Insperity (NSP) investor relations material

Executive summary

• Q2 2025 revenue rose 3% year-over-year to $1.66–$1.7 billion, with average paid worksite employees up 1% to 309,115; net loss was $5 million, adjusted EBITDA $32 million, and adjusted EPS $0.26, all down sharply year-over-year due to higher benefits costs.

• Gross profit declined 14% to $223 million, mainly from elevated healthcare and pharmacy costs; gross profit per worksite employee fell to $240/month from $282 last year.

• Operating expenses decreased 3% year-over-year, including $14 million invested in the Workday partnership.

• Strategic partnership with Workday progressing, with Insperity HR Scale beta launch targeted for early 2026 and a multi-phase client rollout planned.

• New HR solutions portfolio launched, including Insperity HR 360, HR Core, and HR Scale, with rebranding and AI initiatives underway.

Financial highlights

• Q2 adjusted EBITDA was $32 million, down 52% year-over-year; adjusted EPS was $0.26, down 70% year-over-year.

• Q2 gross profit dropped to $223 million from $260 million in Q2 2024.

• Operating income for Q2 was a loss of $7 million, compared to $23 million profit in Q2 2024.

• YTD adjusted EBITDA was $134 million, down 36%; adjusted EPS was $1.83, down 42%.

• $64 million returned to shareholders in H1 2025 via dividends ($45 million) and share repurchases ($19 million).

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance is $170–$205 million, down 37–24% year-over-year; adjusted EPS guidance is $1.81–$2.51, down 49–30% year-over-year.

• Average paid worksite employees projected to grow 1–2% for FY 2025.

• Q3 2025 adjusted EBITDA expected at $24–$44 million; adjusted EPS $0.06–$0.49.

• Operating expenses expected to decline sequentially in each remaining quarter; $58 million investment in Workday partnership planned for 2025.

• Management expects improved profitability in 2026, citing recent growth momentum and strategic initiatives.