Insperity (NSP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues increased 2% year-over-year to $1.7 billion, driven by a 3% rise in revenue per worksite employee (WSEE), partially offset by a 1% decline in average paid WSEEs to 305,764.

• Q2 net income surged 180% to $4 million, with adjusted EPS up 31% to $0.34 and adjusted EBITDA up 13% to $36 million, both exceeding guidance midpoints.

• Margin recovery initiatives, including pricing, benefits plan design, client retention, and expense management, drove profit improvements despite lower employee counts.

• Launched Insperity HRScale targeting mid-market clients, with nearly 8,000 sold accounts and strong early adoption; AI initiatives and expanded insurance agency operations are supporting sales and operational efficiency.

• Worksite employees averaged 305,764 in Q2, a 1% YoY decrease but above expectations due to higher net hiring and seasonal summer hiring.

Financial highlights

• Q2 2026 revenues grew 2% to $1.7 billion; gross profit decreased 3% to $217 million; gross profit per WSEE fell 1% to $237/month.

• Q2 operating expenses dropped 8% to $211 million; cash operating expenses down 6%; YTD operating expenses down 4% to $451 million.

• Q2 operating income was $6 million, up from a $7 million loss in Q2 2025; YTD operating income increased 11% to $68 million.

• Adjusted cash at June 30, 2026, was $95 million; cash and cash equivalents totaled $619 million; long-term debt was $419 million.

• Paid $23 million in dividends in Q2 and $46 million YTD; $4 million spent on share repurchases in H1 2026.

Outlook and guidance

• Full-year 2026 guidance: average paid WSEEs to decrease 1.0–1.7%; adjusted EPS of $1.88–$2.43 (up 83–136% YoY); adjusted EBITDA of $185–$225 million (up 41–72% YoY).

• Q3 2026 guidance: average WSEEs paid expected to decrease 2.3% YoY; adjusted EPS projected at $(0.09) to $0.41 (up 55–305% YoY); adjusted EBITDA forecasted at $14–$41 million (up 40–310% YoY).

• FY 2026 outlook narrowed for both growth and profitability, with midpoints raised based on year-to-date results.

• Seasonality of earnings expected to be less pronounced due to UnitedHealthcare pooling changes.

• Liquidity expected to remain strong, with cash, operations, and credit facility sufficient for 2026 needs.