Barrett Business Services (BBSI) is a Professional Employer Organization (PEO) that serves small and mid-sized businesses through a co-employment model. BBSI becomes the administrative employer for client worksite employees (WSEs), handling payroll, payroll taxes, workers' compensation coverage, and benefits administration, while clients retain full operational control of their workforce. Beyond back-office outsourcing, BBSI deploys local business teams — staffed with HR, risk management, and organizational development professionals — to serve as embedded advisors to business owners. BBSI charges clients a fee built into a gross billing rate per WSE per day, meaning revenue grows with WSE count, wage inflation, and client headcount expansion. Gross margins are thin, as most billings are pass-through payroll and insurance costs. Workers' compensation is a key profitability driver; roughly 86% of BBSI's workers' comp exposure is now fully insured through third-party carriers, making results more predictable. BBSI also offers BBSI Benefits, a health insurance product for client employees where BBSI acts as plan sponsor but bears no insurance risk, earning a reseller fee. This product has opened white-collar verticals that BBSI historically couldn't penetrate. BBSI acquires clients primarily through referral partners — brokers, CPAs, and attorneys — alongside direct sales. Growth is driven by new client adds, geographic expansion via an asset-light market development model, and product expansion. BBSI also operates a small and declining staffing business.