Insperity (NSP) investor relations material

Executive summary

• Q3 margin recovery lifted gross profit per worksite employee 8% YoY to $225 per month; adjusted EBITDA rose 210% to $31 million despite a 2% decline in average paid worksite employees.

• Revenue rose 2% in Q3 and 9M; fall sales activity began rebuilding the pipeline, while management continued to prioritize margin recovery in 2026 and balance growth with profitability in 2027.

Financial highlights

• Q3 revenue increased 2% to $1.651 billion; gross profit rose 6% to $207 million and operating expenses declined 5% to $209 million.

• Q3 adjusted EPS was $0.22 versus an adjusted loss of $0.20; GAAP net loss narrowed to $1 million from $20 million, and operating loss improved to $2 million from $25 million.

• 9M revenue increased 2% to $5.232 billion; gross profit was $726 million, operating income was $66 million versus $36 million, and net income rose to $36 million from $26 million.

• 9M adjusted EBITDA increased 18% to $170 million and adjusted EPS rose 13% to $1.85; diluted EPS increased 38% to $0.95.

Outlook and guidance

• Q4 guidance: average paid worksite employees of 306,000–308,000, adjusted EPS of $0.07–$0.42, and adjusted EBITDA of $24–$44 million.

• FY 2026 guidance: average paid worksite employees of 305,500–306,000, adjusted EPS of $1.93–$2.28, and adjusted EBITDA of $194–$214 million.

• Guidance implies FY adjusted EBITDA growth of 48%–63% and adjusted EPS growth of 87%–121%; adjusted EPS assumptions include effective tax rates of ~28% in Q4 and 36% for FY.

• Q4 gross profit is expected to improve YoY, with lower operating expenses; sequential paid worksite employee growth is expected to be relatively flat.