Insperity (NYSE:NSP) Releases Earnings Results, Beats Estimates By $0.01 EPS

Insperity (NYSE:NSP) issued its quarterly earnings results on Thursday. The business services provider reported $0.22 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.01, FiscalAI reports. The business had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.64 billion. Insperity had a negative return on equity of 19.99% and a negative net margin of 0.23%. Insperity’s revenue for the quarter was up 1.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.20) earnings per share.

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

• Margin recovery is gaining traction: Q3 gross profit per worksite employee rose 8% year over year, adjusted EPS improved to $0.22 from a $0.20 loss, and adjusted EBITDA increased 210% to $31 million. Operating expenses declined 5% due primarily to lower staffing and compensation costs.
• The margin strategy continues to weigh on growth, with average paid worksite employees down 1.8% in Q3 and expected to decline 1.4%-2.0% year over year in Q4. Management said new sales and client attrition are likely to largely offset each other in the fourth quarter, while the fall campaign remains too early to assess.
• Management raised confidence in the earnings trajectory, forecasting full-year 2026 adjusted EBITDA of $194 million-$214 million, up 48%-63%, and adjusted EPS of $1.93-$2.28, up 87%-121%. The company expects additional gross-profit improvement in Q4 from pricing actions and a more favorable client mix.
• Benefits costs increased 3.7% per covered employee, while workers’ compensation results faced higher reported costs and fewer favorable reserve adjustments. Executives cited elevated healthcare costs and increasing claim severity as market pressures that could persist, requiring continued pricing actions.
• Insperity is positioning AI as a long-term growth opportunity through its proprietary tools, the HR360 AI Agent, and its Workday partnership. Management believes AI-driven workplace changes could increase demand for HR expertise, but acknowledged that the commercial impact and client adoption timeline remain uncertain.

Insperity Stock Down 10.1%

Shares of Insperity stock traded down $5.20 during trading on Thursday, hitting $46.45. 704,513 shares of the stock traded hands, compared to its average volume of 398,866. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 6.87. Insperity has a twelve month low of $18.57 and a twelve month high of $55.90. The company has a fifty day moving average price of $50.20 and a two-hundred day moving average price of $39.64.

Insperity Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Wednesday, September 2nd were paid a dividend of $0.60 per share. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 5.2%. Insperity’s dividend payout ratio (DPR) is -558.14%.

Key Insperity News

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Insperity reported third-quarter revenue of $1.651 billion, up approximately 2% year over year and ahead of the $1.64 billion consensus estimate. Adjusted earnings of $0.22 per share also exceeded expectations of roughly $0.20-$0.21, while the company’s net loss narrowed substantially from the prior-year quarter. Insperity, Inc. reports third quarter 2026 results
• Positive Sentiment: Gross profit increased 6% to $207 million as operating expenses declined 5% to $209 million. For the first nine months, revenue rose 2% and net income increased 38% to $36 million. Insperity also repurchased approximately 131,000 shares during the quarter. Insperity, Inc. Reports Earnings Results
• Neutral Sentiment: Management provided full-year 2026 adjusted EPS guidance of $1.93 to $2.28 and adjusted EBITDA guidance of $194 million to $214 million. The ranges give investors updated targets, but the market appears focused on whether Insperity can deliver them amid slower client employment growth. Insperity, Inc. Provides Earnings Guidance
• Neutral Sentiment: Insperity’s research found that small and midsize businesses investing in both artificial intelligence and employees report better outcomes. The finding supports the company’s broader human-capital strategy but is unlikely to materially affect near-term earnings. Insperity SMB research
• Negative Sentiment: Average paid worksite employees fell 2% to 307,265, indicating continued pressure on Insperity’s customer base and a potentially weaker volume environment. Revenue per worksite employee rose 4% because of pricing, but investors may view pricing-driven growth as less durable than employment-driven expansion. Insperity Q3 revenue and net loss results
• Negative Sentiment: Although adjusted EPS was positive, reported diluted EPS was a loss of $0.02, and Insperity continued to post a negative net margin. The combination of declining worksite employment and only modest revenue growth likely overshadowed the quarterly earnings beat, explaining the pressure on NSP. Why Insperity stock is trading lower

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Robert W. Baird set a $56.00 target price on Insperity in a research note on Friday, July 31st. Zacks Research upgraded Insperity from a “strong sell” rating to a “hold” rating in a report on Wednesday, July 29th. Roth Capital set a $61.00 price target on shares of Insperity in a report on Friday, July 31st. Truist Financial set a $52.00 price objective on shares of Insperity and gave the company a “hold” rating in a research report on Wednesday, July 22nd. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Insperity in a research report on Tuesday, October 13th. One 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 stock. According to data from MarketBeat, Insperity has a consensus rating of “Reduce” and a consensus target price of $53.33.

Insperity Company Profile

Insperity, Inc provides human resources and business solutions designed primarily for small and midsize companies in the United States. The company operates as a professional employer organization (PEO), helping clients manage employment-related responsibilities while supporting their day-to-day operations.

Its services include payroll and tax administration, employee benefits, workers’ compensation, human resources guidance, regulatory compliance, recruiting and talent management, performance management, and employee training.