Insperity Announces Second Quarter Results

About this update from Insperity, Inc.

HOUSTON, August 01, 2025 --( 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 second quarter ended June 30, 2025. Insperity will be hosting a conference call today at 8:30 a.m. ET to discuss these results and our updated 2025 outlook and will be posting an accompanying presentation to its investor website at http://ir.insperity.com . Second Quarter Results The average number of worksite employees ("WSEE") paid per month increased 1% from Q2 2024 to 309,115 WSEEs. Revenues in Q2 2025 increased 3% to $1.7 billion on a 3% increase in revenue per WSEE on higher pricing and the increase in paid WSEEs. "Despite our reported Q2 results and the associated lower guidance for this year, we have experienced recent growth momentum and are executing a plan over the balance of the year that we believe lays the foundation for accelerated growth and improved profitability in 2026," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "We are also pleased to announce that Insperity HR Scale, our joint solution with Workday, has a targeted go-live date with beta clients early next year, and sales and marketing efforts have begun." Gross profit decreased 14% to $223 million in Q2 2025 from $260 million in Q2 2024 due primarily to higher-than-expected benefits costs. Higher Q2 2025 healthcare costs were driven by continued elevated pharmacy trends and frequency of large claim activity. Operating expenses decreased 3% to $230 million in Q2 2025 from $237 million in Q2 2024. Operating expenses included $14 million for our Workday strategic partnership in both Q2 2025 and Q2 2024. Reported net loss was $5 million and diluted EPS was $(0.14). Adjusted EBITDA and adjusted EPS were $32 million and $0.26, respectively. "We have made substantial progress in executing a pricing plan and implementing benefit plan design changes that we believe will address the elevated benefits cost trend environment," said James D. Allison, executive vice president of finance, chief financial officer and treasurer. "We have continued to manage our operating expenses while investing in the Workday strategic partnership and remain focused on aligning our cost structure with our updated HR solution portfolio strategy." Year-to-Date Results The average number of WSEEs paid per month increased 1% from 2024 to 307,569 WSEEs. Revenues increased by 3% to $3.5 billion on a 3% increase in revenue per WSEE and the increase in paid WSEEs. Gross profit decreased 12% to $533 million primarily due to unfavorable results from our benefits costs program, offset in part by increased pricing and slight favorability in other direct cost areas. Operating expenses declined slightly to $472 million as compared to the 2024 period. Operating expenses included $27 million and $19 million for our Workday strategic partnership in YTD 2025 and YTD 2024, respectively. Reported net income and diluted EPS were $46 million and $1.22, respectively. Adjusted EBITDA and adjusted EPS were $134 million and $1.83, respectively. Cash outlays in the first six months of 2025 included the repurchase of approximately 225,000 shares of our common stock at a cost of $19 million, dividends totaling $45 million, and capital expenditures of $13 million. Adjusted cash at June 30, 2025 totaled $114 million and $280 million remains available under our $650 million credit facility. 2025 Guidance The company also announced its updated guidance for 2025, including the third quarter of 2025. 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. Adjusted EBITDA — Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense, amortization of SaaS implementation costs and non-cash stock-based compensation. Conference Call and Webcast Insperity will be hosting a conference call today at 8:30 a.m. ET to discuss these results and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 877-545-0523 and use conference i.d. number 606106. 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 52722. 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 the most comprehensive suite of 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 2024 revenues of $6.6 billion and more than 100 sales offices 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.   View source version on businesswire.com: https://www.businesswire.com/news/home/20250801061380/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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