Overview

* Barrett Business Services ( BBSI ) Q2 revenue up 10% to $307.7 mln, beating estimates

* Net income for Q2 rises to $18.5 mln, or $0.70 per diluted share

* Co announces new $100 mln stock repurchase program

Outlook

* BBSI expects 2025 gross billings growth of 9% to 10%

* Company projects WSE growth of 6% to 8% for 2025

* BBSI anticipates gross margin of 2.9% to 3.05% in 2025

* Company maintains effective tax rate at 26% to 27%

Result Drivers

* CLIENT GROWTH - Net new client growth and strong client retention drove revenue increase, per CEO Gary Kramer

* PEO SERVICES - Growth in professional employer services contributed to higher gross billings

* WORKERS' COMPENSATION - Lower workers' compensation costs benefited gross billings, aided by favorable prior year adjustments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $307.70 $300 mln

Revenue mln (4

Analysts

)

Q2 Net $18.50

Income mln

Q2 $2.23

Billings bln

Q2 Cash $90.40

& mln

Investme

nts

Q2 $0.08

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 ( BBSI ) is $46.00, about 3.3% above its August 5 closing price of $44.47

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)