BBSI earnings analysis
What we found in BBSI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
BBSI's Q1 2026 financial results revealed a year-over-year revenue increase of 4.9%, totaling $307.0 million. However, this fell significantly short of consensus expectations, resulting in a substantial net loss of $14.8 million, or $(0.59) per share. Management remains optimistic about future growth despite recent operational challenges, reaffirming full-year growth guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Up 4.9% YoY
- BBSI reported revenue of $307.0 million in Q1 2026, a $14.4 million increase from Q1 2025.
- PEO Services Revenue Increased 6.6%
- PEO services revenue grew by $18.1 million year-over-year, contributing to overall revenue growth.
- Gross Margin Percentage Slight Decline
- Gross margin for Q1 2026 was 14.1%, down from 14.6% in Q1 2025.
- Non-GAAP Loss Improved
- Excluding non-recurring tax adjustments, the non-GAAP net loss was $3.2 million, or $(0.13) per share.
- Significant Cash Burn
- Operating cash flow was a negative $22.1 million, compared to positive cash flow of $5.2 million in Q1 2025.
- Trust Account Balance Increased
- The trust account balance grew to $189.5 million, up from $175.3 million at year-end 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Substantial Reporting Net Loss
- Q1 2026 net loss increased to $14.8 million from a loss of $1.0 million in Q1 2025.
- High Tax Charge Impacting Earnings
- Recorded a tax-effected charge of $11.6 million related to disallowed wage tax credits.
- Liquidity Decline Noted
- The cash balance decreased by $41.8 million in Q1 2026 compared to the previous quarter.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.59
- Gross margin
- 14.1%
- Operating margin
- -2.1%
- Segment
- Professional employer services: $292.997M
- Segment
- Staffing services: $14.008M
What they said about what is next.
Management reaffirmed 2026 gross billings growth guidance of 3% to 5%, with average WSE growth expected to be 2% to 4%.
The filing reads worse than the one before it.
What came before.
- 10-K · February 26, 2026
- Barrett Business Services (BBSI) delivered modest top-line growth with fourth-quarter revenue of $321.1M (up ~5% vs. $305M in 2024Q4) while operating and gross margins compressed (Q4 gross margin 21.3%, operating margin…
- 10-Q · November 6, 2025
- Barrett Business Services reported Q3 2025 revenue of $318,949,000 and diluted EPS of $0.79, up versus Q3 2024. Revenue and EPS increased modestly year-over-year, while gross and operating margins were roughly flat to…
- 10-Q · May 8, 2025
- Barrett Business Services reported Q1 revenue of $292,566,000, up $26,784,000 (10.1%) versus Q1 2024. Gross margin dollars rose to $42,624,000 but gross margin percent ticked down to 14.6%; the company recorded a net…
- 10-Q · August 1, 2024
- Barrett Business Services reported Q2 total revenue of $279,651,000 and diluted EPS of $0.62 for the three months ended June 30, 2024. Revenue increased year-over-year driven by Professional Employer Services, while…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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