Insperity, Inc. reported its financial results for the first quarter of 2026, revealing a revenue increase of 2% to $1.895 billion compared to $1.863 billion in the same period last year. However, net income decreased by 35% to $33 million, resulting in diluted earnings per share of $0.88, down from $1.35 in the prior year. The decline in profitability was attributed to a higher effective tax rate and increased costs associated with stock awards. Adjusted EBITDA showed a slight increase of 1% to $103 million, while adjusted net income fell 15% to $50 million.
The company experienced a 1% decrease in the average number of worksite employees (WSEEs) paid per month, which was partially impacted by margin recovery efforts. Despite this, revenues per WSEE per month increased by 3%, reflecting a rise in pricing. Insperity's gross profit for the quarter was $302 million, a decrease of 3% from $310 million in the previous year, primarily due to higher direct costs related to employee benefits and workers' compensation.
Operationally, Insperity's PEO HR Solutions revenues were distributed across various regions, with the Southeast showing a 5% increase to $271 million, while the Northeast remained flat at $527 million. The company continues to focus on its strategic partnership with Workday, Inc., which is expected to enhance its service offerings. Insperity's employee headcount has been adjusted, with a reduction in non-sales staff contributing to a decrease in salaries and wages by 8% to $131 million.
Looking ahead, Insperity anticipates that its cash flow from operations, combined with its $750 million revolving credit facility, will be sufficient to meet its liquidity needs for the remainder of 2026. The company is also focused on managing its operational costs and improving its service offerings to enhance profitability. However, it acknowledges potential risks, including economic conditions, labor shortages, and regulatory changes, which could impact future performance.
About INSPERITY, INC.
Insperity, Inc. provides comprehensive human resources and business performance solutions primarily to small and medium-sized U.S. companies. Its core offerings include PEO HR outsourcing, payroll, benefits administration, employee management, and compliance services. Leveraging technology and a high-touch approach, it helps clients improve productivity, attract talent, and manage employer-related regulatory burdens, operating through a nationwide network of offices and cloud-based platforms.
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