Barrett (NASDAQ:BBSI) Beats Q1 Sales Targets

Yahoo

08-05-2025

Business management solutions provider Barrett Business Services (NASDAQ:BBSI) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 10.1% year on year to $292.6 million. Its GAAP loss of $0.04 per share was 68.6% above analysts' consensus estimates.
Is now the time to buy Barrett? Find out in our full research report.
Barrett (BBSI) Q1 CY2025 Highlights:
Revenue: $292.6 million vs analyst estimates of $285.9 million (10.1% year-on-year growth, 2.3% beat)
EPS (GAAP): -$0.04 vs analyst estimates of -$0.13 (68.6% beat)
Adjusted EBITDA: -$2.21 million vs analyst estimates of -$5.5 million (-0.8% margin, 59.7% beat)
Operating Margin: -1.4%, in line with the same quarter last year
Market Capitalization: $1.06 billion
'BBSI delivered a strong start to the year, highlighted by record gross and net WSE additions and continued high client retention,' said Gary Kramer, President and CEO of BBSI.
Company Overview
Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ:BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.
Sales Growth
Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $1.17 billion in revenue over the past 12 months, Barrett is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.
As you can see below, Barrett's sales grew at a decent 5.2% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a helpful starting point for our analysis.
Barrett Quarterly Revenue
Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Barrett's annualized revenue growth of 5% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.
Barrett Year-On-Year Revenue Growth
This quarter, Barrett reported year-on-year revenue growth of 10.1%, and its $292.6 million of revenue exceeded Wall Street's estimates by 2.3%.
We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates. This signals Barrett could be a hidden gem because it doesn't get attention from professional brokers.