Insperity, Inc. (NYSE: NSP), a prominent provider of human resources and business performance solutions, announced its financial results for the first quarter of 2026, concluding on March 31. The company reported a modest year-over-year revenue increase of 2%, reaching $1.9 billion. Despite a decline in the average number of paid worksite employees (WSEEs), Insperity's strategic initiatives have shown early signs of recovery from previous margin pressures.

Key Financial Metrics

Revenue: $1.9 billion, up 2% year-over-year

Average Paid WSEEs: 303,049, down 1% from Q1 2025

Net Income: $33 million

Adjusted EBITDA: $103 million

Diluted EPS: $0.88; Adjusted EPS: $1.31

Paul J. Sarvadi, Insperity’s Chairman and CEO, expressed satisfaction with the financial results, stating, “We are pleased with our Q1 financial results, which reflect the effectiveness of our efforts to overcome margin pressure experienced in 2025.” He emphasized the company’s intent to regain growth momentum and leverage opportunities in the evolving AI landscape for strategic HR services.

2. Detailed Review of Financial Results

Revenue and Gross Profit

The increase in revenues was primarily driven by a 3% rise in revenue per WSEE due to higher pricing strategies, although this was partially offset by a slight decline in the total number of paid WSEEs. Gross profit fell by 3% to $302 million; however, this represents a significant recovery compared to the 21% decrease recorded in the fourth quarter of 2025.

Operational Efficiency and Cost Management

Operating expenses decreased by 1% to $240 million, aided by a $9 million restructuring charge related to a workforce realignment. Excluding these restructuring costs, operating expenses showed a decrease of 5% compared to the previous year. Significant efforts were made to align the cost structure with business needs, leading to improved profitability recovery as noted by CFO James D. Allison.

Income Metrics

For the first quarter, Insperity reported a net income of $33 million, translating to a diluted earnings per share (EPS) of $0.88. The adjusted EPS, which accounts for restructuring charges and stock-based compensation, was reported at $1.31.

Shareholder Returns and Cash Management

During Q1 2026, Insperity repurchased approximately 171,000 shares at a total cost of $4 million and paid dividends totaling $23 million. The company’s adjusted cash position at the end of the quarter stood at $36 million, while it had $370 million in outstanding borrowings under its credit facility.

3. 2026 Guidance

Insperity also provided updated guidance for the remainder of 2026, reflecting cautious optimism about the company’s performance. For Q2 2026, the average WSEEs paid is expected to decrease to approximately 302,500, with an anticipated adjusted EPS range of $0.02 to $0.50. For the full year, adjusted EPS is projected to be between $1.60 and $2.60.

Key Guidance Metrics

Metric	Q2 2026 Guidance	Full Year 2026 Guidance
Average WSEEs Paid	302,500	303,000
Adjusted EPS	$0.02 - $0.50	$1.60 - $2.60
Adjusted EBITDA (in millions)	$18 - $46	$170 - $230

4. Conference Call and Future Outlook

Insperity is set to host a conference call today at 5:00 p.m. ET to discuss these results in detail and to answer questions from investment analysts. The call will also be available via webcast, providing stakeholders with insights into the company's strategic direction and operational adjustments.

In conclusion, while Insperity faced challenges with employee numbers and profit margins, its financial results for Q1 2026 indicate a resilient recovery strategy. With a firm focus on leveraging technology and enhancing service offerings, Insperity aims to navigate through evolving market conditions and position itself for sustained growth in the HR services sector.

Original press release