Key Highlights

  • Revenue of USD 1.65 billion rose 2% and came in above the consensus estimate of USD 1.64 billion.
  • Adjusted EPS of USD 0.22 beat the consensus estimate of USD 0.21, against a GAAP loss of USD 0.02.
  • Adjusted EBITDA reached USD 31 million compared with USD 10 million a year earlier, as operating expenses fell 5%.
  • Gross profit per worksite employee per month rose to USD 225 from USD 208, while average paid employees fell 2%.

Insperity, Inc. (NYSE:NSP) reported third quarter 2026 Revenue of USD 1.65 billion, up 2% from USD 1.62 billion and above the consensus estimate of USD 1.64 billion. Adjusted earnings per share, a non-GAAP measure, were USD 0.22 against a consensus estimate of USD 0.21 and a loss of USD 0.20 a year earlier. GAAP diluted Earnings Per Share were a loss of USD 0.02 compared with a loss of USD 0.53.

Net loss narrowed to USD 1 million from USD 20 million, and operating loss shrank to USD 2 million from USD 25 million. Adjusted Net Income was USD 8 million against an adjusted net loss of USD 8 million a year earlier.

Pricing Gains Against Rising Direct Costs

Gross profit rose 6% to USD 207 million. Revenue per worksite employee per month increased 4% to USD 1,791 on higher average pricing, while direct costs per employee per month climbed USD 45. Group health costs rose 3.7% per covered employee, and workers compensation costs jumped 27%, reaching 0.34% of non-bonus Payroll versus 0.27%. The year earlier quarter also carried a USD 5 million reduction in workers compensation estimates, with no change in the latest quarter.

Average worksite employees paid fell 2% to 307,265, which the company attributed in part to Margin recovery efforts that reduced new sales and retention. Operating expenses declined 5% to USD 209 million, led by a 5% drop in salaries to USD 119 million after a 6% cut in Business performance advisor, service and support headcount. Stock-based compensation fell 25% and commissions fell 23%, while Advertising rose 10% to USD 11 million.

Liquidity and Nine Month Context

Nine month revenue was USD 5.23 billion, up 2%, and nine month adjusted EPS was USD 1.85 versus USD 1.63. Nine month net income rose to USD 36 million, or USD 0.95 per diluted share, from USD 26 million. Gross Profit for the period was flat near USD 726 million, and restructuring charges of USD 9 million were mainly severance tied to a reduction in non-sales headcount.

Cash totaled USD 599 million, of which about USD 426 million was payable in October for withheld taxes and payroll deductions. The company drew USD 50 million on its USD 750 million revolving Facility in the second quarter, and Working Capital stood at USD 179 million versus USD 102 million at year end. The board paid a quarterly Dividend of USD 0.60 per share in each of the first three quarters, and the company repurchased 130,000 shares, with 1,277,764 shares left under the authorization.

Metrics Behind the Next Report

Four items stand out for the coming quarters. Average paid worksite employees of 307,265, down 2%, show how margin recovery efforts interact with client retention. Gross profit per employee per month of USD 225 and revenue per employee of USD 1,791 reflect the pricing side.

On cost, workers compensation at 0.34% of non-bonus payroll and benefits cost per covered employee up 3.7% are the cost lines management highlighted. The middle market group, which grew 10% over nine months to about 29% of paid employees, and the USD 599 million cash balance with USD 426 million payable in October complete the set.