TriNet (NYSE: TNET) lifts Q1 2026 EPS, reiterates full-year guidance
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
TriNet Group reported mixed first quarter 2026 results, with total revenues down 5% to $1.23 billion, but profitability improving. Net income rose to $89 million, with diluted EPS up 11% to $1.90. Adjusted Net Income increased to $116 million, or $2.48 per diluted share, up from $1.99.
Adjusted EBITDA grew to $186 million, lifting the Adjusted EBITDA margin to 15.2% from 12.6%, helped by a lower Insurance Cost Ratio of 84% versus 88%. Free Cash Flow was strong at $123 million, and the company returned about $71 million through stock repurchases and dividends.
Average worksite employees declined 12% to around 300,000, pressuring revenues. TriNet reiterated full‑year 2026 guidance, including total revenues of $4.75–$4.90 billion, Adjusted EBITDA margin of 7.5–8.7%, GAAP diluted EPS of $2.15–$3.05, and Adjusted diluted EPS of $3.70–$4.70.
Positive
- None.
Negative
- None.
Insights
Profitability improved despite softer revenue, with guidance reaffirmed but implying lower 2026 earnings than 2025.
TriNet saw Q1 2026 revenue fall 5% to $1.226B, driven partly by a 12% drop in Average WSEs. However, lower insurance costs (Insurance Cost Ratio 84% vs. 88%) and cost control pushed Adjusted EBITDA up to $186M and margin to 15.2%.
GAAP diluted EPS grew 11% to $1.90, while Adjusted diluted EPS rose 25% to $2.48. Strong Free Cash Flow of $123M supported $71M of capital returns via buybacks and dividends, even as debt remained at $896M and equity at $83M as of March 31, 2026.
Management reiterated full‑year 2026 guidance, including revenue of $4.75–$4.90B and Adjusted EPS of $3.70–$4.70. The guidance table shows Adjusted Net Income down 23% to 3% versus 2025, suggesting near‑term earnings compression despite Q1 margin strength. Future filings may provide more detail on how WSE trends and AI initiatives affect these targets.
8-K Event Classification
2 items: 2.02, 9.01
2 items
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.
Key Figures
Total revenues: $1.226B
Net income: $89M
Diluted EPS: $1.90
+5 more
8 metrics
Total revenues
$1.226B
Q1 2026, down 5% year over year
Net income
$89M
Q1 2026, up from $85M in Q1 2025
Diluted EPS
$1.90
Q1 2026 GAAP diluted EPS, 11% growth
Adjusted EPS
$2.48
Q1 2026 Adjusted Net Income per share - diluted, up from $1.99
Adjusted EBITDA
$186M
Q1 2026, margin 15.2% vs 12.6% in Q1 2025
Free Cash Flow
$123M
Q1 2026, up from $79M in Q1 2025
Average WSEs
300,215
Q1 2026, 12% decline vs prior year
2026 revenue guidance
$4.75B–$4.90B
Full-year 2026 total revenues range
Key Terms
Adjusted EBITDA, Free Cash Flow, Insurance Cost Ratio, Average WSEs, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $186 million, representing an Adjusted EBITDA Margin of 15.2%"
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.
Free Cash Flow financial
"Generated $149 million in Net cash provided by operating activities, and $123 million in Free Cash Flow."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Insurance Cost Ratio financial
"Insurance Cost Ratio | 84 % | | 88 %"
Average WSEs financial
"Average WSEs | 300,215 | | 340,744 | | | (12)"
Non-GAAP financial measures financial
"The first quarter highlights below include non-GAAP financial measures which are reconciled later in this release."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Total revenues: $1.226B · Guidance included
Q1 2026
Total revenues
$1.226B
-5% YoY
Net income
$89M
+5% YoY
Diluted EPS
$1.90
+11% YoY
Adjusted EBITDA
$186M
+15% YoY
Adjusted Net Income per share - diluted
$2.48
+25% YoY
Free Cash Flow
$123M
+56% YoY
Guidance
For full-year 2026, TriNet guides to total revenues of $4.75–$4.90 billion, an Insurance Cost Ratio of 90.75%–89.25%, Adjusted EBITDA margin of 7.5%–8.7%, GAAP diluted EPS of $2.15–$3.05, and Adjusted diluted EPS of $3.70–$4.70.
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): April 30, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (510 ) 352-5000
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:
| 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)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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 April 30, 2026, TriNet Group, Inc. (the “Company”) issued a press release announcing the Company’s financial and operating results for the quarter ended March 31, 2026. A copy of the press release, entitled “TriNet Announces First Quarter 2026 Results” is furnished as Exhibit 99.1 hereto and incorporated by reference.
The information in this Current Report on Form 8-K and the exhibit attached hereto 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, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit Number | Description | ||||
| 99.1 | Press Release, dated April 30, 2026, entitled “TriNet Announces First Quarter 2026 Results" | ||||
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) | ||||
INDEX TO EXHIBITS
| Exhibit Number | Description | ||||
| 99.1 | Press Release, dated April 30, 2026, entitled “TriNet Announces First Quarter 2026 Results" | ||||
| 104 | Cover Page Interactive Data File (embedded with 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.
| TriNet Group, Inc. | |||||||||||
| Date: | April 30, 2026 | By: | /s/ Sidney Majalya | ||||||||
| Sidney Majalya | |||||||||||
Senior Vice President, Chief Legal Officer and Secretary | |||||||||||
Exhibit 99.1
TriNet Announces First Quarter 2026 Results
11% Growth in GAAP Earnings per Diluted Share to $1.90 for the First Quarter 2026
25% Growth in Adjusted Net Income per Diluted Share to $2.48 for the First Quarter 2026
Returned Approximately $71 million to Shareholders Through Stock Repurchases and Dividends
DUBLIN, Calif. — April 30, 2026 — TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced financial results for the first quarter ended March 31, 2026. The first quarter highlights below include non-GAAP financial measures which are reconciled later in this release.
“TriNet is off to a strong start in 2026,” said Mike Simonds, President and CEO. “The largest of our repricing efforts is behind us, expenses are prudently managed, and investments in our products and services are being made through internal development, acquisition, and partnerships.”
Simonds continued, “We are seeing building momentum in our go-to-market efforts, supported by stronger pipeline, a more tenured sales team, and accelerating channel activity. With the early success of TriNet Assistant, we believe our investments in AI position us to improve service, scale efficiently, and support a return to growth. 2026 stands to be an exciting year for TriNet."
First quarter highlights include:
•Total revenues decreased 5% to $1.2 billion compared to the same period last year.
•Professional service revenues decreased 10% to $189 million compared to the same period last year.
•Net income was $89 million, or $1.90 per share, compared to net income of $85 million, or $1.71 per share, in the same period last year.
•Adjusted Net Income was $116 million, or $2.48 per diluted share, compared to Adjusted Net Income of $99 million, or $1.99 per diluted share, in the same period last year.
•Adjusted EBITDA was $186 million, representing an Adjusted EBITDA Margin of 15.2%, compared to Adjusted EBITDA of $162 million, representing an Adjusted EBITDA Margin of 12.6% in the same period last year.
•Average Worksite Employees (WSEs) decreased 12% as compared to the same period last year as compared to the previous quarter, to approximately 300,000.
•Generated $149 million in Net cash provided by operating activities, and $123 million in Free Cash Flow.
Full-Year 2026 Guidance
In addition to announcing our first quarter 2026 results, we are reiterating our full-year 2026 guidance. Non-GAAP financial measures are reconciled later in this release.
| Full Year 2026 | |||||||||||||||||
| (dollars in millions, except for per share amounts) | Low | High | |||||||||||||||
| Total Revenues | $ | 4,750 | $ | 4,900 | |||||||||||||
| Professional Service Revenues | $ | 625 | $ | 645 | |||||||||||||
| Insurance Cost Ratio | 90.75 | % | 89.25 | % | |||||||||||||
| Adjusted EBITDA Margin | 7.5 | % | 8.7 | % | |||||||||||||
| Diluted net income per share of common stock | $ | 2.15 | $ | 3.05 | |||||||||||||
| Adjusted Net Income per share - diluted | $ | 3.70 | $ | 4.70 | |||||||||||||
Quarterly Report on Form 10-Q
We anticipate filing our Quarterly Report on Form 10-Q (“Form 10-Q”) for the three months ended March 31, 2026 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com on or about April 30, 2026. This press release should be read in conjunction with the Form 10-Q and the related Notes to
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Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q.
Earnings Conference Call and Audio Webcast
TriNet will host a conference call at 5:30 a.m. PT today to discuss its first quarter results for 2026. TriNet encourages participants to pre-register for the webcast. 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/214291011. Callers can pre-register for the conference call by going to: https://dpregister.com/sreg/10208266/103c777f574. 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: 4129824.
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, please 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 2026 and the underlying assumptions; TriNet’s mid-term outlook and the underlying assumptions; TriNet’s development, launch and on-going support of initiatives including AI-powered TriNet Assistant; expansion of our broker channel and new partnerships; TriNet's ability to build momentum in its business; and TriNet’s ability to execute on our strategy. 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,” "goal," "guidance," “impact,” “intend,” “may,” "objective," “plan,” “project,” “should,” “strategy,” "support," “target,” “value,” “will,” “would” and similar expressions or variations intended to identify forward-looking statements. 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 expressed or implied by the forward-looking statements. 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, including by WSEs; our ability to mitigate the distinct 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, and any associated increases in costs as a result of these 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; 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, including with respect to artificial intelligence; 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 price our services at rates that our
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clients continue to find attractive; 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, artificial intelligence 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, including with respect to artificial intelligence; risks associated with our international operations, including potential political or economic risks; 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, stock price and maintenance of performance measures year over year 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; and 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 Delaware law. Any of these factors could cause our actual results to differ materially from our anticipated results.
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 / Josh Gross | ||||
| TriNet | TriNet | ||||
| Investorrelations@TriNet.com | Renee.Brotherton@TriNet.com | ||||
| (510) 875-7201 | Josh.Gross@TriNet.com | ||||
| (408) 646-5103 | |||||
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| FINANCIAL HIGHLIGHTS | |||||
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 March 31, | ||||||||||||||||||||
| (in millions, except per share and Operating Metrics data) | 2026 | 2025 | % Change | |||||||||||||||||
| Income Statement Data: | ||||||||||||||||||||
| Total revenues | $ | 1,226 | $ | 1,292 | (5) | % | ||||||||||||||
| Income before tax | 123 | 115 | 7 | |||||||||||||||||
| Net income | 89 | 85 | 5 | |||||||||||||||||
| Diluted net income per share of common stock | 1.90 | 1.71 | 11 | |||||||||||||||||
Non-GAAP measures (1): | ||||||||||||||||||||
| Adjusted EBITDA | 186 | 162 | 15 | |||||||||||||||||
| Adjusted Net income | 116 | 99 | 17 | |||||||||||||||||
| Free Cash Flow | 123 | 79 | 56 | |||||||||||||||||
| Operating Metrics: | ||||||||||||||||||||
| Insurance Cost Ratio | 84 | % | 88 | % | (4) | % | ||||||||||||||
| Average WSEs | 300,215 | 340,744 | (12) | |||||||||||||||||
| Total WSEs | 299,434 | 339,625 | (12) | |||||||||||||||||
(1) Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures"
| (in millions) | March 31, 2026 | December 31, 2025 | % Change | |||||||||||||||||
| Balance Sheet Data: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 340 | $ | 287 | 18 | % | ||||||||||||||
| Working capital | 258 | 231 | 12 | |||||||||||||||||
| Total assets | 3,420 | 3,797 | (10) | |||||||||||||||||
| Debt | 896 | 895 | — | |||||||||||||||||
| Total stockholders’ equity | 83 | 54 | 54 | |||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||
| (in millions) | 2026 | 2025 | % Change | |||||||||||||||||
| Cash Flow Data: | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 149 | $ | 95 | 57 | % | ||||||||||||||
| Net cash used in investing activities | (13) | (8) | 63 | |||||||||||||||||
| Net cash used in financing activities | (645) | (494) | 31 | |||||||||||||||||
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| FINANCIAL STATEMENTS | |||||
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
| Three Months Ended March 31, | ||||||||
| (in millions except per share data) | 2026 | 2025 | ||||||
Professional service revenues | $ | 189 | $ | 209 | ||||
Insurance service revenues | 1,023 | 1,065 | ||||||
| Interest income | 14 | 18 | ||||||
Total revenues | 1,226 | 1,292 | ||||||
Insurance costs | 856 | 942 | ||||||
Cost of providing services | 70 | 71 | ||||||
Sales and marketing | 69 | 67 | ||||||
General and administrative | 59 | 46 | ||||||
Systems development and programming | 19 | 20 | ||||||
Depreciation and amortization of intangible assets | 17 | 17 | ||||||
| Interest expense, bank fees and other | 13 | 14 | ||||||
Total costs and operating expenses | 1,103 | 1,177 | ||||||
| Income before tax | 123 | 115 | ||||||
| Income taxes | 34 | 30 | ||||||
| Net income | $ | 89 | $ | 85 | ||||
| Other comprehensive income, net of income taxes | (2) | 2 | ||||||
Comprehensive income | $ | 87 | $ | 87 | ||||
| Net income per share: | ||||||||
Basic | $ | 1.90 | $ | 1.72 | ||||
Diluted | $ | 1.90 | $ | 1.71 | ||||
Weighted average shares: | ||||||||
Basic | 47 | 49 | ||||||
Diluted | 47 | 49 | ||||||
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| FINANCIAL STATEMENTS | |||||
TRINET GROUP, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
| March 31, | December 31, | |||||||||||||
| (in millions, except share and per share data) | 2026 | 2025 | ||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 340 | $ | 287 | ||||||||||
Restricted cash, cash equivalents and investments | 1,122 | 1,694 | ||||||||||||
Accounts receivable, net | 7 | 20 | ||||||||||||
| Payroll funds receivable | 451 | 264 | ||||||||||||
Prepaid expenses, net | 64 | 82 | ||||||||||||
| Other payroll assets | 449 | 474 | ||||||||||||
Other current assets | 51 | 47 | ||||||||||||
| Total current assets | 2,484 | 2,868 | ||||||||||||
| Restricted cash, cash equivalents and investments, noncurrent | 122 | 128 | ||||||||||||
| Property and equipment, net | 22 | 11 | ||||||||||||
| Operating lease right-of-use asset | 38 | 36 | ||||||||||||
| Goodwill | 461 | 461 | ||||||||||||
| Software and other intangible assets, net | 155 | 153 | ||||||||||||
| Other assets | 138 | 140 | ||||||||||||
| Total assets | $ | 3,420 | $ | 3,797 | ||||||||||
| Liabilities and stockholders' equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
Accounts payable and other current liabilities | $ | 89 | $ | 86 | ||||||||||
Client deposits and other client liabilities | 49 | 57 | ||||||||||||
Accrued wages | 542 | 555 | ||||||||||||
Accrued health insurance costs, net | 193 | 207 | ||||||||||||
Accrued workers' compensation costs, net | 44 | 42 | ||||||||||||
Payroll tax liabilities and other payroll withholdings | 1,289 | 1,671 | ||||||||||||
Operating lease liabilities | 11 | 10 | ||||||||||||
Insurance premiums and other payables | 9 | 9 | ||||||||||||
| Total current liabilities | 2,226 | 2,637 | ||||||||||||
| Long-term debt, noncurrent | 896 | 895 | ||||||||||||
| Accrued workers' compensation costs, noncurrent, net | 109 | 106 | ||||||||||||
| Deferred taxes | 54 | 55 | ||||||||||||
| Operating lease liabilities, noncurrent | 39 | 37 | ||||||||||||
| Other non-current liabilities | 13 | 13 | ||||||||||||
| Total liabilities | 3,337 | 3,743 | ||||||||||||
| Total stockholders' equity | 83 | 54 | ||||||||||||
| Total liabilities & stockholders' equity | $ | 3,420 | $ | 3,797 | ||||||||||
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| FINANCIAL STATEMENTS | |||||
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| Three Months Ended March 31, | ||||||||
| (in millions) | 2026 | 2025 | ||||||
Operating activities | ||||||||
Net income | $ | 89 | $ | 85 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of intangible assets | 17 | 17 | ||||||
| Amortization of deferred costs | 13 | 12 | ||||||
| Amortization of ROU asset, lease modification, impairment, and abandonment | 2 | 2 | ||||||
| Deferred income taxes | — | (1) | ||||||
| Stock based compensation | 16 | 13 | ||||||
| Other | 1 | 3 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | — | 1 | ||||||
| Prepaid expenses, net | 22 | 7 | ||||||
| Other assets | (11) | (6) | ||||||
| Accounts payable and other liabilities | — | (11) | ||||||
| Accrued wages | — | (17) | ||||||
| Accrued health insurance costs, net | — | 1 | ||||||
| Accrued workers' compensation costs, net | 2 | 2 | ||||||
| Payroll taxes liabilities and other payroll withholdings | — | (10) | ||||||
| Operating lease liabilities | (2) | (3) | ||||||
| Net cash provided by operating activities | 149 | 95 | ||||||
Investing activities | ||||||||
Purchases of marketable securities | (25) | (27) | ||||||
| Proceeds from sale and maturity of marketable securities | 38 | 34 | ||||||
| Acquisitions of property and equipment and software | (26) | (16) | ||||||
| Proceeds from sale of business | — | 1 | ||||||
Net cash used in investing activities | (13) | (8) | ||||||
Financing activities | ||||||||
| Change in WSE and TriNet Trust related assets and liabilities, net | (571) | (388) | ||||||
Repurchase of common stock | (58) | (90) | ||||||
Awards effectively repurchased for required employee withholding taxes | (3) | (4) | ||||||
| Dividends paid | (13) | (12) | ||||||
| Net cash used in financing activities | (645) | (494) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (1) | — | ||||||
| Net change in cash and cash equivalents, unrestricted and restricted | (510) | (407) | ||||||
Cash and cash equivalents, unrestricted and restricted: | ||||||||
Beginning of period | 1,902 | 1,691 | ||||||
End of period | $ | 1,392 | $ | 1,284 | ||||
Supplemental disclosures of cash flow information | ||||||||
Interest paid | $ | 24 | $ | 25 | ||||
Supplemental schedule of noncash investing and financing activities | ||||||||
| Cash dividend declared, but not yet paid | $ | 13 | $ | 13 | ||||
| Payable for purchase of property and equipment | $ | 6 | $ | 1 | ||||
| Receivable from sale of business | $ | — | $ | 6 | ||||
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| FINANCIAL STATEMENTS | |||||
Non-GAAP Financial Measures
In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business.
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 consistent basis and an understanding as to how our management evaluates the effectiveness of our business strategies by excluding certain non-recurring costs, which include restructuring costs, as well as certain non-cash charges such as depreciation and amortization, and stock-based compensation and certain impairment charges recognized based on the estimated fair values. We believe these charges are either not directly resulting from our core operations or not indicative of our ongoing operations. • Enhances comparisons to the prior period and, accordingly, facilitates the development of future projections and earnings growth prospects. • Provides a measure, among others, used in the determination of incentive compensation for management. • We also sometimes refer to Adjusted EBITDA margin, which is the ratio of Adjusted EBITDA to total revenues. | ||||||
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 rate (1) of these pre-tax adjustments.) | • Provides information to our stockholders and board of directors to understand how our management evaluates our business, to monitor and evaluate our operating results, and analyze profitability of our ongoing operations and trends on a consistent basis by excluding certain non-cash charges. | ||||||
Free Cash Flow | • Net cash provided by operating activities reduced by capital expenditures | • Provides information on the strength of our liquidity and available cash. • Provides management with a measure to assist in making planning decisions, evaluate our performance and allocate resources. • We also sometimes refer to Free Cash Flow Conversion ratio, which is the ratio of free cash flow to Adjusted EBITDA. | ||||||
8
| FINANCIAL STATEMENTS | |||||
Reconciliation of GAAP to Non-GAAP Measures
The table below presents a reconciliation of Net income to Adjusted EBITDA:
| Three Months Ended March 31, | ||||||||
(in millions) | 2026 | 2025 | ||||||
| Net income | $ | 89 | $ | 85 | ||||
Provision for income taxes | 34 | 30 | ||||||
Stock based compensation | 16 | 13 | ||||||
| Interest expense, bank fees and other | 13 | 14 | ||||||
| Depreciation and amortization of intangible assets | 17 | 17 | ||||||
| Amortization of cloud computing arrangements | 3 | 2 | ||||||
| Restructuring costs | 14 | 1 | ||||||
| Adjusted EBITDA | $ | 186 | $ | 162 | ||||
Adjusted EBITDA Margin | 15.2 | % | 12.6 | % | ||||
The table below presents a reconciliation of Net income to Adjusted Net Income and Adjusted Net Income per share - diluted:
| Three Months Ended March 31, | ||||||||
| (in millions, except per share data) | 2026 | 2025 | ||||||
| Net income | $ | 89 | $ | 85 | ||||
| Effective income tax rate adjustment | 3 | 1 | ||||||
| Stock based compensation | 16 | 13 | ||||||
| Amortization of intangible assets | 2 | 2 | ||||||
| Non-cash interest expense | — | 1 | ||||||
| Restructuring costs | 14 | 1 | ||||||
| Income tax impact of pre-tax adjustments | (8) | (4) | ||||||
| Adjusted Net Income | $ | 116 | $ | 99 | ||||
| GAAP weighted average shares of common stock - diluted | 47 | 49 | ||||||
| Adjusted Net Income per share - diluted | $ | 2.48 | $ | 1.99 | ||||
The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:
| Three Months Ended March 31, | ||||||||
| (in millions) | 2026 | 2025 | ||||||
| Net cash provided by operating activities | $ | 149 | $ | 95 | ||||
| Acquisitions of property and equipment and software | (26) | (16) | ||||||
| Free Cash Flow (a) | $ | 123 | $ | 79 | ||||
| Adjusted EBITDA (b) | $ | 186 | $ | 162 | ||||
| Free Cash Flow Conversion Ratio (a)/(b) | 66 | % | 49 | % | ||||
9
| FINANCIAL STATEMENTS | |||||
Reconciliation of GAAP to Non-GAAP Measures for the full-year 2026 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 2025 | Year 2026 Guidance | |||||||||||||
| (in millions, except per share data) | Actual | Low | High | |||||||||||
| Net income | $155 | (34)% | (6)% | |||||||||||
| Effective income tax rate adjustment | 8 | (30) | 28 | |||||||||||
| Stock based compensation | 65 | 3 | 3 | |||||||||||
| Amortization of intangible assets | 10 | — | — | |||||||||||
| Non-cash interest expense | 3 | (100) | (100) | |||||||||||
| Restructuring costs | 11 | 33 | 33 | |||||||||||
| Income tax impact of pre-tax adjustments | (22) | 6 | 6 | |||||||||||
| Adjusted Net Income | $230 | (23)% | (3)% | |||||||||||
| GAAP weighted average shares of common stock - diluted | 49 | |||||||||||||
| Adjusted Net Income per share - diluted | $4.73 | $3.70 | $4.70 | |||||||||||
10
FAQ
How did TriNet (TNET) perform financially in Q1 2026?
TriNet’s Q1 2026 total revenue was $1.226 billion, down 5% year over year, while net income rose to $89 million. Diluted EPS increased to $1.90, and Adjusted diluted EPS grew to $2.48, reflecting stronger profitability despite lower revenue.
What were TriNet’s key profitability metrics for Q1 2026?
TriNet generated $186 million in Adjusted EBITDA in Q1 2026, up from $162 million. Adjusted EBITDA margin improved to 15.2% from 12.6%, helped by an Insurance Cost Ratio of 84% versus 88% a year earlier, indicating better insurance cost performance.
What does TriNet’s full-year 2026 guidance include?
TriNet’s full-year 2026 guidance calls for total revenue between $4.75 billion and $4.90 billion and an Adjusted EBITDA margin of 7.5% to 8.7%. Guidance for GAAP diluted EPS is $2.15–$3.05, with Adjusted diluted EPS targeted at $3.70–$4.70.
How are TriNet’s worksite employee (WSE) levels trending?
Average Worksite Employees (WSEs) in Q1 2026 were about 300,215, down 12% from 340,744 a year earlier. Total WSEs ended the quarter at 299,434, also 12% lower, indicating softer client employment levels that contributed to the revenue decline.
What is TriNet’s balance sheet position as of March 31, 2026?
As of March 31, 2026, TriNet reported $340 million in cash and cash equivalents and total assets of $3.42 billion. Long-term debt stood at $896 million, while total stockholders’ equity was $83 million, reflecting a leveraged but liquid balance sheet.