TriNet Announces Second Quarter 2025 Results & Reaffirms Full Year 2025 Guidance
TriNet (NYSE:TNET) reported its Q2 2025 financial results, with total revenues remaining flat at $1.2 billion compared to the previous year. The company's professional service revenues declined by 8% to $172 million, while net income decreased to $37 million ($0.77 per diluted share) from $60 million ($1.20 per diluted share) year-over-year.
Key metrics include Adjusted Net Income of $55 million ($1.15 per diluted share) and Adjusted EBITDA of $105 million with an 8.5% margin. The company maintained customer retention above historical average despite a 4% decrease in Average WSEs to 336,000. TriNet returned $117 million to shareholders through share repurchases and dividends in H1 2025 and reaffirmed its full-year 2025 guidance.
TriNet (NYSE:TNET) ha comunicato i risultati finanziari del secondo trimestre 2025, con ricavi totali stabili a 1,2 miliardi di dollari rispetto all'anno precedente. I ricavi dai servizi professionali sono diminuiti dell'8%, attestandosi a 172 milioni di dollari, mentre l'utile netto è sceso a 37 milioni di dollari (0,77 dollari per azione diluita) rispetto ai 60 milioni (1,20 dollari per azione diluita) dell'anno precedente.
Tra i principali indicatori, si segnala un utile netto rettificato di 55 milioni di dollari (1,15 dollari per azione diluita) e un EBITDA rettificato di 105 milioni di dollari con un margine dell'8,5%. L'azienda ha mantenuto un tasso di fidelizzazione clienti superiore alla media storica, nonostante una diminuzione del 4% degli WSE medi a 336.000. Nel primo semestre 2025, TriNet ha restituito 117 milioni di dollari agli azionisti tramite riacquisti di azioni e dividendi, confermando le previsioni per l'intero anno 2025.
TriNet (NYSE:TNET) informó sus resultados financieros del segundo trimestre de 2025, con ingresos totales estables en 1.200 millones de dólares en comparación con el año anterior. Los ingresos por servicios profesionales disminuyeron un 8%, hasta 172 millones de dólares, mientras que el ingreso neto bajó a 37 millones de dólares (0,77 dólares por acción diluida) desde 60 millones (1,20 dólares por acción diluida) interanual.
Entre las métricas clave se incluyen un Ingreso Neto Ajustado de 55 millones de dólares (1,15 dólares por acción diluida) y un EBITDA Ajustado de 105 millones de dólares con un margen del 8,5%. La compañía mantuvo una retención de clientes por encima del promedio histórico a pesar de una disminución del 4% en los WSE promedio a 336,000. TriNet devolvió 117 millones de dólares a los accionistas mediante recompras de acciones y dividendos en el primer semestre de 2025 y reafirmó su guía para todo el año 2025.
TriNet (NYSE:TNET)는 2025년 2분기 재무 실적을 발표했으며, 총 매출은 전년 대비 12억 달러로 변동이 없었습니다. 전문 서비스 매출은 8% 감소한 1억 7,200만 달러를 기록했고, 순이익은 전년 동기 6,000만 달러(희석 주당 1.20달러)에서 3,700만 달러(희석 주당 0.77달러)로 감소했습니다.
주요 지표로는 조정 순이익 5,500만 달러(희석 주당 1.15달러)와 조정 EBITDA 1억 500만 달러, 8.5% 마진이 포함됩니다. 평균 WSE가 4% 감소한 33만 6,000명임에도 불구하고 회사는 고객 유지율을 역사적 평균 이상으로 유지했습니다. TriNet은 2025년 상반기에 주식 환매 및 배당을 통해 1억 1,700만 달러를 주주에게 환원했으며, 2025년 전체 가이던스를 재확인했습니다.
TriNet (NYSE:TNET) a publié ses résultats financiers du deuxième trimestre 2025, avec un chiffre d'affaires total stable à 1,2 milliard de dollars par rapport à l'année précédente. Les revenus des services professionnels ont diminué de 8 % pour atteindre 172 millions de dollars, tandis que le bénéfice net est passé à 37 millions de dollars (0,77 dollar par action diluée) contre 60 millions (1,20 dollar par action diluée) sur un an.
Les indicateurs clés comprennent un bénéfice net ajusté de 55 millions de dollars (1,15 dollar par action diluée) et un EBITDA ajusté de 105 millions de dollars avec une marge de 8,5 %. L'entreprise a maintenu un taux de rétention client supérieur à la moyenne historique malgré une baisse de 4 % des WSE moyens à 336 000. TriNet a reversé 117 millions de dollars aux actionnaires via des rachats d'actions et des dividendes au premier semestre 2025 et a réaffirmé ses prévisions pour l'ensemble de l'année 2025.
TriNet (NYSE:TNET) veröffentlichte seine Finanzergebnisse für das zweite Quartal 2025, wobei die Gesamterlöse mit 1,2 Milliarden US-Dollar im Vergleich zum Vorjahr stabil blieben. Die Erlöse aus professionellen Dienstleistungen sanken um 8 % auf 172 Millionen US-Dollar, während der Nettogewinn von 60 Millionen US-Dollar (1,20 US-Dollar pro verwässerter Aktie) auf 37 Millionen US-Dollar (0,77 US-Dollar pro verwässerter Aktie) zurückging.
Wichtige Kennzahlen umfassen ein bereinigtes Nettoergebnis von 55 Millionen US-Dollar (1,15 US-Dollar pro verwässerter Aktie) und ein bereinigtes EBITDA von 105 Millionen US-Dollar bei einer Marge von 8,5 %. Das Unternehmen hielt die Kundenbindung über dem historischen Durchschnitt, trotz eines Rückgangs der durchschnittlichen WSEs um 4 % auf 336.000. TriNet gab im ersten Halbjahr 2025 117 Millionen US-Dollar an die Aktionäre zurück durch Aktienrückkäufe und Dividenden und bestätigte seine Prognose für das Gesamtjahr 2025.
- Maintained customer retention above historical average despite market challenges
- Returned $117 million to shareholders through buybacks and dividends in H1 2025
- Successfully repriced benefits offering while maintaining customer retention
- Reaffirmed full-year 2025 guidance, showing confidence in business outlook
- Total revenues remained flat at $1.2 billion year-over-year
- Professional service revenues decreased 8% to $172 million
- Net income declined 38% to $37 million from $60 million year-over-year
- Average WSEs decreased 4% to 336,000
- Adjusted EBITDA margin declined to 8.5% from 10.9% year-over-year
Insights
TriNet's Q2 results show declining profitability despite stable revenue, with management maintaining full-year guidance despite headwinds.
TriNet delivered a mixed Q2 2025 performance that reveals important challenges in their business model. While total revenue remained flat at
The company's Adjusted EBITDA margin contracted substantially from
Management's commentary about "prudently repricing benefits offering" indicates they're adjusting pricing strategies to maintain profitability amid what appears to be a challenging market environment. The statement about retention remaining "above historical average" despite this repricing is somewhat positive, suggesting their client relationships have resilience even through price adjustments.
Despite these headwinds, TriNet maintained its full-year guidance, projecting total revenues between
The company's capital return program remains active, with
"Our second quarter financial performance was in-line with our forecast and keeps us on track to achieve our full-year guidance," said Mike Simonds, TriNet President and CEO. "We continued to execute our strategy while supporting our SMB customers through the volatile business environment."
Simonds continued, "During the quarter, we prudently repriced our benefits offering, while maintaining customer retention above our historical average. With several growth initiatives on track for the fall, we are excited to drive new sales with an expanded go-to-market approach coupled with improvements to our offering."
Second quarter highlights include:
- Total revenues were
$1.2 billion - Professional service revenues decreased
8% to$172 million - Net income was
$37 million $0.77 $60 million $1.20 - Adjusted Net Income was
$55 million $1.15 $78 million $1.53 - Adjusted EBITDA was
$105 million 8.5% , compared to Adjusted EBITDA of$136 million 10.9% , in the same period last year. - Average WSEs decreased
4% compared to the same period last year, to approximately 336,000. - Returned
$117 million
Full-Year 2025 Guidance
In addition to announcing our second quarter 2025 results, we are reiterating our full-year 2025 guidance. Non-GAAP financial measures are reconciled later in this release.
Full Year 2025 | |||||
(dollars in millions, except for per share amounts) | Low | High | |||
Total Revenues | |||||
Professional Service Revenues | |||||
Insurance Cost Ratio | 92 % | 90 % | |||
Adjusted EBITDA Margin | 7 % | 9 % | |||
Diluted net income per share of common stock | |||||
Adjusted Net Income per share - diluted | |||||
Quarterly Report on Form 10-Q
We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the first half of 2025 with the
Earnings Conference Call and Audio Webcast
TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) today to discuss its second quarter results for 2025 and reaffirm its full-year financial guidance for 2025. TriNet encourages participants to pre-register for the webcast and conference call. The live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at https://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/650432206. Callers can pre-register by going to: https://dpregister.com/sreg/10201467/ff917b6f7a. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the "TriNet Conference Call." A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 7260452.
About TriNet
TriNet is a leading provider of Human Resources solutions for small and medium size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to TriNet's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "Non-GAAP Financial Measures."
Forward-Looking Statements
This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet's expectations and assumptions regarding: TriNet's financial guidance for the full-year 2025 and the underlying assumptions; TriNet's ability to achieve improvements in its results in 2026; the timing of TriNet's growth initiatives, TriNet's ability to drive new sales and maintain disciplined pricing and TriNet's ability to further benefit its customers with its product investments and service delivery model. Forward-looking statements are often identified by the use of words such as, but not limited to, "ability," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "guidance," "impact," "intend," "may," "plan," "predict," "project," "seek," "should," "strategy," "target," "value," "will," "would" and similar expressions or variations. These statements are not guarantees of future performance but are based on management's expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements. Investors are cautioned not to place undue reliance upon any forward-looking statements.
Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers' compensation and health insurance claims and costs by WSEs; our ability to mitigate the unique business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; our inability to realize or sustain the expected benefits from our business realignment initiatives; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to comply with evolving data privacy, AI and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support; risks associated with our international operations; our ability to operate a business subject to numerous complex laws; changing laws and regulations governing health insurance and other traditional employee benefits at the federal, state, and local levels; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the failure of third-party service providers performing their functions; the failure to comply with anti-corruption laws and regulations, economic and trade sanctions, and similar laws; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations and stock price due to factors outside of our control; our ability to comply with the restrictions of our indebtedness and meet our debt obligations; the need for additional capital or to restructure our existing debt; the continuation of our stock repurchase program; the impact of concentrated ownership in our stock by Atairos and other large stockholders; and the anti-takeover provisions in our charter documents and under
Further information on risks that could affect TriNet's results is included in our filings with the SEC, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation's Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law.
Contacts: | |
Investors: | Media: |
Alex Bauer | Renee Brotherton |
TriNet | TriNet |
(510) 875-7201 | (925) 965-8441 |
Key Financial and Operating Metrics
We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(in millions, except per share and Operating Metrics data) | 2025 | 2024 | % | 2025 | 2024 | % | |||||||
Income Statement Data: | |||||||||||||
Total revenues | $ 1,238 | $ 1,243 | — | % | $ 2,530 | $ 2,525 | — | % | |||||
Income before tax | 51 | 81 | (37) | 166 | 205 | (19) | |||||||
Net income | 37 | 60 | (38) | 122 | 152 | (20) | |||||||
Diluted net income per share of common | 0.77 | 1.20 | (36) | 2.48 | 2.98 | (17) | |||||||
Non-GAAP measures (1): | |||||||||||||
Adjusted EBITDA | 105 | 136 | (23) | 268 | 316 | (15) | |||||||
Adjusted Net income | 55 | 78 | (29) | 154 | 189 | (19) | |||||||
Free Cash Flow | 137 | 95 | 44 | ||||||||||
Operating Metrics: | |||||||||||||
Insurance Cost Ratio | 90 % | 88 % | 2 | % | 89 % | 87 % | 2 | ||||||
Average WSEs | 336,010 | 351,455 | (4) | 338,377 | 349,810 | (3) | % | ||||||
Total WSEs | 338,900 | 354,028 | (4) | 338,900 | 354,028 | (4) | |||||||
(1) | Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures" |
(in millions) | June 30, 2025 | December 31, | % | |||
Balance Sheet Data: | ||||||
Cash and cash equivalents | $ 407 | $ 360 | 13 | % | ||
Working capital | 254 | 199 | 28 | |||
Total assets | 3,688 | 4,119 | (10) | |||
Debt | 984 | 983 | — | |||
Total stockholders' equity | 107 | 69 | 55 |
Six Months Ended June 30, | ||||||
(in millions) | 2025 | 2024 | % | |||
Cash Flow Data: | ||||||
Net cash provided by operating activities | $ 170 | $ 130 | 31 | % | ||
Net cash used in investing activities | (7) | (47) | (85) | |||
Net cash used in financing activities | (428) | (555) | (23) | |||
TRINET GROUP, INC. | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||
(in millions except per share data) | 2025 | 2024 | 2025 | 2024 | |
Professional service revenues | $ 172 | $ 186 | $ 381 | $ 400 | |
Insurance service revenues | 1,048 | 1,040 | 2,113 | 2,090 | |
Interest income | 18 | 17 | 36 | 35 | |
Total revenues | 1,238 | 1,243 | 2,530 | 2,525 | |
Insurance costs | 947 | 916 | 1,889 | 1,823 | |
Cost of providing services | 71 | 75 | 142 | 154 | |
Sales and marketing | 68 | 72 | 135 | 144 | |
General and administrative | 52 | 47 | 98 | 95 | |
Systems development and programming | 17 | 17 | 37 | 35 | |
Depreciation and amortization of intangible assets | 17 | 19 | 34 | 37 | |
Interest expense, bank fees and other | 15 | 16 | 29 | 32 | |
Total costs and operating expenses | 1,187 | 1,162 | 2,364 | 2,320 | |
Income before tax | 51 | 81 | 166 | 205 | |
Income taxes | 14 | 21 | 44 | 53 | |
Net income | $ 37 | $ 60 | $ 122 | $ 152 | |
Other comprehensive income (loss), net of income taxes | 1 | — | 3 | (3) | |
Comprehensive income | $ 38 | $ 60 | $ 125 | $ 149 | |
Net income per share: | |||||
Basic | $ 0.77 | $ 1.21 | $ 2.49 | $ 3.01 | |
Diluted | $ 0.77 | $ 1.20 | $ 2.48 | $ 2.98 | |
Weighted average shares: | |||||
Basic | 48 | 50 | 49 | 50 | |
Diluted | 49 | 51 | 49 | 51 | |
TRINET GROUP, INC. | ||||
June 30, | December 31, | |||
(in millions, except share and per share data) | 2025 | 2024 | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 407 | $ 360 | ||
Restricted cash, cash equivalents and investments | 1,101 | 1,413 | ||
Accounts receivable, net | 12 | 32 | ||
Payroll funds receivable | 487 | 349 | ||
Prepaid expenses, net | 50 | 64 | ||
Other payroll assets | 660 | 916 | ||
Other current assets | 45 | 46 | ||
Total current assets | 2,762 | 3,180 | ||
Restricted cash, cash equivalents and investments, noncurrent | 124 | 145 | ||
Property and equipment, net | 10 | 10 | ||
Operating lease right-of-use asset | 39 | 24 | ||
Goodwill | 461 | 461 | ||
Software and other intangible assets, net | 148 | 156 | ||
Other assets | 144 | 143 | ||
Total assets | $ 3,688 | $ 4,119 | ||
Liabilities and stockholders' equity | ||||
Current liabilities: | ||||
Accounts payable and other current liabilities | $ 85 | $ 89 | ||
Revolving credit agreement borrowings | 90 | 75 | ||
Client deposits and other client liabilities | 41 | 76 | ||
Accrued wages | 562 | 580 | ||
Accrued health insurance costs, net | 191 | 189 | ||
Accrued workers' compensation costs, net | 46 | 44 | ||
Payroll tax liabilities and other payroll withholdings | 1,484 | 1,906 | ||
Operating lease liabilities | 3 | 13 | ||
Insurance premiums and other payables | 6 | 9 | ||
Total current liabilities | 2,508 | 2,981 | ||
Long-term debt, noncurrent | 894 | 908 | ||
Accrued workers' compensation costs, noncurrent, net | 109 | 110 | ||
Deferred taxes | 10 | 11 | ||
Operating lease liabilities, noncurrent | 48 | 26 | ||
Other non-current liabilities | 12 | 14 | ||
Total liabilities | 3,581 | 4,050 | ||
Total stockholders' equity | 107 | 69 | ||
Total liabilities & stockholders' equity | $ 3,688 | $ 4,119 | ||
TRINET GROUP, INC. | ||
Six Months Ended June 30, | ||
(in millions) | 2025 | 2024 |
Operating activities | ||
Net income | $ 122 | $ 152 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization of intangible assets | 33 | 37 |
Amortization of deferred costs | 23 | 21 |
Amortization of ROU asset, lease modification, impairment, and abandonment | 3 | 3 |
Deferred income taxes | (1) | — |
Stock based compensation | 31 | 38 |
Loss from disposition of assets | 1 | — |
Other | 3 | 1 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1 | (4) |
Prepaid expenses, net | 9 | (18) |
Other assets | (18) | (35) |
Other payroll assets | — | 2 |
Accounts payable and other liabilities | (5) | (8) |
Client deposits and other client liabilities | (1) | (9) |
Accrued wages | (10) | (20) |
Accrued health insurance costs, net | 1 | (1) |
Accrued workers' compensation costs, net | (1) | (14) |
Payroll taxes liabilities and other payroll withholdings | (14) | (8) |
Operating lease liabilities | (7) | (7) |
Net cash provided by operating activities | 170 | 130 |
Investing activities | ||
Purchases of marketable securities | (41) | (137) |
Proceeds from sale and maturity of marketable securities | 66 | 125 |
Acquisitions of property and equipment and software | (33) | (35) |
Sale of property and equipment and software | — | — |
Proceeds from sale of business | 1 | — |
Net cash used in investing activities | (7) | (47) |
Financing activities | ||
Change in WSE and TriNet Trust related assets and liabilities, net | (310) | (382) |
Repurchase of common stock | (91) | (135) |
Proceeds from issuance of common stock | 7 | 7 |
Awards effectively repurchased for required employee withholding taxes | (8) | (12) |
Repayment of revolving credit agreement borrowings | — | (25) |
Dividends paid | (26) | (13) |
Net cash used in financing activities | (428) | (560) |
Net change in cash and cash equivalents, unrestricted and restricted | (265) | (477) |
Cash and cash equivalents, unrestricted and restricted: | ||
Beginning of period | 1,691 | 1,466 |
End of period | $ 1,426 | $ 989 |
Supplemental disclosures of cash flow information | ||
Interest paid | $ 27 | $ 30 |
Income taxes paid, net | $ 26 | $ 62 |
Supplemental schedule of noncash investing and financing activities | ||
Cash dividend declared, but not yet paid | $ 13 | $ 12 |
Payable for purchase of property and equipment | $ 3 | $ 2 |
Receivable from sale of business | $ 6 | $ — |
Non-GAAP Financial Measures
In addition to the selected financial measures presented in accordance with
The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
Non-GAAP Measure | Definition | How We Use The Measure |
Adjusted EBITDA | • Net income, excluding the effects of: - income tax provision, - interest expense, bank fees and other, - depreciation, - amortization of intangible assets, - stock based compensation expense, - amortization of cloud computing arrangements, and - restructuring costs
| • Provides period-to-period comparisons on a • Enhances comparisons to the prior period • Provides a measure, among others, used in • We also sometimes refer to Adjusted |
Adjusted Net Income | • Net income, excluding the effects of: - effective income tax rate (1), - stock based compensation expense, - amortization of intangible assets, net, - non-cash interest expense, - restructuring costs, and - the income tax effect (at our effective tax | • Provides information to our stockholders |
Free Cash Flow | • Net cash provided by operating activities | • Provides information on the strength of our • Provides management with a measure to • We also sometimes refer to Free Cash Flow |
(1) | Non-GAAP effective tax rate is |
Reconciliation of GAAP to Non-GAAP Measures
The table below presents a reconciliation of Net (loss) income to Adjusted EBITDA:
Three Months Ended | Six Months Ended | ||||
(in millions) | 2025 | 2024 | 2025 | 2024 | |
Net income | $ 37 | $ 60 | $ 122 | $ 152 | |
Provision for income taxes | 14 | 21 | 44 | 53 | |
Stock based compensation | 18 | 18 | 31 | 38 | |
Interest expense, bank fees and other | 15 | 16 | 29 | 32 | |
Depreciation and amortization of intangible assets | 17 | 19 | 34 | 37 | |
Amortization of cloud computing arrangements | 2 | 2 | 5 | 4 | |
Restructuring costs | 2 | — | 3 | — | |
Adjusted EBITDA | $ 105 | $ 136 | $ 268 | $ 316 | |
Adjusted EBITDA Margin | 8.5 % | 10.9 % | 10.6 % | 12.5 % | |
The table below presents a reconciliation of Net (loss) income to Adjusted Net Income and Adjusted Net Income per share - diluted:
Three Months Ended June 30, | Six Months Ended June 30, | ||||
(in millions, except per share data) | 2025 | 2024 | 2025 | 2024 | |
Net income | $ 37 | $ 60 | $ 122 | $ 152 | |
Effective income tax rate adjustment | 1 | — | 2 | 1 | |
Stock based compensation | 18 | 18 | 31 | 38 | |
Amortization of intangible assets | 3 | 5 | 5 | 10 | |
Non-cash interest expense | — | 1 | 1 | 1 | |
Restructuring costs | 2 | — | 3 | — | |
Income tax impact of pre-tax adjustments | (6) | (6) | (10) | (13) | |
Adjusted Net Income | $ 55 | $ 78 | $ 154 | $ 189 | |
GAAP weighted average shares of common stock - diluted | 49 | 51 | 49 | 51 | |
Adjusted Net Income per share - diluted | $ 1.15 | $ 1.53 | $ 3.15 | $ 3.70 | |
The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:
Six Months Ended June 30, | ||
(in millions) | 2025 | 2024 |
Net cash provided by operating activities | $ 170 | $ 130 |
Acquisitions of property and equipment and projects in process | (33) | (35) |
Free Cash Flow (a) | $ 137 | $ 95 |
Adjusted EBITDA (b) | $ 268 | $ 316 |
Free Cash Flow Conversion Ratio (a)/(b) | 51 % | 30 % |
Reconciliation of GAAP to Non-GAAP Measures for the full-year 2025 guidance.
Low and high percentages represent increases (decreases) from the same period in the previous year.
The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share - diluted:
FY 2024 | Year 2025 Guidance | |||
(in millions, except per share data) | Actual | Low | High | |
Net income | (46) % | (3) % | ||
Effective income tax rate adjustment | (5) | (83) | (105) | |
Stock based compensation | 65 | 11 | 11 | |
Amortization of intangible assets | 19 | (49) | (49) | |
Non-cash interest expense | 3 | (100) | (100) | |
Restructuring costs | 49 | (80) | (80) | |
Income tax impact of pre-tax adjustments | (35) | (32) | (32) | |
Adjusted Net Income | (40) % | (12) % | ||
GAAP weighted average shares of common stock - diluted | 50 | |||
Adjusted Net Income per share - diluted | ||||
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SOURCE TriNet Group, Inc.
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