📊 BBSI Key Takeaways
Is Barrett Business Services Inc. (BBSI) a Good Investment?
BBSI faces a severe operational crisis with expanding losses despite 8.4% revenue growth, indicating structural margin compression in its staffing services business. The company is burning capital with -22.1M operating cash flow and -27.8M free cash flow, destroying shareholder value with negative ROE of -7.2% while showing no clear path to profitability.
BBSI shows solid fundamental quality with mid-single to high-single-digit revenue growth, positive earnings growth, strong returns on equity, and meaningful free cash flow generation. The balance sheet is conservative with no long-term debt, ample cash, and strong interest coverage, which supports resilience. The main constraint is that profitability remains relatively thin and net income is growing slower than revenue, so margin execution is the key swing factor.
Barrett Business Services Inc. Key Strengths (BBSI)
- Zero long-term debt provides balance sheet flexibility
- Revenue growth of 8.4% YoY demonstrates market demand
- 36.6M cash buffer provides limited operational runway
- Debt-free balance sheet with $95.03M in cash and 0.00x debt-to-equity
- Healthy profitability profile with 21.0% gross margin, 5.0% operating margin, and 22.6% ROE
- Revenue, EPS, and free cash flow are all positive, indicating growth backed by cash generation
BBSI Stock Risks: Barrett Business Services Inc. Investment Risks
- Negative operating cash flow of -22.1M indicating unsustainable operations
- Negative free cash flow of -27.8M with deteriorating profitability despite growing revenue
- Low gross margin of 14.1% and negative operating margin of -2.1% suggest structural cost control failures
- Negative ROE of -7.2% and ROA of -1.9% destroying shareholder capital
- Liquidity crisis risk if cash burn of 22M+ annually continues unchecked
- Net income growth of 2.7% trails revenue growth of 8.4%, suggesting margin pressure or higher operating costs
- Thin net margin of 4.4% leaves earnings sensitive to labor cost, claims, or operating volatility
- Liabilities are sizable relative to equity, so reserve adequacy and working-capital discipline remain important
Key Metrics to Watch
- Operating cash flow trend - critical to identify stabilization
- Gross margin recovery - must improve from 14.1% to restore profitability
- Operating margin trajectory - must return to positive within 2-3 quarters
- Cash position depletion rate - at current burn, runway is 1.6 years
- Operating margin and net margin trend
- Operating cash flow and free cash flow conversion
Barrett Business Services Inc. (BBSI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Barrett Business Services Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BBSI Profit Margin, ROE & Profitability Analysis
BBSI vs Services Sector: How Barrett Business Services Inc. Compares
How Barrett Business Services Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Barrett Business Services Inc. Stock Overvalued? BBSI Valuation Analysis 2026
Based on fundamental analysis, Barrett Business Services Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Barrett Business Services Inc. Balance Sheet: BBSI Debt, Cash & Liquidity
BBSI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Barrett Business Services Inc.'s revenue has grown significantly by 30% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.85 reflects profitable operations.
BBSI Revenue Growth, EPS Growth & YoY Performance
BBSI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $292.6M | -$1.0M | $-0.04 |
| Q3 2025 | $294.3M | -$136.0K | $0.74 |
| Q2 2025 | $279.7M | -$136.0K | $0.62 |
| Q1 2025 | $265.8M | -$136.0K | $-0.01 |
| Q3 2024 | $273.3M | -$136.0K | $0.67 |
| Q2 2024 | $264.6M | -$136.0K | $0.62 |
| Q1 2024 | $254.7M | -$136.0K | $-0.02 |
| Q3 2023 | $273.3M | $288.0K | $2.45 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Barrett Business Services Inc. Dividends, Buybacks & Capital Allocation
BBSI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Barrett Business Services Inc. (CIK: 0000902791)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BBSI
What is the AI rating for BBSI?
Barrett Business Services Inc. (BBSI) has a Combined AI Grade of C from Claude (D) and ChatGPT (A) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BBSI's key strengths?
Claude: Zero long-term debt provides balance sheet flexibility. Revenue growth of 8.4% YoY demonstrates market demand. ChatGPT: Debt-free balance sheet with $95.03M in cash and 0.00x debt-to-equity. Healthy profitability profile with 21.0% gross margin, 5.0% operating margin, and 22.6% ROE.
What are the risks of investing in BBSI?
Claude: Negative operating cash flow of -22.1M indicating unsustainable operations. Negative free cash flow of -27.8M with deteriorating profitability despite growing revenue. ChatGPT: Net income growth of 2.7% trails revenue growth of 8.4%, suggesting margin pressure or higher operating costs. Thin net margin of 4.4% leaves earnings sensitive to labor cost, claims, or operating volatility.
What is BBSI's revenue and growth?
Barrett Business Services Inc. reported revenue of $307.0M.
Does BBSI pay dividends?
Barrett Business Services Inc. pays dividends, with $2.0M distributed to shareholders in the trailing twelve months.
Where can I find BBSI SEC filings?
Official SEC filings for Barrett Business Services Inc. (CIK: 0000902791) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BBSI's EPS?
Barrett Business Services Inc. has a diluted EPS of $-0.59.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BBSI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Barrett Business Services Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BBSI stock overvalued or undervalued?
Valuation metrics for BBSI: ROE of -7.2% (sector avg: 16%), net margin of -4.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is BBSI's AI grade for 2026?
Our dual AI analysis gives Barrett Business Services Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BBSI's free cash flow?
Barrett Business Services Inc.'s operating cash flow is $-22.1M, with capital expenditures of $5.7M. FCF margin is -9.1%.
How does BBSI compare to other Services stocks?
Vs Services sector averages: Net margin -4.8% (avg: 10%), ROE -7.2% (avg: 16%), current ratio 1.16 (avg: 1.5).