Insperity Reports 3% Revenue Growth but Faces $5 Million Net Loss in Q2 2025

Insperity, Inc. reported its financial results for the second quarter and first half of 2025, revealing a 3% increase in revenue to $1.658 billion for the quarter, compared to $1.605 billion in the same period last year. For the first six months, revenue also rose by 3% to $3.521 billion from $3.407 billion. However, the company experienced a significant decline in profitability, with a net loss of $5 million for the second quarter, a stark contrast to the net income of $18 million reported in the prior year. This resulted in a diluted earnings per share (EPS) of $(0.14), down from $0.48 in the same quarter of 2024.

The financial performance reflects a challenging environment, with gross profit decreasing by 14% to $223 million in the second quarter and by 12% to $533 million for the first half of 2025. The decline in gross profit was attributed to increased direct costs, particularly in health insurance and workers' compensation, which rose significantly due to higher claims and inflationary pressures. Operating expenses for the second quarter decreased by 3% to $230 million, indicating some cost management efforts, but the overall operating income turned negative at $(7) million, compared to a positive $23 million in the previous year.

Operationally, Insperity reported a 1% increase in the average number of worksite employees (WSEEs) paid per month, reaching approximately 309,115 in the second quarter. This growth was driven by new client sales and retention, although the overall client base remained stable. The company continues to focus on its Professional Employer Organization (PEO) services, which encompass a wide range of HR functions, including payroll and employee benefits. Insperity's geographic revenue distribution showed consistent growth across all regions, with the Northeast and Southeast regions reporting the highest increases.

Looking ahead, Insperity's management expressed cautious optimism, emphasizing the importance of strategic partnerships and operational efficiencies to navigate the current economic landscape. The company is also evaluating the potential impacts of recent federal tax law changes on its financial position. Despite the challenges faced in the first half of 2025, Insperity remains committed to enhancing its service offerings and expanding its market presence, with plans to leverage its cloud-based human capital management solutions to drive future growth.