Insperity (NSP) Q3 2026 Earnings
Adjusted EPS excludes non-cash stock-based compensation of $0.32 per share, less a tax effect of $(0.08). GAAP diluted EPS was $(0.02). No restructuring charge was recorded in Q3; a $9 million restructuring charge was recorded year-to-date.
How Did NSP Stock React to Q3 2026 Earnings?
Did NSP Beat Earnings? Q3 2026 Results
Yes. Insperity reported Q3 2026 earnings of $0.22 a share on Oct 29, 2026, beating the $0.21 consensus estimate by 3.0%. Revenue was $1.7B against a $1.6B estimate.
Insperity delivered a modest but clean beat in the third quarter of 2026, posting adjusted EPS of $0.22 against a consensus estimate of $0.21, a 3.04% beat, while revenue of $1.65 billion edged past the $1.64 billion estimate by 0.89% and rose 1.7% year over year. The headline story, however, was margin recovery: gross profit climbed 6% to $207 million as pricing gains ran ahead of benefit cost inflation, with revenue per worksite employee rising 4% to $1,791 per month even as the average number of paid worksite employees slipped 2% to 307,265. Operating expenses fell 5% to $209 million on lower compensation and commission costs, helping narrow the operating loss to $2 million from $25 million a year earlier and lift adjusted EBITDA to $31 million from $10 million. The GAAP net loss narrowed to $1 million from $20 million. Analysts had been watching closely whether the company's repricing effort could translate into measurable earnings improvement, and Q3 offered an affirmative, if measured, answer. Looking ahead, Insperity guided full-year 2026 adjusted EPS of $1.93 to $2.28, implying growth of 87% to 121%, with adjusted EBITDA of $194 million to $214 million.
- Higher pricing drove a 4% increase in revenue per WSEE, to $1,791 per month
- Gross profit rose 6% to $207 million and gross profit per WSEE rose 8% to $225, as pricing outpaced a 4% increase in benefits costs per covered employee
- Operating expenses fell 5% to $209 million, mainly from lower compensation costs after reducing corporate staff
- Stock-based compensation fell to $12 million from $16 million, and commissions fell to $10 million from $13 million
- Adjusted EBITDA rose 210% to $31 million; adjusted EPS rose 210% to $0.22
- Adjusted cash rose to $119 million at September 30, 2026, from $57 million at December 31, 2025
“We delivered solid third-quarter financial results reflecting continued progress on our top priority of margin recovery, achieving a meaningful step towards restoring the earnings power of our business model.”
Insperity CEO, on the earnings call
What Is Insperity's Outlook?
Insperity updated its 2026 guidance. For Q4 2026, the company expects: - Average paid WSEEs of 306,000–308,000, a 2.0% to 1.4% year-over-year decrease. - Adjusted EPS of $0.07–$0.42, a 112% to 170% increase. - Adjusted EBITDA of $24–$44 million, a 285% to 438% increase. - GAAP net income (loss) of $(6) to $8 million. - Diluted EPS of $(0.14) to $0.21. For full year 2026, the company expects: - Average paid WSEEs of 305,500–306,000, a 1.5% to 1.3% decrease. - Adjusted EPS of $1.93–$2.28, an 87% to 121% increase. - Adjusted EBITDA of $194–$214 million, a 48% to 63% increase. - Net income of $32–$45 million. - Diluted EPS of $0.81–$1.16. The adjusted EPS guidance assumes an effective tax rate of about 28% in Q4 and 36% for the full year. It also assumes 39.0 million outstanding shares for Q4 and 38.6 million for the full year. Management believes AI could strengthen demand for its comprehensive HR solutions among small and midsize businesses.
NSP YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.7B | $1.6B | +1.7% |
| Gross Profit | $207.0M | $195.0M | +6.2% |
| Operating Income | −$2.0M | −$1.0M | +92.0% |
| Net Income | −$1.0M | −$512,821 | +95.0% |
Figures from SEC filings and company reports. Not investment advice.