--- title: "Barrett Business | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 307.01 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285430980.md" datetime: "2026-05-06T20:17:58.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285430980.md) - [en](https://longbridge.com/en/news/285430980.md) - [zh-HK](https://longbridge.com/zh-HK/news/285430980.md) generator: "portal-rs" --- # Barrett Business | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 307.01 M Revenue: As of FY2026 Q1, the actual value is USD 307.01 M, beating the estimate of USD 304.94 M. EPS: As of FY2026 Q1, the actual value is USD -0.59, missing the estimate of USD -0.14. EBIT: As of FY2026 Q1, the actual value is USD -8.448 M. ### Financial Summary - First Quarter 2026 #### Revenue - **Total Revenues**: Increased 5% to $307.0 million in the first quarter of 2026, compared to $292.6 million in the first quarter of 2025. - **Professional Employer Services**: $292,997 thousand in Q1 2026, up from $274,926 thousand in Q1 2025. - **Staffing Services**: $14,008 thousand in Q1 2026, down from $17,640 thousand in Q1 2025. #### Gross Billings - **Total Gross Billings**: Increased 3% to $2.16 billion in the first quarter of 2026, compared to $2.09 billion in the same year-ago quarter. This increase was driven by growth in professional employer (PEO) services, primarily from increased worksite employees (WSEs) from net new clients, as well as higher average billings per WSE per day. - **Gross Billings (in thousands)**: $2,161,271 in Q1 2026 versus $2,088,669 in Q1 2025. #### Net Loss - **Net Loss**: Was - $14.8 million, or - $0.59 per diluted share, in the first quarter of 2026, compared to a net loss of - $1.0 million, or - $0.04 per diluted share, in the year-ago quarter. - **Net Loss (excluding one-time charge)**: Was - $3.2 million, or - $0.13 per diluted share, in Q1 2026, reflecting an $11.6 million tax-effected, non-recurring charge related to a U.S. Tax Court decision on prior-year tax credits. #### Gross Margin - **Gross Margin (absolute value)**: Was $43,185 thousand in Q1 2026, compared to $42,624 thousand in Q1 2025. - **Gross Margin as a percent of gross billings**: 2.0% in Q1 2026, consistent with 2.0% in Q1 2025. #### Operating Costs - **Total Cost of Revenues**: Was $263,820 thousand in Q1 2026, compared to $249,942 thousand in Q1 2025. - **Direct Payroll Costs**: $10,482 thousand in Q1 2026 versus $13,306 thousand in Q1 2025. - **Payroll Taxes**: $174,096 thousand in Q1 2026 versus $169,390 thousand in Q1 2025. - **Benefit Costs**: $27,448 thousand in Q1 2026 versus $17,616 thousand in Q1 2025. - **Workers’ Compensation**: $51,794 thousand in Q1 2026 versus $49,630 thousand in Q1 2025. - **Selling, General and Administrative Expenses**: $47,480 thousand in Q1 2026, compared to $44,838 thousand in Q1 2025. - **Depreciation and Amortization**: $2,173 thousand in Q1 2026, compared to $1,958 thousand in Q1 2025. #### Loss from Operations - **Loss from Operations**: Was - $6,468 thousand in Q1 2026, compared to - $4,172 thousand in Q1 2025. #### Other Income/Expense - **Investment Income, Net**: $2,022 thousand in Q1 2026, compared to $2,620 thousand in Q1 2025. - **Interest Expense**: - $42 thousand in Q1 2026, compared to - $44 thousand in Q1 2025. #### Liquidity and Capital Allocation - **Unrestricted Cash and Investments**: $91.9 million as of March 31, 2026, compared to $157.2 million at the end of 2025. Barrett Business Services, Inc. remained debt free at quarter end. - **Stock Repurchases**: Barrett Business Services, Inc. repurchased $20.1 million of common stock in the first quarter, comprising 700,926 shares at an average price of $28.68. Approximately $55.3 million remained available under the $100 million repurchase program as of March 31, 2026. - **Dividends Paid**: $2.0 million of dividends were paid in the quarter. The board of directors confirmed its next regular quarterly cash dividend at $0.08 per share, payable on June 5, 2026, to stockholders of record as of May 22, 2026. - **Capital Returned to Shareholders**: Year-to-date capital returned to shareholders totaled more than $22 million through stock repurchases and dividends. #### Operational Metrics - **Average Worksite Employees (WSEs)**: Increased 1.9% to 134,993 in Q1 2026, compared to 132,459 in Q1 2025. - **Ending Worksite Employees (WSEs)**: Increased 1.4% to 135,596 in Q1 2026, compared to 133,699 in Q1 2025. - **Workers’ Compensation Expense as a percent of gross billings**: 2.4% in Q1 2026, including favorable prior year liability and premium adjustments of $1.1 million. This was consistent with 2.4% in Q1 2025, which included favorable adjustments of $3.8 million. #### Outlook and Guidance Barrett Business Services, Inc. reaffirms its outlook for 2026, expecting gross billings growth of 3% to 5% and growth in the average number of WSEs of 2% to 4%. The company anticipates gross margin as a percent of gross billings to be between 2.70% and 2.85%, with an effective annual tax rate remaining at 26% to 27%. ### Related Stocks - [BBSI.US](https://longbridge.com/en/quote/BBSI.US.md) ## Related News & Research - [REG - UIL Limited UIL Finance Ltd - Purchase of 2026 ZDP Shares](https://longbridge.com/en/news/296518280.md) - [Xcel Energy sets BRL 0.26 per unit distribution for payment Oct. 26, 2026](https://longbridge.com/en/news/296646864.md) - [Public Storage announces R$ 0.41 per unit dividend for Q3 2026](https://longbridge.com/en/news/296635332.md) - [Corning sets Q3 2026 dividend at R$ 0.25 per unit](https://longbridge.com/en/news/296635714.md) - [DRDGOLD FY 2026 earnings preview](https://longbridge.com/en/news/296258286.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**