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Dec 31, 2025
BBSI Q4 2025 Earnings Report
BBSI reported fourth quarter 2025 financial results with revenue growth of 5% and diluted EPS of $0.64.
Key Takeaways
BBSI delivered a solid fourth quarter with revenues reaching $321.1 million, driven by a 6% increase in gross billings and a 5% rise in average worksite employees. Despite a slight moderation in same-customer sales, the company achieved strong new client wins and maintained high retention rates, finishing the year with a debt-free balance sheet and significant capital returns to shareholders.
Revenues increased 5% year-over-year to $321.1 million for the fourth quarter.
Gross billings grew 6% to $2.40 billion, supported by a 5% increase in average worksite employees (WSEs).
Diluted EPS rose 2% to $0.64, even as net income slightly decreased to $16.4 million due to higher tax provisions in the prior year.
The company returned over $50 million to shareholders in 2025 through dividends and $17 million in Q4 stock repurchases.
Revenue by Segment
Forward Guidance
For the full year 2026, BBSI expects continued growth in billings and worksite employees with stable margins.
Positive Outlook
- Expected gross billings growth of 3% to 5%.
- Anticipated growth in average WSEs of 2% to 4%.
- Gross margin as a percent of gross billings projected between 2.70% and 2.85%.
- Planned advancement of technology roadmap and new IT product launches.
- Strong retention rates and continued new client wins.
Challenges Ahead
- Moderating same-customer sales trends observed in Q4.
- Evolving workers' compensation market dynamics.
- Potential technology disruption from AI and automation.
- Geopolitical instability and potential supply chain issues.
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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