Barrett Business

Q2 FY2026 EarningsQ2 FY26 results were mixed relative to consensus: revenue of $319.3M was in-line with the $319.3M estimate, while GAAP EPS of $0.52 missed the $0.555 mean estimate. Gross margin came in at 20.3% vs. the 20.8% expected, weighed down by higher benefit costs and reduced favorable workers' compensation adjustments. A significant headwind arose from the disallowance of wage-based tax credits, resulting in a $12.9M quarterly net income vs. $18.5M YoY, and a $63.0M potential ERC adjustment risk remains a key overhang.