Insperity (NSP) Q4 2025 earnings summary

Executive summary

• Q4 2025 was impacted by macroeconomic headwinds, stagnant small business employment, and elevated healthcare claim costs, affecting growth and profitability.

• Decisive actions included sales office consolidation, margin recovery initiatives, and a focus on client selection, pricing, and operational efficiencies.

• HRScale, a new joint solution with Workday, is being rolled out to target mid-market clients and is expected to drive future growth.

• A three-year plan is underway, aiming for margin recovery in 2026, balanced growth in 2027, and a return to high-performance metrics.

• Entering 2026 with stronger alignment, clearer priorities, and the most competitive product portfolio to date.

Financial highlights

• Q4 2025 adjusted EPS was -$0.60 and adjusted EBITDA was -$13 million; full year adjusted EBITDA was $131 million and adjusted EPS was $1.03.

• Q4 2025 revenues increased 3% year-over-year to $1.7 billion; full year revenues rose 4% to $6.8 billion.

• Average paid worksite employees in Q4 rose 1.1% year-over-year to 312,377; full year average was 310,089.

• Operating expenses in Q4 decreased 6% year-over-year; full year operating expenses declined 3% to $910 million.

• $109 million returned to shareholders in 2025 through $90 million in dividends and $19 million in share repurchases.

Outlook and guidance

• 2026 average paid worksite employees expected between 305,400 and 314,700, with year-over-year change from -1.5% to +1.5%.

• Full-year 2026 adjusted EBITDA forecasted at $170 million-$230 million (up 30%-76%); adjusted EPS forecasted at $1.69-$2.72 (up 64%-164%).

• Q1 2026 adjusted EBITDA guidance: $81 million-$111 million; adjusted EPS: $1.03-$1.50.

• Operating expenses expected to decline further in 2026, with $20 million in savings from a 4% reduction in non-sales headcount, offset by a $9 million restructuring charge.

• HRScale-related operating expenses to be about $12 million lower in 2026 than 2025.