Insperity, Inc. reported a revenue increase of 4% for the fiscal year ending December 31, 2025, totaling $6.812 billion, compared to $6.581 billion in 2024. The growth was primarily driven by a 1% rise in the average number of worksite employees (WSEEs) paid per month, which reached 310,089, and a 3% increase in revenue per WSEE. However, the company experienced a significant decline in profitability, with net income dropping to a loss of $7 million, or $(0.19) per diluted share, compared to a profit of $91 million, or $2.42 per diluted share, in the previous year. Adjusted net income also fell by 71% to $39 million, reflecting the challenges faced in managing direct costs, particularly in benefits and workers' compensation.
Operationally, Insperity's gross profit decreased by 14% to $900 million, attributed to a 15% decline in gross profit per WSEE, which was partially offset by the increase in the average number of WSEEs. The rise in direct costs per WSEE was primarily driven by a 9% increase in benefits costs per participant. Despite these challenges, the company maintained a client retention rate of approximately 83%, up from 81% in 2024, indicating a stable client base amidst fluctuating economic conditions.
Strategically, Insperity is focusing on expanding its service offerings, particularly through its new HRScale solution, developed in partnership with Workday, Inc. This solution is aimed at middle-market companies and is expected to launch in the first quarter of 2026. The company also continues to offer its HR360 and HR360 Select Edition solutions, which cater to small and medium-sized businesses. As of December 31, 2025, Insperity operated 90 sales offices across 44 markets, with a significant portion of its revenue derived from the Southwest region, including Texas.
Looking ahead, Insperity's management expressed cautious optimism, emphasizing the importance of adapting to market conditions and client needs. The company plans to leverage its existing client relationships to cross-sell additional services while continuing to monitor and manage costs effectively. However, the potential impact of economic fluctuations, regulatory changes, and competition in the PEO industry remains a concern, as these factors could influence future performance and growth.
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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