BARRETT BUSINESS SERVICES INC — Form 8-K
Filed August 5, 2026 · analyzed by the 8-K Agent
8-K
▼ Likely negative
significance 58/100
What the filing says
BBSI reported Q2 2026 net income of $12.9M ($0.52/diluted share) vs. $18.5M ($0.70/share) YoY, a 30% EPS decline. Revenues grew 4% to $319.3M and gross billings 3% to $2.29B, but average WSE growth slowed to 0.5% YoY (from 8.0% prior year). Gross margin compressed to 2.8% from 3.3% due to higher workers' compensation claims (2.5% vs. 2.1% of billings) with only $2M favorable adjustments vs. $8.8M prior year. Management cited softness in client hiring as primary headwind and lowered full-year margin guidance to 2.70–2.75%.
Why this rating
Q2 profit down 30% YoY and WSE growth near-stalled; significant margin compression at $1B company. Not transformational loss but material operational deterioration relative to size.
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