NSP

A month has gone by since the last earnings report for Insperity, Inc. (NSP). Shares have lost about 4.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Insperity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Insperity reported impressive second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. NSP reported adjusted earnings of 34 cents per share in the second quarter of 2026, up 31% year over year and surpassing the Zacks Consensus Estimate of 33 cents by 3.0%. Revenues increased 2% to $1.69 billion and beat the consensus mark of $1.67 billion by 0.5%. Results benefited from lower operating expenses and progress across the company’s margin recovery initiatives. However, average paid worksite employees, or WSEEs, declined 1% to 305,764, partly offsetting higher pricing and revenue per employee. Adjusted EBITDA rose 13% year over year to $36 million. Reported net income improved to $4 million from a loss of $5 million in the prior-year quarter, whereas diluted earnings were 10 cents per share against a loss of 14 cents. Management said that all three components of its recovery plan contributed to the quarterly results. These included pricing and client retention actions, benefit plan and policy changes, and operating expense management. The company expects the cumulative impacts of these measures to support a significant profit recovery during 2026. Revenues per WSEE per month increased 3% to $1,838, reflecting higher pricing. Gross billings per WSEE rose to $11,895 from $11,385, while payroll cost per WSEE increased to $10,057 from $9,597. Despite the pricing gains, gross profit declined 3% to $217 million. Gross profit per WSEE slipped 1% to $237 as benefit costs per covered employee increased 5%. The higher benefit expenses continued to pressure unit profitability, even as pricing helped support top-line growth. Operating expenses decreased 8% year over year to $211 million. Salaries, wages and payroll taxes declined 11% to $115 million, while stock-based compensation fell 35% to $13 million. These reductions more than offset a 27% increase in advertising expenses to $14 million. The quarter included $8 million in costs related to Insperity’s strategic partnership with Workday, down from $14 million a year earlier. Lower partnership spending and broader expense discipline helped the company generate operating income of $6 million against an operating loss of $7 million in the prior-year period. For the first six months of 2026, revenues increased 2% to $3.58 billion as revenues per WSEE advanced 3%. Average paid WSEEs declined 1% to 304,407, reflecting continued softness in employee volumes. First-half adjusted EBITDA increased 4% to $139 million, but adjusted earnings declined 10% to $1.64 per share. Gross profit fell 3% to $519 million, while adjusted operating expenses decreased 6% to $442 million. Reported net income declined 20% to $37 million, partly reflecting higher income tax expenses. Insperity ended June with $95 million of adjusted cash, cash equivalents and marketable securities, up from $57 million at the end of 2025. In the second quarter, the company borrowed $50 million for working capital purposes, bringing outstanding credit-facility borrowings to $420 million. Cash outlays during the first six months included $46 million in dividends and $13 million in capital expenditure. NSP also repurchased approximately 172,000 shares for $4 million, maintaining shareholder distributions while continuing to fund operating and technology priorities. For the third quarter of 2026, management expects average paid WSEEs of 305,500-307,500, indicating a year-over-year decline of 1.7-2.3%. The adjusted bottom line is projected between a loss of 9 cents and earnings of 41 cents per share, while adjusted EBITDA is anticipated to be $14-$41 million. For 2026, Insperity updated the average paid WSEEs forecast to 305,000-307,000 from the preceding quarter’s view of 303,000-307,000. It marks a decline of 1-1.6% from the 1-2.3% given during the first quarter of 2026. Adjusted earnings are updated to $1.88-$2.43 per share from the first-quarter 2026 view of $1.6-$2.6, with a revised adjusted EBITDA expectation of $185-$225 million compared with the preceding quarter’s view of $170-$230 million. Management plans to focus on its refined sales approach, HRScale development and artificial intelligence initiatives as it works to restore growth momentum. Since the earnings release, investors have witnessed a flat trend in estimates revision. The consensus estimate has shifted 50% due to these changes. At this time, Insperity has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Insperity has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Insperity belongs to the Zacks Staffing Firms industry. Another stock from the same industry, ManpowerGroup (MAN), has gained 19.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Manpower reported revenues of $4.86 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.99 for the same period compares with $0.78 a year ago. For the current quarter, Manpower is expected to post earnings of $1.01 per share, indicating a change of +21.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days. Manpower has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Insperity, Inc. (NSP) : Free Stock Analysis Report ManpowerGroup Inc. (MAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 5:00 p.m. ET Chairman of the Board and Chief Executive Officer - Paul J. Sarvadi Executive Vice President of Finance, Chief Financial Officer and Treasurer - James D. Allison Operator: Good day. My name is Ali, and I will be your conference operator today. I would like to welcome everyone to the Insperity First Quarter 2026 Earnings Conference Call. And please note, this conference call is being recorded. At this time, I would like to introduce today's speakers. Joining us are Paul Sarvadi, Chairman of the Board and Chief Executive Officer; and Jim Allison, Executive Vice President of Finance, Chief Financial Officer and Treasurer. At this time, I'd like to turn the call over to Jim Allison. Mr. Allison, please go ahead. James Allison: Thank you. We appreciate you joining us today. Let me begin by outlining our plan for this afternoon's call. First, I'm going to discuss the details behind our first quarter 2026 financial results. Paul will then comment on 3 strategic initiatives in 2026: Our margin recovery plan, our efforts to rebuild growth momentum, including the HRScale rollout and our AI initiatives. I will return to provide financial guidance for the second quarter and full year 2026. We will then end the call with a question-and-answer session. Before we begin, I would like to remind you that Paul or I may make forward-looking statements during today's call, which are subject to risks, uncertainties and assumptions. In addition, some of our discussion may include non-GAAP financial measures. For a more detailed discussion of the risks and uncertainties that could cause actual results to differ materially from any such forward-looking statements and reconciliations of non-GAAP financial measures to their comparable GAAP measures, please see the company's public filings, including the Form 8-K filed today, which are available on our website. Today, we reported adjusted EPS for the first quarter of $1.31 and adjusted EBITDA of $103 million. Each of these results exceeded the midpoint of our expected range. Our quarterly results included outperformance in gross profit and operating expense management, partially offset by slightly lower-than-expected unit growth. The average number of paid worksite employees came in at the low end of our forecasted range at 303,049, a 1.0% decrease versus Q1 2025. As you may recall from last quarter's call, our fall campaign sales and year-end client retention were both impacted by our margin recovery efforts, which we included in our paid worksite employee guidance. Worksite employees paid from new client sales declined by 7% compared to Q1 2025. Client attrition totaled 11% in Q1 2026, within our historical range of 9% to 12%. Net hiring within the client base was in line with our forecast and slightly higher than Q1 2025, but the hiring occurred later in the quarter than we had expected, which impacted the average worksite employees paid for the quarter. Paul will discuss our worksite employee results in more detail in a few minutes. Total gross profit in Q1 2026 decreased by 3% to $302 million. This represents a significant improvement compared to the 21% decline that we experienced in Q4 2025 and demonstrates the progress of our margin recovery plan. Gross profit per worksite employee in Q1 2026 was $332 per month, which is slightly above our forecast and within our range of expectations. The favorability was primarily driven by lower-than-expected benefit costs, partially offset by the lower worksite employee volume. Benefit cost per covered employee increased 5% over Q1 2025, which is a solid improvement compared to the 9% level we encountered throughout last year. Much of this improvement was expected, driven by the positive impacts of a favorable client mix change during our year-end client transition that was influenced by our pricing and client retention strategy, our plan design changes and our new contract terms with UnitedHealthcare. It is important to note that the new UnitedHealthcare contract is anticipated to have a positive impact of helping to flatten our quarterly earnings pattern starting this year with less expected earnings early in the year and more expected earnings later in the year. This is primarily the result of the pooling level change from $1 million per member per year down to $500,000. The new pooling limit includes a higher fixed premium that is charged evenly on a PEPM basis throughout the year, while the claims reimbursements are likely to be significantly weighted towards the latter quarters of the year. While it is still early in the year, we are pleased with the progress of our margin recovery plan and the lower-than-expected Q1 benefits cost. We have seen several positive signs contributing to these results, including slightly favorable runoff of prior period claims, reduced large claim activity and lower-than-expected pharmacy claims. At the same time, we remain cautious about the range of potential outcomes for the remainder of the year, which I will discuss later in the call. Total operating expenses decreased by 1% to $240 million in Q1 2026, which includes a $9 million restructuring charge primarily related to severance costs associated with the recent workforce realignment. Excluding the impact of the restructuring charge, our operating expenses decreased by 5%. During Q1 2026, we invested a total of $13 million in HRScale, including $8 million in operating expenses and $5 million in capitalized costs. This compares with $13 million in Q1 of 2025, all of which was expensed. For Q1 2026, the effective income tax rate for purposes of adjusted EPS was 41% versus 29% in Q1 2025. This significant change was the result of our lower stock price, which reduces our tax reduction related to the vesting of stock compensation. Since the vast majority of our stock compensation vests in Q1 of each year, our effective tax rate is expected to normalize for the remainder of the year. The higher effective tax rate for Q1 2026 had a negative impact on adjusted EPS. Our adjusted EPS of $1.31 was 17% lower than the $1.57 we reported in Q1 2025, while our adjusted EBITDA of $103 million was 1% higher than the $102 million we reported in Q1 2025. During the first quarter, we continued to return capital to our shareholders through our regular dividend program, paying $23 million in dividends, along with the repurchase of 171,000 shares of stock at a cost of $4 million. We ended the quarter with $36 million of adjusted cash. The decrease in adjusted cash was primarily the result of various seasonal working capital fluctuations including the timing of certain corporate payroll, health care and software maintenance contract funding. As of March 31, 2026, we had $380 million in unused capacity under our credit facility, of which approximately $330 million is available to borrow. At this time, I'd like to turn the call over to Paul. Paul Sarvadi: Thank you, Jim. Thank you all for joining our call. Today, I plan to cover 3 main areas. First, I'll share insights on our strong earnings results in Q1 and how we're executing our strategy for margin recovery this year. Next, I'll talk about our actions to regain growth momentum throughout the remainder of the year, especially as we navigate macroeconomic challenges in the SMB sector. Lastly, I'll provide our perspective on the evolving AI landscape and highlight the opportunities ahead for Insperity's strategic HR services, technology and expertise. We are pleased with our Q1 earnings results, which reflect the effectiveness of our efforts to overcome the health care claims margin pressure experienced in 2025. As we discussed last quarter, our 3-year plan prioritizes margin recovery in year 1. The main drivers behind our successful margin recovery are our new agreement with UnitedHealthcare, our benefit plan design changes, our strategic pricing and client selection and our improvements in operating efficiency. We believe these strategies and tactics provided the desired step-up in margin to begin the year, and we continued these actions throughout Q1. We plan to continue this emphasis throughout the balance of the year with the objective of achieving a substantially full recovery as we move into 2027. Our second priority for this year after margin recovery is regaining our growth momentum as we work to build the foundation for balanced growth and profitability in year 2 of our 3-year plan. Worksite employee growth is driven by our client sales and retention and the net change in employment within the client base. So let's look at each one of these to understand our outlook for the timing of regaining growth momentum coming out of Q1. I mentioned last quarter as we focused on margin recovery, we expanded our tools, processes and client-sponsored benefit options to support client selection and pricing for new and renewing accounts. While we can clearly see these steps supported our gross profit recovery, they also contributed to lower-than-expected booked sales and client retention. The effect on sales continued in Q1 as booked sales came in below our internal targets, except for our 3 HR360 mid-market sales. We have evaluated the processes and the outcomes and have recently implemented key learnings we believe will improve our booked sales results over the balance of the year. Our ongoing efforts to improve HR360 and HRCore sales, combined with our new growth catalyst, HRScale, are expected to contribute to our growth momentum. I'm very pleased to report today our initial HRScale beta clients were effectively onboarded in March and payrolls and invoices were processed in April as scheduled. We are off and running and the pipeline for HRScale clients is building. We believe HRScale is an unparalleled comprehensive solution that combines Insperity's flagship HR services and compliance expertise with Workday client-facing technology. We believe it's a growth catalyst for 2 reasons. First, it addresses our historical success penalty where clients we have helped grow and mature decide to leave Insperity for technology built for larger firms. Second, we believe we will sell many more new larger accounts since this combination of technology and services are a hand-in-glove fit for the mid-market space of businesses with 150 to 5,000 employees. Our early sales effort indicates that we are right on track. We currently have signed commitments for nearly 6,000 worksite employees to be on board within the next 6 months. We also have sales activity ramping up significantly, including meetings, demos, bids and closing negotiations for both current clients planning to upgrade and new clients attracted to our unique comprehensive HRScale service and technology solution. Our sales and marketing efforts for HRScale have also been refined based on the specific advantages that have resonated with business leaders. In particular, they view HRScale as a lower-risk decision due to the lower upfront investment, reduced time to value and lower ongoing costs compared to typical HCM and HR service vendor combination in the mid-market space. We are actively engaged in the HRScale sales process with new and renewing accounts, targeting start dates of January 1 and each quarter of next year. We believe our HRScale ramp-up could play a significant role in regaining growth momentum as we move into 2027. On the client retention side, while our strategy resulted in persistent attrition at the higher end of historical levels, we are seeing the desired impact as a greater percentage of departed clients were less profitable accounts, resulting in overall improvement in client profitability. We expect the slightly higher attrition to continue but moderate over the course of the year due to the smaller number of accounts renewing monthly and improvements we have put in place. The third contributor to our worksite employee growth metric is the net change in the existing clients' employee base. This continued to show volatility in Q1, turning negative in February and positive in March. We are cautious about the potential impact of the ongoing international conflicts and macroeconomic factors, including inflation fears and lingering uncertainty about tariffs, which could affect small business expansion or hiring. Consistent with recent NFIB surveys, results from our business outlook survey shows a notable shift in sentiment with small- and medium-sized businesses becoming more cautious since January, particularly regarding the wider economy. More clients now anticipate economic challenges in the coming year. Worries about the economy have grown significantly as 54% of respondents expect a negative impact on their businesses, an increase from 42% in January, while only 25% foresee positive effects, down from 37%. Optimism among clients has decreased compared to previous quarters. Nevertheless, most, 64% still believe they'll perform better in 2026 than 2025, although this figure has modestly dropped from 70% in January. Our survey reveals that clients are showing less confidence regarding increases in compensation, hiring, net earnings and sales volume. There's also a marked rise in expectations for higher capital asset costs compared to January, indicating greater sensitivity to cost and inflation awareness. The actual small- and medium-sized business data that we monitor as employment indicators align with this decline in business leader sentiment. Overtime, as a percentage of base payroll and commissions paid to the sales staff of our clients were both below historical thresholds that typically have preceded increases in hiring and pay raises. So in this environment, our paid worksite employee growth came in at the low end of our range. Based on the starting point for Q2, combined with our continued emphasis on margin recovery and the sentiment in the small- to medium-sized business community, we expect the low point of our previous worksite employee range to be closer to the midpoint of our new guidance. However, we expect continued progress on margin recovery to offset the shortfall from lower worksite employee volume. And as a result, we are reiterating our original adjusted EBITDA guidance for the year. Now I'd like to discuss how artificial intelligence is changing the landscape and could become a driving force for Insperity in the years ahead. First, we'll look at broad employment challenges and how AI might affect the workforce. While the labor market faces risk of displacement, there are also exciting growth opportunities as AI sparks the rise of new businesses. AI is actively transforming the workplace by automating various tasks, which is expected to impact many roles, although white collar and entry-level positions are widely expected to experience the most upheaval. AI is also boosting productivity and generating new roles. So far, this shift has only slightly affected overall employment. This shift has the potential to contribute to a decline in traditional employment, while significant disruption in other roles such as coding may drive changes that require employees to acquire new skill sets to leverage AI effectively. We believe disruption and a high rate of change in employment can possibly affect the overall level of employment growth and volatility in the SMB sector. However, it also potentially magnifies the need for sophisticated HR services, technology and insights, which could substantially increase demand for Insperity's comprehensive HR solutions. AI is driving new business formation in the U.S. with applications reaching nearly 500,000 a month in Q1, especially in AI-focused sectors. Growth remained strong at about 12% year-over-year for Q1. AI appears to be expanding opportunities and making starting a business easier, leading to record entrepreneurship among small and midsized companies. While past technology shifts like PCs and the Internet replaced jobs, they also boosted employment by fostering new businesses. Now as we drill down into our target of the SMB community, we see exciting possibilities for our HR solution offerings. As we roll out new AI agents alongside our AI-assisted HR experts, our strategy is to provide the flexibility to service our clients and worksite employees according to their preferences, while also streamlining our operations and accelerating our product development. SMB owners wear many hats and solution providers are increasingly becoming the principal avenue as channel partners for AI adoption among SMBs, utilizing established relationships to deliver secure and practical AI solutions that these businesses may find challenging to implement independently. Insperity is exceptionally well positioned as a premium HR channel partner to assist top-performing small- and medium-sized businesses in managing disruptions and personnel challenges resulting from AI-driven transformations. Our recent survey of our small and medium-sized business clients indicates that AI adoption is progressing. However, it does not appear to be driving widespread workforce changes yet. 62% of our clients are piloting or integrating AI primarily to support staff, facilitate routine operations and improve customer service. We're leveraging our service using AI with our proprietary agent strategy. We started by implementing this solution internally in HR and payroll, resulting in higher productivity and service quality. We will soon expand this HR360 agent to help HR360 clients navigate the platform, find answers they need and boost engagement. This tool acts as a copilot, removing barriers and increasing value for PEO customers. The next HR360 agent release will further improve client and employee experiences during major events, offering personalized support, faster onboarding and immediate access to expertise, while reducing our service workload and maintaining security. Our third HR360 agent version will include introduce conversational reporting using demographic and transaction data, shifting from static reports to real-time insights for better decision-making without the need for users to have advanced analytics skills. We're also applying AI across the software development cycle in an effort to accelerate product launches, improve developer productivity and enhance code quality through AI-enabled methodologies. As we look further ahead, we believe the nature of our business offers an exciting future for Insperity as the AI transformation continues to unfold. Despite technological advances, we believe human-to-human interaction remains essential and valuable in the human resource business. AI can deliver powerful data and insights, but when it's time to make the decision that affects the company and its people, there's no substitute for experienced human judgment and having Insperity standing shoulder to shoulder makes a profound difference. Our highest value for our SMB clients is the advice and support we provide through a lens of trust, judgment, care and protection of their company and their people, both employees and their families. We believe AI will likely add value to the strategic HR services, technology and expertise provided by Insperity. At this point, I'd like to pass the call back to Jim. James Allison: Thanks, Paul. Our updated outlook for the full year 2026 is comprised of 3 primary drivers. First, we are revising our unit growth down to reflect both the weakening in small business economic sentiment and a slightly larger impact of our margin recovery plan on new client sales and client retention. Second, we believe that our margin recovery plan is slightly ahead of schedule, and we expect some continued improvement from favorable client mix changes related to our pricing and client renewal strategy. Third, we expect some continuation of the operating expense savings that we experienced in Q1. As a result, we continue to forecast adjusted EBITDA in a range of $170 million to $230 million for the full year 2026. With regards to worksite employee growth, we are forecasting a range of 303,000 to 307,000 for the full year 2026, which represents a decrease of 1% to 2.3% from 2025. We have adjusted each of the drivers of our unit growth in our forecast. After being at the low end of our forecasted range in Q1, our starting point for the second quarter is a little lower than previously expected. In addition, as Paul discussed, our new client sales and client retention have been revised due to weakness in small business economic sentiment and the impact of our pricing and client renewal strategy. We continue to analyze and revise our strategies to achieve our margin recovery goals while also focusing on regaining our growth momentum, and we have implemented some changes that we believe can have a positive impact on our sales and retention results as we progress through the year. We continue to expect net hiring within the client base to be in the low single-digit range, similar to last year, with some positive benefit of summer help in Q2 that should revert in Q3. Moving to margin recovery. We are pleased with the progress we have made to date, and we are forecasting some continuing improvement as we continue executing the plan throughout 2026. Some of the sales and client retention results that are a headwind to worksite employee growth also create a potential tailwind for margin recovery. We continue to see that the profitability of terminating clients, including the client terminations we know about for Q2 and Q3, has been significantly lower than the profitability of those we are retaining, producing a favorable change in client mix. We are also cautiously optimistic regarding the pricing and risk profile of our new client sales. It's important to note that many of the factors that drive our pricing results have the potential to positively impact cost trends over time. As I mentioned earlier, our Q1 benefit cost results were slightly better than expected, including lower runoff of prior period claims, reduced large claim activity and lower-than-expected pharmacy claims. While those results are generally consistent with the plan design changes and client mix changes that we've made, we are forecasting somewhat less favorability than we experienced in Q1. With regards to operating expenses, we continue to expect year-over-year reductions in 2026, driven primarily by lower headcount and lower HRScale expenses, partially offset by some increase in marketing spend and growth in the number of Business Performance Advisors, along with other inflationary cost increases. At this point, we expect continuing favorability in the remaining quarters of the year, but at a slightly lower level than in Q1 due to a few timing-related items. HRScale operating expenses are expected to be generally in line with our budget. We expect our full year effective tax rate for adjusted EPS purposes to be 36%. The effective tax rate for GAAP purposes could fluctuate from that based on the level of nondeductible expenses as a proportion of pretax income. We expect our weighted average outstanding shares to be approximately 38.5 million for the remainder of the year, primarily reflecting the recent stock compensation vesting. As a result of the revised effective tax rate and number of outstanding shares, our full year 2026 adjusted EPS guidance range is now $1.60 to $2.60. As for Q2 2026, we expect the average number of paid worksite employees to be in a range of 302,500 to 304,500, a decline of 1.5% to 2.1% from Q2 2025. We are forecasting adjusted EBITDA in a range of $18 million to $46 million and adjusted EPS in a range of $0.02 to $0.50. As I mentioned earlier, our quarterly earnings pattern is expected to be somewhat flatter than our typical historical pattern for 2 primary reasons. First, our pooling level change with UnitedHealthcare from $1 million per covered member per year down to $500,000 resulted in significantly higher premium charged evenly on a PEPM basis throughout the year, whereas the expected claims reimbursements in that program will likely be significantly weighted towards the later quarters in the year. In addition, as we execute our margin recovery plan throughout 2026, the positive impacts are expected to be more pronounced as we move through the year. At this time, I'd like to open up the call for questions. Operator: Our first question is coming from Andrew Nicholas with William Blair. Daniel Maxwell: This is Daniel on for Andrew today. Just to start off, there's obviously a lot of moving pieces in guidance. But taking it all together, do you have any change to your expectation for gross profit per WSE? I know last quarter, you said you don't expect a recovery to pre-2025 levels, but would you still anticipate a year-over-year improvement on that line or more so in line with 2025? James Allison: Yes. So our original guidance included an increase in gross profit per employee compared to 2025 levels. We had mentioned last time that we didn't expect it to get back fully to 2024 levels. As we look at kind of where we are now compared to where we were coming into the year, we do think we're a little bit ahead of schedule on the profit recovery efforts. So we do think the gross profit per employee is likely to be a little bit higher than what we had in our original guidance. And between that and some additional favorability on the operating expense side, we expect that to be an offset to the lower worksite employee levels that we've guided to this quarter. Daniel Maxwell: Okay. Very helpful. And then maybe switching to more specifically on the WSEE front and the lowered guidance. It seems to imply that we're likely looking at year-over-year contractions in all of the remaining quarters of the year. Is that fair to say? Or do you have any other insight on what the sequential cadence of WSE declines might look like over the course of the remaining quarters? Paul Sarvadi: I think the best is to look at the big picture. We were forecasting minus 1.5% to plus 1.5% when we started the year. But based on the sales and retention levels in Q1 and in addition, the sentiment change that was quite dramatic that we saw based on macroeconomic and international conflicts, et cetera, causing a pause in the small, midsized business community mindset. That's what's driving us down to the range that we have now, which is -- makes that low end of minus 1.5% to be more like the midpoint. But we have a fairly narrow range on that for the year in number of worksite employees is what's in the press release, the range. And that's because once you get to this point of the year, the sales and retention levels, the attrition is not like the year-end when you have so many that are attriting. And we're able to track that fairly well for what we are expecting. So there's not a lot of further reduction. It looks like the total year's midpoint of our range is around minus 1.5% growth. Daniel Maxwell: Okay. Understood. And if I could squeeze one more open-ended one in. I was wondering if you could just kind of frame any dynamics that you're seeing in the competitive environment, if there's anything worth calling out on the pricing front or any indication that competitors are being more aggressive on price or otherwise? Paul Sarvadi: Well, I think the competitive environment has had quite a bit of pressure over the last 1.5 years or so. And it's normal when you have the higher pricing that's going on, on benefit costs and other things to cause more shopping. And when that happens, that just causes more competitive pricing. But we are in a position where we continue to compare well and are able to give customers options for how to look at their future. And we have a significant competitive differentiation that is just launched in HRScale, which puts us in a completely different category. And that, we think, is going to be really significant as we go forward. Operator: Our next question is coming from Jeff Martin with ROTH Capital Partners. Jeff Martin: Paul, I wanted to dive into your sentiment survey results. Specifically, how are you seeing that affect, if you are seeing it affect the sales cycle for HRScale at all? Paul Sarvadi: On the HRScale front, it's kind of a little early for us to have a comparative -- to compare against some of the sentiment type issues. But no, we definitely have a significant pipeline building. There's quite a bit of enthusiasm around the uniqueness of this offering. And as I mentioned in my remarks, the part of our sales effort that actually hit budget was the mid-market area, where there's a lot of conversation, even though that area involves both HR360 for mid-market and HRScale. There's definitely tremendous energy around that, and we feel really good about that. The decision for HRScale and for mid-market HR360 customers is more of a longer-term decision. So generally not as affected by the immediate circumstances as the smaller companies. Jeff Martin: Great. And then for my follow-up, I wanted to dive into the sales productivity. If you could break that down between HR360 and HRCore? And then tied to that, how has the adoption of client-sponsored benefit programs been trending? Are you seeing that continue to be more commonplace than historically? Paul Sarvadi: Yes. Well, certainly, as we talked about on our last call in the fourth quarter, we really made a change in the sales process and some of the tools that we're using to identify customers and to look at how we wanted to offer components of what we do. We want to be more value-based talking about the full picture on the benefit side. We would determine whether being in our comprehensive plan is the right approach for that particular client. And these are new sales motions, new processes. So it took more in the first quarter to get these things working in a way and understood by the sales team and internally by those that are supporting the organization. So when you have a new sales motion, that takes some time to think things through and figure out exactly how to go about it. Now we did some real assessment of what worked, what didn't work, and we recently put in some new practices and tweaked, adjusted things, and we actually believe that's going to have some dramatic effect. But that's what you have to do when you are focused on margin recovery as the priority. Now having this very successful quarter where you can see what happened and see how that worked that is a breath of fresh air for everybody and immediately moves attitudes and activity back to positive direction. Operator: Our next question is coming from Mark Marcon with Baird. Mark Marcon: Paul, just with regards to HRScale, how many clients do you now have on it? And what are your expectations with regards to having it fully ramped and when the associated costs with that ramping will start falling off? How should we think about that? And then I've got a couple of follow-ups. Paul Sarvadi: Sure. Well, let me describe, first of all, the stage that we're at. Obviously, we just brought on. The first clients are on that new platform, that new entity on HRScale. And we are in that ramp-up phase of selling new accounts and selling current accounts to upgrade from HR360. So we have a significant pipeline already. And as I mentioned on my remarks, we have nearly 6,000 scheduled to be on board in the next 6 months on that program. We also, of course, are now beginning to sell accounts to be scheduled in because it's a 6-month period for us to do the deployment and enablement to bring them on board. So the way to look at it for now, of course, is that we are converting current accounts onto the platform. That doesn't add worksite employee count, but it adds retention for those customers for multiyear accounts and many were focused on the larger accounts. So it's a very positive foundational effect on retention going forward and pricing. Now in addition to that, we are now selling new accounts that are coming straight on to HRScale. And over the balance of this year, those accounts will largely be set to start January 1 or April 1 next year, July 1. There will be -- we will start literally filling the pipeline for those quarterly starts. And we'll, of course, start the deployment enablement as we sign those contracts. Now that will feed in directly into the growth momentum that we see for 2027 and beyond. So that should give you a picture of how to think about it. So in terms of how that offsets cost, obviously, we have the cost in here now for being able to do the deployment enablement. And as we ramp up this employee count, there's your revenue to offset those costs in addition to the actual deployment enablement fees, which is a new element that we have not had to offset those costs before. So it's -- again, it's a start-up of that business, but it's on a great track, and we really see it being a hand-in-glove fit for these target clients. The other point I wanted to make that I made in my remarks is that we have already seen a very clear picture in the business leadership evaluating this, they can readily see and feel that there's less risk to this decision than they've had to consider doing these things in a different way. Going through the traditional effort to have an HCM system and multi-vendors to provide the support services. There's a lot of risk around that because of the size of the investment, the length of time it takes to actually get to some realized value and ongoing ultimate cost. HRScale is very easy for them to understand how it has changed that equation. Mark Marcon: That's really encouraging. I was referring to just the implementation costs that you had outlined when you first announced the partnership and you talked about the incremental expense just on your end to implement it and to get the system up and running. I was just wondering if we could see some costs falling away either later this year or next year, just purely from your own systems development perspective now that you've got some clients on it and that you're getting ready to bring on more. James Allison: Yes. So we definitely expect that investment costs related to HRScale are going to decline in the second half of the year. We're kind of in a little bit of a stabilization period right now that we talked about in our last couple of quarters. But as we get through the second quarter, a lot of people and their time are going to be going to other things. I think that we'll still have a typical pipeline that you would have for any product from an investment standpoint going forward. One of the things that's happening is that people that have been involved in the investment side of this deal now transition to becoming the service providers, the onboarding resources, the service provider resources that actually go along with the revenue that is being generated. Other costs that are third-party costs, we expect to taper away. And then the third piece being some internal technology resources that get reprioritized on to other key initiatives that we're working on -- kind of working on next, if you will. So there's a variety of different places that those resources go. Mark Marcon: Got it. And then just on the health care costs and the benefit costs, if I heard you correctly, I think they were up like 5% year-over-year, which is a really good outcome given the level of inflation. Is that basically due to plan design changes that you were able to set through? And is it your expectation that over the balance of the year, that 5% will kind of hold in terms of benefit cost inflation on a per user basis? James Allison: Yes. I would say that the biggest impact is the client mix. So obviously, we've increased our pricing. And then you have the client mix change that comes from lower profitability, clients terminating higher profitability, clients staying, and that's kind of an embedded feature of the way we're playing out our strategy. I think that's a little bit bigger than of an impact on Q1 benefits cost and the plan design changes themselves. But the plan design changes also have an additive cost savings there. And then the third component being the new contract with UnitedHealthcare. And I think the one thing that we wanted to try to make sure we pointed out today is the impact of that is more back-end loaded than I think probably we have maybe clearly communicated in the past and are in some earnings estimates that are out there on the analyst side. We are paying a higher premium for the $500,000 coverage. The claim reimbursements and the exposure that we're not going to have on claims going forward is more back-end loaded in the year. So we are expecting there to be a little flatter impact to our quarterly earnings pattern. So that's a smaller impact on Q1, the new contract, and it will be significantly larger as we go through the year. Operator: Our next question is coming from Tobey Sommer with Truist. Tobey Sommer: I wanted to ask about your sales counselors and advisers, how you're thinking about growing those to drive growth beyond this year into '27 and '28. I'm sure you've been busy training, but trying to figure out how you can brute force some growth by getting more feet on the street. Paul Sarvadi: Thank you. We will be, over the balance of this year, modestly increasing the number of BPAs, BPCs, but we do not have to increase that as many to regain growth momentum substantially because of the average size of the HRScale accounts and how even have an HRScale available is increasing interest in HR360 mid-market accounts. So we believe there's a built-in factor that helps drive the growth based on the average size of clients where it doesn't take as many BPAs and BPCs. But we are expecting once we get into 2027 to have a more steady, continuous uptrend in the number of BPAs for the target small business market. James Allison: And I would add, we saw some solid growth in the BPA count even in Q1. So that process has already started underway, and we expect to add more as we go through the year. Tobey Sommer: And from a balance sheet and capital allocation standpoint, what are the priorities and expectations as you work your way through the balance of '26? Paul Sarvadi: So pretty much the same as it has been in terms of our prioritization, obviously, for investment. We've invested heavily the last couple of years in our new offering. And now we're at that breakpoint where the investment is tapering down, and we're about to see revenue start coming in. So that's the exciting part about that picture. But we also continue to have the same priorities with the Board on capital allocation and not seeing that change at this time. Operator: Our final question today is coming from Brendan Biles with JPMorgan. Brendan Biles: Appreciate you guys going through all the detail with us. Two questions for you guys. One probably more interesting and one boring one. So first of all, I'm curious, when you get a result back like you guys heard in the survey from your customers that everyone is a little bit more worried about the environment, people are concerned that their business might not do as well this year than it did last year, what levers are available to you to adjust your go-to-market to ensure that you're still kind of providing the most value possible to your clients and helping them through this time, so you can maybe maintain a little bit more share of wallet? And to what extent are you guys able to put that into place this year? And now my boring question, I'm sorry if I missed it. Just -- I know you called out the 2 things that led to the guidance revision? It was like macro and then also a little bit more churn from the pricing initiatives. To what extent are you able to attribute the revision between those? I know it might be tough and maybe just comes from some of both or is it coming from more one or the other? That would be great. Paul Sarvadi: Sure. No, we looked at -- on the 3 drivers for growth, remember, it's sales, retention and the net change in the client base. And all 3 of those are slightly lower than we were expecting when the year started. And so when you factor all those in, that's just going to affect you as the year goes on. We do change the messaging. We do emphasize different aspects of what we're doing to help client by client. We also, though, have on the sales and retention side, having this good quarter under our belt changes the dynamic for the environment for the selling and retention effort as the year progresses. And as I mentioned in the call, we have fewer to contend with on the renewal side because the heavy renewal period is behind us now. And so we see some optimism on moving forward. But it is affected. The lower starting point already makes the year -- you have to take down that projection for growth for the year like I said, so that means that, that low end of our previous range is now about the midpoint of our range for the year. So that kind of gives you a feel for that aspect. James Allison: And I think the one thing that I would add to that is if you look at the guidance range, obviously, we took a little bit more off the top side of that more than the bottom side of that. So the sentiment change has some impact on, I think, the top end, kind of where we are and what we've experienced so far changes the lower end a little bit more than the sentiment changes more at the top end. Paul Sarvadi: I think one more aspect on that, that's probably worth putting in there is that some of these things that affect that slightly lower growth on all 3 of those areas actually enhance the profit recovery mode that we're in. And actually, that's why there's a great offset between those 2 factors that were changing and still have very strong feelings about our recovery for the full year. Brendan Biles: Yes, absolutely right. No, great to hear that the retained clients are the ones you want to hold on to anyway. Paul Sarvadi: Absolutely. Operator: Ladies and gentlemen, we have reached the end of our question-and-answer session. So I would like to turn the call back over to Mr. Sarvadi for any closing remarks. Paul Sarvadi: We just want to thank everybody for participating today, and we're excited that we have reached that first milestone of our profit recovery, and we will be working to regain growth momentum as the year progresses. Thank you for your participation today, and we look forward to being in touch with you either out in the marketplace or on our next call. Thank you. Operator: Thank you, ladies and gentlemen. This does conclude today's call, and you may disconnect your lines at this time. And we thank you for your participation. Before you buy stock in Insperity, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Insperity wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Insperity (NSP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Corpay, Inc. CPAY reported impressive second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. CPAY reported adjusted earnings per share of $7, rising 36% year over year and surpassing the Zacks Consensus Estimate of $6.60 by 6.1%. Revenues increased 21% to $1.33 billion, beating the consensus mark by 2.6%. Corpay, Inc. price-consensus-eps-surprise-chart | Corpay, Inc. Quote Results benefited from 10% organic revenue growth, led by Corporate Payments. Organic spend climbed 43% to $94.64 billion, while new sales rose 30% and customer retention held at 93%. Corporate Payments revenues jumped 42% year over year to $548.7 million and accounted for 41% of consolidated revenues. On a pro-forma and macro-adjusted basis, segment revenues advanced 16% to $538.1 million. Spend volume surged 70% on a reported basis to $94.64 billion. Pro-forma and macro-adjusted spend increased 43%, reflecting strong customer activity across cross-border and payables. Revenues per spend dollar declined to 0.58% from 0.70%, partly reflecting the addition of larger enterprise clients carrying lower yields. Vehicle Payments revenues increased 13% year over year to $580.2 million, making it Corpay’s largest segment. Pro-forma and macro-adjusted revenues rose 8% to $523.5 million, supported by continued strength in Brazil and Europe. Reported transactions declined 29% to 147.6 million because the prior-year period included activity from the PayByPhone business, which Corpay sold in March 2026. On an adjusted basis, transactions increased 8%, while revenues per transaction were unchanged at $3.56. Lodging Payments revenues rose 3% year over year to $123.2 million. Organic growth was 2%, improving sequentially as the company moved past difficult comparisons created by episodic events in the prior year. Room nights declined 13% to 7.5 million. However, revenues per room night increased 18% to $16.34, helping the segment deliver revenue growth despite lower volume. Management expects Lodging organic growth to accelerate to the mid-single-digit range during the second half. Adjusted EBITDA increased 24% year over year to $767.2 million. The adjusted EBITDA margin expanded 100 basis points to 57.3%, benefiting from operating leverage and favorable macroeconomic conditions. Operating costs rose 9% after excluding foreign exchange movements, acquisitions, stock-based compensation, amortization and a settlement charge. The increase primarily reflected sales investments and modestly higher credit losses. Corpay also recorded a $100-million charge related to a preliminary settlement with the Federal Trade Commission’s Bureau of Consumer Protection. Corpay generated $1.41 billion in net cash from operating activities during the first six months of 2026, up from $1.07 billion in the prior-year period. The company ended June with $3.16 billion in cash and cash equivalents, and $7.00 billion in restricted cash. The leverage ratio stood at 2.55X, while available capacity under the revolving credit facility was $1.6 billion. CPAY repurchased about 1 million shares for $321 million during the quarter and had $1.4 billion remaining under its authorization. Corpay also refinanced its revolving credit facility and Term Loan A. The transaction increased the revolver by about $1 billion to $3.7 billion and included a $1-billion repayment of Term Loan B, extending maturities and improving financial flexibility. For the third quarter, revenues are projected at $1.36 billion at the midpoint, suggesting 16% year-over-year growth, higher than the Zacks Consensus Estimate of $1.31 billion. Adjusted earnings are expected to be $7.15 at the midpoint, hinting at 26% year-over-year growth. It sits higher than the Zacks Consensus Estimate of 6.59. For 2026, Corpay updated its revenue guidance to $5.29-$5.33 billion from the year-ago quarter’s $5.25-$5.33 billion. The consensus estimate meets the midpoint ($5.31 billion) of the guided range. The outlook incorporates the second-quarter outperformance, improved business momentum and favorable macro conditions, partly offset by the planned sale of the Epyx maintenance business. The adjusted earnings guidance is raised to $27.15-$27.55 per share from the year-ago quarter’s view of $26.3-$27.1. The Zacks Consensus Estimate for earnings is pinned at $26.85. The company continues to expect 10% organic revenue growth for the year. Corpay carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Insperity, Inc. NSP reported impressive second-quarter 2026 results. NSP reported adjusted earnings of 34 cents per share in the second quarter of 2026, up 31% year over year and surpassing the Zacks Consensus Estimate of 33 cents by 3.0%. Revenues increased 2% to $1.69 billion, beating the consensus mark of $1.67 billion by 0.5%. S&P Global Inc. SPGI registered impressive second-quarter 2026 results. SPGI reported adjusted earnings of $4.83 per share, rising 23% year over year and beating the Zacks Consensus Estimate of $4.49 by 7.6%. Pro-forma revenues of $3.68 billion increased 11% and surpassed the consensus estimate of $3.64 billion by 0.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Corpay, Inc. (CPAY) : Free Stock Analysis Report Insperity, Inc. (NSP) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Insperity (NSP) is back in focus after its second quarter 2026 earnings release, which showed modest sales growth, a return to quarterly profitability, fresh guidance, and new capital actions including share repurchases and a shelf registration. See our latest analysis for Insperity. Insperity's share price has climbed strongly this year, with a 77.39% 3 month share price return and a 31.05% year to date share price return, while the 5 year total shareholder return is still down 40.51%. If Insperity's rebound has you rethinking where growth could come from next, this is a good time to scan a curated list of 18 top founder-led companies Insperity now trades above the average analyst price target while still sitting at a steep discount to some intrinsic value estimates. After this sharp rebound, where does a reasonable fair value range land for the stock today? Insperity's most followed valuation narrative pegs fair value at $43.75, which sits below the latest close at $50.61 and presents the recent rebound as stretched against those forecasts. Read the complete narrative. Want to see what sits behind that mid market push and higher margins story? The narrative leans on measured revenue growth, improving profitability and a reset earnings multiple. Curious which assumptions really move the fair value line and how sensitive they are to small changes. Result: Fair Value of $43.75 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Insperity's heavy exposure to smaller businesses and its dependence on UnitedHealthcare for benefits coverage could quickly undermine this fair value story if conditions change. Find out about the key risks to this Insperity narrative. While the most popular Insperity narrative points to a fair value of $43.75 and labels the stock overvalued at $50.61, our DCF model paints a very different picture. On this view, Insperity screens as deeply undervalued, with a fair value estimate of $166.67. That is a wide gap in implied expectations. Which set of assumptions feels more realistic to you? Look into how the SWS DCF model arrives at its fair value. The split between the Insperity narratives on value, risks and rewards is clear. This is a useful moment to review the numbers yourself and decide what really matters for your portfolio. To go deeper into both sides of the story, take a closer look at the 3 key rewards and 1 important warning sign If Insperity has sharpened your interest in fresh opportunities, do not stop here. Use the Simply Wall Street Screener now so your next idea does not pass you by. Spot resilient companies that aim to protect capital in tougher markets by starting with 81 resilient stocks with low risk scores Hunt for stocks that combine quality with attractive pricing by working through the 55 high quality undervalued stocks Zero in on potential future standouts before they gain broader attention by reviewing the screener containing 19 high quality undiscovered gems This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NSP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Insperity, Inc. NSP reported impressive second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The stock gained 2.7% since the earnings release on July 29 in response to better-than-expected results. NSP reported adjusted earnings of 34 cents per share in the second quarter of 2026, up 31% year over year and surpassing the Zacks Consensus Estimate of 33 cents by 3.0%. Revenues increased 2% to $1.69 billion and beat the consensus mark of $1.67 billion by 0.5%. Results benefited from lower operating expenses and progress across the company’s margin recovery initiatives. However, average paid worksite employees, or WSEEs, declined 1% to 305,764, partly offsetting higher pricing and revenue per employee. Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote Adjusted EBITDA rose 13% year over year to $36 million. Reported net income improved to $4 million from a loss of $5 million in the prior-year quarter, whereas diluted earnings were 10 cents per share against a loss of 14 cents. Management said that all three components of its recovery plan contributed to the quarterly results. These included pricing and client retention actions, benefit plan and policy changes, and operating expense management. The company expects the cumulative impacts of these measures to support a significant profit recovery during 2026. Revenues per WSEE per month increased 3% to $1,838, reflecting higher pricing. Gross billings per WSEE rose to $11,895 from $11,385, while payroll cost per WSEE increased to $10,057 from $9,597. Despite the pricing gains, gross profit declined 3% to $217 million. Gross profit per WSEE slipped 1% to $237 as benefit costs per covered employee increased 5%. The higher benefit expenses continued to pressure unit profitability, even as pricing helped support top-line growth. Operating expenses decreased 8% year over year to $211 million. Salaries, wages and payroll taxes declined 11% to $115 million, while stock-based compensation fell 35% to $13 million. These reductions more than offset a 27% increase in advertising expenses to $14 million. The quarter included $8 million in costs related to Insperity’s strategic partnership with Workday, down from $14 million a year earlier. Lower partnership spending and broader expense discipline helped the company generate operating income of $6 million against an operating loss of $7 million in the prior-year period. For the first six months of 2026, revenues increased 2% to $3.58 billion as revenues per WSEE advanced 3%. Average paid WSEEs declined 1% to 304,407, reflecting continued softness in employee volumes. First-half adjusted EBITDA increased 4% to $139 million, but adjusted earnings declined 10% to $1.64 per share. Gross profit fell 3% to $519 million, while adjusted operating expenses decreased 6% to $442 million. Reported net income declined 20% to $37 million, partly reflecting higher income tax expenses. Insperity ended June with $95 million of adjusted cash, cash equivalents and marketable securities, up from $57 million at the end of 2025. In the second quarter, the company borrowed $50 million for working capital purposes, bringing outstanding credit-facility borrowings to $420 million. Cash outlays during the first six months included $46 million in dividends and $13 million in capital expenditure. NSP also repurchased approximately 172,000 shares for $4 million, maintaining shareholder distributions while continuing to fund operating and technology priorities. For the third quarter of 2026, management expects average paid WSEEs of 305,500-307,500, indicating a year-over-year decline of 1.7-2.3%. The adjusted bottom line is projected between a loss of 9 cents and earnings of 41 cents per share, while adjusted EBITDA is anticipated to be $14-$41 million. For 2026, Insperity updated the average paid WSEEs forecast to 305,000-307,000 from the preceding quarter’s view of 303,000-307,000. It marks a decline of 1-1.6% from the 1-2.3% given during the first quarter of 2026. Adjusted earnings are updated to $1.88-$2.43 per share from the first-quarter 2026 view of $1.6-$2.6, with a revised adjusted EBITDA expectation of $185-$225 million compared with the preceding quarter’s view of $170-$230 million. Management plans to focus on its refined sales approach, HRScale development and artificial intelligence initiatives as it works to restore growth momentum. NSP carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Verisk VRSK reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter. Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year. WM WM reported second-quarter 2026 adjusted earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.99 by 1.5%. Earnings increased 5.2% from the year-ago quarter’s $1.92. Revenues rose 4% year over year to $6.68 billion but missed the consensus estimate of $6.71 billion by 0.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Insperity, Inc. (NSP) : Free Stock Analysis Report Waste Management, Inc. (WM) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Interested in Insperity, Inc.? Here are five stocks we like better. Insperity exceeded Q2 expectations: Adjusted EPS rose 31% year over year to $0.34, while adjusted EBITDA increased 13% to $36 million, reflecting progress in pricing, benefits-plan changes and expense controls. Workforce and margins remain under pressure but are improving: Average paid worksite employees declined 1.1% to 305,764, while gross profit per employee fell 1%—an improvement from Q1. Healthcare costs remained elevated, although operating expenses dropped 8%. Management raised its focus on future growth: Insperity launched its HRScale solution with Workday and entered Q3 with nearly 8,000 worksite employees in sold accounts. Full-year guidance calls for adjusted EBITDA of $185 million to $225 million and adjusted EPS of $1.88 to $2.43, despite continued uncertainty around benefits costs. Insperity (NYSE:NSP) reported second-quarter 2026 adjusted earnings per share of $0.34 and adjusted EBITDA of $36 million, exceeding the midpoint of its projected ranges. Adjusted EPS rose 31% from a year earlier, while adjusted EBITDA increased 13%, as the professional employer organization continued its margin recovery plan. Chief Financial Officer Jim Allison said the company’s second-quarter performance reflected progress on pricing, benefits-plan changes and operating-expense controls. The company is maintaining its focus on recovering profitability after healthcare claims trends and related margin pressure in 2025. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? “We believe these results reflect the significant progress we have made in our ongoing margin recovery plan,” Allison said. Average paid worksite employees totaled 305,764 in the second quarter, above the high end of Insperity’s guidance range but down 1.1% from the second quarter of 2025. Allison attributed the better-than-expected result primarily to net hiring within the existing client base, which offset anticipated pressure on sales and retention from the company’s pricing actions. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Client retention and worksite employees from new clients were in line with the company’s forecast, according to Allison. Chief Executive Officer Paul Sarvadi said sales and retention landed at the lower end of Insperity’s typical ranges during the first half as the company implemented pricing and process changes. Still, Sarvadi characterized the 1% decline in paid worksite employees as evidence of the company’s resilience amid its margin-recovery efforts. He said Insperity has expanded the benefit options available to clients through its insurance agency operation. → 3 Value ETFs to Consider as Growth Stocks Lag Behind At the end of the quarter, 7% of Insperity’s client base obtained benefits outside the company’s plan, including 14% of clients added during the previous 12 months. Sarvadi said clients may choose to retain plans through third-party brokers or use plans offered through Insperity’s agency, while the company expects most clients to continue participating in the Insperity plan. Total gross profit declined 3% year over year to $217 million. Gross profit per worksite employee fell 1% to $237 per month, an improvement from the 2% decline reported in the first quarter and in line with the company’s expectations. Allison said pricing and benefit-plan actions improved the matching of pricing and costs in the company’s benefits business. However, the benefit was largely offset by a year-over-year change in workers’ compensation costs, as favorable actuarial reserve adjustments for prior policy years declined. Benefits cost per covered employee rose 5.2% from the prior-year quarter, consistent with first-quarter trends and the company’s expectations. Insperity cited favorable effects from client-mix changes, plan-design changes and modifications to its UnitedHealthcare contract that took effect at the beginning of 2026. The UnitedHealthcare agreement lowered the pooling level to $500,000 per covered member annually from $1 million. Allison said the change increased fixed premiums paid evenly throughout the year, while the favorable impact on claims costs is expected to be weighted toward later quarters, particularly the fourth quarter. Total operating expenses decreased 8% to $211 million, driven primarily by lower headcount-related costs and stock compensation expense. Cash operating expenses declined 6%. The company increased advertising expense to add leads to its sales pipeline. Insperity invested $8 million in development of its Insperity HRScale offering during the quarter, including $5 million that was capitalized. The company said beta clients were live on the platform during the period, reducing certain investment costs while moving some onboarding and service costs into operating expenses. The company paid $23 million in regular dividends during the quarter and ended the period with $95 million in adjusted cash, compared with $36 million at the end of the first quarter. It borrowed $50 million under its credit facility for working-capital purposes, largely related to timing of funding for direct-cost programs. Insperity formally launched Insperity HRScale, its joint solution with Workday designed for mid-market companies with 150 to 5,000 employees. The company entered the third quarter with nearly 8,000 worksite employees in sold HRScale accounts, including more than 5,000 already live and roughly 3,000 in implementation. Sarvadi said the initial group includes existing clients and new accounts, with some clients exceeding 1,000 employees. The company is prioritizing current-client migrations while building reference accounts for prospective customers. Management said it expects HRScale profitability over the next several years to be as good as or better than that of its HR360 offering. Allison said the company expects pricing to rise as the product moves beyond the beta phase and expects greater efficiency as it serves more clients on the platform. Insperity is also expanding its artificial-intelligence efforts. Sarvadi said 63% of surveyed clients are either piloting AI or incorporating it into their strategies, while 8% reported no plans to use the technology. The company’s HR360 agent is currently helping clients and worksite employees find answers, resources and service support, and Insperity plans to add conversational reporting and real-time business insights. For the full year, Insperity forecast average paid worksite employees of 305,000 to 307,000, representing a decline of 1% to 1.6% from 2025. The company expects adjusted EBITDA of $185 million to $225 million, up 41% to 72% from 2025, and adjusted EPS of $1.88 to $2.43, up 83% to 136%. The outlook incorporates a wider-than-usual range of potential outcomes for benefits costs during the second half because of elevated healthcare-cost trends in the market. Allison said Insperity’s EBITDA guidance range is broader than historical norms to account for that uncertainty. Third-quarter worksite employees: 305,500 to 307,500, down 1.7% to 2.3% year over year. Third-quarter adjusted EBITDA: $14 million to $41 million, up 40% to 310% year over year. Third-quarter adjusted EPS: a loss of $0.09 to earnings of $0.41 per share, compared with a year earlier increase of 55% to 305% across the range. Sarvadi said the company is preparing for the fall sales and retention season with expanded marketing activity, additional business performance advisors, HRScale and broader benefits options. He said Insperity’s priorities remain margin recovery in 2026 and establishing a foundation to regain growth momentum in 2027. Insperity, Inc is a leading provider of human resources and business performance solutions designed to help small and midsize businesses operate more efficiently. Headquartered in Kingwood, Texas, the company offers a comprehensive suite of products and services that span workforce management, payroll administration, employee benefits, risk management, and talent development. By leveraging its proprietary technology platform and team of HR experts, Insperity enables clients to focus on core business objectives while outsourcing complex administrative functions. The company's flagship offering is its Professional Employer Organization (PEO) service, which allows clients to outsource critical HR tasks such as payroll processing, workers' compensation administration, and compliance with employment regulations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Insperity Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is prioritizing a three-year margin recovery plan, with Year 1 focused on overcoming 2025 health care claims pressure through strategic pricing and client selection. Gross profit improvement was driven by a favorable client mix, as the company intentionally allowed less profitable accounts to attrite while retaining higher-margin business. A new contract with UnitedHealthcare, featuring a lower pooling limit of $500,000, is designed to flatten quarterly earnings patterns and reduce exposure to large claims. Unit growth was impacted by a 'success penalty' where maturing clients previously left for larger-firm technology, a gap the new HRScale offering is specifically designed to close. Small and medium-sized business (SMB) sentiment has turned cautious, with 54% of surveyed clients expecting negative economic impacts, leading to a pause in hiring and expansion. The company implemented a workforce realignment in Q1 to improve operating efficiency, resulting in a $9 million restructuring charge but contributing to long-term expense reduction. Management views AI as a catalyst for new business formation and a driver for sophisticated HR services, rather than a threat to the core human-to-human advisory model. Full-year unit growth guidance was revised downward to reflect weakened SMB economic sentiment and the continued impact of the margin recovery pricing strategy. Adjusted EBITDA guidance remains reiterated as outperformance in margin recovery and operating expense management is expected to offset lower worksite employee volume. HRScale is positioned as a primary growth catalyst for 2027, with nearly 6,000 worksite employees already scheduled for onboarding over the next six months. Quarterly earnings are expected to be more back-end loaded in 2026 due to the timing of claim reimbursements under the new UnitedHealthcare contract structure. Management expects the higher attrition rates seen in Q1 to moderate throughout the year as the heavy year-end renewal cycle concludes. A $9 million restructuring charge was recorded in Q1 related to severance costs from a strategic workforce realignment aimed at enhancing operating margins. The effective tax rate spiked to 41% in Q1 due to a lower stock price reducing tax benefits from vesting stock compensation, but is expected to normalize to 36% for the full year. The UnitedHealthcare contract shift to a $500,000 pooling limit increases fixed premiums charged evenly throughout the year while delaying claims reimbursements to later quarters. Macroeconomic risks including inflation, international conflicts, and tariff uncertainty are explicitly cited as factors causing SMB clients to delay capital investments and hiring. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they are ahead of schedule on profit recovery and now expect gross profit per employee to be slightly higher than original guidance. While not yet returning to 2024 levels, the improvement in client mix and operating expense favorability is successfully offsetting lower unit volume. Mid-market sales for HRScale and HR360 met internal targets despite broader macro caution, as these larger accounts make longer-term strategic decisions. Management noted that HRScale is perceived as a 'lower-risk' decision for mid-market firms due to lower upfront investment and faster time-to-value compared to traditional HCM vendors. Increased benefit costs across the industry have led to more 'shopping' by clients, resulting in a highly competitive pricing environment. Insperity is countering this by offering more client-sponsored benefit options and leveraging HRScale as a unique competitive differentiator in the 150 to 5,000 employee segment. The company plans to modestly increase the number of Business Performance Advisors (BPAs) through the remainder of the year. Management believes they can regain growth momentum without a massive headcount increase because HRScale accounts have a significantly larger average client size.

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EPS and EBITDA exceeded the midpoint of guidance, with year-over-year increases of 31% and 13% respectively. Worksite employee count outperformed expectations, driven by higher-than-expected net hiring within the client base. HR Scale formally launched with beta clients, and nearly 8,000 worksite employees sold, including some over 1,000 employees. Client confidence remains resilient, with 63% expecting their businesses to perform better in 2026 than 2025. AI strategy is advancing, with the Compass AI engine and HR 360 agent improving service delivery and client insights. Worksite employee count declined 1.1% year-over-year, with sales and retention at the lower end of typical ranges. Gross profit per worksite employee decreased 1% due to higher workers' compensation costs and lower actuarial reserve adjustments. Benefits cost per covered employee increased 5.2% year-over-year, reflecting elevated healthcare cost trends. Full-year EBITDA guidance range of $185M to $225M is wider than historical norms due to uncertainty in healthcare costs. Operating expenses decreased partly due to lower headcount, indicating cost-cutting measures that may impact growth capacity. Here are the key highlights from the Insperity Inc (NYSE:NSP) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 6 Warning Sign with NSP. Is NSP fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the makeup of the HR Scale clients currently on the platform (5,000 live and 3,000 in implementation)? Where are they coming from and what do they look like in terms of size? A: Paul Servati, Chairman and CEO: We prioritized current clients moving first, but we also have employees from new accounts. We have different size clients, including some over the 1,000 employee level. We are on a good track, getting those initial clients on board to serve as reference points and build momentum. It is a new and unique solution in the marketplace, and we are seeing great enthusiasm and receptivity. Q: You mentioned new and existing clients finding healthcare plans outside of your plan. Can you speak to that and what it does to your economics? A: Paul Servati, Chairman and CEO: We have always had clients who wanted to retain their own plan. As we went through the higher pricing environment, we ramped up our own agency to provide more options. If a clients costs are going up significantly, we can find coverage for them through our agency, integrated into our PEO offering. In that case, we are not taking the risk, and they are not added to the risk pool of the large plan. We are pleased to offer options to keep and gain clients this way. Q: You mentioned making more conservative assumptions for healthcare in the back half of the year in your EBITDA guidance. What would the EBITDA guidance have been had you stuck with historical patterns? A: Jim Allison, CFO: Typically, the range on EBITDA at this time of year is about $25 to $30 million. This year, the range is a little bigger at $40 million due to the escalated trends in the marketplace. It seemed prudent to recognize that there could be a little movement off of what we have seen so far. Q: How are you thinking about the importance of this year's fall selling season, particularly with the new platform and other offerings? A: Paul Servati, Chairman and CEO: The business model always needs a good fall selling season. We went through significant sales motion changes over the last 6-8 months related to our margin recovery plan. We have had enough repetitions to see the confidence and adoption levels rise, putting us on the right track to ramp up sales and retention. We also have HR Scale, which we have never had going into a fall selling season. It is exciting because it gives larger clients two options. It is critical, but we have to do the blocking and tackling well. Q: What sort of inflation rate are you expecting on the healthcare side, and is that a primary driver of the wide range in the EBITDA guide? Also, how should investors think about the profitability of HR Scale worksite employees? A: Jim Allison, CFO: On healthcare, there are multiple moving parts: pricing, plan selection by clients, and client mix change. We still expect our net trend to be favorable compared to the underlying marketplace trends due to our plan. On HR Scale profitability, our expectation over the next several years is that it looks as good or better than HR 360. This is due to increasing pricing as we move from beta to more mature phases and the efficiency gains from servicing more clients on the platform. Q: Are you adopting new lead generation initiatives for HR Scale, and can you speak to Workday's commitments regarding the go-to-market strategy? A: Paul Servati, Chairman and CEO: We have a very powerful marketing effort coming along this fall on many fronts, including a joint marketing plan with Workday. We have a wide variety of things, including improvements that AI has brought to target the right customer. We have a solid lead production and great support for our sales teams. Q: Is the referral partner and broker network a new channel for you? Also, how are you learning from the HR Scale beta clients and planning to increase onboarding capacity? A: Paul Servati, Chairman and CEO: We have had a broker network and referral partners for a long time. However, for the larger client community, HR Scale is a unique offering, and we are seeing a lot of interest from that group. We are working together on educational efforts as we believe it will be a great referral channel. The new offering is another way to ignite that group for more lead flow. Q: You shifted some OpEx toward marketing and advertising. Where should we think things settle out in that mix shift, and how should we benchmark returns on that spending? A: Jim Allison, CFO: We have allocated more dollars into sales and marketing in the second quarter and have more allocated in the second half of the year, including a ramp-up in the number of Business Performance Advisors (BPAs). We feel capturing the opportunity is a wise move. We measure sales and marketing spend relative to the customer lifetime value of an average of 5 to 7 years, so it makes sense to make that investment relative to the expected profitability over the customer's lifetime. Q: With all the progress on margin recovery and new offerings, what is the "North Star" for your sales team to keep the message straight? A: Paul Servati, Chairman and CEO: The North Star is always that we are here to do what's best for the client. Our mission is helping businesses succeed so communities prosper. We have made changes to create great options and help clients manage complexities. Our differentiation is the breadth, depth, and level of care of our services, which we have enhanced. We are now in the enthusiasm phase, and it is a perfect time for a great last half of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HOUSTON, July 29, 2026--(BUSINESS WIRE)--Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the second quarter ended June 30, 2026. Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and our updated 2026 outlook and will be posting an accompanying presentation to our investor website at http://ir.insperity.com. Highlights for the quarter included: Q2 revenues up 2% year-over-year Q2 average paid WSEEs down 1% to 305,764 Q2 net income up 180% to $4 million; adjusted EBITDA up 13% to $36 million Q2 diluted EPS up 171% to $0.10; adjusted EPS up 31% to $0.34 YTD average paid WSEEs down 1% to 304,407 YTD net income down 20% to $37 million; adjusted EBITDA up 4% to $139 million YTD diluted EPS down 20% to $0.97; adjusted EPS down 10% to $1.64 Second Quarter Results "We are pleased that our second quarter results reflect meaningful progress on our top 2026 priority of margin recovery, with worksite employee growth and profitability metrics meeting or exceeding our forecasted ranges," said Paul J. Sarvadi, Insperity chairman and chief executive officer. "Over the balance of the year our goal is to lay the foundation to regain growth momentum through our refined sales motion, HRScale progress and AI initiatives." The average number of worksite employees ("WSEE") paid per month decreased 1% from Q2 2025 to 305,764 WSEEs. Revenues in Q2 2026 increased 2% to $1.7 billion on a 3% increase in revenue per WSEE on higher pricing, partially offset by the decrease in paid WSEEs. Gross profit decreased 3% to $217 million in Q2 2026 and gross profit per WSEE decreased 1% to $237. Our benefits costs per covered employee increased 5% over Q2 2025. Operating expenses decreased 8% to $211 million in Q2 2026 over Q2 2025. Operating expenses included $8 million in Q2 2026 and $14 million in Q2 2025 related to our Workday strategic partnership. Reported net income increased 180% to $4 million and diluted EPS increased 171% to $0.10. Adjusted EBITDA increased 13% to $36 million and adjusted EPS increased 31% to $0.34. "All three components of our margin recovery plan contributed to our second quarter results, including our pricing and client retention strategy, benefit plan and policy changes, and operating expense management," said James D. Allison, executive vice president of finance, chief financial officer and treasurer. "As we continue to execute this plan over the remainder of the year, the cumulative impact of these efforts is expected to produce a significant profit recovery in 2026 and provide a solid foundation heading into 2027." Year-to-Date Results The average number of WSEEs paid per month decreased 1% from 2025 to 304,407 WSEEs. Revenues increased by 2% to $3.6 billion on a 3% increase in revenue per WSEE and the decrease in paid WSEEs. Gross profit decreased 3% to $519 million and gross profit per WSEE decreased 2% to $284. Our benefits costs per covered employee increased 5% over YTD 2025, partially offset by increased pricing. Operating expenses declined 4% to $451 million as compared to the 2025 period. Operating expenses included $16 million for our Workday strategic partnership in 2026. Reported net income and diluted EPS both decreased by 20% to $37 million and $0.97, respectively. Adjusted EBITDA increased 4% to $139 million and adjusted EPS declined 10% to $1.64. Cash outlays in the first six months of 2026 included the repurchase of approximately 172,000 shares of our common stock at a cost of $4 million, dividends totaling $46 million, and capital expenditures of $13 million. Adjusted cash at June 30, 2026 totaled $95 million. During the second quarter, we borrowed $50 million for working capital purposes resulting in outstanding borrowings of $420 million under our credit facility at June 30, 2026. 2026 Guidance The company also announced its updated guidance for 2026, including the third quarter of 2026. Please refer to the accompanying financial tables at the end of this press release for the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures. Definition of Key Metrics Average WSEEs paid — Determined by calculating the company’s cumulative WSEEs paid during the period divided by the number of months in the period. Adjusted EPS — Represents diluted net income per share computed in accordance with GAAP, excluding the impact of non-cash stock-based compensation and restructuring charge. Adjusted EBITDA — Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense, amortization of SaaS implementation costs, non-cash stock-based compensation, and restructuring charge. Conference Call and Webcast Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 888-506-0062 and use conference i.d. number 531909. The call will also be webcast at http://ir.insperity.com. The conference call script will be available at the same website later today. A replay of the conference call will be available at 877-481-4010, conference i.d. number 54244. The webcast will be archived for one year. About Insperity Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2025 revenues of $6.8 billion and sales and service operations throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com. Forward-Looking Statements The statements contained herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify such forward-looking statements by the words "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "forecasts," "likely," "possibly," "probably," "could," "goal," "opportunity," "objective," "target," "assume," "outlook," "guidance," "predicts," "appears," "indicator" and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, including our strategic partnership with Workday, Inc.; projected or anticipated benefits or other consequences of such plans or strategies; or projections involving anticipated revenues, earnings, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base these forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: adverse economic conditions; disallowance of, or other liabilities associated with, employee retention tax credits under certain COVID-19 relief programs; labor shortages, increasing competition for highly skilled workers, and evolving employee expectations regarding the workplace; impact of inflation and changes in U.S. trade policy; vulnerability to regional economic factors because of our geographic market concentration; failure to comply with covenants under our credit facility; impact of a future outbreak of highly infectious or contagious disease; bank failures or other events affecting financial institutions; our liability for WSEE payroll, payroll taxes and benefits costs, or other liabilities associated with actions of our client companies or WSEEs, including if our clients fail to pay us; increases in health insurance costs and workers’ compensation rates and underlying claims trends; financial solvency of workers’ compensation carriers, other insurers or financial institutions; the ability to adjust service fees for increases in state and local taxes, including state unemployment tax rates; an adverse determination regarding our status as the employer of our WSEEs for tax and benefit purposes and an inability to offer alternative benefit plans following such a determination; cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients; disruption from healthcare reform or the inability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts; regulatory and tax developments and possible adverse application of various federal, state and local regulations; failure to manage growth of our operations and the effectiveness of our sales and marketing efforts; the impact of the competitive environment and other developments in the human resources services industry, including the professional employer organization (or PEO) industry, on our growth and/or profitability; an adverse final judgment or settlement of claims against Insperity; disruptions of our information technology systems or failure to enhance our service and technology offerings to address new regulations or client expectations; our liability or damage to our reputation relating to disclosure of sensitive or private information as a result of data theft, cyberattacks or security vulnerabilities; failure of third-party providers, such as financial institutions, data centers or cloud service providers; our ability to fully realize the anticipated benefits of our strategic partnership and joint solution with Workday, Inc.; and our ability to integrate or realize expected returns on future product offerings, including through acquisitions, strategic partnerships, and investments. These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate. Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. NON-GAAP FINANCIAL MEASURES Insperity, Inc.Non-GAAP FINANCIAL MEASURES(Unaudited) Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below. NON-GAAP FINANCIAL MEASURES Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP): Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP): Following is a reconciliation of operating expenses (GAAP) to adjusted operating expenses (non-GAAP): NON-GAAP FINANCIAL MEASURES Following is a reconciliation of net income (loss) (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP): Following is a reconciliation of net income (loss) (GAAP) to adjusted net income (non-GAAP): NON-GAAP FINANCIAL MEASURES Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP): The following is a reconciliation of GAAP to non-GAAP financial measures for third quarter and full year 2026 guidance: View source version on businesswire.com: https://www.businesswire.com/news/home/20260729536502/en/ Contacts Investor Relations Contact: James D. AllisonExecutive Vice President of Finance,Chief Financial Officer and [email protected] News Media Contact: Cynthia MurgaDirector, Public [email protected]

Insperity, Inc. (NSP) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.03%. A quarter ago, it was expected that this company would post earnings of $1.24 per share when it actually produced earnings of $1.31, delivering a surprise of +5.65%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Insperity, which belongs to the Zacks Staffing Firms industry, posted revenues of $1.69 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.50%. This compares to year-ago revenues of $1.66 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Insperity shares have added about 35.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While Insperity has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Insperity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $1.63 billion in revenues for the coming quarter and $2.07 on $6.89 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Staffing Firms is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Kelly Services (KELYA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This staffing company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of -55.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kelly Services' revenues are expected to be $1.01 billion, down 8.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Insperity, Inc. (NSP) : Free Stock Analysis Report Kelly Services, Inc. (KELYA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research