Insperity (NYSE:NSP) Announces Earnings Results

Insperity (NYSE:NSP) posted its earnings results on Tuesday. The business services provider reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.47) by ($0.13), FiscalAI reports. Insperity had a return on equity of 12.53% and a net margin of 0.25%.The firm had revenue of $1.67 billion during the quarter, compared to the consensus estimate of $1.68 billion. During the same quarter last year, the company posted $0.05 EPS. Insperity’s revenue for the quarter was up 3.4% on a year-over-year basis. Insperity updated its Q1 2026 guidance to 1.030-1.500 EPS and its FY 2026 guidance to 1.690-2.720 EPS.

Here are the key takeaways from Insperity’s conference call:

• Reported Q4 results included an adjusted EPS of -$0.60 and adjusted EBITDA of -$13M (or -$11M excluding a $2.8M sales-office consolidation charge), and paid worksite employees ended at 312,377, slightly below management’s forecast due to client net hiring volatility.
• 2026 guidance targets material profitability recovery: average paid worksite employees guidance of -1.5% to +1.5%, full-year Adjusted EBITDA $170M–$230M and Adjusted EPS $1.69–$2.72 (Q1 Adjusted EPS $1.03–$1.50); the board will exclude a $9M restructuring charge from adjusted metrics.
• Management is pursuing margin-recovery levers — higher pricing (average increases “in the teens”), stricter client selection, and a renegotiated UnitedHealthcare contract (pooling cut to $500k) — but warns healthcare claim trends remain elevated and ~60% of clients still face renewals this year.
• HRScale (Insperity’s Workday joint solution) is entering beta with payroll live expected April 1 and management expects about 6,000–8,000 paid worksite employees on HRScale by year-end, positioning a larger TAM and potential revenue/retention benefits in 2027 and beyond.
• Cost actions include a right-sizing removing ~4% of non-sales headcount, a one-time $9M restructuring charge, and expected ~$20M operating expense savings in 2026, while Q4 op expenses were down 6% year-over-year.

Insperity Stock Performance

Shares of NSP opened at $33.68 on Wednesday. The company has a debt-to-equity ratio of 4.24, a current ratio of 1.12 and a quick ratio of 1.12. The firm’s 50 day moving average is $40.72 and its 200-day moving average is $44.80. Insperity has a 12-month low of $31.00 and a 12-month high of $95.98. The stock has a market capitalization of $1.27 billion, a P/E ratio of 73.21 and a beta of 0.47.

Insperity Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 23rd. Stockholders of record on Tuesday, December 9th were given a dividend of $0.60 per share. The ex-dividend date was Tuesday, December 9th. This represents a $2.40 annualized dividend and a dividend yield of 7.1%. Insperity’s dividend payout ratio (DPR) is 521.74%.

Key Stories Impacting Insperity

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Management set a 2026 adjusted EBITDA target of $170M–$230M and reiterated progress on the HRScale rollout, which signals cost/scale improvements that could lift margins if execution continues. Insperity outlines 2026 adjusted EBITDA target of $170M–$230M as HRScale rollout advances
• Positive Sentiment: Top‑line growth continued: Q4 revenue rose ~3.4% YoY to $1.67B, showing demand resilience for its HR and PEO services. Insperity Announces Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Company hosted an earnings call and posted slides/transcript — useful for parsing the pace of HRScale adoption and timing of margin improvements. Investors can review the call/transcript for management tone and detail. Insperity, Inc. (NSP) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Earnings missed: Q4 GAAP EPS was a ($0.60) loss vs. consensus ($0.49) — a material miss that triggered the immediate negative reaction. Insperity Inc (NSP) Q4 2025 Earnings Call Highlights: Strategic Moves and Challenges in Focus
• Negative Sentiment: Guidance came in below street expectations: Q1 2026 EPS guide of $1.03–$1.50 vs. consensus ~ $1.55, and FY 2026 EPS guide $1.69–$2.72 vs. consensus ~$1.98 — the lower guidance range reduced near‑term earnings visibility. MarketBeat NSP coverage
• Negative Sentiment: Margins under pressure from elevated benefits costs and cost of sales: gross profit declined sharply YoY and operating results swung to an operating loss, weighing on profitability metrics. Insperity reports Q4 loss as elevated benefits costs weigh on results
• Negative Sentiment: Cash flow weakness and an EPS swing versus prior year add concern: operating cash flow was negative in the quarter and diluted EPS fell versus last year, increasing investor scrutiny on near‑term cash conversion. Insperity, Inc. (NSP) Reports Q4 Loss, Lags Revenue Estimates
• Negative Sentiment: Insider activity and mixed institutional flows noted in filings — some insider selling and shifting hedge fund positions can amplify downside in a weak reaction. Insperity Inc. (NSP) Stock Falls on Q4 2025 Earnings

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Truist Financial lowered their target price on Insperity from $50.00 to $35.00 and set a “hold” rating on the stock in a research report on Tuesday, November 4th. JPMorgan Chase & Co. decreased their price target on Insperity from $51.00 to $34.00 and set an “underweight” rating for the company in a research note on Tuesday, November 4th. Weiss Ratings restated a “sell (d)” rating on shares of Insperity in a research note on Monday, December 29th. The Goldman Sachs Group set a $62.00 price objective on shares of Insperity in a report on Monday, January 5th. Finally, Wall Street Zen cut shares of Insperity from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Insperity currently has an average rating of “Reduce” and a consensus price target of $48.25.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in NSP. Goldman Sachs Group Inc. grew its holdings in shares of Insperity by 140.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,471,160 shares of the business services provider’s stock valued at $56,963,000 after buying an additional 859,326 shares in the last quarter. Hawk Ridge Capital Management LP increased its holdings in shares of Insperity by 15.6% in the 3rd quarter. Hawk Ridge Capital Management LP now owns 915,236 shares of the business services provider’s stock valued at $45,030,000 after purchasing an additional 123,736 shares during the period. Jacobs Levy Equity Management Inc. lifted its position in shares of Insperity by 39.7% in the third quarter. Jacobs Levy Equity Management Inc. now owns 860,020 shares of the business services provider’s stock worth $42,313,000 after purchasing an additional 244,350 shares in the last quarter. Sei Investments Co. boosted its holdings in shares of Insperity by 4.7% during the third quarter. Sei Investments Co. now owns 828,545 shares of the business services provider’s stock worth $40,765,000 after purchasing an additional 37,423 shares during the period. Finally, Millennium Management LLC grew its position in Insperity by 35.9% during the third quarter. Millennium Management LLC now owns 539,760 shares of the business services provider’s stock valued at $26,556,000 after purchasing an additional 142,587 shares in the last quarter. Institutional investors and hedge funds own 93.44% of the company’s stock.

About Insperity

Insperity, Inc is a leading provider of human resources and business performance solutions designed to help small and midsize businesses operate more efficiently. Headquartered in Kingwood, Texas, the company offers a comprehensive suite of products and services that span workforce management, payroll administration, employee benefits, risk management, and talent development. By leveraging its proprietary technology platform and team of HR experts, Insperity enables clients to focus on core business objectives while outsourcing complex administrative functions.

The company’s flagship offering is its Professional Employer Organization (PEO) service, which allows clients to outsource critical HR tasks such as payroll processing, workers’ compensation administration, and compliance with employment regulations.