is 24.61–37.50 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 30.76 USD, the price of 33.10 USD leaves a potential of -7.1% (value / price − 1) and a margin of safety of -7.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 57/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 2.8%
  • Interest coverage: 312.8x
  • Shareholder yield (distributions): 8.5%
  • Payout ratio (FCF): 51.5%

What contradicts it

  • FCF conversion: 44.3%
  • Current ratio: 1.1x
  • FCF yield: 1.9%

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA.

Versus the vertical median

Services-Help Supply Services (SIC 7363) · same industry (4-digit SIC) · compared with 16 companies

Multiples and returns vs the median

P/E
24.4x
vertical median 23.6x
at median
EV/EBITDA
—
vertical median 10.0x
P/S
0.6x
vertical median 0.3x
above median (+122.0%)
P/B
3.9x
vertical median 1.1x
above median (+267.1%)
ROE
16.3%
vertical median 3.7%
above median (+341.6%)
Net margin
2.8%
vertical median -1.2%
above median
EBIT margin
4.1%
vertical median 0.1%
above median (+4,418.7%)
Revenue YoY
8.4%
vertical median -2.9%
above median
Net debt/EBITDA
—
vertical median 2.5x
Dividend yield
1.0%
vertical median 2.7%
below median (−64.6%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
RHIRobert Half Inc.4.6 bn37.29.8%2.3%−7.2%+66% / −45%
MANManpowergroup Inc.2.2 bn18.55.8%0.6%+0.6%+63% / −37%
NSPInsperity, Inc.2.0 bn564.44.6%0.0%+3.5%+46% / −55%
AMNAmn Healthcare Services, Inc.1.8 bn17.815.6%3.1%−8.5%+187% / −30%
EFOREverforth, Inc.1.5 bn22.73.7%1.7%−2.9%−18% / −59%
KFRCKforce Inc1.0 bn24.430.5%3.0%−5.4%+98% / −16%
BBSIBarrett Business Services, Inc.802.2 m24.416.3%2.8%+8.4%−18% / +36%
TBITrueBlue, Inc.300.0 m—-15.9%-2.6%+3.1%+101% / −29%
RCMTRcm Technologies, Inc.248.1 m15.139.5%5.1%unavailable+78% / +29%
HQIHireQuest, Inc.246.4 m30.912.1%27.1%−11.4%+104% / +20%
TTECTTEC Holdings, Inc.75.4 m—-108.2%-10.2%−3.2%−54% / −92%
DLHCDlh Holdings Corp.53.5 m—-20.8%-8.5%−13.0%−41% / −73%
BGSFBgsf, Inc41.8 m—-4.4%-2.3%−10.6%−15% / −60%
STRRStar Equity Holdings, Inc.35.5 m—-18.2%-4.3%+22.9%−5% / −39%
CIRCCircle8 Group Inc.26.7 m——-19.4%−1.5%−89% / −94%
YFORYY Group Holding Ltd.4.3 m—-94.1%-11.8%+29.4%−100% / unavailable
KELYAKelly Services, Inc.——-24.3%-6.7%−1.9%+96% / −19%

1- and 3-year price returns: for BBSI from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
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Bull
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Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
21.11
Total return -35% · Per year -35%
37.30
Total return 14% · Per year 14%
56.16
Total return 71% · Per year 71%
3 years
20.93
Total return -34% · Per year -13%
41.57
Total return 29% · Per year 9%
68.65
Total return 112% · Per year 28%
5 years
20.75
Total return -33% · Per year -8%
46.32
Total return 46% · Per year 8%
83.92
Total return 162% · Per year 21%
What moves the 3-year price the most
  • Exit P/E± 10.39
  • Net margin± 7.27
  • Annual revenue growth± 5.91
  • Annual dilution± 0.61

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).

In brief

Barrett Business Services provides business management services to small and mid-sized companies, mainly through PEO co-employment outsourcing of HR and payroll functions, plus staffing services. Revenues rose 4% in the second quarter of 2026 to 319.3 million USD 3, while management says soft client hiring remains the main growth headwind 3.

SWOT

Strengths

  • The integrated model, combining management consulting with HR outsourcing and local teams, is described as differentiated from competitors 1. Long-term client relationships produce recurring revenue 1. The balance sheet was debt free at the end of the second quarter of 2026 3.
  • Client retention in the small and mid-sized segment is described as relatively high 1. The company added new clients above its own expectations in the latest quarter 3.
  • The myBBSI platform gives clients tools for payroll, time and attendance and HR administration 1.

Weaknesses

  • Reliance on California makes results sensitive to economic and regulatory conditions in that state 1.
  • Gross margin as a share of gross billings compressed in 2026, which the company calls the margin low point 3.
  • Exposure to workers' compensation costs and reserve estimates can produce significant expense adjustments 1.

Opportunities

  • If client hiring demand recovers, billing growth could accelerate 3. Licensing to provide PEO services nationwide opens new markets 1.
  • As pricing actions build, margins could recover in the coming periods 3.
  • Responsible use of AI could create efficiencies and improve client experience 1.

Threats

  • Competition from larger PEO and staffing providers with greater resources could pressure pricing 1.
  • A cybersecurity incident could expose sensitive data and hurt client confidence 1.
  • Loss of workers' compensation coverage or weaker renewal terms could affect results 1.

Risks

  • California concentrationhigh

    Most revenues come from California, so an economic downturn or regulatory change there could strongly affect results 1.

  • Workers' compensation exposurehigh

    Claim costs depend on the frequency and severity of workplace injuries, and estimate changes can be significant 1.

  • Insurer coverage continuitymedium

    The third-party insurer arrangement runs through June 2026, and if it is not renewed, alternatives could be less favorable 1.

  • Cybersecuritymedium

    The company holds personal and sensitive data of many employees and clients, exposing it to growing and more advanced attacks 1.

  • Collateral requirementslow

    The company must post collateral for its insured program and self-insured states, and requirements could rise 1.

Investment thesis

What would need to be true (bull case)

  • If client hiring demand recovers and pricing actions continue, growth and margins could rebound after a weak 2026 3.
  • The integrated model and high client retention could support long-term recurring revenue 1.
  • A debt-free balance sheet and a share repurchase program give financial flexibility 3.

What would break the thesis

  • If client hiring demand stays weak, volume growth could be slower than expected 3.
  • Favorable prior-year claim adjustments have slowed, and margins could stay under pressure 3.
  • Geographic concentration in California could expose results to regional shocks 1.

What to watch

  • Trend in client hiring demand and average worksite employee countQ3 2026
  • Delivery against the 2026 outlook for gross margin as a percent of gross billings2026
  • Renewal of the third-party insurer arrangement for the insured program2026
  • Changes to workers' compensation loss estimates and prior-year adjustmentsnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).

The business

BBSI, incorporated in Maryland in 1965 1, provides management solutions for small and mid-sized companies, combining management consulting know-how with HR outsourcing tools 1. Its operating model is decentralized: local teams, typically within 50 miles of clients, run operations and provide consultation 1. In 2025 it supported more than 8,200 PEO clients 1, and its August 2026 release describes it as NASDAQ-listed 3.

Segments

Staffing

Staffing covers on-demand and short-term assignments, contract staffing, on-site management and direct placement 1. It is much smaller than PEO and its revenues fell year over year in the first half of 2026 2.

Market context

The target market is small and mid-sized businesses, which the company describes as large, under-served by professional services firms and more reliant on outside resources 1. Geographic concentration is high: California operations produced 72% of total revenues in 2025 1, so results depend largely on the state's economy and regulation 1.

Trends

  • Client hiring demandheadwind

    Management says weak client hiring remains the primary growth headwind and a recovery has not yet appeared 3. If this demand does not recover, volume growth could stay limited 3.

  • Workers' compensation marketmixed

    Client pricing has improved as the workers' compensation market firms, while favorable prior-year claim adjustments are slowing across the industry 3. The company views 2026 as the margin low point, and pricing actions could support margins in later periods 3.

  • AI and automationmixed

    The company notes AI could bring efficiency gains but also cyber and regulatory risks, and client workforce displacement could affect demand 1. The net effect depends on how these technologies are adopted and regulated 1.

  • Employee benefit costsheadwind

    Benefit costs, especially health insurance, rose to a larger share of gross billings in 2026 23. If these costs keep rising, margin pressure could persist 2.

Competitive position

Competition is intense and fragmented. Larger firms that compete directly include Automatic Data Processing, ManpowerGroup, Kelly Services, Insperity, TriNet, Robert Half and Paychex, alongside regional providers 1. The main competitive factors are price and level of service 1.

  • Automatic Data Processing, Inc.ADP

    Larger competitor named in the filing with greater financial and marketing resources 1.

  • Insperity, Inc.NSP

    PEO provider named among competitors in the same markets 1.

  • TriNet Group, Inc.TNET

    HR outsourcing provider named among direct competitors 1.

  • ManpowerGroup, Inc.MAN

    Staffing company named among competitors with larger resources 1.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Barrett Business Services, Inc. · 26 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Barrett Business Services, Inc. · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Barrett Business Services, Inc. · 05 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.