---
title: "Barrett Business Services Inc. Revenue Rises 5% as Q3 Net Income Falls"
url: https://thecoingazette.com/barrett-business-services-inc-revenue-rises-5-as-q3-net-income-falls/
date: 2026-11-05
modified: 2026-11-06
lang: en
author: "Coin Gazette Editorial"
description: "Revenue reached $334.1 million for the quarter ended Sept. 30, 2026, while net income declined to $16.8 million from $20.6 million."
categories:
  - "Markets"
tags:
  - "BUSINESS"
  - "Market Trends"
  - "Markets"
  - "News"
word_count: 349
---

# Barrett Business Services Inc. Revenue Rises 5% as Q3 Net Income Falls

Revenue reached $334.1 million for the quarter ended Sept. 30, 2026, while net income declined to $16.8 million from $20.6 million.

Barrett Business Services Inc. [reported](https://supplychaindigital.com/api/globenewswire/v2/press-releases/3395825) third-quarter revenue of $334.1 million, up 5% from $318.9 million in the same period last year, while gross billings increased 3% to $2.40 billion. The company said growth was primarily driven by its professional employer organization (PEO) segment, supported by new client additions and higher average billings per worksite employee.

However, the revenue growth did not translate into stronger bottom-line results. **Net income fell to $16.8 million, or $0.69 per diluted share, from $20.6 million, or $0.79 per diluted share, in the prior-year quarter.**

## Workers' Compensation Costs Weigh on Earnings

BBSI said workers' compensation expense represented **2.4% of gross billings**, compared with 2.2% a year earlier. The increase was largely attributed to lower favourable adjustments related to prior-year workers' compensation liabilities and insurance premiums.

While revenue continued to expand, these higher costs pressured profitability during the quarter.

## Hiring Environment Remains Mixed

Management indicated that hiring activity among small and medium-sized businesses remained relatively subdued, reflecting ongoing caution in the labour market.

President and CEO Gary Kramer said results aligned with expectations, while highlighting continued client growth and operational execution across the company's service offerings.

The company also noted improving conditions in the workers' compensation market and ongoing pricing initiatives that could support future margins.

## Balance Sheet Strengthens

BBSI ended the quarter with **$73.7 million in unrestricted cash and investments**, up from $67.9 million at the end of the previous quarter.

The company continued returning capital to shareholders, repurchasing approximately **273,700 shares for $9 million** during the quarter. About **$31.2 million** remains available under its existing share repurchase authorization.

Additionally, BBSI declared a quarterly cash dividend of **$0.08 per share**.

## Outlook

For full-year 2026, BBSI expects:

- Gross billings growth of **3% to 4%**

- Average worksite employee growth of **1% to 2%**

- Gross margin between **2.70% and 2.75%** of gross billings

Despite continued pressure from workers' compensation expenses, the company maintained its outlook, signalling confidence in demand for outsourced HR, payroll, and workforce management services.