Insperity Announces Third Quarter Results and New UnitedHealthcare Contract

Insperity's revenue for the third quarter rose by 4% year-over-year, totaling $1.6 billion, driven by a 3% increase in revenue per worksite employee (WSEE) and a slight uptick in average paid WSEEs, which increased by 1% to 312,842. However, the company reported a net loss of $20 million, translating to a diluted earnings per share (EPS) of $(0.53). Adjusted EBITDA for the quarter was reported at $10 million, while adjusted EPS stood at $(0.20).

For the first nine months of 2025, Insperity reported total revenues of $5.1 billion, reflecting a year-over-year increase of 4%. The average number of WSEEs paid per month stood at 309,327, also up by 1%. The year-to-date net income reached $26 million with diluted EPS at $0.69, marking a decline from previous year figures.

A key highlight of the press release was the announcement of a multi-year contract extension with UnitedHealthcare, extending through 2028. This contract is expected to significantly reduce costs and lower the risk associated with large claims, with the pooling level for large claims set to decrease to $500,000 starting January 1, 2026. James D. Allison, CFO of Insperity, emphasized that the new agreement would enhance their financial outlook for 2026 and support future growth and profitability.

CEO Paul J. Sarvadi remarked on the company's ongoing efforts to navigate the challenging macroeconomic environment, particularly regarding elevated healthcare costs. Insperity is committed to managing expenses while focusing on attracting and retaining clients at competitive prices. Sarvadi expressed optimism about the rollout of HRScale, a joint solution developed with Workday, which he believes will position Insperity uniquely in the marketplace and act as a catalyst for future growth.

Operating expenses for Q3 2025 decreased by 4% to $220 million from $228 million in Q3 2024. This included costs related to the Workday partnership, highlighting a strategic investment in technology amid rising costs in other areas.

Looking ahead, Insperity provided updated guidance for the fourth quarter and the full year of 2025. The company expects average paid WSEEs to increase slightly and anticipates an adjusted EPS for Q4 to be between $(0.79) and $(0.16). Full-year adjusted EPS is forecasted to range from $0.84 to $1.47, indicating a cautious yet optimistic outlook as the company navigates through the evolving economic landscape.

Insperity's third-quarter results reflect a blend of modest revenue growth and ongoing challenges, particularly in healthcare costs. The new contract with UnitedHealthcare and forthcoming strategic initiatives like HRScale signal a proactive approach to enhancing profitability and positioning the company for sustainable growth. Investors and stakeholders will be keenly watching the outcomes of these strategies as Insperity continues to adapt in a competitive market.