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Insperity

Insperity (NSP) Q2 2025 Earnings

Reported Aug 1, 2025 at 8:15 AM ET · SEC Source

Q2 25 EPS

$0.26

MISS 36.27%

Est. $0.41

Q2 25 Revenue

$1.66B

MISS 0.25%

Est. $1.66B

vs S&P Since Q2 25

-15.4%

TRAILING MARKET

NSP +4.4% vs S&P +19.8%

Market Reaction

Did NSP Beat Earnings? Q2 2025 Results

Insperity delivered a notably disappointing second quarter, with adjusted EPS of $0.26 falling short of the $0.41 consensus estimate by 36.27% as surging healthcare costs overwhelmed what was otherwise a steady revenue picture. The professional emplo… Read more Insperity delivered a notably disappointing second quarter, with adjusted EPS of $0.26 falling short of the $0.41 consensus estimate by 36.27% as surging healthcare costs overwhelmed what was otherwise a steady revenue picture. The professional employer organization posted $1.66 billion in revenue, up 3.3% year-over-year and essentially in line with expectations, supported by a 1% increase in average paid worksite employees to 309,115 and a 3% lift in revenue per employee from higher pricing. The real damage, however, came from elevated pharmacy trends and large claim frequency that drove gross profit down 14% to $223 million, swinging the company to a GAAP net loss of $5 million from net income of $18 million a year ago. Management is responding with pricing adjustments and benefit plan design changes, though the pressure is expected to persist, prompting Insperity to lower its full-year 2025 adjusted EPS guidance to a range of $1.81 to $2.51 and adjusted EBITDA to $170 million to $205 million, with Q3 guidance of just $0.06 to $0.49 in adjusted EPS signaling continued near-term strain.

Key Takeaways

  • • Revenue growth driven by 3% increase in revenue per WSEE from higher pricing and 1% increase in paid WSEEs
  • • Gross profit declined 14% due to higher-than-expected benefits costs including elevated pharmacy trends and large claim frequency
  • • Operating expenses decreased 3% to $230 million through cost management
  • • Workday strategic partnership spending of $14 million in Q2 2025
24/7 Wall St

NSP YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

“Despite our reported Q2 results and the associated lower guidance for this year, we have experienced recent growth momentum and are executing a plan over the balance of the year that we believe lays the foundation for accelerated growth and improved profitability in 2026.”

— Paul J. Sarvadi, Q2 2025 Earnings Press Release

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