Barrett Business Services (BBSI) investor relations material

Business overview and market position

• Provides comprehensive PEO services, including HR, payroll, benefits, and risk management, targeting small businesses to help them grow and manage operational challenges.

• Offers high-touch, local service teams with a relationship-based approach, achieving over 90% annual client retention.

• Proprietary myBBSI portal centralizes payroll, benefits, and reporting for clients.

• Operates in a large, underpenetrated PEO market, serving companies with fewer than 500 employees, with only 1% current market penetration.

• Asset-light expansion strategy enables scalable growth in both established and new geographies.

Service offerings and differentiation

• Delivers a full suite of services: business strategy, payroll, HR, employee benefits, recruiting, risk & safety, and compliance.

• Workers’ compensation and benefits programs are fully insured, minimizing insurance risk for shareholders.

• Benefits program launched in 2023 expands offerings to white-collar markets and is managed through the myBBSI portal.

• Differentiates through local, high-touch service, no insurance risk, and a focus on referral-based sales channels.

Growth strategy and financial performance

• Pursues growth through client adds, retention, new services, and client payroll expansion.

• Targets 10% annual billings growth and 15% annual earnings growth over a market cycle.

• Achieved a 9% gross billings CAGR (2014–2025) and a 12% diluted EPS CAGR (2017–2025).

• Maintains a capital-light model with strong free cash flow ($50M+ per year), no debt, and active shareholder returns via dividends and buybacks.

• Announced a $100M share repurchase program in August 2025 and raised the dividend by 7% to $0.08 per share in Q2-24.