Andrew Pokowitz
Analyst, J.P. Morgan
Replay available
Insperity, Inc. (NSP) Q3 2025 Earnings Call
Insperity, Inc. (NYSE: NSP) Q3 2025 earnings conference call, held 2025-11-03. Replay captured from the company's public earnings webcast.
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James R. Servati
Chief Financial Officer
Mark Marcon
Analyst, Baird
Chris Tillery
Analyst
Toby Sommer
Analyst, Truist Securities
Andrew Nicholas
Analyst, William Blair
Paul J. Sarvadi
President and Chief Executive Officer
Jeff Martin
Analyst, Roth Capital Partners
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Replay transcript excerpt
WEBVTT 00:00:00.031 -- 00:00:03.192 Adjusted EPS for 00:00:03.515 -- 00:00:08.921 the quarter was minus 20 cents, and adjusted EBITDA 00:00:08.921 -- 00:00:11.103 was $10 million. 00:00:11.103 -- 00:00:17.009 These results fell below our forecasted ranges, primarily due to a further continuation 00:00:17.009 -- 00:00:20.633 of higher than expected benefits costs. 00:00:20.633 -- 00:00:24.998 Gross profit per worksite employee in Q3 2025 00:00:24.998 -- 00:00:30.611 was $208 per month, down from $247 in Q3 of 2024, 00:00:32.476 -- 00:00:37.662 driven primarily by higher than expected benefits costs of $20 million. 00:00:37.662 -- 00:00:39.662 As 00:00:39.684 -- 00:00:45.351 you may recall from last quarter's call, we had expected our benefits cost 00:00:45.351 -- 00:00:49.636 trend to taper down over the second half of 2025 00:00:49.636 -- 00:00:55.122 due to favorable demographic changes within our plan combined with the relative benefits 00:00:55.122 -- 00:01:00.159 cost patterns in the comparison period. which had been more favorable in the first half 00:01:00.159 -- 00:01:05.305 of 2024 and resulted in higher year-over-year cost trend in the first 00:01:05.305 -- 00:01:07.227 half of 2025 00:01:07.227 -- 00:01:12.953 that we did not view as reflective of the underlying trend for the year. 00:01:12.953 -- 00:01:18.318 Unfortunately, while we benefited from those favorable impacts, Q3 claims 00:01:18.318 -- 00:01:23.544 data revealed that they were outpaced by higher than expected outpatient 00:01:23.544 -- 00:01:28.690 and inpatient utilization and pharmacy costs, including a significant 00:01:28.690 -- 00:01:34.058 increase in large claims frequency, both sequentially over Q2 00:01:34.058 -- 00:01:37.303 and also year over year. 00:01:37.303 -- 00:01:42.848 These ...