Insperity Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.42%.
Did NSP Beat Earnings? Q2 2026 Results
Insperity delivered a mixed second quarter for fiscal 2026, posting revenue that edged past expectations while earnings fell short of the bar Wall Street had set. The professional employer organization reported revenue of $1.69 billion, up 1.7% year over year and ahead of the $1.67 billion consensus, but adjusted EPS of $0.34 came in 7.15% below the $0.37 estimate as rising benefits costs per covered employee weighed on gross profit, which slipped 3% to $217 million. The quarter's clearest bright spot was a swing to GAAP net income of $4 million from a net loss of $5 million a year ago, with adjusted EBITDA climbing 13% to $36 million as operating expenses fell 8% on reduced Workday partnership spending. CEO Paul Sarvadi credited progress across all three pillars of the company's margin recovery plan for the improvement. Looking ahead, Insperity guided full-year 2026 adjusted EPS of $1.88 to $2.43 and adjusted EBITDA of $185 million to $225 million, framing the cumulative recovery effort as a foundation for stronger performance into 2027.
- 3% increase in revenue per WSEE from higher pricing
- Operating expenses decreased 8% year-over-year through cost management
- Margin recovery plan execution across pricing/retention, benefit plan changes, and OpEx management
- Reduced Workday partnership spending from $14 million to $8 million in Q2
“We are pleased that our second quarter results reflect meaningful progress on our top 2026 priority of margin recovery, with worksite employee growth and profitability metrics meeting or exceeding our forecasted ranges.”
Insperity CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2026, Insperity expects average paid WSEEs of 305,500 to 307,500 (down 1.7% to 2.3% YoY), adjusted EPS of $(0.09) to $0.41 (up 55% to 305% YoY), and adjusted EBITDA of $14 million to $41 million (up 40% to 310% YoY). For full year 2026, the company guides average paid WSEEs of 305,000 to 307,000 (down 1.0% to 1.6% YoY), adjusted EPS of $1.88 to $2.43 (up 83% to 136% YoY), and adjusted EBITDA of $185 million to $225 million (up 41% to 72% YoY). The cumulative impact of margin recovery efforts is expected to produce significant profit recovery in 2026 and provide a solid foundation heading into 2027.
NSP YoY Financials
Figures from SEC filings and company reports. Not investment advice.