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BBSI Q1 2025 Earnings Report
BBSI reported a strong start to the year with increased revenues and gross billings, despite a net loss for the quarter.
Key Takeaways
BBSI delivered a strong start to the year with revenues up 10% to $292.6 million and gross billings up 9% to $2.09 billion. The company reported a net loss of $1.0 million, or $(0.04) per diluted share, which was attributed to seasonality in payroll tax expense.
Revenues increased 10% to $292.6 million in Q1 2025 compared to $265.8 million in Q1 2024.
Gross billings grew 9% to $2.09 billion in Q1 2025, up from $1.91 billion in Q1 2024.
The company reported a net loss of $1.0 million, or $(0.04) per diluted share, in Q1 2025.
Workers' compensation expense as a percent of gross billings improved to 2.4% in Q1 2025 from 2.6% in Q1 2024.
Revenue by Segment
Forward Guidance
BBSI expects continued growth in gross billings and average WSEs for 2025, with a stable gross margin and effective annual tax rate.
Positive Outlook
- Gross billings growth expected to be 7% to 9%.
- Growth in the average number of WSEs expected to be 4% to 6%.
- Gross margin as a percent of gross billings expected to be 2.85% to 3.10%.
- Effective annual tax rate expected to remain at 26% to 27%.
- Strong January 1st benefits selling season, strongest ever, with favorable trends continuing.
Challenges Ahead
- Demand environment has become more complex given ongoing macroeconomic uncertainty.
- The company typically incurs lower margins at the beginning of each year due to seasonality in payroll tax expense.
- Potential effects of changing governmental policies, including those related to immigration and tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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