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Insperity Stock Declines 23% After Reporting Q3 Earnings Miss

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Key Takeaways

  • Insperity posted a Q3 adjusted loss of $0.20 per share, missing expectations for a $0.22 profit.
  • Q3 revenue rose 4% to $1.6B, but lower margins pushed gross profit down 15% year over year.
  • The firm cut its 2025 EPS outlook to $0.84-$1.47 and trimmed adjusted EBITDA guidance to $119-$153M.

Insperity, Inc. (NSP - Free Report) reported lower-than-expected third-quarter 2025 results.

The stock has declined 22.8% since the earnings release on Nov. 3 in response to dismal earnings and revenues, and a weak EPS guidance.

For the fourth quarter of 2025, NSP’s guidance for loss per share is kept at 79-16 cents. The guided range is lower than the Zacks Consensus Estimate for earnings of 7 cents per share.

For 2025, the company lowered the adjusted earnings per share (EPS) guidance to $84 cents-$1.47 from the preceding quarter’s view of $1.81-$2.51. The guidance range is lower than the Zacks Consensus Estimate for earnings of $2.11 per share.

NSP registered an adjusted loss of 20 cents per share compared with the consensus mark for earnings of 22 cents per share. It compares with the year-ago earnings of 39 cents per share. Revenues of $1.6 billion missed the Zacks Consensus Estimate by a slight margin but increased 4% from the year-ago quarter.

Insperity, Inc. Price, Consensus and EPS Surprise

 

Insperity, Inc. Price, Consensus and EPS Surprise

Insperity, Inc. price-consensus-eps-surprise-chart | Insperity, Inc. Quote

The company’s stock has declined 57.2% over the past year compared with the 44.1% fall of its industry and the 15.6% rise of the Zacks S&P 500 composite.

The average number of worksite employees paid per month increased 1% year over year to 312,842. Revenues per worksite employee (WSEE) per month increased 3% from the year-ago quarter to $1,729.

Insperity’s Q3 Operating Results

Gross profit declined 15% from the year-ago quarter to $195 million. The gross margin was 12%, down 140 basis points from the third quarter of 2024. Operating expenses declined 4% year over year to $220 million. Operating expenses per WSEE per month fell 4% on a year-over-year basis to $246.

NSP reported an operating loss of $25 million against the year-ago quarter’s operating income of $1 million. The company witnessed an operating loss per WSEE per month of $27 compared with the year-ago quarter’s $1. Adjusted EBITDA for the reported quarter is $10 million, decreasing 87.5% on a year-over-year basis.

Balance Sheet & Cash Flow of NSP

Insperity exited third-quarter 2025 with cash and cash equivalents of $422 million compared with $441 million in the preceding quarter. The long-term debt was $369 million, flat sequentially.

In the reported quarter, NSP distributed $11.1 million as cash dividends. The capital expenditure totaled $5.6 million.

Insperity’s Q4 & 2025 Guidance

For the fourth quarter, Insperity’s view for adjusted EBITDA is kept at -$29-$9 million.

For 2025, the guidance for adjusted EBITDA is reduced to $119-$153 million compared with $170-$205 million provided in the preceding quarter.

Insperity carries a Zacks Rank #5 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

TransUnion (TRU - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

TRU’s quarterly adjusted earnings (adjusting 61 cents from non-recurring items) of $1.10 per share surpassed the consensus mark by 5.8% and increased by the same margin year over year. Total revenues of $1.2 billion outpaced the consensus mark by 3.1% and increased 7.8% from the year-ago quarter.

Paychex, Inc. (PAYX - Free Report) reported impressive first-quarter fiscal 2026 results.

PAYX’s fiscal first-quarter earnings of $1.22 per share beat the Zacks Consensus Estimate by a slight margin and increased 5.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by a slight margin and gained 16.8% from the year-ago quarter.


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