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Insperity (NYSE: NSP) returns to Q2 profit and projects 2026 margin recovery

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Insperity reported Q2 2026 results showing early margin recovery progress. Revenue rose 2% to $1,686 million on a 1% decline in average paid worksite employees to 305,764, driven by a 3% increase in revenue per WSEE. Gross profit slipped 3% to $217 million and benefits cost per covered employee increased 5%, but operating expenses fell 8% to $211 million, yielding operating income of $6 million versus a prior-year loss. Net income was $4 million, with diluted EPS of $0.10, compared with a loss of $5 million and $(0.14) per share. Non-GAAP metrics improved, with adjusted EBITDA up 13% to $36 million and adjusted EPS up 31% to $0.34.

For the first half of 2026, revenue grew 2% to $3,581 million while gross profit declined 3% to $519 million. Operating income increased 11% to $68 million, but net income fell 20% to $37 million and diluted EPS decreased 20% to $0.97; adjusted EBITDA rose 4% to $139 million and adjusted EPS declined 10% to $1.64. Management cited pricing and client retention strategies, benefit plan changes, and operating expense control as key contributors to margin recovery, including $16 million year-to-date in Workday partnership costs. Capital returns included repurchase of 172,000 shares for $4 million and dividends of $46 million, with adjusted cash of $95 million and $420 million outstanding under the credit facility at June 30, 2026. Updated 2026 guidance calls for average WSEEs slightly below 2025 and full-year adjusted EPS of $1.88–$2.43 and adjusted EBITDA of $185–$225 million, implying year-over-year increases of 83–136% and 41–72%, respectively.

Positive

  • Guidance signals strong 2026 profit recovery, with full-year adjusted EPS of $1.88–$2.43 and adjusted EBITDA of $185–$225 million, implying year-over-year increases of 83–136% and 41–72%, respectively.

Negative

  • Year-to-date GAAP profitability weakened, as net income declined 20% to $37 million and diluted EPS fell 20% to $0.97, while gross profit decreased 3% despite 2% revenue growth.

Filing Explained

The July 29 filing adds Q3 2026 guidance, not completed Q3 results: average paid WSEEs are projected at 305,500–307,500, adjusted EPS at $(0.09)–$0.41, and adjusted EBITDA at $14 million and a stated range, defining a range for the next quarter rather than a settled outcome.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $1,686 million Three months ended June 30, 2026, up 2% year-over-year
Q2 2026 Net Income $4 million Quarter ended June 30, 2026, compared with a $5 million loss in 2025
Q2 2026 Diluted EPS $0.10 Quarter ended June 30, 2026, up 171% from $(0.14) a year earlier
Q2 2026 Adjusted EBITDA $36 million Non-GAAP metric for Q2 2026, increased 13% year-over-year
YTD 2026 Net Income $37 million Six months ended June 30, 2026, down 20% from the 2025 period
Adjusted Cash $95 million Adjusted cash, cash equivalents and marketable securities at June 30, 2026
Long-Term Debt $419 million Long-term debt outstanding at June 30, 2026
Average WSEEs Q2 2026 305,764 Average worksite employees paid per month in Q2 2026, down 1% year-over-year
worksite employees financial
"The average number of worksite employees (“WSEE”) paid per month decreased 1%"
Worksite employees are people who perform their jobs at a specific physical location owned or operated by an employer—think of staff working on a factory floor, in a retail store, or at an office building rather than remotely. Investors care because the number, skills and stability of these on-site workers affect production capacity, operating costs, safety risk and the ability to scale or respond to disruptions—similar to how the health of a team determines the performance of a sports club.
Adjusted EBITDA financial
"Q2 net income up 180% to $4 million; adjusted EBITDA up 13% to $36 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted EPS financial
"Q2 diluted EPS up 171% to $0.10; adjusted EPS up 31% to $0.34"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
non-bonus payroll cost financial
"Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls"
professional employer organization financial
"developments in the human resources services industry, including the professional employer organization (or PEO) industry"
A professional employer organization (PEO) is a firm that companies hire to handle payroll, taxes, benefits and many human-resources tasks on their behalf, effectively acting as an outsourced back-office partner. Investors care because using a PEO can lower administrative costs, shift certain legal and tax responsibilities, and help a business scale more quickly, all of which can affect profitability, cash flow and regulatory risk.
Revenue Q2 2026 $1,686 million up 2% year-over-year
Net income Q2 2026 $4 million up 180% from a $5 million loss
Diluted EPS Q2 2026 $0.10 up 171% from $(0.14)
Adjusted EBITDA Q2 2026 $36 million up 13% year-over-year
YTD Revenue 2026 $3,581 million up 2% year-over-year
YTD Net income 2026 $37 million down 20% year-over-year
YTD Adjusted EBITDA 2026 $139 million up 4% year-over-year
Guidance

For Q3 2026, Insperity projects adjusted EPS between $(0.09) and $0.41 and adjusted EBITDA of $14–$41 million. Full-year 2026 guidance calls for adjusted EPS of $1.88–$2.43 and adjusted EBITDA of $185–$225 million, with average WSEEs slightly below 2025 levels.

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FAQ

What were Insperity (NSP) Q2 2026 revenues and earnings?
Insperity generated $1,686 million in Q2 2026 revenue, up 2% year-over-year. Net income was $4 million versus a prior-year loss, with diluted EPS of $0.10, adjusted EPS of $0.34, and adjusted EBITDA of $36 million.

How did Insperity (NSP) worksite employee counts change in Q2 2026?
Average paid worksite employees (WSEEs) in Q2 2026 were 305,764, down 1% from Q2 2025. Despite this, revenue per WSEE per month increased 3%, helping overall revenues grow while the company focuses on margin recovery.

How did Insperity’s year-to-date 2026 results compare with 2025?
For the first half of 2026, revenue rose 2% to $3,581 million, but gross profit fell 3% to $519 million. Net income declined 20% to $37 million and diluted EPS dropped 20% to $0.97, while adjusted EBITDA increased 4% to $139 million.

What 2026 guidance did Insperity (NSP) provide for EPS and EBITDA?
For full-year 2026, Insperity guides to adjusted EPS of $1.88–$2.43 and adjusted EBITDA of $185–$225 million. These ranges imply year-over-year increases of 83–136% for adjusted EPS and 41–72% for adjusted EBITDA, reflecting expected profit recovery.

What is Insperity’s cash and debt position as of June 30, 2026?
At June 30, 2026, Insperity held $619 million in cash and cash equivalents and reported $95 million in adjusted cash, cash equivalents and marketable securities. Outstanding borrowings under its credit facility were $420 million, and long-term debt on the balance sheet totaled $419 million.

How is Insperity (NSP) returning capital to shareholders in 2026?
During the first six months of 2026, Insperity repurchased approximately 172,000 shares of common stock for $4 million and paid dividends totaling $46 million. The company also invested $13 million in capital expenditures while pursuing its margin recovery plan.

What non-GAAP measures does Insperity (NSP) emphasize and why?
Insperity highlights Adjusted EBITDA, Adjusted EPS, adjusted net income, adjusted operating expenses, adjusted cash and non-bonus payroll cost. Management believes these measures clarify underlying operations, especially margin trends, by excluding items such as stock-based compensation, restructuring charges and certain payroll-related balances.
0001000753FALSE00010007532026-07-292026-07-290001000753us-gaap:CommonStockMember2026-07-292026-07-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 29, 2026
LOGO_Color_RGB.jpg
Insperity, Inc.
(Exact name of registrant as specified in its charter)
Delaware1-1399876-0479645
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

19001 Crescent Springs Drive
Kingwood, Texas 77339

(Address of principal executive offices and zip code)


Registrant’s telephone number, including area code: (281) 358-8986
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTicker symbol(s)Name of each exchange on which registered
Common Stock, $.01 par value per shareNSPNew York Stock Exchange
NYSE Texas

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under The Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under The Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.
On July 29, 2026, Insperity, Inc. issued a press release announcing the company’s financial and operating results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated by reference. The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished to the SEC and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. This information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
99.1
—
Press release regarding financial and operating results issued by Insperity, Inc. on July 29, 2026.
104
—
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
INSPERITY, INC.
By:
/s/ Christian P. Callens
Christian P. Callens
Senior Vice President of Legal,
General Counsel & Secretary
        


Date: July 29, 2026



Exhibit 99.1
Insperity Announces Second Quarter Results
HOUSTON – July 29, 2026 – 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, 2026. Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and our updated 2026 outlook and will be posting an accompanying presentation to our investor website at http://ir.insperity.com.
Highlights for the quarter included:
•Q2 revenues up 2% year-over-year
•Q2 average paid WSEEs down 1% to 305,764
•Q2 net income up 180% to $4 million; adjusted EBITDA up 13% to $36 million
•Q2 diluted EPS up 171% to $0.10; adjusted EPS up 31% to $0.34
•YTD average paid WSEEs down 1% to 304,407
•YTD net income down 20% to $37 million; adjusted EBITDA up 4% to $139 million
•YTD diluted EPS down 20% to $0.97; adjusted EPS down 10% to $1.64
Second Quarter Results
“We are pleased that our second quarter results reflect meaningful progress on our top 2026 priority of margin recovery, with worksite employee growth and profitability metrics meeting or exceeding our forecasted ranges,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “Over the balance of the year our goal is to lay the foundation to regain growth momentum through our refined sales motion, HRScale progress and AI initiatives.”
The average number of worksite employees (“WSEE”) paid per month decreased 1% from Q2 2025 to 305,764 WSEEs. Revenues in Q2 2026 increased 2% to $1.7 billion on a 3% increase in revenue per WSEE on higher pricing, partially offset by the decrease in paid WSEEs.
Gross profit decreased 3% to $217 million in Q2 2026 and gross profit per WSEE decreased 1% to $237. Our benefits costs per covered employee increased 5% over Q2 2025.
Operating expenses decreased 8% to $211 million in Q2 2026 over Q2 2025. Operating expenses included $8 million in Q2 2026 and $14 million in Q2 2025 related to our Workday strategic partnership.
Reported net income increased 180% to $4 million and diluted EPS increased 171% to $0.10. Adjusted EBITDA increased 13% to $36 million and adjusted EPS increased 31% to $0.34.
“All three components of our margin recovery plan contributed to our second quarter results, including our pricing and client retention strategy, benefit plan and policy changes, and operating expense management,” said James D. Allison, executive vice president of finance, chief financial officer and treasurer. “As we continue to execute this plan over the remainder of the year, the cumulative impact of these efforts is expected to produce a significant profit recovery in 2026 and provide a solid foundation heading into 2027.”
Year-to-Date Results
The average number of WSEEs paid per month decreased 1% from 2025 to 304,407 WSEEs. Revenues increased by 2% to $3.6 billion on a 3% increase in revenue per WSEE and the decrease in paid WSEEs.
Gross profit decreased 3% to $519 million and gross profit per WSEE decreased 2% to $284. Our benefits costs per covered employee increased 5% over YTD 2025, partially offset by increased pricing.
Operating expenses declined 4% to $451 million as compared to the 2025 period. Operating expenses included $16 million for our Workday strategic partnership in 2026.


Reported net income and diluted EPS both decreased by 20% to $37 million and $0.97, respectively. Adjusted EBITDA increased 4% to $139 million and adjusted EPS declined 10% to $1.64.
Cash outlays in the first six months of 2026 included the repurchase of approximately 172,000 shares of our common stock at a cost of $4 million, dividends totaling $46 million, and capital expenditures of $13 million. Adjusted cash at June 30, 2026 totaled $95 million. During the second quarter, we borrowed $50 million for working capital purposes resulting in outstanding borrowings of $420 million under our credit facility at June 30, 2026.
2026 Guidance
The company also announced its updated guidance for 2026, including the third 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.
Q3 2026Full Year 2026
Average WSEEs paid305,500—307,500305,000—307,000
Year-over-year decrease(2.3)%—(1.7)%(1.6)%—(1.0)%
Adjusted EPS1
$(0.09)—$0.41$1.88—$2.43
Year-over-year increase55%—305%83%—136%
Adjusted EBITDA (in millions)$14—$41$185—$225
Year-over-year increase40%—310%41%—72%
____________________________________
1 Adjusted EPS reflects an effective tax rate of 27% in Q3 2026 and 36% for the full year 2026 and 38.6 million outstanding shares for both Q3 and full year 2026.
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 531909. 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 54244. 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:
•adverse economic conditions;
•disallowance of, or other liabilities associated with, employee retention tax credits under certain COVID-19 relief programs;
•labor shortages, increasing competition for highly skilled workers, and evolving employee expectations regarding the workplace;
•impact of inflation and changes in U.S. trade policy;
•vulnerability to regional economic factors because of our geographic market concentration;
•failure to comply with covenants under our credit facility;
•impact of a future outbreak of highly infectious or contagious disease;
•bank failures or other events affecting financial institutions;
•our liability for WSEE payroll, payroll taxes and benefits costs, or other liabilities associated with actions of our client companies or WSEEs, including if our clients fail to pay us;
•increases in health insurance costs and workers’ compensation rates and underlying claims trends;
•financial solvency of workers’ compensation carriers, other insurers or financial institutions;
•the ability to adjust service fees for increases in state and local taxes, including state unemployment tax rates;
•an adverse determination regarding our status as the employer of our WSEEs for tax and benefit purposes and an inability to offer alternative benefit plans following such a determination;
•cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients;
•disruption from healthcare reform or the inability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts;
•regulatory and tax developments and possible adverse application of various federal, state and local regulations;
•failure to manage growth of our operations and the effectiveness of our sales and marketing efforts;
•the impact of the competitive environment and other developments in the human resources services industry, including the professional employer organization (or PEO) industry, on our growth and/or profitability;
•an adverse final judgment or settlement of claims against Insperity;
•disruptions of our information technology systems or failure to enhance our service and technology offerings to address new regulations or client expectations;
•our liability or damage to our reputation relating to disclosure of sensitive or private information as a result of data theft, cyberattacks or security vulnerabilities;
•failure of third-party providers, such as financial institutions, data centers or cloud service providers;
•our ability to fully realize the anticipated benefits of our strategic partnership and joint solution with Workday, Inc.; and
•our ability to integrate or realize expected returns on future product offerings, including through acquisitions, strategic partnerships, and investments.
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.

SUMMARY FINANCIAL INFORMATION
Insperity, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)June 30, 2026December 31, 2025
(in millions)
Assets
Cash and cash equivalents$619 $642 
Restricted cash81 82 
Marketable securities— 18 
Accounts receivable, net878 826 
Prepaid insurance and related assets57 6 
Income taxes receivable26 29 
Other current assets106 119 
Total current assets1,767 1,722 
Property and equipment, net170 177 
Right-of-use leased assets57 63 
Deposits and prepaid health insurance177 165 
Goodwill and other intangible assets, net13 13 
Deferred income taxes, net— 22 
Other assets50 41 
Total assets$2,234 $2,203 
Liabilities and stockholders' equity
Accounts payable$10 $6 
Payroll taxes and other payroll deductions payable534 544 
Accrued worksite employee payroll cost760 764 
Accrued health insurance costs61 30 
Accrued workers’ compensation costs83 84 
Accrued corporate payroll and commissions54 78 
Other accrued liabilities85 114 
Total current liabilities1,587 1,620 
Accrued workers’ compensation costs, net of current103 102 
Long-term debt419 369 
Operating lease liabilities, net of current59 66 
Deferred income taxes, net5 — 
Total noncurrent liabilities586 537 
Stockholders’ equity:
Common stock1 1 
Additional paid-in capital255 257 
Treasury stock, at cost(824)(850)
Retained earnings629 638 
Total stockholders' equity61 46 
Total liabilities and stockholders’ equity$2,234 $2,203 


SUMMARY FINANCIAL INFORMATION
Insperity, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)Three Months Ended 
June 30,		Six Months Ended 
June 30,
(in millions, except per share amounts)20262025Change20262025Change
Operating results:
Revenues(1)
$1,686 $1,658 2 %$3,581 $3,521 2 %
Payroll taxes, benefits and workers’ compensation costs1,469 1,435 2 %3,062 2,988 2 %
Gross profit217 223 (3)%519 533 (3)%
Salaries, wages and payroll taxes115 129 (11)%255 271 (6)%
Stock-based compensation13 20 (35)%26 31 (16)%
Commissions10 10 — 20 21 (5)%
Advertising14 11 27 %25 18 39 %
General and administrative expenses49 49 — 104 109 (5)%
Depreciation and amortization10 11 (9)%21 22 (5)%
Total operating expenses211 230 (8)%451 472 (4)%
Operating income (loss)6 (7)186 %68 61 11 %
Other income (expense):
Interest income5 7 (29)%12 17 (29)%
Interest expense(6)(6)— (12)(12)— 
Income (loss) before income tax (benefit) expense5 (6)183 %68 66 3 %
Income tax (benefit) expense1 (1)200 %31 20 55 %
Net income (loss)$4 $(5)180 %$37 $46 (20)%
Net income (loss) per share of common stock
Basic$0.10 $(0.14)171 %$0.98 $1.22 (20)%
Diluted$0.10 $(0.14)171 %$0.97 $1.22 (20)%
____________________________________
(1)Revenues are comprised of gross billings less WSEE payroll costs as follows:
Three Months Ended 
June 30,
Six Months Ended 
June 30,
(in millions)
2026
2025
2026
2025
Gross billings
$
10,911 
$
10,558 
$
23,057 
$
22,702 
Less: WSEE payroll cost
9,225 
8,900 
19,476 
19,181 
Revenues
$
1,686 
$
1,658 
$
3,581 
$
3,521 


SUMMARY FINANCIAL INFORMATION
Insperity, Inc.
KEY FINANCIAL AND STATISTICAL DATA
Three Months Ended 
June 30,		Six Months Ended 
June 30,
20262025Change20262025Change
Average WSEEs paid305,764 309,115 (1)%304,407 307,569 (1)%
Statistical data (per WSEE per month):
Revenues(1)
$1,838 $1,788 3 %$1,961 $1,908 3 %
Gross profit237 240 (1)%284 289 (2)%
Operating expenses230 248 (7)%247 256 (4)%
Operating income (loss)7 (8)188 %37 33 12 %
Net income (loss)4 (5)180 %20 25 (20)%
____________________________________
(1)Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month as follows:
Three Months Ended 
June 30,		Six Months Ended 
June 30,
(per WSEE per month)2026202520262025
Gross billings$11,895 $11,385 $12,624 $12,302 
Less: WSEE payroll cost
10,057 9,597 10,663 10,394 
Revenues$1,838 $1,788 $1,961 $1,908 

NON-GAAP FINANCIAL MEASURES
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.
Non-GAAP MeasureDefinitionBenefit of Non-GAAP Measure
Non-bonus payroll costNon-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.

Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program.

We include these non-GAAP financial measures because we believe they are useful to investors in allowing for greater transparency related to the costs incurred under our current workers’ compensation program.
Adjusted cash, cash equivalents and marketable securities
Excludes funds associated with:
•  federal and state income tax withholdings,
•  employment taxes,
•  other payroll deductions, and
•  client prepayments.
We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. Adjusted EBITDA is used by our lenders to assess our leverage and ability to make interest payments.
Adjusted operating expenses
Represents operating expenses excluding the impact of the following:
• restructuring charges.
EBITDA
Represents net income computed in accordance with GAAP, plus:
•  interest expense,
•  income tax expense,
•  depreciation and amortization expense, and
•  amortization of SaaS implementation costs.
Adjusted EBITDA
Represents EBITDA plus:
•  non-cash stock-based compensation, and
•  restructuring charges.
Adjusted net income
Represents net income computed in accordance with GAAP, excluding:
•  non-cash stock-based compensation,
•  restructuring charges, and
•  the income tax effect at our effective tax rate of these pre-tax adjustments.(1)
Adjusted EPS
Represents diluted net income per share computed in accordance with GAAP, excluding:
•  non-cash stock-based compensation,
•  restructuring charges, and
•  the income tax effect at our effective tax rate of these pre-tax adjustments.(1)
____________________________________
(1)Non-GAAP effective tax rate excludes the income tax impact from stock-based compensation, restructuring charges, and changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.

NON-GAAP FINANCIAL MEASURES
Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):
Three Months Ended June 30,Six Months Ended June 30,
(in millions, except per WSEE per month)2026202520262025
Per WSEEPer WSEEPer WSEEPer WSEE
Payroll cost
$9,225 $10,057 $8,900 $9,597 $19,476 $10,663 $19,181 $10,394 
Less: Bonus payroll cost
980 1,069 705 760 3,098 1,696 2,948 1,598 
Non-bonus payroll cost
$8,245 $8,988 $8,195 $8,837 $16,378 $8,967 $16,233 $8,796 
Payroll cost % change period over period
4 %5 %2 %1 %2 %3 %4 %3 %
Non-bonus payroll cost % change period over period
1 %2 %4 %3 %1 %2 %3 %2 %
Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):
(in millions)June 30,
2026		December 31,
2025
Cash, cash equivalents and marketable securities
$619 $660 
Less:
Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions
481 468 
Client prepayments43 135 
Adjusted cash, cash equivalents and marketable securities
$95 $57 
Following is a reconciliation of operating expenses (GAAP) to adjusted operating expenses (non-GAAP):

(in millions, except per WSEE per month)Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Per WSEEPer WSEEPer WSEEPer WSEE
Operating expenses$211 $230 $230 $248 $451 $247 $472 $256 
Less: Restructuring charges
— — — — 9 5 — — 
Adjusted operating expenses
$211 $230 $230 $248 $442 $242 $472 $256 
Operating expenses % change period over period
(8)%(7)%(3)%(4)%(4)%(4)%— (1)%
Adjusted operating expenses % change period over period
(8)%(7)%(3)%(4)%(6)%(6)%— (1)%

NON-GAAP FINANCIAL MEASURES
Following is a reconciliation of net income (loss) (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):
(in millions, except per WSEE per month)Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Per WSEEPer WSEEPer WSEEPer WSEE
Net income (loss)$4 $4 $(5)$(5)$37 $20 $46 $25 
Income tax (benefit) expense1 1 (1)(1)31 17 20 10 
Interest expense
6 7 6 6 12 7 12 7 
Amortization of SaaS implementation costs2 2 1 1 3 2 3 2 
Depreciation and amortization
10 11 11 12 21 11 22 12 
EBITDA
23 25 12 13 104 57 103 56 
Stock-based compensation
13 14 20 22 26 14 31 17 
Restructuring charges— — — — 9 5 — — 
Adjusted EBITDA
$36 $39 $32 $35 $139 $76 $134 $73 
Net income (loss) % change period over period180 %180 %(128)%(125)%(20)%(20)%(53)%(53)%
Adjusted EBITDA % change period over period13 %11 %(52)%(51)%4 %4 %(36)%(36)%
Following is a reconciliation of net income (loss) (GAAP) to adjusted net income (non-GAAP):
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Net income (loss)$4 $(5)$37 $46 
Non-GAAP adjustments:
Stock-based compensation13 20 26 31 
Restructuring charges— — 9 — 
Tax effect(4)(5)(9)(8)
Total non-GAAP adjustments, net9 15 26 23 
Adjusted net income$13 $10 $63 $69 
Net income (loss) % change period over period180 %(128)%(20)%(53)%
Adjusted net income % change period over period30 %(70)%(9)%(42)%

NON-GAAP FINANCIAL MEASURES
Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):
Three Months Ended June 30,Six Months Ended June 30,
(amounts per share)2026202520262025
Diluted EPS
$0.10 $(0.14)$0.97 $1.22 
Non-GAAP adjustments:
Stock-based compensation0.32 0.52 0.67 0.81 
Restructuring charges— — 0.23 — 
Tax effect(0.08)(0.12)(0.23)(0.20)
Total non-GAAP adjustments, net0.24 0.40 0.67 0.61 
Adjusted EPS$0.34 $0.26 $1.64 $1.83 
Diluted EPS % change period over period171 %(129)%(20)%(52)%
Adjusted EPS % change period over period31 %(70)%(10)%(42)%

The following is a reconciliation of GAAP to non-GAAP financial measures for third quarter and full year 2026 guidance:
Q3 2026Full Year 2026
(in millions, except per share amounts)GuidanceGuidance
Net income (loss)
$(12) – $7 
$28 – $51 
Income tax (benefit) expense
(5) – 3 
24 – 41 
Interest expense
6 25 
SaaS implementation amortization3 10 
Depreciation and amortization
10 40 
EBITDA
2 – 29 
127 – 167 
Stock-based compensation
12 49 
Restructuring charges— 9 
Adjusted EBITDA
$14 – $41 
$185 – $225 
Diluted EPS
$(0.32) – $0.18
$0.76 – $1.31 
Non-GAAP adjustments:
Stock-based compensation
0.31 1.27 
Restructuring charges— 0.23 
Total non-GAAP adjustments
0.31 1.50 
Tax effect(0.08)(0.38)
Total non-GAAP adjustments, net0.23 1.12 
Adjusted EPS
$(0.09) – $0.41 
$1.88 – $2.43 

Source: View Original Filing on SEC EDGAR

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