Here are 1-2 brief analogies for Barrett Business Services (BBSI):

• Like ADP or Paychex for full-service HR, benefits, and workers' compensation.
• The AWS for your human resources and payroll operations.

• Professional Employer Organization (PEO) Services: BBSI offers a comprehensive co-employment solution managing payroll, benefits, HR compliance, and workers' compensation for small and medium-sized businesses.
• Staffing Services: BBSI provides temporary and direct-hire staffing solutions to help businesses find qualified employees for various roles and industries.

Barrett Business Services (BBSI) primarily sells its services to other companies.

Due to the nature of its business, which includes professional employer organization (PEO) services and staffing services, BBSI serves a highly diversified client base of small to medium-sized businesses across a broad range of industries. The company does not depend on any one client or a small group of clients for a material portion of its revenue.

Therefore, there are no "major customers" (i.e., individual companies accounting for 10% or more of its revenue) to list by name, as confirmed in the company's public SEC filings.

• Elevance Health, Inc. (ELV)

Mr. Kramer joined BBSI as Chief Financial Officer in 2016 and was appointed as Chief Executive Officer of the company in March 2020. He possesses over fifteen years of insurance industry expertise, including serving twelve years with Chubb Limited, the world's largest publicly traded property and casualty insurer. Mr. Kramer holds a Bachelor of Science degree in business administration with a specialization in finance from Rowan University and an MBA with a specialization in accounting from Drexel University.

Mr. Harris joined BBSI in September 2016 as Controller, was promoted to Executive Director of Accounting and Finance in March 2018, and then to Chief Financial Officer in 2020. Prior to his tenure at BBSI, he served as Controller for Holland Partner Group from 2015 to 2016. He also spent nine years with PricewaterhouseCoopers in various roles in the United States and Australia, where he supported publicly traded and large privately held companies. Mr. Harris is a Certified Public Accountant and earned a BBA with a specialization in finance and accounting from Washington State University.

Mr. Blotz joined BBSI in May 2002 as Area Manager of the San Jose branch office and was promoted to Vice President, Chief Operating Officer-Field Operations in May 2014. Before joining BBSI, he was President and Chief Operating Officer of ProTrades Connection, where he was instrumental in growing ProTrades to 44 offices across four states.

Mr. Potts joined BBSI from Cozen O'Connor, a nationally recognized full-service law firm, where he co-chaired the Insurance Corporate and Regulatory Practice. He has more than 25 years of legal experience, representing clients in a cross-section of industries.

The rapid emergence and expansion of highly integrated, all-in-one HR, payroll, benefits, and IT management software platforms. These platforms offer sophisticated automation and a comprehensive suite of services, directly competing with or reducing the perceived value of traditional Professional Employer Organization (PEO) services offered by companies like BBSI. Examples include companies like Rippling, which bundle various administrative functions with a modern tech stack, appealing to small and medium-sized businesses looking for greater control and digital efficiency, potentially eroding market share for full-service PEO models.

Barrett Business Services (BBSI) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:

1. Growth in Worksite Employees (WSEs) through New Client Additions and Client Retention: BBSI has demonstrated a strong ability to attract and retain clients, evidenced by a record 10,400 worksite employees added year-over-year from net new clients, marking a 6.1% growth in WSEs. The company attributes its robust performance to the successful acquisition of new clients. BBSI anticipates an average WSE growth between 6% and 8% for 2025, driven by new client sales and effective client retention strategies. Analysts also project revenue growth fueled by new client acquisitions and increased service penetration among existing clients.
2. Geographic Expansion and New Market Entry: The company is strategically expanding its geographical footprint, particularly through an asset-light model. Recent expansions include opening new branches in Chicago and Dallas, with plans for a Nashville branch in January. This strategic initiative is expected to contribute to future growth by reaching new client bases.
3. Expansion of Products and Services, including BBSI Benefits and Enhanced Technology: BBSI is focusing on enhancing its service offerings to attract and serve a broader client base. Strategic initiatives involve improving its technology stack to appeal to larger clients. The company is also expanding its product portfolio, notably with BBSI Benefits, having added approximately 1,300 participants to its various benefits products in Q3 2025, reaching over 20,000 total participants across about 750 clients by October. The launch of BBSI benefits with Kaiser Permanente further highlights its strategic growth and competitive advantage.
4. Increased Average Billings per Worksite Employee (WSE): Growth in professional employer organization (PEO) services has been driven not only by an increase in WSEs from new clients but also by higher average billings per WSE per day. This indicates that BBSI is generating more revenue per employee it manages, which can contribute significantly to overall revenue growth even with consistent WSE numbers.
5. Favorable Developments in the Workers' Compensation Segment: The workers' compensation segment shows positive trends that could benefit BBSI's financial performance. Specifically, the California Insurance Commissioner approved an average 8.7% increase in premium rates, which is anticipated to positively impact the company. Additionally, the company has benefited from lower workers' compensation costs due to favorable prior year liability and premium adjustments.

Share Repurchases

• On August 6, 2025, Barrett Business Services authorized a new $100 million stock repurchase program over two years, replacing a previous program from July 2023.
• In the third quarter of 2025, the company repurchased $7.5 million of stock.
• As of December 31, 2024, the company had repurchased $45.2 million under the $75 million stock repurchase program authorized on July 31, 2023.

Share Issuance

• A four-for-one stock split was effected in the form of a stock dividend on June 24, 2024.
• The company maintains a 2019 Employee Stock Purchase Plan, with approximately 293,000 shares reserved for future issuance as of December 31, 2020.

Capital Expenditures

• Capital expenditures amounted to approximately -$15.4 million for the last 12 months as of June 30, 2025 (negative indicates cash outflow).
• The average annual capital expenditures growth rates were -9% over the past three years and -6% over the past five years.
• Capital expenditures are primarily focused on investments back into the company through product enhancements, technology upgrades, and geographic expansion, consistent with an asset-light model.