Insperity (NYSE:NSP) Releases Earnings Results

Key Points

• Q1 beat — Adjusted EPS was $1.31 versus a $1.24 consensus and revenue was $1.90B, with adjusted EBITDA of $103M as management highlighted margin recovery supported by a new UnitedHealthcare contract and the rollout of the HRScale platform.
• Guidance cut and sell-off — Management trimmed FY2026 EPS to $1.60–$2.60 and lowered WSE guidance to 303k–307k, and the stock fell about 19.3% on heavy volume amid analyst downgrades.
• Mixed corporate signals — the company paid a $0.60 quarterly dividend (about an 8.4% yield despite a negative payout ratio) while insiders (CEO and EVP) purchased shares, indicating insider buying even as near-term growth remains uncertain.

Insperity (NYSE:NSP - Get Free Report) announced its earnings results on Thursday. The business services provider reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $1.24 by $0.07, FiscalAI reports. Insperity had a negative net margin of 0.37% and a negative return on equity of 26.99%. The company had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.89 billion. During the same period in the previous year, the firm posted $1.57 earnings per share. The company's revenue was up 1.7% on a year-over-year basis. Insperity updated its FY 2026 guidance to 1.600-2.600 EPS and its Q2 2026 guidance to 0.020-0.500 EPS.

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

• Q1 results beat expectations — Adjusted EPS was $1.31 and Adjusted EBITDA was $103M, driven by gross profit outperformance and tight operating expense control despite slightly lower paid worksite employee (WSE) levels.
• Margin recovery is underway — gross profit per WSE was $332 and benefits cost inflation improved to +5% YoY, and the new UnitedHealthcare contract should support margins going forward even though it will flatten the quarterly earnings pattern.
• HRScale rollout is live — initial beta clients onboarded (payrolls processed in April), with nearly 6,000 committed WSE to be onboarded over the next six months and a growing sales pipeline; Q1 HRScale investment was $13M with spending expected to taper in H2.
• Guidance and unit growth were lowered — full-year WSE now 303k–307k (down 1%–2.3% vs. 2025) and Adjusted EPS guidance trimmed to $1.60–$2.60, citing weaker SMB sentiment and some sales/retention impact from the margin recovery actions.
• AI strategy could be a future growth driver — Insperity is deploying AI agents (starting with an HR360 agent) to improve internal productivity and client service, but near-term financial impact remains uncertain.

Insperity Trading Down 19.3%

Shares of NSP traded down $6.85 on Friday, reaching $28.72. 2,034,975 shares of the company's stock were exchanged, compared to its average volume of 876,571. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 8.02. The stock has a market capitalization of $1.10 billion, a P/E ratio of -143.60 and a beta of 0.60. The business has a 50 day moving average price of $26.17 and a two-hundred day moving average price of $34.57. Insperity has a 12 month low of $18.57 and a 12 month high of $72.23.

Insperity Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 8.4%. The ex-dividend date of this dividend was Friday, March 6th. Insperity's payout ratio is -1,200.00%.

Key Headlines Impacting Insperity

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Q1 results beat on EPS and roughly met revenue expectations: management reported $1.31 EPS versus a $1.24 consensus and revenue of $1.90B vs ~$1.89B — the beat supports underlying operating performance. Zacks: Q1 EPS & Revenues Top Estimates
• Neutral Sentiment: Revenue growth was modest (year-over-year revenue up ~1.7%) and company materials (earnings slide deck and call transcript) provide details on margin trends and account volumes for those modeling forward quarters. Insperity Q1 Slide Deck Earnings Call Transcript
• Neutral Sentiment: Some analysts view margin progress as offsetting softer staffing volumes, leading to Hold/Neutral stances rather than upgrades — that suggests limited near-term upside from analyst revisions. TipRanks/William Blair: Hold Rating
• Negative Sentiment: Management cut guidance: Q2 EPS guide 0.020–0.500 (consensus ~0.420) and FY2026 guide 1.600–2.600 (consensus ~1.94). The wider/lower guidance range raises uncertainty about near-term volume and growth, pressuring the stock. MarketBeat: Guidance Update & Q1 Release
• Negative Sentiment: Analyst downgrade and price-target cut: JPMorgan moved to an "underweight" and trimmed its PT to $33 (noting limited near-term upside), which adds selling pressure from institutional managers. Benzinga: JPMorgan Lowers PT & Rating

Insider Buying and Selling

In other Insperity news, EVP James D. Allison purchased 10,000 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The stock was acquired at an average cost of $20.45 per share, with a total value of $204,500.00. Following the completion of the purchase, the executive vice president directly owned 94,272 shares in the company, valued at approximately $1,927,862.40. This represents a 11.87% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Paul J. Sarvadi purchased 25,000 shares of the company's stock in a transaction that occurred on Thursday, March 19th. The shares were acquired at an average cost of $23.60 per share, with a total value of $590,000.00. Following the completion of the purchase, the chief executive officer owned 997,912 shares of the company's stock, valued at $23,550,723.20. The trade was a 2.57% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have purchased 214,437 shares of company stock valued at $4,941,246. 5.29% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Insperity

Hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd raised its holdings in Insperity by 75.9% in the third quarter. Caitong International Asset Management Co. Ltd now owns 964 shares of the business services provider's stock worth $47,000 after purchasing an additional 416 shares during the period. UMB Bank n.a. raised its holdings in Insperity by 62.9% in the fourth quarter. UMB Bank n.a. now owns 1,427 shares of the business services provider's stock worth $55,000 after purchasing an additional 551 shares during the period. Parallel Advisors LLC raised its holdings in Insperity by 501.1% in the fourth quarter. Parallel Advisors LLC now owns 1,587 shares of the business services provider's stock worth $61,000 after purchasing an additional 1,323 shares during the period. Geneos Wealth Management Inc. raised its holdings in Insperity by 32.2% in the first quarter. Geneos Wealth Management Inc. now owns 747 shares of the business services provider's stock worth $67,000 after purchasing an additional 182 shares during the period. Finally, Kestra Advisory Services LLC acquired a new stake in Insperity in the fourth quarter worth $87,000. 93.44% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on NSP. UBS Group set a $56.00 target price on shares of Insperity in a research note on Wednesday, February 11th. The Goldman Sachs Group set a $62.00 target price on shares of Insperity in a research note on Monday, January 5th. JPMorgan Chase & Co. dropped their target price on shares of Insperity from $35.00 to $33.00 and set an "underweight" rating for the company in a research note on Friday. Weiss Ratings reissued a "sell (d)" rating on shares of Insperity in a research note on Friday, March 27th. Finally, Robert W. Baird set a $36.00 price target on shares of Insperity in a research note on Wednesday, February 11th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Insperity presently has an average rating of "Reduce" and an average price target of $46.00.

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.

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