0000902791falsefalsefalsefalse--12-31Q1false0.250.250.250.25http://fasb.org/us-gaap/2024#MortgageBackedSecuritiesMemberhttp://fasb.org/us-gaap/2024#MortgageBackedSecuritiesMember0000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberbbsi:EmergingMarketsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000902791us-gaap:CorporateBondSecuritiesMemberbbsi:RestrictedInvestmentsMember2025-03-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791bbsi:CreditAgreementMember2024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-03-310000902791bbsi:SelfInsuredProgramsMember2025-01-012025-03-310000902791us-gaap:USTreasurySecuritiesMemberus-gaap:InvestmentsMember2025-03-310000902791us-gaap:RetainedEarningsMember2025-01-012025-03-310000902791bbsi:SelfInsuredProgramsMemberstpr:MD2020-06-300000902791bbsi:RestrictedCashAndInvestmentsMember2024-12-310000902791bbsi:CreditAgreementMembersrt:MinimumMember2024-12-310000902791bbsi:TwoThousandTwentyThreeToTwoThousandTwentyFourPolicyMember2025-01-012025-03-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberbbsi:EmergingMarketsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791bbsi:TwoThousandTwentyOneToTwoThousandTwentyTwoPolicyMembersrt:MaximumMember2025-01-012025-03-310000902791bbsi:CreditAgreementMembersrt:MinimumMember2024-06-300000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:MortgageBackedSecuritiesMember2024-12-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMember2025-03-310000902791srt:MinimumMember2024-04-012024-06-300000902791bbsi:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2025-03-310000902791us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:MortgageBackedSecuritiesMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2024-12-310000902791srt:MinimumMember2024-10-012024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMember2024-12-310000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791bbsi:InsuredProgramMember2021-07-012021-07-010000902791us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MutualFundMember2024-12-310000902791us-gaap:MoneyMarketFundsMember2025-03-310000902791us-gaap:AdditionalPaidInCapitalMember2023-12-310000902791bbsi:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMemberbbsi:SecuredOvernightFinancingRateMember2025-01-012025-03-310000902791us-gaap:CommonStockMember2024-12-310000902791bbsi:RestrictedInvestmentsMember2025-03-310000902791bbsi:CreditAgreementMemberus-gaap:LineOfCreditMember2025-01-012025-03-310000902791us-gaap:AccruedLiabilitiesMember2025-03-310000902791us-gaap:CommonStockMember2024-03-3100009027912025-03-310000902791us-gaap:CashAndCashEquivalentsMember2025-03-310000902791us-gaap:CorporateBondSecuritiesMember2025-03-3100009027912024-01-012024-03-310000902791bbsi:SelfInsuredProgramsMemberstpr:MD2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberbbsi:EmergingMarketsMember2025-03-310000902791bbsi:TwoThousandSeventeenMember2025-01-012025-03-310000902791bbsi:TwoThousandTwentyTwoToTwoThousandTwentyThreePolicyMembersrt:MaximumMember2025-01-012025-03-310000902791bbsi:PayrollTaxesAndBenefitsMember2025-01-012025-03-310000902791us-gaap:CommonStockMember2024-01-012024-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MutualFundMember2025-03-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310000902791us-gaap:RevolvingCreditFacilityMember2025-01-012025-03-310000902791bbsi:RestrictedCashAndInvestmentsMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMember2025-03-310000902791bbsi:CreditAgreementMember2025-01-012025-03-310000902791bbsi:TwoThousandTwentyOneJulyOneAndAfterMember2025-01-012025-03-310000902791us-gaap:USTreasurySecuritiesMemberbbsi:RestrictedInvestmentsMember2025-03-3100009027912024-06-040000902791bbsi:PayrollTaxesAndBenefitsMember2024-01-012024-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791bbsi:TwoThousandTwentyTwoMember2025-01-012025-03-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMember2024-12-310000902791us-gaap:MortgageBackedSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2024-12-310000902791srt:MinimumMemberbbsi:TwoThousandTwentyOneToTwoThousandTwentyTwoPolicyMember2025-01-012025-03-310000902791us-gaap:CorporateBondSecuritiesMemberbbsi:RestrictedInvestmentsMember2024-12-310000902791us-gaap:AdditionalPaidInCapitalMember2024-03-3100009027912024-06-030000902791us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2025-03-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2024-12-310000902791bbsi:RestrictedInvestmentsMember2024-12-310000902791bbsi:TwoThousandTwentyThreeToTwoThousandTwentyFourPolicyMembersrt:MinimumMember2025-01-012025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMember2024-12-310000902791bbsi:TwoThousandFourteenMember2025-01-012025-03-310000902791srt:MaximumMemberus-gaap:InternalRevenueServiceIRSMember2025-01-012025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:RetainedEarningsMember2025-03-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310000902791bbsi:SelfInsuredProgramsMember2020-01-012020-06-3000009027912024-12-3100009027912024-01-012024-12-310000902791us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2025-03-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:CommonStockMember2023-12-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberbbsi:RestrictedInvestmentsMember2025-03-310000902791us-gaap:FairValueMeasurementsRecurringMember2024-12-3100009027912017-01-012021-12-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberbbsi:RestrictedInvestmentsMember2024-12-3100009027912021-07-012025-03-310000902791bbsi:EmergingMarketsMember2024-12-310000902791us-gaap:MoneyMarketFundsMember2024-12-310000902791us-gaap:InternalRevenueServiceIRSMember2017-01-012021-12-310000902791bbsi:TwoThousandNineteenMember2025-01-012025-03-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2024-12-310000902791bbsi:StaffingServicesMember2025-01-012025-03-310000902791bbsi:CreditAgreementMembersrt:MaximumMember2025-01-012025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2025-03-310000902791us-gaap:CorporateBondSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:CashAndCashEquivalentsMember2024-12-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2025-03-310000902791us-gaap:MortgageBackedSecuritiesMemberbbsi:RestrictedInvestmentsMember2025-03-310000902791us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310000902791us-gaap:OtherAssetsMember2025-03-310000902791us-gaap:RevolvingCreditFacilityMemberbbsi:OneMonthTermSecuredOvernightFinancingRateMember2025-01-012025-03-310000902791us-gaap:USTreasurySecuritiesMember2024-12-310000902791bbsi:InsuredProgramMember2025-01-012025-03-310000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2025-03-310000902791bbsi:SelfInsuredProgramsMemberstpr:CO2025-03-310000902791bbsi:TwoThousandTwentyMember2025-01-012025-03-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:MortgageBackedSecuritiesMember2025-03-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:InvestmentsMember2024-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000902791bbsi:ProfessionalEmployerServicesMember2025-01-012025-03-310000902791bbsi:CreditAgreementMemberus-gaap:StandbyLettersOfCreditMember2025-03-310000902791us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2024-12-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2025-03-310000902791us-gaap:RetainedEarningsMember2024-03-310000902791us-gaap:MortgageBackedSecuritiesMemberbbsi:RestrictedInvestmentsMember2024-12-310000902791bbsi:InsuredProgramMember2020-06-292020-06-290000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:AssetBackedSecuritiesMember2024-12-3100009027912024-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberbbsi:EmergingMarketsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:AssetBackedSecuritiesMemberbbsi:RestrictedInvestmentsMember2024-12-310000902791us-gaap:AssetBackedSecuritiesMember2025-03-310000902791srt:MinimumMember2024-07-012024-09-300000902791us-gaap:CorporateBondSecuritiesMember2024-12-310000902791bbsi:WorkersCompensationMember2025-01-012025-03-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000902791us-gaap:USTreasurySecuritiesMember2025-03-310000902791srt:MinimumMemberbbsi:TwoThousandTwentyFourToTwoThousandTwentyFivePolicyMember2025-01-012025-03-310000902791us-gaap:RetainedEarningsMember2023-12-310000902791us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:AssetBackedSecuritiesMemberbbsi:RestrictedInvestmentsMember2025-03-310000902791us-gaap:AssetBackedSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2024-12-310000902791bbsi:CreditAgreementMember2025-03-310000902791us-gaap:CommonStockMember2025-01-012025-03-310000902791us-gaap:InvestmentsMember2024-12-310000902791bbsi:TwoThousandTwentyThreeMember2025-01-012025-03-310000902791bbsi:SecuredOvernightFinancingRateMemberus-gaap:RevolvingCreditFacilityMember2025-01-012025-03-310000902791bbsi:EmergingMarketsMember2025-03-310000902791bbsi:TwoThousandTwentyTwoToTwoThousandTwentyThreePolicyMembersrt:MinimumMember2025-01-012025-03-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310000902791bbsi:CreditAgreementMembersrt:MinimumMember2024-09-3000009027912024-06-042024-06-040000902791bbsi:ProfessionalEmployerServicesMember2024-01-012024-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MortgageBackedSecuritiesMember2024-12-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberbbsi:EmergingMarketsMember2024-12-310000902791bbsi:CreditAgreementMembersrt:MinimumMember2025-03-310000902791bbsi:DirectPayrollCostsMember2024-01-012024-03-310000902791bbsi:DirectPayrollCostsMember2025-01-012025-03-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-03-310000902791bbsi:TwoThousandSixteenMember2025-01-012025-03-310000902791us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:MortgageBackedSecuritiesMember2024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310000902791us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310000902791us-gaap:AdditionalPaidInCapitalMember2025-03-310000902791us-gaap:RetainedEarningsMember2024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:AssetBackedSecuritiesMember2025-03-310000902791bbsi:SelfInsuredProgramsMemberstpr:CO2020-06-300000902791bbsi:TwoThousandTwentyFourMember2025-01-012025-03-310000902791bbsi:WageBasedTaxCreditsMembersrt:MaximumMemberus-gaap:InternalRevenueServiceIRSMember2025-01-012025-03-310000902791us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:InvestmentsMember2025-03-310000902791bbsi:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2024-01-012024-03-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-03-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberbbsi:EmergingMarketsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-3100009027912025-01-012025-03-310000902791bbsi:TwoThousandEighteenMember2025-01-012025-03-310000902791us-gaap:AssetBackedSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:CorporateBondSecuritiesMemberus-gaap:InvestmentsMember2025-03-310000902791bbsi:StaffingServicesMember2024-01-012024-03-310000902791us-gaap:CorporateBondSecuritiesMemberus-gaap:InvestmentsMember2024-12-310000902791srt:MinimumMember2025-01-012025-03-310000902791srt:MinimumMemberbbsi:WageBasedTaxCreditsMemberus-gaap:InternalRevenueServiceIRSMember2025-01-012025-03-310000902791us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-03-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMember2025-03-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-12-310000902791bbsi:TwoThousandTwentyFiveMember2025-01-012025-03-310000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2025-03-310000902791us-gaap:USTreasurySecuritiesMemberbbsi:RestrictedInvestmentsMember2024-12-310000902791us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2025-03-310000902791us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2025-03-310000902791us-gaap:MortgageBackedSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2025-03-310000902791us-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMember2025-03-310000902791bbsi:TwoThousandFifteenMember2025-01-012025-03-310000902791bbsi:TwoThousandTwentyOneThroughJuneThirtyMember2025-01-012025-03-310000902791us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2025-03-310000902791bbsi:WorkersCompensationMember2024-01-012024-03-310000902791srt:MinimumMemberus-gaap:InternalRevenueServiceIRSMember2025-01-012025-03-310000902791us-gaap:FairValueInputsLevel2Memberbbsi:RestrictedCashAndInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310000902791us-gaap:USTreasurySecuritiesMemberus-gaap:InvestmentsMember2024-12-310000902791bbsi:RestrictedCashAndInvestmentsMemberus-gaap:MutualFundMember2024-12-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:InvestmentsMember2024-12-3100009027912025-04-250000902791us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2024-12-310000902791us-gaap:MortgageBackedSecuritiesMemberus-gaap:InvestmentsMember2024-12-310000902791bbsi:TwoThousandTwentyOneToTwoThousandTwentyTwoPolicyMember2025-01-012025-03-310000902791us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2024-12-310000902791bbsi:TwoThousandTwentyThreeToTwoThousandTwentyFourPolicyMembersrt:MaximumMember2025-01-012025-03-310000902791us-gaap:RetainedEarningsMember2024-01-012024-03-310000902791us-gaap:CommonStockMember2025-03-310000902791us-gaap:PortionAtOtherThanFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310000902791us-gaap:USGovernmentAgenciesDebtSecuritiesMemberbbsi:RestrictedCashAndInvestmentsMember2024-12-310000902791us-gaap:AdditionalPaidInCapitalMember2024-12-310000902791us-gaap:OtherAssetsMember2024-12-310000902791bbsi:TwoThousandTwentyFourToTwoThousandTwentyFivePolicyMembersrt:MaximumMember2025-01-012025-03-3100009027912023-12-31xbrli:purexbrli:sharesbbsi:Segmentiso4217:USDiso4217:USDxbrli:sharesbbsi:Company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to

Commission File Number 0-21886

BARRETT BUSINESS SERVICES, INC.

(Exact name of registrant as specified in its charter)


Maryland		52-0812977
(State or other jurisdiction of Incorporation or organization)		(IRS Employer Identification No.)

8100 NE Parkway Drive, Suite 200
Vancouver, Washington		98662
(Address of principal executive offices)		(Zip Code)

(360) 828-0700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.01 Per Share	BBSI	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 25, 2025, 25,680,212 shares of the registrant’s common stock ($0.01 par value) were outstanding.

BARRETT BUSINESS SERVICES, INC.

INDEX TO FORM 10-Q


Part I - Financial Information (Unaudited)
		Page
Item 1.	Unaudited Interim Condensed Consolidated Financial Statements	3

	Condensed Consolidated Balance Sheets - March 31, 2025 and December 31, 2024	3

	Condensed Consolidated Statements of Operations - Three Months Ended March 31, 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) - Three Months Ended March 31, 2025 and 2024	5

	Condensed Consolidated Statements of Stockholders’ Equity - Three Months Ended March 31, 2025	6

	Condensed Consolidated Statements of Stockholders’ Equity - Three Months Ended March 31, 2024	7

	Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2025 and 2024	8

	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

Part II - Other Information

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 6.	Exhibits	29

Signatures		29

PART I – FINANCIAL INFORMATION

Item 1. Unaudited Interim Condensed Consolidated Financial Statements

Barrett Business Services, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In Thousands, Except Par Value)


	March 31,			December 31,
	2025			2024
ASSETS
Current assets:
Cash and cash equivalents	$	31,977		$	55,367
Investments		67,160			66,492
Trade accounts receivable, net		261,291			234,533
Income taxes receivable		3,232			2,662
Prepaid expenses and other		29,502			18,698
Restricted cash and investments		138,490			97,690
Total current assets		531,652			475,442
Property, equipment and software, net		59,337			56,781
Operating lease right-of-use assets		22,028			20,329
Restricted cash and investments		108,303			134,454
Goodwill		47,820			47,820
Other assets		6,139			6,205
Deferred income taxes		3,288			4,477
Total assets	$	778,567		$	745,508
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,634		$	6,787
Accrued payroll and related benefits		230,983			215,648
Payroll taxes payable		65,042			49,685
Current operating lease liabilities		6,521			6,231
Current premium payable		80,543			31,134
Other accrued liabilities		9,600			10,330
Workers' compensation claims liabilities		37,438			39,081
Total current liabilities		437,761			358,896
Long-term workers' compensation claims liabilities		83,790			89,365
Long-term premium payable		16,354			49,840
Long-term operating lease liabilities		16,635			15,215
Customer deposits and other long-term liabilities		10,676			10,788
Total liabilities		565,216			524,104
Commitments and contingencies (Notes 4 and 6)
Stockholders' equity:
Common stock, $.01 par value; 82,000 shares authorized, 25,678 and 25,784 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		257			258
Additional paid-in capital		41,108			40,396
Accumulated other comprehensive loss		(16,137	)		(19,245	)
Retained earnings		188,123			199,995
Total stockholders' equity		213,351			221,404
Total liabilities and stockholders' equity	$	778,567		$	745,508

The accompanying notes are an integral part of these condensed consolidated financial statements.

Barrett Business Services, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In Thousands, Except Per Share Amounts)


	Three Months Ended
	March 31,
	2025			2024
Revenues:
Professional employer services	$	274,926		$	246,189
Staffing services		17,640			19,593
Total revenues		292,566			265,782
Cost of revenues:
Direct payroll costs		13,306			14,717
Payroll taxes and benefits		187,006			161,895
Workers' compensation		49,630			49,603
Total cost of revenues		249,942			226,215
Gross margin		42,624			39,567
Selling, general and administrative expenses		44,838			42,414
Depreciation and amortization		1,958			1,852
Loss from operations		(4,172	)		(4,699	)
Other income (expense):
Investment income, net		2,620			3,274
Interest expense		(44	)		(44	)
Other, net		58			66
Other income, net		2,634			3,296
Loss before income taxes		(1,538	)		(1,403	)
Benefit from income taxes		(517	)		(1,267	)
Net loss	$	(1,021	)	$	(136	)
Basic loss per common share (1)	$	(0.04	)	$	(0.01	)
Weighted average number of basic common shares outstanding (1)		25,809			26,280
Diluted loss per common share (1)	$	(0.04	)	$	(0.01	)
Weighted average number of diluted common shares outstanding (1)		25,809			26,280

(1) Prior period results have been adjusted to reflect the four-for-one stock split effected in the form of a stock dividend in June 2024. See Note 1, Basis of Presentation of Interim Period Statements for details.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Barrett Business Services, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(In Thousands)


	Three Months Ended
	March 31,
	2025			2024
Net loss	$	(1,021	)	$	(136	)
Unrealized gains (losses) on investments, net of tax of $1,166 and ($571) in 2025 and 2024, respectively		3,108			(1,496	)
Comprehensive income (loss)	$	2,087		$	(1,632	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Barrett Business Services, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

Three Months Ended March 31, 2025

(Unaudited)

(In Thousands)



										Accumulated
							Additional			Other
	Common Stock						Paid-in			Comprehensive			Retained
	Shares			Amount			Capital			Loss			Earnings			Total
Balance, December 31, 2024		25,784		$	258		$	40,396		$	(19,245	)	$	199,995		$	221,404
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards		179			2			691			—			—			693
Common stock repurchased on vesting of restricted stock units and performance awards		(56	)		(1	)		(2,271	)		—			—			(2,272	)
Share-based compensation expense		—			—			2,658			—			—			2,658
Company repurchases of common stock		(229	)		(2	)		(366	)		—			(8,792	)		(9,160	)
Cash dividends on common stock ($0.08 per share)		—			—			—			—			(2,059	)		(2,059	)
Unrealized gain on investments, net of tax		—			—			—			3,108			—			3,108
Net loss		—			—			—			—			(1,021	)		(1,021	)
Balance, March 31, 2025		25,678		$	257		$	41,108		$	(16,137	)	$	188,123		$	213,351

The accompanying notes are an integral part of these condensed consolidated financial statements.

Barrett Business Services, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

Three Months Ended March 31, 2024

(Unaudited)

(In Thousands)



										Accumulated
							Additional			Other
	Common Stock						Paid-in			Comprehensive			Retained
	Shares (1)			Amount (1)			Capital (1)			Loss			Earnings			Total
Balance, December 31, 2023		26,290		$	263		$	36,743		$	(20,801	)	$	182,935		$	199,140
Common stock issued on exercise of options, purchase of ESPP shares and vesting of restricted stock units and performance awards		140			1			375			—			—			376
Common stock repurchased on vesting of restricted stock units and performance awards		(50	)		(1	)		(1,455	)		—			—			(1,456	)
Share-based compensation expense		—			—			2,187			—			—			2,187
Company repurchases of common stock		(236	)		(2	)		(350	)		—			(6,704	)		(7,056	)
Cash dividends on common stock ($0.075 per share)		—			—			—			—			(1,970	)		(1,970	)
Unrealized loss on investments, net of tax		—			—			—			(1,496	)		—			(1,496	)
Net loss		—			—			—			—			(136	)		(136	)
Balance, March 31, 2024		26,144		$	261		$	37,500		$	(22,297	)	$	174,125		$	189,589

The accompanying notes are an integral part of these condensed consolidated financial statements.

Barrett Business Services, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In Thousands)


	Three Months Ended
	March 31,
	2025			2024
Cash flows from operating activities:
Net loss	$	(1,021	)	$	(136	)
Reconciliations of net loss to net cash provided by operating activities:
Depreciation and amortization		1,958			1,852
Non-cash operating lease expense		1,618			1,711
Net investment (accretion) amortization		(14	)		(396	)
Deferred Income taxes		23			—
Share-based compensation		2,658			2,187
Changes in certain operating assets and liabilities:
Trade accounts receivable		(26,758	)		(28,961	)
Income taxes		(570	)		260
Prepaid expenses and other		(10,804	)		(70	)
Accounts payable		847			(896	)
Accrued payroll and related benefits		15,670			16,982
Payroll taxes payable		15,357			5,066
Other accrued liabilities		(941	)		(3,135	)
Premium payable		15,923			26,167
Workers' compensation claims liabilities		(7,152	)		(9,835	)
Operating lease liabilities		(1,607	)		(1,806	)
Other assets and liabilities, net		24			(11	)
Net cash provided by operating activities		5,211			8,979
Cash flows from investing activities:
Purchase of property, equipment and software		(4,514	)		(2,779	)
Purchase of investments		(5,468	)		—
Proceeds from sales and maturities of investments		5,685			8,290
Purchase of restricted investments		(33,705	)		(4,649	)
Proceeds from sales and maturities of restricted investments		6,024			13,253
Net cash (used in) provided by investing activities		(31,978	)		14,115
Cash flows from financing activities:
Repurchases of common stock		(9,160	)		(7,056	)
Common stock repurchased on vesting of restricted stock units and performance awards		(2,272	)		(1,456	)
Dividends paid		(2,059	)		(1,970	)
Proceeds from exercise of stock options and purchase of ESPP shares		693			376
Net cash used in financing activities		(12,798	)		(10,106	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(39,565	)		12,988
Cash, cash equivalents and restricted cash, beginning of period		82,588			74,841
Cash, cash equivalents and restricted cash, end of period	$	43,023		$	87,829

The accompanying notes are an integral part of these condensed consolidated financial statements.

Barrett Business Services, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 - Basis of Presentation of Interim Period Statements

The accompanying condensed consolidated financial statements are unaudited and have been prepared by Barrett Business Services, Inc. (“BBSI”, the “Company”, “our” or “we”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures typically included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The accompanying condensed financial statements are prepared on a consolidated basis. All intercompany account balances and transactions have been eliminated in consolidation. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from such estimates and assumptions. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2024 Annual Report on Form 10-K, as amended, at pages 2 - 30. The results of operations for an interim period are not necessarily indicative of the results of operations for a full year.

Common stock split

On June 4, 2024, we amended our Charter to increase the number of authorized shares of common stock from 20,500,000 shares to 82,000,000 shares, and our Board of Directors declared a four-for-one split of the Company’s common stock effected in the form of a stock dividend (the “2024 Stock Split”). Each stockholder of record at the close of business on June 14, 2024 received a dividend of three additional shares of common stock for each then-held share, distributed after close of trading on June 21, 2024. All share and per share amounts presented herein have been retroactively adjusted to reflect the impact of the 2024 Stock Split. The shares of common stock retain a par value of $0.01 per share. Accordingly, an amount equal to the par value of the additional shares issued due to the stock split was reclassified from additional paid-in capital to common stock.

Reportable segment

BBSI has one operating and reportable segment which provides business management solutions to small and mid-sized companies. The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”). The CODM is provided financial information presented on a consolidated basis, including consolidated gross margin and consolidated net income, to assess the financial performance of the Company and to decide how to allocate resources, including by reinvesting profits into our single operating segment or pursuing other strategic initiatives, such as stock repurchases or acquisitions. The financial information presented to the CODM, including the expense categories, is consistent with the financial information contained in these consolidated financial statements.

The accounting policies of our reportable segment are the same as those of the consolidated entity.

BBSI derives revenue exclusively in the United States and all of the Company’s long-lived assets are located in the United States.

Revenue recognition

Professional employer (“PEO”) services are normally used by organizations to satisfy ongoing needs related to the management of human capital and are governed by the terms of a client services agreement which covers all employees at a particular work site. Staffing revenues relate primarily to short-term staffing, contract staffing and on-site management services. The Company’s performance obligations for PEO and staffing services are satisfied, and the related revenue is recognized, as services are rendered by our workforce.

Our PEO client service agreements have a minimum term of one year, are renewable on an annual basis and typically require 30 days’ written notice to cancel or terminate the contract by either party. In addition, our client service agreements provide for immediate termination upon any payment default of the client regardless of when notice is given. PEO customers are invoiced following the end of each payroll processing cycle, with payment generally due on the invoice date. Staffing customers are generally invoiced weekly based on agreed rates per employee and actual hours worked, typically with payment terms of 30 days. The amount of earned but unbilled revenue is classified as a receivable on the condensed consolidated balance sheets.

We report PEO revenues net of direct payroll costs because we are not the primary obligor for these payments to our clients’ employees. Direct payroll costs include salaries, wages, health insurance, and employee out-of-pocket expenses incurred incidental to employment.

Cost of revenues

Our cost of revenues for PEO services includes employer payroll-related taxes, workers’ compensation costs and employee benefits costs. Our cost of revenues for staffing services includes direct payroll costs, employer payroll-related taxes, and workers’ compensation costs. Direct payroll costs represent the gross payroll earned by staffing services employees based on salary or hourly wages. Payroll taxes consist of the employer’s portion of Social Security and Medicare taxes and federal and state unemployment taxes. Benefit costs primarily comprise health insurance premiums paid to third-party carriers as part of our fully insured PEO benefits programs and underwriting and benefit consultant payroll. Workers’ compensation costs consist primarily of premiums paid to third-party insurers, claims reserves, claims administration fees, legal fees, medical cost containment (“MCC”) expense, state administrative agency fees, third-party broker commissions, and risk manager payroll, as well as costs associated with operating our two wholly owned insurance companies, Associated Insurance Company for Excess (“AICE”) and Ecole Insurance Company (“Ecole”).

Cash and cash equivalents

We consider non-restricted short-term investments that are highly liquid, readily convertible into cash, and have maturities at acquisition of less than three months to be cash equivalents for purposes of the condensed consolidated statements of cash flows and condensed consolidated balance sheets. The Company maintains cash balances in bank accounts that normally exceed FDIC insured limits. The Company has not experienced any losses related to its cash concentration.

Investments

The Company classifies investments as available-for-sale. The Company’s investments are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive loss in stockholders’ equity. Investments are recorded as current on the condensed consolidated balance sheets as the invested funds are available for current operations. Management considers available evidence in evaluating potential impairment of investments, including the extent to which fair value is less than cost and adverse conditions related to the security. In the event of a credit loss, an allowance would be recognized to the extent that the fair value of the security is less than the present value of the expected future cash flows. Realized gains and losses on sales of investments are included in investment income, net in our condensed consolidated statements of operations. Investment income, net in the condensed consolidated statements of operations includes interest income of $2.4 million and $3.1 million for the three months ended March 31, 2025 and 2024, respectively.

Restricted cash and investments

The Company holds restricted cash and investments primarily for the future payment of insurance premiums and workers’ compensation claims. These investments are categorized as available-for-sale. They are reported at fair value with unrealized gains and losses, net of taxes, shown as a component of accumulated other comprehensive loss in stockholders’ equity. Restricted cash and investments are classified as current and noncurrent on the condensed consolidated balance sheets based on the nature of the restriction. Management considers available evidence in evaluating potential impairment of restricted investments, including the extent to which fair value is less than cost and adverse conditions related to the security. In the event of a credit loss, an allowance would be recognized to the extent that the fair value of the security is less than the present value of the expected future cash flows. Realized gains and losses on sales of restricted investments are included in investment income in our condensed consolidated statements of operations.

Restricted cash and investments also includes investments held as part of the Company’s deferred compensation plan. These investments are classified as trading securities and are recorded at fair value with unrealized gains and losses reported as a component of loss from operations.

Trade accounts receivable

PEO customers are invoiced following the end of each payroll processing cycle, with payment generally due on the invoice date, and staffing customers are generally invoiced weekly with payment terms of 30 days. The balance in trade accounts receivable comprises primarily unbilled receivables of $248.8 million and $218.8 million at March 31, 2025 and December 31, 2024, respectively. The remaining balance of $13.4 million and $16.6 million in trade accounts receivable at March 31, 2025 and December 31, 2024, respectively, is primarily related to outstanding billings to staffing clients, offset by an allowance for expected credit losses of $0.9 million at both March 31, 2025 and December 31, 2024.

Allowance for expected credit losses

The Company had an allowance for expected credit losses of $0.9 million at March 31, 2025 and December 31, 2024. We make estimates of the collectability of our accounts receivable for services provided to our customers based on future expected credit losses. Management analyzes historical bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customers’ payment trends when evaluating the adequacy of the allowance for expected credit losses. If the financial condition of our customers deteriorates resulting in an impairment of their ability to make payments, additional allowances may be required.

Workers’ compensation claims liabilities

Our workers’ compensation claims liabilities do not represent an exact calculation of liability, but rather management’s best estimate of future obligation amounts under workers' compensation programs where the Company retains risk. These estimates utilize actuarial expertise and projection techniques at a given reporting date, and are based on an evaluation of information provided by our third-party administrator for workers’ compensation claims, coupled with an actuarial estimate of future loss development with respect to reported claims and incurred but not reported claims (together, “IBNR”). Workers’ compensation claims liabilities include case reserve estimates for reported losses, plus additional amounts for estimated IBNR claims, MCC and legal costs, unallocated loss adjustment expenses and estimated future recoveries. The estimate of incurred costs expected to be paid within one year is included in current liabilities, while the estimate of incurred costs expected to be paid beyond one year is included in long-term liabilities on our condensed consolidated balance sheets. These estimates are reviewed at least quarterly and adjustments to estimated liabilities are reflected in current operating results as they become known.

The process of arriving at an estimate of unpaid claims and claims adjustment expense involves a high degree of judgment and is affected by both internal and external events, including changes in claims handling practices, changes in reserve estimation procedures, inflation, trends in the litigation and settlement of pending claims, and legislative changes.

Our estimates are based on actuarial analysis and informed judgment, derived from individual experience and expertise applied to multiple sets of data and analyses. We consider significant facts and circumstances known both at the time that loss reserves are initially established and as new facts and circumstances become known. Due to the inherent uncertainty underlying loss reserve estimates, the expenses incurred through final resolution of our liability for our workers’ compensation claims will likely vary from the related loss reserves at the reporting date. Therefore, as specific claims are paid out in the future, actual paid losses may be materially different from our current loss reserves.

A basic premise in most actuarial analyses is that historical data and past patterns demonstrated in the incurred and paid historical data form a reasonable basis upon which to project future outcomes, absent a material change. Significant structural changes to the available data can materially impact the reserve estimation process. To the extent a material change affecting the ultimate claim liability becomes known, such change is quantified to the extent possible through an analysis of internal Company data and, if available and when appropriate, external data. Nonetheless, actuaries exercise a considerable degree of judgment in the evaluation of these factors and the need for such actuarial judgment is more pronounced when faced with material uncertainties.

Customer deposits

We require deposits from certain PEO customers to cover a portion of our accounts receivable due from such customers in the event of default of payment.

Comprehensive income (loss)

Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company’s stockholders.

Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under GAAP are included in comprehensive income (loss), but excluded from net loss as these amounts are recorded directly as an adjustment to stockholders’ equity. Our other comprehensive income (loss) comprises unrealized holding gains and losses on our available-for-sale investments.

Statements of cash flows

Interest paid during the three months ended March 31, 2025 and 2024 did not materially differ from interest expense. Income tax refunds received net of income tax payments made by the Company during the three months ended March 31, 2025 were not material. Income tax refunds received net of income tax payments made by the Company during the three months ended March 31, 2024 totaled $1.1 million.

Bank deposits and other cash equivalents that are restricted for use are classified as restricted cash. The table below reconciles the cash, cash equivalents and restricted cash balances from our condensed consolidated balance sheets to the amounts reported on the condensed consolidated statements of cash flows (in thousands):


	March 31,		December 31,		March 31,		December 31,
	2025		2024		2024		2023
Cash and cash equivalents	$	31,977	$	55,367	$	51,267	$	71,168
Restricted cash, included in restricted cash and investments		11,046		27,221		36,562		3,673
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$	43,023	$	82,588	$	87,829	$	74,841

Basic and diluted earnings per share

Basic earnings per share are computed based on the weighted average number of common shares outstanding for each year using the treasury method. Diluted earnings per share reflect the potential effects of the issuance of shares in connection with the exercise of outstanding stock options, vesting of outstanding restricted stock units and performance share units, and the Company’s employee stock purchase plan. Basic and diluted shares outstanding adjusted to reflect the 2024 Stock Split are summarized as follows (in thousands):


	Three Months Ended
	March 31,
	2025		2024
Weighted average number of basic shares outstanding		25,809		26,280
Effect of dilutive securities		—		—
Weighted average number of diluted shares outstanding		25,809		26,280

As a result of the net loss for the three months ended March 31, 2025 and 2024, 593,988 and 541,620 potential common shares (adjusted to reflect the 2024 Stock Split) have been excluded from the calculation of diluted loss per share because their effect would be anti-dilutive.

Accounting estimates

The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are used for fair value measurement of investments, allowance for expected credit losses, deferred income taxes, carrying values for goodwill and property, equipment and software, and accrued workers’ compensation liabilities. Actual results may or may not differ from such estimates.

Reclassifications

To conform to the current period’s presentation, the prior period net cash inflows from accrued payroll, payroll taxes and related benefits in the condensed consolidated statements of cash flows of $22.0 million was disaggregated into net cash inflows from accrued payroll and related benefits of $17.0 million and net cash inflows from payroll taxes payable of $5.0 million.

All share and per share amounts presented herein have been retroactively adjusted to reflect the impact of the 2024 Stock Split. To conform to the current period’s presentation, additional paid-in-capital of approximately $0.2 million was reclassified to common stock in the prior period's condensed consolidated statements of stockholders' equity.

Recent accounting pronouncements

The following Accounting Standards Updates (ASUs) have been issued recently by the Financial Accounting Standards Board (FASB).

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The ASU applies to all entities subject to income taxes. The new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. We plan to adopt this ASU for the annual reporting period of our fiscal year beginning January 1, 2025. We are evaluating the impact of applying this new accounting guidance to our income tax disclosures but do not expect the adoption of this ASU to have any material effects on the Company’s financial condition, results of operations, or cash flows.

ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“DISE”)

In November 2024, the FASB issued ASU 2024-03, which requires disclosure of specified information about certain costs and expenses in the notes to interim and annual financial statements. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. We are evaluating the impact of this new accounting standard but do not expect the adoption of this ASU to have any material effects on the Company’s financial condition, results of operations, or cash flows.

Note 2 - Fair Value Measurement

The following table summarizes the Company’s investments at March 31, 2025 and December 31, 2024 measured at fair value on a recurring basis (in thousands):


	March 31, 2025									December 31, 2024


			Gross		Gross							Gross		Gross			Recorded
			Unrealized		Unrealized			Recorded				Unrealized		Unrealized
	Cost		Gains		Losses			Basis		Cost		Gains		Losses			Basis
Current:
Cash equivalents:
Money market funds	$	8,660	$	—	$	—		$	8,660	$	26,661	$	—	$	—		$	26,661
Total cash equivalents		8,660		—		—			8,660		26,661		—		—			26,661
Investments:
Corporate bonds		27,928		4		(1,950	)		25,982		27,954		3		(2,365	)		25,592
U.S. government agency securities		12,710		—		(121	)		12,589		12,734		—		(203	)		12,531
U.S. treasuries		12,462		—		(911	)		11,551		12,460		—		(1,140	)		11,320
Mortgage-backed securities		11,917		—		(2,366	)		9,551		12,128		—		(2,592	)		9,536
Asset-backed securities		7,597		—		(110	)		7,487		7,610		12		(109	)		7,513
Total current investments		72,614		4		(5,458	)		67,160		72,886		15		(6,409	)		66,492
Restricted cash and investments (1):
Corporate bonds		96,896		33		(6,079	)		90,850		100,030		16		(7,302	)		92,744
U.S. treasuries		86,116		8		(5,236	)		80,888		54,900		—		(6,348	)		48,552
Mortgage-backed securities		39,853		52		(4,926	)		34,979		40,858		10		(5,674	)		35,194
U.S. government agency securities		16,775		—		(738	)		16,037		16,785		—		(914	)		15,871
Mutual funds		11,066		—		—			11,066		10,961		—		—			10,961
Asset-backed securities		1,713		10		—			1,723		1,666		6		(1	)		1,671
Money market funds		424		—		—			424		216		—		—			216
Emerging markets		200		4		—			204		200		1		—			201
Total restricted cash and investments		253,043		107		(16,979	)		236,171		225,616		33		(20,239	)		205,410
Total investments	$	334,317	$	111	$	(22,437	)	$	311,991	$	325,163	$	48	$	(26,648	)	$	298,563

(1) Included in restricted cash and investments within the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 is restricted cash of $10.6 million and $26.7 million, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction.

The following table summarizes the Company’s investments at March 31, 2025 and December 31, 2024 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):


	March 31, 2025								December 31, 2024
	Total								Total
	Recorded								Recorded
	Basis		Level 1		Level 2		Other (1)		Basis		Level 1		Level 2		Other (1)
Cash equivalents:
Money market funds	$	8,660	$	—	$	—	$	8,660	$	26,661	$	—	$	—	$	26,661
Investments:
Corporate bonds		25,982		—		25,982		—		25,592		—		25,592		—
U.S. government agency securities		12,589		—		12,589		—		12,531		—		12,531		—
U.S. treasuries		11,551		—		11,551		—		11,320		—		11,320		—
Mortgage-backed securities		9,551		—		9,551		—		9,536		—		9,536		—
Asset-backed securities		7,487		—		7,487		—		7,513		—		7,513		—
Restricted cash and investments:
Corporate bonds		90,850		—		90,850		—		92,744		—		92,744		—
U.S. treasuries		80,888		—		80,888		—		48,552		—		48,552		—
Mortgage-backed securities		34,979		—		34,979		—		35,194		—		35,194		—
U.S. government agency securities		16,037		—		16,037		—		15,871		—		15,871		—
Mutual funds		11,066		11,066		—		—		10,961		10,961		—		—
Asset-backed securities		1,723		—		1,723		—		1,671		—		1,671		—
Money market funds		424		—		—		424		216		—		—		216
Emerging markets		204		—		204		—		201		—		201		—
Total investments	$	311,991	$	11,066	$	291,841	$	9,084	$	298,563	$	10,961	$	260,725	$	26,877

(1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice.

The following table summarizes the contractual maturities of the Company’s available-for-sale securities at March 31, 2025 and December 31, 2024. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The table also includes money market funds, which are classified as cash and cash equivalents on the Company’s condensed consolidated balance sheets.


	March 31, 2025
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	20,015	$	82,530	$	14,287	$	—	$	116,832
U.S. treasuries		31,735		43,135		17,569		—		92,439
U.S. government agency securities		8,042		19,507		1,077		—		28,626
Asset-backed securities		—		1,312		2,347		5,551		9,210
Money market funds		9,084		—		—		—		9,084
Emerging markets		—		—		204		—		204
Total	$	68,876	$	146,484	$	35,484	$	5,551	$	256,395

	December 31, 2024
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	18,815	$	76,574	$	22,947	$	—	$	118,336
U.S. treasuries		497		42,333		17,042		—		59,872
U.S. government agency securities		8,014		19,333		1,055		—		28,402
Money market funds		26,877		—		—		—		26,877
Asset-backed securities		—		1,228		6,654		1,302		9,184
Emerging markets		—		—		201		—		201
Total	$	54,203	$	139,468	$	47,899	$	1,302	$	242,872

The average contractual maturity of mortgage-backed securities, which are excluded from the table above, was 21 years at each of March 31, 2025 and December 31, 2024.

The fair values and gross unrealized losses of the Company’s available for sale securities that were in an unrealized loss position as of March 31, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows (in thousands):

          
         March 31, 2025

          
         Less than 12 months

         12 months or longer

         Total

          
         Gross

         Gross

         Gross

          
         Recorded

         Unrealized

         Recorded

         Unrealized

BARRETT BUSINESS SERVICES INC 10-Q