Slide 1: Earnings Call and Webcast
Earnings Call and Webcast Q1 2026 April 30, 2026
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 ◦ We are pleased with our Q1 financial results which we believe demonstrates the effectiveness of our 2026 margin recovery plan. ◦ We have taken definitive actions across our comprehensive HR solutions designed to reestablish growth momentum over the balance of the year to build the f
Slide 4: Q1 2026 Financial Results
Q1 2026 Financial Results • Q1 average paid worksite employees decreased 1% • Worksite employees paid from new client sales and (1)% client retention for Q1 2026 declined compared to Q1 2025 which was partially impacted by our margin recovery plan • Net hiring improved slightly compared to Q1 2025 b
Slide 5: Q1 2026 Financial Results
Q1 2026 Financial Results ($ in millions, except per share amounts) Adjusted EBITDA Adjusted EPS • Q1 2026 earnings impacted primarily due to the following factors: • Gross profit decreased 3% compared to Q1 2025, which represents significant improvement compared to the 21% decline in Q4 2025 • Excl
Slide 6: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ($ in millions) March 31, 2026 December 31, 2025 Adjusted Cash $36 $57 • Adjusted cash balance at March 31, 2026 impacted by seasonal working Total Debt $369 $369 capital fluctuations including the timing of certain corporate payroll, healthcare Working Capital $142 $102
Slide 7: Q2 and FY 2026 Outlook
Q2 and FY 2026 Outlook • Average paid worksite employees April 30, 2026 April 30, 2026 ▪ Forecasted worksite employee growth in 2026 reflects Q2 2026 Outlook FY 2026 Outlook both a weakening in small business economic sentiment and some impact of our margin recovery plan on new client sales, client
Slide 8: 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