NSP · Insperity, Inc.

Insperity's first quarter results reflect a mixed performance. Revenue grew 2% year-over-year to $1.9 billion, driven by a 3% increase in revenue per worksite employee (WSEE) from higher pricing, partially offset by a 1% decline in average paid WSEEs to 303,049. Gross profit decreased 3% to $302 million, but management highlighted significant improvement from the 21% decline in Q4 2025, attributing the recovery to margin recovery efforts including pricing, client renewal strategy, new UnitedHealthcare contract terms, plan design changes, and a slightly lower-than-expected claim cost trend. Benefits costs per covered employee increased 5% year-over-year. Operating expenses decreased 1% to $240 million, including $9 million in restructuring charges related to severance from a workforce realignment; excluding these, operating expenses fell 5%. Reported net income was $33 million, down 35% from $51 million, and diluted EPS was $0.88 versus $1.35. Adjusted EBITDA was $103 million and adjusted EPS was $1.31. The company repurchased 171,000 shares for $4 million and paid $23 million in dividends. For full-year 2026, Insperity guided adjusted EPS of $1.60-$2.60 and adjusted EBITDA of $170-$230 million, implying a significant recovery in profitability. Management expressed confidence in reestablishing growth momentum and capitalizing on opportunities in the evolving AI landscape for HR services.