Insperity (NSP) Q4 2025 Earnings
How Did NSP Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −3.31%.
Did NSP Beat Earnings? Q4 2025 Results
No. Insperity reported Q4 2025 earnings of $-0.60 a share on Feb 10, 2026, missing the $-0.47 consensus estimate by 28.9%. Revenue was $1.7B against a $1.7B estimate.
Insperity closed out fiscal 2025 on a sour note, posting a steeper-than-expected Q4 loss as relentless benefits cost pressures overwhelmed modest top-line growth. The professional employer organization reported adjusted EPS of -$0.60 for the quarter, missing the consensus estimate of -$0.47 by 28.89%, while revenue of $1.67 billion edged 3.4% higher year over year but fell just short of the $1.68 billion Wall Street had anticipated. The core culprit was a sharp deterioration in gross profit, which tumbled 21% to $172.00 million as elevated inpatient, outpatient, and pharmacy cost trends, compounded by large-claim frequency, erased pricing gains from a 2% increase in revenue per worksite employee. Shares slipped roughly 7.6% following the report, reflecting investor frustration with the sustained benefits drag. Management is betting that restructured UnitedHealthcare contracts, tighter client selection, and new growth initiatives will drive a meaningful rebound, guiding full-year 2026 adjusted EPS of $1.69 to $2.72, representing a recovery of 64% to 164% above depressed 2025 levels.
- Elevated benefits costs driven by inpatient, outpatient, and pharmacy trends and large claim frequency
- 2% increase in revenue per WSEE per month from higher pricing
- 1% growth in average paid WSEEs to 312,377 in Q4
- 6% decrease in operating expenses to $218 million in Q4
- Reduced Workday strategic partnership costs ($10M in Q4 2025 vs $19M in Q4 2024)
“We accomplished the key objective of our year-end transition with a step up in gross profit margin, which we believe positions the company for a significant recovery in profitability this year.”
Insperity CEO, on the earnings call
What Was Insperity's Outlook in Q4 2025?
For Q1 2026, Insperity guides average WSEEs paid of 303,000–305,000 (down 0.3%–1.0% YoY), adjusted EPS of $1.03–$1.50 (down 4%–34% YoY), and adjusted EBITDA of $81–$111 million (up 9% to down 21% YoY). For full year 2026, the company expects average WSEEs paid of 305,400–314,700 (down 1.5% to up 1.5% YoY), adjusted EPS of $1.69–$2.72 (up 64%–164% YoY), and adjusted EBITDA of $170–$230 million (up 30%–76% YoY). Management expects profitability recovery through pricing and client selection actions, new contract and plan design changes with UnitedHealthcare, operating expense efficiencies, and growth from HR360 and HRScale initiatives. A restructuring charge of approximately $9 million is expected in Q1 2026. The 2026 guidance includes an effective tax rate of 39% for Q1 and 34% for the full year.
NSP YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.7B | $1.6B | +3.4% |
| Gross Profit | $172.0M | $218.0M | −21.1% |
Figures from SEC filings and company reports. Not investment advice.