TriNet Group (TNET) investor relations material

Executive summary

• Q3 revenue fell 5% YoY to $1.175B; net income was $31M and diluted EPS was $0.65, while adjusted EPS was $0.94.

• Health repricing is complete, retention improved and new sales returned to growth; Q3 insurance performance was better than forecast, with FY26 adjusted EBITDA margin and adjusted EPS expected near the high end of guidance.

Financial highlights

• Q3 professional services revenue was $157M, down 7% YoY; insurance service revenue was $1.005B, down 4%, and interest revenue was $13M, down 24%.

• Q3 income before tax was $39M versus $50M; net income was $31M versus $34M. Adjusted net income was $44M, or $0.94 per diluted share, versus $55M, or $1.11.

• Nine-month revenue declined 5% YoY to $3.579B; net income rose 11% to $173M and diluted EPS rose 16% to $3.70.

• Operating expenses, excluding insurance costs and interest expense, rose 2% YoY, mainly from Cocoon costs and strategic investments.

• YTD operating cash flow was $317M versus $242M; investing cash outflow was $169M and financing cash outflow was $668M.

Outlook and guidance

• FY26 guidance was unchanged: total revenue $4.75B–$4.9B, trending toward the bottom; professional services revenue $647M–$663M, trending toward the high end.

• FY26 ICR guidance is 88.5%–89.5%, tracking to the favorable low end; new and renewal pricing targets the higher end of the 87%–90% range.

• FY26 adjusted EBITDA margin guidance is 8.5%–9%, trending high; diluted EPS guidance is $2.85–$3.35 and adjusted EPS is $4.50–$5.10, with adjusted EPS expected at $5.10.

• New sales ACV grew mid-single digits YoY in Q3; management forecast high-single-digit growth in Q4 and sees momentum building into the January pipeline.

• Full-year WSE retention is forecast to modestly improve; medium-term retention is expected to exceed its ~80% historical average. No WSE growth inflection date was specified.