Insperity, Inc. (NYSE: NSP), a prominent provider of human resources and business performance solutions, announced its financial results for the fourth quarter and full year ended December 31, 2025. The company has also provided guidance for 2026, which includes expectations for revenue and earnings growth. The announcement was made on February 10, 2026, and will be followed by a conference call at 5:00 p.m. ET.

1. Fourth Quarter Highlights

In the fourth quarter of 2025, Insperity reported a 3% increase in revenues, totaling $1.7 billion compared to the same period last year. This growth was attributed to a 2% increase in revenue per worksite employee equivalent (WSEE) and a 1% rise in average paid WSEEs, which reached 312,377.

Despite the revenue increase, the company faced challenges, reporting a net loss of $33 million for Q4, with a diluted earnings per share (EPS) of $(0.88). The adjusted EBITDA for the quarter stood at $(13) million, and the adjusted EPS was $(0.60). Gross profit, however, declined by 21%, falling to $172 million, influenced by rising benefits costs and large claim frequency.

Management Insights

Paul J. Sarvadi, Insperity's CEO, expressed optimism about the company's future, stating, "We accomplished the key objective of our year-end transition with a step up in gross profit margin, which we believe positions the company for a significant recovery in profitability this year." Sarvadi highlighted the company’s focus on margin and profit recovery alongside initiatives aimed at regaining growth momentum with products like HR360 and HRScale.

James D. Allison, CFO, noted the company's proactive steps to address profitability challenges, including pricing adjustments and operational efficiencies.

2. Full Year Performance

For the full year 2025, Insperity reported revenues of $6.8 billion, up 4% from 2024. The average paid WSEEs for the year also increased by 1%, reaching 310,089. Despite these gains, the company faced a net loss of $7 million with a diluted EPS of $(0.19). The adjusted EBITDA for the year was $131 million, reflecting the company's ongoing efforts to improve profitability amid escalating costs.

Return to Shareholders

In 2025, Insperity returned $109 million to shareholders, which included the repurchase of 232,000 shares at a cost of $19 million and cash dividends totaling $90 million.

3. Financial Position

As of December 31, 2025, Insperity reported cash and cash equivalents of $642 million, a decrease from $1.039 billion in the previous year. The company maintained outstanding borrowings of $370 million under its $750 million credit facility. The total assets amounted to $2.203 billion, while total liabilities were recorded at $2.157 billion, leading to a stockholders' equity of $46 million.

4. 2026 Guidance

Looking ahead, Insperity provided guidance for the first quarter and full year of 2026. The company anticipates average WSEEs to slightly decrease in Q1 to 303,000, with a subsequent increase to 314,700 for the full year. Adjusted EPS is expected to be between $1.03 – $1.50 for Q1 and $1.69 – $2.72 for the full year. Adjusted EBITDA is forecasted to range from $81 – $111 million in Q1, and $170 – $230 million for the year.

Conclusion

Insperity's fourth-quarter and full-year results reflect a mixed performance as the company faces profitability challenges amidst rising costs while also showing growth in revenue and WSEE counts. The leadership's focus on recovery strategies and operational efficiencies may position the company for a more positive trajectory in 2026 as it seeks to enhance profitability and shareholder value. The upcoming conference call will provide further insights into the company’s strategies and expectations for the future.

Original press release