Barrett Business Services reported third quarter 2026 revenue of $334.1 million and diluted EPS of $0.69. While the company matched earnings expectations, revenue missed the estimated $343.2 million as persistent soft hiring trends among clients limited worksite employee expansion.
Key Highlights
- Average worksite employee (WSE) growth moderated to 0.6% year-over-year, totaling 142,319 as broader economic soft hiring trends hampered organic expansion.
- Gross billings increased 3% to $2.40 billion, driven primarily by professional employer organization (PEO) services growth and higher billings per employee.
- Workers’ compensation expense as a percent of gross billings rose to 2.4% from 2.2% last year, reflecting lower favorable prior-year liability adjustments of $0.8 million.
- Management reconfirmed its full-year 2026 outlook, targeting gross billings growth of 3% to 4% and average WSE growth between 1% and 2%.
- Capital allocation during the quarter included $9.0 million in stock repurchases and $1.9 million in dividends, bringing year-to-date returns to shareholders above $50 million.