Insperity Announces Fourth Quarter and Full Year 2025 Results

About this update from Insperity, Inc.

HOUSTON, February 10, 2026 --( BUSINESS WIRE )--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the fourth quarter and year ended December 31, 2025. Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and our 2026 outlook and will be posting an accompanying presentation to our investor website at http://ir.insperity.com . Fourth Quarter Results "We accomplished the key objective of our year-end transition with a step up in gross profit margin, which we believe positions the company for a significant recovery in profitability this year," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "As we enter 2026, we plan to continue emphasizing margin and profit recovery while regaining our growth momentum, which we expect will be achieved through HR360 sales and retention initiatives and the roll out of HRScale." The average number of worksite employees ("WSEE") paid per month increased 1% from Q4 2024 to 312,377 WSEEs. Revenues in Q4 2025 increased 3% to $1.7 billion on a 2% increase in revenue per WSEE on higher pricing and the increase in paid WSEEs. Gross profit decreased 21% to $172 million in Q4 2025 from $218 million in Q4 2024 due primarily to continued elevated benefits costs, partially offset by increased pricing. The elevated benefits costs were driven by inpatient, outpatient, and pharmacy trends, as well as frequency of large claim activity. Operating expenses decreased 6% to $218 million in Q4 2025 from $233 million in Q4 2024. Operating expenses included $10 million in Q4 2025 and $19 million in Q4 2024 related to our Workday strategic partnership. In addition, we incurred $3 million in Q4 2025 related to accelerated lease costs associated with the consolidation of sales offices. Reported net loss was $33 million and diluted EPS was $(0.88). Adjusted EBITDA and adjusted EPS were $(13) million and $(0.60), respectively. "We confronted the profitability challenges in 2025 and have taken significant steps designed to produce margin recovery through pricing and client selection, our new contract and plan design changes with UnitedHealthcare, and operating expense efficiencies," said James D. Allison, executive vice president of finance, chief financial officer and treasurer. "We plan to continue executing our strategy throughout 2026, furthering our efforts to drive a meaningful increase in adjusted EBITDA." Full Year Results The average number of WSEEs paid per month increased 1% from 2024 to 310,089 WSEEs. Revenues increased by 4% to $6.8 billion on a 3% increase in revenue per WSEE and the increase in paid WSEEs. Gross profit decreased 14% to $900 million primarily due to unfavorable results in our benefits program, partially offset by increased pricing. Operating expenses declined 3% to $910 million as compared to 2024. Operating expenses included $48 million for our Workday strategic partnership in 2025. Reported net loss and diluted EPS were $7 million and $(0.19), respectively. Adjusted EBITDA and adjusted EPS were $131 million and $1.03, respectively. Cash outlays in 2025 included the repurchase of approximately 232,000 shares of our common stock at a cost of $19 million, dividends totaling $90 million, and capital expenditures of $31 million. Adjusted cash at December 31, 2025 totaled $57 million and we had outstanding borrowings of $370 million under our $750 million credit facility. 2026 Guidance The company also announced its guidance for 2026, including the first quarter of 2026. Please refer to the accompanying financial tables at the end of this press release for the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures. Definition of Key Metrics Average WSEEs paid — Determined by calculating the company’s cumulative WSEEs paid during the period divided by the number of months in the period. Adjusted EPS — Represents diluted net income per share computed in accordance with GAAP, excluding the impact of non-cash stock-based compensation and restructuring charge. Adjusted EBITDA — Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense, amortization of SaaS implementation costs, non-cash stock-based compensation, and restructuring charge. Conference Call and Webcast Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 888-506-0062 and use conference i.d. number 397771. The call will also be webcast at http://ir.insperity.com . The conference call script will be available at the same website later today. A replay of the conference call will be available at 877-481-4010, conference i.d. number 53550. The webcast will be archived for one year. About Insperity Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2025 revenues of $6.8 billion and sales and service operations throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com . Forward-Looking Statements 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 "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "forecasts," "likely," "possibly," "probably," "could," "goal," "opportunity," "objective," "target," "assume," "outlook," "guidance," "predicts," "appears," "indicator" and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, including our strategic partnership with Workday, Inc.; projected or anticipated benefits or other consequences of such plans or strategies; or projections involving anticipated revenues, earnings, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base these forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate. Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Insperity, Inc. Non-GAAP FINANCIAL MEASURES (Unaudited) 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 performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below. Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP): Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP): Following is a reconciliation of net income (loss) (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP): Following is a reconciliation of net income (loss) (GAAP) to adjusted net income (loss) (non-GAAP): Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP): The following is a reconciliation of GAAP to non-GAAP financial measures for first quarter and full year 2026 guidance:   View source version on businesswire.com: https://www.businesswire.com/news/home/20260210510166/en/ Contacts Investor Relations Contact: James D. Allison Executive Vice President of Finance, Chief Financial Officer and Treasurer 281-348-3140 [email protected] News Media Contact: Cynthia Murga Director, Public Relations 713-324-1414 [email protected]

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