Barrett Business Services Revenue Rises 4.7%

The Washington-based staffing and PEO provider reported higher third-quarter revenue even as net income declined.

Updated on Nov. 5, 2026 in Public Companies

Bold flat-color editorial illustration of two unequal steel columns on a cream base, one tall and one short, beside a narrow evergreen branch. — Barrett Business Services reported third-quarter revenue up 4.7% to $334.1 million on Nov. 4, while net income fell 18.8% to $16.8 million. AI Illustration. Upload story photo >

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Barrett Business Services reported third-quarter revenue up 4.7% year over year to $334.1 million, while net income fell 18.8% to $16.8 million. The company announced the results on Nov. 4.

Why it matters

Growth in professional employer organization services offset a drop in staffing revenue, signaling where the company's business is concentrated. The decline in net income points to pressure on profitability even as top-line growth continued.

PEO services revenue rose 5.5% to $316.2 million, while staffing services revenue fell 7.3% to $17.9 million. Gross billings grew 3.2% to $2.4 billion, but net income dropped 18.8% to $16.8 million.

The players

Barrett Business Services (BBSI)

A Washington-based provider of professional employer organization and staffing services that reported the quarterly results.

The details

Barrett Business Services announced its third-quarter results on Nov. 4, reporting that growth in PEO services offset a decline in staffing services. Shares of BBSI fell 1.1% to $32.74 by 10:34 a.m. ET on Nov. 5, within a 52-week range of $25.33 to $42.25.

Nov. 4, 2026: Barrett Business Services announces third-quarter results.
Nov. 5, 2026, 10:34 a.m. ET: BBSI shares trade at $32.74, down 1.1%.
2027: Company plans to build on its operating foundation.

Market Landscape

Barrett's results show the PEO model carrying revenue growth while traditional staffing shrinks, a split that shapes how the company competes in the outsourced HR services market. The 3% to 4% gross billings outlook suggests management expects continued but moderate expansion across its client base.

For employers using PEO services, the growth figures point to continued demand for outsourced payroll and HR support. Workers at client companies may see no direct change, as the results reflect the company's own revenue and profit performance.

The takeaway

Revenue growth paired with falling net income is a signal for investors to watch margins alongside top-line numbers. Compare future quarters to see whether profitability recovers as PEO growth continues.