BBSI BARRETT BUSINESS SERVICES INC

Overview and Growth

BARRETT BUSINESS SERVICES INC generated $1.24B of revenue in fiscal 2025, with net income of $54.45M and an operating cash inflow of $65.95M. At $1.24B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $1.14B in fiscal 2024, revenue recorded a 8.4% year-over-year increase. Diluted earnings per share were $2.08, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 5.1% from $1.98 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 1.59x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $260.91M as gross profit before recognizing operating expenses and other items. Gross profit represented 21.0% of revenue, showing how much of the top line remained after direct costs. Operating income was $62.16M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 5.0% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $54.45M for the fiscal year. Measured against reported revenue, net income produced a 4.4% margin after operating costs and the remaining recognized items. The earnings statement records $71.40M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 5.8% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $16.95M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 23.7% of pretax income, showing the tax burden absorbed by the year’s earnings. Net income equaled 22.6% of period-end equity, showing the earnings generated on shareholders’ book capital.

Liquidity and Capital Structure

The company held $779.07M of assets against $538.07M of liabilities and $241.00M of equity, revealing how the asset base was financed. At period end, current assets of $524.64M compared with current liabilities of $405.87M, defining the company’s short-term resource position. The current ratio was 1.29x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $95.03M in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 23.4% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The liabilities-to-assets relationship was 69.1%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 12.2% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 4.5% higher than fiscal 2024 assets of $745.51M, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $65.95M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.21x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $18.78M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 28.5%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $47.18M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 3.8%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 6.1%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.