Insperity (NYSE:NSP) Posts Earnings Results, Beats Expectations By $0.02 EPS

Insperity (NYSE:NSP) released its quarterly earnings data on Wednesday. The business services provider reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.02, FiscalAI reports. The firm had revenue of $1.69 billion during the quarter, compared to analysts’ expectations of $1.67 billion. Insperity had a negative net margin of 0.23% and a negative return on equity of 19.57%. The firm’s quarterly revenue was up 1.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.26 earnings per share. Insperity updated its FY 2026 guidance to 1.880-2.430 EPS and its Q3 2026 guidance to -0.090-0.410 EPS.

Here are the key takeaways from Insperity’s conference call:

• Q2 results exceeded expectations, with adjusted EPS of $0.34 and adjusted EBITDA of $36 million, up 31% and 13% year over year, respectively, supported by pricing actions and operating expense reductions.
• Average paid worksite employees declined 1.1% year over year to 305,764, and full-year guidance now calls for a 1%–1.6% decrease, indicating that sales and retention remain pressured by the margin recovery initiative.
• Insperity raised its full-year outlook to adjusted EBITDA of $185 million–$225 million and adjusted EPS of $1.88–$2.43, representing growth of 41%–72% and 83%–136%, respectively, although the company maintained a wide range because of healthcare cost uncertainty.
• Insperity HRScale launched with nearly 8,000 worksite employees sold, including more than 5,000 already live, while management said the Workday-based platform could expand the addressable market and eventually deliver profitability at least comparable to HR360.
• The company is increasing marketing, sales staffing, agency offerings, and AI capabilities to support the fall selling season, but elevated healthcare cost trends and rising workers’ compensation claim severity remain risks to second-half results.

Insperity Stock Performance

Shares of NSP stock traded down $3.83 during mid-day trading on Friday, reaching $50.20. 544,702 shares of the company’s stock traded hands, compared to its average volume of 975,439. Insperity has a 12 month low of $18.57 and a 12 month high of $60.50. The firm has a 50 day moving average price of $41.35 and a two-hundred day moving average price of $34.58. The company has a debt-to-equity ratio of 5.51, a quick ratio of 1.09 and a current ratio of 1.09. The firm has a market capitalization of $1.92 billion, a PE ratio of -116.77 and a beta of 0.55.

Insperity Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th were paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 4.8%. The ex-dividend date was Thursday, June 4th. Insperity’s dividend payout ratio (DPR) is currently -358.21%.

Analysts Set New Price Targets

NSP has been the subject of a number of research analyst reports. Roth Capital set a $61.00 target price on shares of Insperity in a research report on Friday. Weiss Ratings raised Insperity from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, July 15th. Zacks Research upgraded Insperity from a “strong sell” rating to a “hold” rating in a research note on Wednesday. Truist Financial set a $52.00 price target on Insperity and gave the stock a “hold” rating in a research note on Wednesday, July 22nd. Finally, Wall Street Zen raised Insperity from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Insperity currently has a consensus rating of “Reduce” and a consensus target price of $53.33.

Insperity News Roundup

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Insperity reported second-quarter adjusted EPS of $0.34, above the roughly $0.32-$0.33 consensus, while revenue of $1.686 billion also exceeded expectations. EPS rose from $0.26 a year earlier as cost reductions and margin recovery boosted profitability. Insperity Q2 earnings report
• Positive Sentiment: Management raised full-year 2026 EPS guidance to $1.88-$2.43, above the $1.84 analyst consensus, and forecast adjusted EBITDA of $185 million-$225 million. Insperity also said its HRScale offering had nearly 8,000 sold worksite employees. Insperity EBITDA and HRScale outlook
• Positive Sentiment: Zacks upgraded Insperity from “strong sell” to “hold,” while substantial recent insider buying—including purchases by CEO Paul Sarvadi—may provide some investor confidence. Zacks rating update
• Neutral Sentiment: Insperity is investing in pricing initiatives, HRScale, Workday and artificial intelligence to reignite growth and adapt to a more competitive professional employer organization market. These initiatives could support longer-term growth but may require continued spending.
• Negative Sentiment: Average paid worksite employees declined 1% to 305,764, and rising benefits costs continue to pressure margins. Gross profit fell 3% in the quarter despite revenue growth, highlighting ongoing operating challenges.
• Negative Sentiment: The stock’s strong six-month rally has left valuation looking stretched, while leverage remains high, cash flow is weak and adjusted cash was $95 million against $420 million outstanding on its credit facility. These factors limit upside and help explain the recent decline in the shares. Insperity valuation analysis
• Negative Sentiment: Third-quarter EPS guidance ranges from a loss of $0.09 to profit of $0.41, below the $0.17 consensus midpoint, signaling substantial near-term earnings volatility.

Insider Buying and Selling

In related news, CEO Paul J. Sarvadi bought 233,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were bought at an average cost of $34.05 per share, with a total value of $7,933,650.00. Following the acquisition, the chief executive officer owned 1,105,912 shares in the company, valued at $37,656,303.60. This trade represents a 26.69% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 5.77% of the company’s stock.

Institutional Trading of Insperity

Several hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. increased its position in Insperity by 140.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,471,160 shares of the business services provider’s stock worth $56,963,000 after buying an additional 859,326 shares in the last quarter. Invesco Ltd. lifted its position in shares of Insperity by 117.8% during the 4th quarter. Invesco Ltd. now owns 1,137,255 shares of the business services provider’s stock valued at $44,035,000 after buying an additional 615,100 shares in the last quarter. Two Sigma Investments LP grew its stake in shares of Insperity by 601.2% during the 3rd quarter. Two Sigma Investments LP now owns 470,820 shares of the business services provider’s stock valued at $23,164,000 after acquiring an additional 403,679 shares during the period. AQR Capital Management LLC grew its stake in shares of Insperity by 289.5% during the 4th quarter. AQR Capital Management LLC now owns 483,085 shares of the business services provider’s stock valued at $18,599,000 after acquiring an additional 359,069 shares during the period. Finally, Jacobs Levy Equity Management Inc. grew its stake in shares of Insperity by 39.7% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 860,020 shares of the business services provider’s stock valued at $42,313,000 after acquiring an additional 244,350 shares during the period. Institutional investors own 93.44% of the company’s stock.

Insperity Company Profile

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.