Loading...
•
Jun 30, 2025
BBSI Q2 2025 Earnings Report
BBSI reported strong financial results for the second quarter ended June 30, 2025, with significant increases in revenues, gross billings, and net income.
Key Takeaways
BBSI delivered a strong second quarter, with revenues increasing 10% to $307.7 million and gross billings up 10% to $2.23 billion. Net income rose to $18.5 million, or $0.70 per diluted share, driven by net new client growth and strong client retention, despite modest existing-customer hiring.
Revenues increased 10% to $307.7 million in Q2 2025 compared to $279.7 million in Q2 2024.
Gross billings grew 10% to $2.23 billion in Q2 2025, up from $2.03 billion in Q2 2024.
Net income for Q2 2025 was $18.5 million ($0.70 per diluted share), an increase from $16.7 million ($0.62 per diluted share) in Q2 2024.
Average worksite employees (WSEs) increased 8% year-over-year, primarily due to net new client additions.
Revenue by Segment
Forward Guidance
BBSI has updated its 2025 outlook, expecting higher gross billings growth and average WSE growth, while maintaining its effective annual tax rate projection.
Positive Outlook
- Gross billings growth expected to be 9% to 10% (up from 7% to 9%).
- Growth in average number of WSEs expected to be 6% to 8% (up from 4% to 6%).
- Effective annual tax rate expected to remain at 26% to 27%.
- New $100 million stock repurchase program authorized over two years.
- Continued focus on net new client growth and strong client retention.
Challenges Ahead
- Gross margin as a percent of gross billings guidance slightly adjusted to 2.9% to 3.05% (previously 2.85% to 3.10%).
- Modest existing-customer hiring observed in the quarter, reflecting a more cautious macroeconomic environment.
- Unrestricted cash and investments decreased to $90.4 million from $99.1 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...