Slide 1: Earnings Call and Webcast
Earnings Call and Webcast Q2 2025 August 1, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements contained herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify such forward-looking statements by the words “an
Slide 3: CEO Commentary
CEO Commentary Despite our reported results and associated lower 2025 guidance, we remain confident in our outlook for accelerated growth and improved profitability in 2026 Experienced recent growth momentum we expect to continue over the balance of the year Fall selling and retention campaign
Slide 4: Q2 2025 Financial Results
Q2 2025 Financial Results • Q2 average paid worksite employees increased 1% • Worksite employees paid from new client sales 1% increased 2% compared to Q2 2024 • Client retention for Q2 2025 remained consistent with Q2 2024 • Net hiring by clients improved during Q2 2025 compared to Q2 2024, but rem
Slide 5: Q2 2025 Financial Results
Q2 2025 Financial Results ($ in millions, except per share amounts) Adjusted EBITDA Adjusted EPS • Q2 2025 earnings declined from Q2 2024, primarily due to: • Higher-than-expected benefits costs in Q2 2025 where we experienced elevated pharmacy trends and frequency of large claim activity compared t
Slide 6: YTD June 2025 Financial Results
YTD June 2025 Financial Results • Average paid worksite employees increased 1% • Worksite employees paid from new client sales increased 2% compared to 2024 1% • Client retention and net hiring by our clients also improved compared to 2024
Slide 7: YTD June 2025 Financial Results
YTD June 2025 Financial Results ($ in millions, except per share amounts) Adjusted EBITDA Adjusted EPS • Adjusted EBITDA decreased compared to 2024 primarily due to: • Higher-than-expected benefits costs in 2025 where we experienced elevated pharmacy (36)% (42)% trends, inpatient and outpatient serv
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ($ in millions) June 30, 2025 December 31, 2024 Adjusted Cash $114 $134 Total Debt $369 $369 • Continued solid cash and working capital position Working Capital $160 $155 • $64 million returned to shareholders in the first six months of 2025 through Year-to-Date Period En
Slide 9: Q3 and FY 2025 Outlook
Q3 and FY 2025 Outlook August 1, 2025 August 1, 2025 • Average paid worksite employees Q3 2025 Outlook FY 2025 Outlook ▪ Worksite employee growth acceleration in recent months ▪ Clarity around tax policy has bolstered small business Average WSEEs paid 312,200 — 315,300 310,300 — 313,400 economic sen
Slide 10: Appendix – Non-GAAP Financial Measures
Appendix – Non-GAAP Financial Measures Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial p