Highlights

  • Insperity reports quarterly EPS below consensus; revenue narrowly trails estimates.
  • Management outlines workforce trends, margin measures, and healthcare cost pressures.
  • Updated 2026 guidance and HRScale timeline discussed on earnings call.

Insperity Inc. (NYSE:NSP) reported a quarterly loss per share of USD -0.60, compared with analysts’ consensus of USD -0.49. Revenue for the period reached USD 1.67 billion, marginally below expectations of USD 1.68 billion. The company posted a return on equity of 12.53% and a net margin of 0.25%. Revenue rose 3.4% year over year, while the prior-year period recorded earnings of USD 0.05 per share.

Guidance and Profitability Targets

Insperity updated its guidance for Q1 2026 to adjusted EPS of 1.030–1.500 and full-year 2026 adjusted EPS of 1.690–2.720. Full-year adjusted EBITDA is targeted at USD 170 million–USD 230 million. The board indicated that a USD 9 million restructuring charge will be excluded from adjusted results.

Workforce, Margins, and Healthcare Costs

Management reported adjusted EBITDA of USD -13 million for the quarter, or USD -11 million excluding a USD 2.8 million sales-office consolidation charge. Paid worksite employees ended at 312,377, slightly below internal forecasts amid client hiring volatility. Margin-related actions discussed included pricing increases in the teens, stricter client selection, and changes to healthcare pooling thresholds following a renegotiated UnitedHealthcare contract. Management noted elevated healthcare claim trends, with a majority of clients facing renewals during the year.

Product Update and Cost Actions

HRScale, the Workday joint solution, entered beta, with payroll targeted to go live from April 1. Management expects approximately 6,000–8,000 paid worksite employees on HRScale by year-end. Cost measures included a reduction of around 4% of non-sales headcount, a one-time USD 9 million restructuring charge, and an expected USD 20 million in operating expense savings in 2026. Fourth-quarter operating expenses were reported down 6% year over year.

Market Context and Analyst Actions

As of February 10, 2026, Insperity’s market capitalisation stood at USD 1.27 billion, with a P/E ratio of 73.21 and a beta of 0.47. The 52-week range spans USD 31.00 to USD 95.98, with 50-day and 200-day moving averages at USD 40.72 and USD 44.80, respectively. Recent brokerage actions included target price revisions and rating changes across firms, with the stock carrying a mixed set of buy, hold, and sell ratings in published research.

Latest closing price (as of February 10, 2026): Insperity Inc. (NYSE: NSP) closed at USD 33.66, down USD 3.04 (-8.28%).