Insperity (NSP) Investor presentation summary

Business overview and strategy

• Provides comprehensive HR solutions to small and mid-sized businesses, including payroll, benefits, compliance, and risk management through a co-employment model.

• Offers scalable platforms: HRCore, HR360, and HRScale, with HRScale leveraging a strategic partnership with Workday for enhanced technology and service.

• Targets thriving small to midmarket businesses seeking high-touch, high-value HR solutions.

• Differentiates through breadth and depth of services, robust cloud technology, and high-touch client care.

• Operates nationally with 90 sales offices and 4 service centers, serving over 310,000 average paid worksite employees in 2025.

Market opportunity and positioning

• Competes in a large, fragmented HR services market, focusing on businesses with fewer than 5,000 employees.

• HRScale, in partnership with Workday, expands reach to larger midmarket clients (100-2,500 employees).

• Market research highlights strong demand for advanced technology, scalability, automation, and rapid implementation.

• Positioned as a premium provider with high client retention and recurring revenue.

Financial performance and guidance

• FY 2025 revenue reached $6.8 billion, with adjusted EBITDA of $131 million and adjusted EPS of $1.03.

• Average paid worksite employees peaked at 310,089 in 2025, with a slight decline projected for 2026.

• Adjusted EBITDA per worksite employee per month declined from $100 in 2023 to $35 in 2025, with a rebound to $56 expected in 2026.

• FY 2026 guidance projects adjusted EBITDA of $185–$225 million and adjusted EPS of $1.88–$2.43, reflecting significant year-over-year growth.

• Dividend yield stands at 4.4%, with a high payout ratio and consistent return of capital to shareholders.