Company Forecasts FY26 Gross Billings Growth of 3% to 5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy BBSI?
As part of its Q4 results last night, the company forecast FY26: "Gross billings growth of 3% to 5%. Growth in the average number of WSEs of 2% to 4%. Gross margin as a percent of gross billings of 2.70% to 2.85%."
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Analyst Views on BBSI
About BBSI
Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies. It has developed a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. Its services include professional employer services (PEO) and staffing. Its PEO services include entering into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, workers’ compensation (if elected) and benefits coverage (if elected) and certain other administrative functions for the client’s existing workforce. It provides its PEO clients access to human resource advisors, retirement plans, a learning management system and its Web-based technology platform, myBBSI. Its staffing services include on-demand or short-term staffing assignments, contract staffing, direct placement and long-term or indefinite-term on-site management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Expansion: Lewis will strengthen relationships with insurance brokers, CPAs, and other business advisors, ensuring more employers have access to BBSI's locally supported solutions, thereby enhancing market penetration.
- Team Development: As a 17-year veteran at BBSI, Lewis is dedicated to building high-performing teams that improve support quality for clients and referral partners, which in turn drives overall company performance.
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See More
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- Quarterly Dividend Announcement: Barrett Business has declared a quarterly dividend of $0.08 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Dividend Yield: The forward yield of 1.02% reflects the company's attractiveness in the current market environment, potentially appealing to investors seeking stable income.
- Payment Schedule: The dividend will be payable on March 27, with a record date of March 13 and an ex-dividend date also on March 13, ensuring shareholders receive their earnings promptly.
- Dividend Growth Potential: According to BBSI's dividend scorecard and yield chart, the company's potential for dividend growth is noteworthy, possibly providing additional returns for future investors.
See More
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- Strong Performance: Barrett Business Services reported total gross billings of $9 billion for 2025, an 8.6% year-over-year increase, with diluted earnings per share rising 5% to $2.08, demonstrating resilience amid challenges despite slightly lower Q4 revenue.
- Significant Employee Growth: The company added approximately 8,300 worksite employees in 2025, although client workforce reductions exceeded expectations, particularly in California and the construction sector, highlighting successful expansion in white-collar verticals and effective strategic sales initiatives.
- Ongoing Technology Investments: Multiple product releases in 2025 and plans for a performance management module beta release in Q2 2026 indicate the company's commitment to technological innovation aimed at enhancing operational efficiency and client satisfaction.
- Cautious Future Outlook: Management anticipates gross billings growth of 3% to 5% in 2026, reflecting a cautious stance due to macroeconomic pressures and weak client hiring trends, while emphasizing a continued focus on controllable growth and market expansion.
See More
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- Earnings Performance: Barrett Business reported Q4 GAAP EPS of $0.64, meeting market expectations, while revenue of $321.13 million, reflecting a 5.4% year-over-year increase, fell short by $2.3 million, indicating some revenue growth challenges for the company.
- Future Outlook: The company anticipates gross billings growth of 3% to 5% by 2026, with an expected 2% to 4% increase in the average number of WSEs, suggesting a cautiously optimistic view on future growth despite a slowdown in growth rates.
- Gross Margin Expectations: By 2026, Barrett expects gross margin as a percentage of gross billings to be between 2.70% and 2.85%, reflecting strategic considerations in cost control and profitability aimed at enhancing overall financial health.
- Tax Rate Forecast: The effective annual tax rate is projected to be between 26% and 27%, which will impact future net profit performance, and investors should monitor its potential effects on overall profitability.
See More
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- Compliance Improvement: By offering consistent and auditable records, the Employee File Cabinet module helps clients reduce compliance risks and support regulatory requirements, thereby enhancing business confidence in legal compliance.
- Operational Efficiency Optimization: The new module reduces the time spent on manual document handling, allowing businesses to focus more on core operations, which in turn enhances overall operational efficiency and promotes business growth.
- Employee Experience Enhancement: Employees can easily access their own documents, strengthening transparency and reducing administrative delays, ultimately improving employee satisfaction and work efficiency, which fosters a positive corporate culture.
See More
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- Leadership Enhancement: Larry Lewis's promotion to Regional Vice President will provide strategic leadership to branch management teams in Northern California, supporting BBSI's ongoing growth in this key market and enhancing the company's competitive position locally.
- Team Development: With 17 years at BBSI, Lewis is committed to building high-performing teams and strengthening client relationships, which will help the company deepen partnerships with insurance brokers and business advisors in Northern California, thereby expanding its client base.
- Market Strategy: This appointment reflects BBSI's focus on the Northern California market, with Lewis's leadership expected to accelerate growth in the region and drive strategic collaborations with various business advisors, enhancing service quality.
- Client Support: Lewis emphasizes the critical role of team support for clients, and his expanded role will further foster relationships between BBSI and local teams and referral partners, helping more businesses access BBSI's solutions.
See More
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- Leadership Enhancement: BBSI has appointed Larry Lewis as Regional Vice President for Northern California, aiming to leverage his strategic leadership to further drive the company's ongoing growth in this key market.
- Market Expansion: Lewis will strengthen relationships with insurance brokers, CPAs, and other business advisors, ensuring more employers have access to BBSI's locally supported solutions, thereby enhancing market penetration.
- Team Development: As a 17-year veteran at BBSI, Lewis is dedicated to building high-performing teams that improve support quality for clients and referral partners, which in turn drives overall company performance.
- Strategic Alignment: Lewis's leadership will help BBSI align its strategy, accelerate growth, and deepen advisory partnerships, thereby enhancing the company's influence in the Northern California market.
See More
