Barrett Business Services, Inc. (BBSI) reported significant financial performance for the third quarter and the first nine months of 2024, reflecting a positive trend in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, total revenues reached $294.3 million, marking a 7.7% increase from $273.3 million in the same period of 2023. Professional employer services (PEO) revenue contributed significantly, rising by 8.5% to $272.8 million, while staffing services revenue saw a slight decline of 1.9%.

For the nine months ended September 30, 2024, total revenues amounted to $839.7 million, up 5.9% from $792.6 million in the prior year. The gross margin for the third quarter was $74.4 million, representing 25.3% of total revenues, compared to 25.0% in the same quarter of 2023. Income from operations for Q3 2024 was $23.5 million, slightly up from $22.3 million in Q3 2023, while net income increased to $19.6 million from $18.2 million year-over-year.

BBSI's net income for the first nine months of 2024 was $36.2 million, a marginal increase from $36.1 million in the same period of 2023. The diluted income per share for Q3 2024 was $0.74, compared to $0.67 in Q3 2023, and for the nine months, it rose to $1.35 from $1.31.

The company’s balance sheet showed total assets of $725.8 million as of September 30, 2024, a slight increase from $721.5 million at the end of 2023. Total stockholders' equity improved to $215.4 million from $199.1 million. However, cash and cash equivalents decreased significantly to $14.4 million from $71.2 million at the end of 2023, primarily due to increased trade accounts receivable, which rose to $253.7 million from $171.4 million.

Strategically, BBSI executed a four-for-one stock split effective June 21, 2024, and increased its authorized shares from 20.5 million to 82 million. The company also initiated a stock repurchase program in July 2023, with $38.1 million spent to repurchase 1.3 million shares by September 30, 2024.

Overall, BBSI's operational model continues to focus on providing business management solutions to small and mid-sized companies, with a decentralized delivery model that supports local teams across 68 markets in the U.S.