Barrett Business Services, Inc. (BBSI) reported strong financial results for the second quarter ended June 30, 2025. Revenues increased 10% to $307.7 million compared to $279.7 million in Q2 2024. Total gross billings also grew by 10% to $2.23 billion from $2.03 billion in the prior-year quarter.
Net income for the second quarter was $18.5 million, or $0.70 per diluted share, an increase from $16.7 million, or $0.62 per diluted share, in Q2 2024. This performance was driven by an 8.0% increase in average worksite employees (WSEs) to 138,969, resulting from strong net new client growth and continued momentum in BBSI Benefits.
Workers' compensation expense as a percent of gross billings improved to 2.1%, benefiting from $8.8 million in favorable prior year liability and premium adjustments. While existing-customer hiring was modest, the company's ability to drive growth through client additions highlighted the resilience of its business model.
BBSI's Board of Directors authorized a new stock repurchase program of up to $100 million over a two-year period, replacing the previous $75 million program. The company repurchased $8.0 million of stock in Q2 and confirmed its quarterly cash dividend at $0.08 per share, demonstrating a continued commitment to shareholder returns.
Based on these results, management raised its full-year 2025 guidance. Gross billings growth is now expected to be between 9% and 10%, up from the previous 7% to 9%. Average WSE growth is projected between 6% and 8%, an increase from the prior 4% to 6%. Gross margin as a percent of gross billings was narrowed and nudged upward at the low end to a range of 2.9% to 3.05%.
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