Insperity (NYSE:NSP) Announces Quarterly Earnings Results

Insperity (NYSE:NSP) issued its quarterly earnings results on Thursday. The business services provider reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.01, FiscalAI reports. Insperity had a net margin of 0.04% and a return on equity of 18.27%. The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same quarter in the prior year, the business posted ($0.20) EPS. Insperity’s revenue for the quarter was up 1.7% compared to the same quarter last year.

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 Price Performance

Shares of NYSE:NSP traded up $2.15 during trading on Friday, reaching $48.44. 1,095,047 shares of the company’s stock traded hands, compared to its average volume of 411,843. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 9.52. Insperity has a fifty-two week low of $18.57 and a fifty-two week high of $55.90. The company has a 50-day simple moving average of $50.13 and a 200-day simple moving average of $39.66. The firm has a market cap of $1.85 billion, a PE ratio of 605.58 and a beta of 0.54.

Insperity Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Wednesday, September 2nd were given a dividend of $0.60 per share. The ex-dividend date was Wednesday, September 2nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 5.0%. Insperity’s dividend payout ratio (DPR) is 3,000.00%.

Analyst Ratings Changes

A number of research firms have recently weighed in on NSP. Robert W. Baird set a $56.00 price objective on shares of Insperity in a research note on Friday, July 31st. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Insperity in a report on Tuesday, October 13th. 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 target on Insperity and gave the stock a “hold” rating in a research report on Wednesday, July 22nd. Finally, Zacks Research upgraded Insperity from a “strong sell” rating to a “hold” rating in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $53.33.

Insperity News Summary

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Q3 results exceeded expectations. Insperity reported adjusted EPS of $0.22, ahead of the roughly $0.20–$0.21 consensus, while revenue reached $1.651 billion versus expectations of approximately $1.64 billion. Revenue increased about 2% year over year, gross profit rose 6% to $207 million, and operating expenses declined 5%. Insperity Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management expects further margin improvement. Insperity forecast fourth-quarter adjusted EBITDA of $24 million to $44 million and said gross profit per worksite employee is expected to improve approximately 8%. Full-year 2026 guidance calls for adjusted EPS of $1.93 to $2.28 and adjusted EBITDA of $194 million to $214 million, supporting the recovery narrative. Insperity Forecasts Q4 Adjusted EBITDA
• Neutral Sentiment: Revenue growth is being driven more by pricing than customer expansion. Average paid worksite employees declined 2% to 307,265, but revenue per employee increased 4%. This suggests pricing and productivity are offsetting softer employment levels, with the potential for improved margins but limited top-line momentum. Insperity Q3 Revenue and Net Loss Results
• Negative Sentiment: Underlying profitability remains pressured. Insperity posted a small GAAP net loss, and the wide fourth-quarter EBITDA range highlights execution uncertainty. Investors may remain cautious until margin gains translate into consistent positive GAAP earnings and stronger organic worksite-employee growth. Insperity Reports Third Quarter 2026 Results

About Insperity

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.