Slide 1: Earnings Call and Webcast
Earnings Call and Webcast Q4 2025 February 10, 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 achieved a key year-end objective with a step up in gross profit margin as we entered 2026, positioning us for a significant recovery in profitability this year. ◦ Our 2026 plan continues to emphasize margin and profit recovery while regaining our growth momentum, which we expect
Slide 4: Q4 2025 Financial Results
Q4 2025 Financial Results • Q4 average paid worksite employees increased 1% • Worksite employees paid from new client sales 1% increased slightly compared to Q4 2024 • Client retention for Q4 2025 was in line with Q4 2024 • Net hiring was flat during Q4 2025
Slide 5: Q4 2025 Financial Results
Q4 2025 Financial Results ($ in millions, except per share amounts) Adjusted EBITDA Adjusted EPS • Q4 2025 earnings declined from Q4 2024, primarily due to the following factors: • Continued elevated benefits costs, partially offset by increased pricing. The elevated benefits costs were driven by in
Slide 6: Full Year 2025 Financial Results
Full Year 2025 Financial Results • Average paid worksite employees increased 1% • Worksite employees paid from new sales, client retention and net hiring by our clients improved 1% compared to 2024
Slide 7: Full Year 2025 Financial Results
Full Year 2025 Financial Results ($ in millions, except per share amounts) Adjusted EBITDA Adjusted EPS • Adjusted EBITDA decreased compared to (51)% 2024 primarily due to the following (71)% factors: • unfavorable results in our benefits program, partially offset by increased pricing • 2025 had an
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow ($ in millions) December 31, 2025 December 31, 2024 Adjusted Cash $57 $134 Total Debt $369 $369 • $109 million returned to shareholders Working Capital $102 $155 in 2025 through dividend program and share repurchases Year-to-Date Period Ended: December 31, 2025 December 3
Slide 9: Q1 and FY 2026 Outlook
Q1 and FY 2026 Outlook • Average paid worksite employees February 10, 2026 February 10, 2026 ▪ Budgeted worksite employee growth in 2026 reflects: Q1 2026 Outlook FY 2026 Outlook • Year-end transition results in sales and client retention Average WSEEs paid 303,000 — 305,000 305,400 — 314,700 • Cont
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