Overview

• Business management solutions provider's Q4 revenue rose 5% but slightly missed analyst expectations

• Net income for Q4 was $16.4 mln, with diluted EPS up 2% to $0.64

• Company repurchased $17 mln of stock in Q4

Outlook

• BBSI expects 2026 gross billings growth of 3% to 5%

• Company anticipates 2026 average WSE growth of 2% to 4%

• BBSI projects 2026 gross margin of 2.70% to 2.85% of gross billings

Result Drivers

• PEO SERVICES GROWTH - Revenue growth driven by increased worksite employees and higher average billings per WSE per day

• LOWER WORKERS' COMPENSATION COSTS - Benefited from lower workers' compensation costs, including favorable prior year liability and premium adjustments

• SAME-CUSTOMER SALES MODERATION - Revenue slightly below expectations due to moderated same-customer sales trends

Company press release: ID:nGNX7GqBJL

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Slight Miss*	$321.10 mln	$323.43 mln (4 Analysts)
Q4 Net Income		$16.4 mln
Q4 Gross Billings		$2.4 bln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for Barrett Business Services Inc is $52.00, about 67.4% above its February 24 closing price of $31.06

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago

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