BBSIMEDIUM SIGNALFINANCIAL10-K

BBSI substantially strengthened its cash position while expanding operational scale and extending workers' compensation insurance coverage through 2026.

The meaningful improvement in cash reserves provides enhanced financial flexibility and suggests strong operational cash generation. The company has grown its client base to over 8,200 PEO clients with nearly 138,000 worksite employees, indicating solid business momentum. The extension of fully insured workers' compensation coverage through June 2026 provides operational clarity and risk management stability.

Comparing 2026-02-26 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

BBSI's financial position improved notably with cash and equivalents growing substantially to $95.0 million, representing strong liquidity enhancement. Current assets expanded modestly to $524.6 million while current liabilities increased proportionally to $405.9 million, maintaining a healthy working capital ratio. The company increased capital expenditures to $5.7 million and share buybacks to $42.0 million, reflecting confidence in growth prospects and commitment to shareholder returns.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+71.6%
$55.4M→$95.0M

Cash position surged 71.6% — strong cash generation or capital raise providing significant financial cushion.

Capital Expenditure
Cash Flow
+54%
$3.7M→$5.7M

Capital expenditure jumped 54% — major investment cycle underway; assess returns on deployment.

Share Buybacks
Cash Flow
+44%
$29.1M→$42.0M

Share repurchases increased 44% — management returning capital, signals confidence in intrinsic value.

Current Liabilities
Balance Sheet
+13.1%
$358.9M→$405.9M

Current liabilities rose 13.1% — increased short-term obligations, watch current ratio.

Current Assets
Balance Sheet
+10.3%
$475.4M→$524.6M

Current assets grew 10.3% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-28
ADDED
We provide our PEO clients with access to human resource advisors and a human resources information system (HRIS), retirement plans, a learning management system and our web-based technology platform, myBBSI.
During 2025, we supported in excess of 8,200 PEO clients with total average WSEs of 138,218.
We have PEO client services agreements with customers in a diverse array of industries, including, among others, construction, waste management and remediation services, manufacturing, transportation and warehousing, health care, leisure and hospitality, retail, professional and advisory services and wholesale trade.
The Company maintains a fully insured arrangement for its insured program, whereby third-party insurers assume substantially all risk of loss for claims incurred under the program.
This fully insured arrangement covers claims incurred between July 1, 2021 and June 30, 2026.
The Company's fully insured policies allow for return premiums if claims develop favorably, ranging from $20.0 million to $30.0 million, depending on the policy period.
For the policy period beginning July 1, 2021, BBSI can incur additional premiums up to $7.5 million if claims develop adversely.
For all other policy years, no additional premiums can be charged based on claim performance.
Claims Management As a result of our status as a self-insured employer in four states, our remaining retention arrangements, and the premium adjustments allowable under our fully insured policies, our workers' compensation expense is tied directly to the incidence and severity of covered workplace injuries.
Sponsored Benefits BBSI offers employee benefits to its PEO client employees.
REMOVED
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 increased shares resulting from the stock split was reclassified from additional paid-in capital to common stock.
In 2023, BBSI began offering additional employee benefit programs to our clients.
We provide our PEO clients access to human resource advisors, retirement plans, a learning management system and our web-based technology platform, myBBSI.
During 2024, we supported in excess of 8,100 PEO clients with total average WSEs of 129,577.
We have PEO client services agreements with customers in a diverse array of industries, including, among others, construction, manufacturing, transportation and warehousing, waste management and remediation services, retail, leisure and hospitality and wholesale trade.
Effective July 1, 2021, the Company entered into a fully insured arrangement for its insured program, whereby third-party insurers assume substantially all risk of loss for claims incurred under the program.
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