Barrett Business Services, Inc. (BBSI) reported its financial results for the first quarter ended March 31, 2025. The company achieved a 10% increase in revenues, reaching $292.6 million compared to $265.8 million in Q1 2024. Total gross billings also grew by 9% to $2.09 billion from $1.91 billion in the prior-year quarter.
Despite the strong top-line growth, BBSI reported a net loss of $1.0 million, or $(0.04) per diluted share, which increased from a net loss of $0.1 million, or $(0.01) per diluted share, in Q1 2024. This increased loss is attributed to typical seasonality in payroll tax expenses, which are highest in the first quarter due to wage caps resetting, and significantly higher PEO client benefit costs from expanded adoption of BBSI Benefits.
The company's average worksite employees (WSEs) grew by 7.6%, driven by a record number of WSEs added from new clients and continued high client retention. BBSI Benefits showed strong traction, adding approximately 3,000 participants in the selling season, bringing the total to over 17,500 participants across 640 clients through April.
Management maintained its full-year 2025 guidance for gross billings growth of 7% to 9% and average WSE growth of 4% to 6%. This cautious stance is due to macroeconomic uncertainty, including potential impacts from trade negotiations and government initiatives, despite the strong Q1 performance. BBSI also repurchased $9.1 million of stock in the quarter and confirmed its quarterly dividend of $0.08 per share.
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