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

Barrett Business Services Inc. increased third-quarter revenue 5% from a year earlier, while lower net income and diluted income per share left its earnings below year-ago levels.

For the quarter ended Sept. 30, 2026, revenue totaled $334.062 million, compared with $318.949 million in the year-earlier period. The company announced the results Nov. 4. Net income was $16.750 million, down from $20.619 million, and diluted income per share declined to $0.69 from $0.79.

Barrett provides human-resources outsourcing and management consulting, with services that include payroll, benefits, workers’ compensation and risk management. It reports professional employer organization revenue after deducting direct payroll costs. Gross billings are a separate measure of business volume.

Gross billings climbed 3% to $2.395 billion from $2.322 billion a year earlier. The average number of worksite employees reached 142,319, up 0.6%. That count is an average for the quarter, while gross billings measure business volume; both offer operating context alongside revenue and net income.

Workers’ compensation expense was 2.4% of gross billings, compared with 2.2% in the third quarter of 2025. Favorable adjustments tied to prior-year liabilities and premiums totaled $0.8 million, versus $3.9 million a year earlier. The expense figure is measured as a share of gross billings, while the adjustments reflect prior-year items.

“Although client hiring trends remain soft, we are encouraged by improving conditions in the workers’ compensation market,” President and CEO Gary Kramer said.

For 2026, Barrett projects gross billings growth of 3% to 4% and an increase of 1% to 2% in average worksite employees. The company’s outlook covers both business volume and its worksite employee count.

The board declared a quarterly dividend of $0.08 per share. It is payable Dec. 4 to stockholders of record Nov. 20.