Insperity Stock Earnings Reports

Insperity reported Q1 2026 adjusted EPS of $1.31 and adjusted EBITDA of $103 million, both modestly ahead of the midpoint of expectations. Key positives: gross profit improved (down 3% vs. Q1 2025 but a sharp improvement from Q4 2025's -21%), gross profit per worksite employee was $332/month (slightly above forecast), benefit-cost trends eased (benefit cost per covered employee rose 5% YoY versus ~9% in 2025), operating expenses declined (1% reported; -5% excluding a $9M restructuring charge), and initial HRScale beta onboarding completed with a growing pipeline. Management emphasized margin-recovery progress driven by a new UnitedHealthcare contract, plan design changes, pricing/client selection, and operating efficiencies. They reiterated full-year adjusted EBITDA guidance of $170M–$230M despite lowering worksite-employee (WSE) guidance to 303k–307k (a -1% to -2.3% range vs. 2025) due to weaker small-business sentiment and near-term impacts of their margin recovery actions on sales/retention. HRScale is highlighted as a multi-year growth catalyst (targeting mid-market accounts and larger clients), with ~6,000 WSEs committed to be onboarded in the next six months and initial ramp-related investments tapering later in the year. Management expects a somewhat flatter quarterly earnings pattern in 2026 due to the UnitedHealthcare pooling change (higher even premiums with claim reimbursements weighted later in the year). Capital allocation remains balanced: dividends continued ($23M) and small buybacks occurred, with $36M adjusted cash and ample unused credit capacity. Risks called out: continued macro/mid-market weakness, potential volatility from AI-driven labor changes, and execution on HRScale and sales/retention initiatives.