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Why Is Insperity (NSP) Down 33.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Insperity, Inc. (NSP - Free Report) . Shares have lost about 33.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Insperity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NSP registered an adjusted loss of 60 cents per share, missing the Zacks Consensus Estimate for earnings of 49 cents. It compares with the year-ago earnings of 5 cents per share. Revenues of $1.7 billion missed the Zacks Consensus Estimate by a slight margin but increased 3.4% from the year-ago quarter.
The average number of worksite employees paid per month increased 1% year over year to 312,377. Revenues per worksite employee (WSEE) per month moved up 2% from the year-ago quarter to $1,780.
Insperity's Q4 Operating Results
Gross profit decreased 21% from the year-ago quarter to $172 million. The gross margin was 10.3%, down 320 basis points from the fourth quarter of 2024. Operating expenses declined 4% year over year to $220 million. Operating expenses per WSEE per month dipped 7% on a year-over-year basis to $233.
NSP reported an operating loss of $46 million compared with the year-ago quarter’s $15 million operating loss. The company witnessed an operating loss per WSEE per month of $49 compared with the year-ago quarter’s $16 loss.
Balance Sheet & Cash Flow of NSP
Insperity exited fourth-quarter 2025 with cash and cash equivalents of $642 million compared with $422 million in the preceding quarter. The long-term debt was $369 million, flat sequentially.
In the reported quarter, NSP distributed $38 million as cash dividends. The capital expenditure totaled $9 million.
NSP's Q1 & 2026 Guidance
For the first quarter of 2026, NSP’s guidance for EPS is kept at $1.03-$1.5. Insperity’s view for adjusted EBITDA is kept at $81-$111 million.
For 2026, the company’s adjusted EPS guidance is kept at $1.69-$2.72. The guidance for adjusted EBITDA is set at $170-$230 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -33% due to these changes.
VGM Scores
At this time, Insperity has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Insperity has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Insperity (NSP) Down 33.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Insperity, Inc. (NSP - Free Report) . Shares have lost about 33.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Insperity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Insperity Reports Q4 Loss
Insperity reported lower-than-expected fourth-quarter 2025 results.
NSP registered an adjusted loss of 60 cents per share, missing the Zacks Consensus Estimate for earnings of 49 cents. It compares with the year-ago earnings of 5 cents per share. Revenues of $1.7 billion missed the Zacks Consensus Estimate by a slight margin but increased 3.4% from the year-ago quarter.
The average number of worksite employees paid per month increased 1% year over year to 312,377. Revenues per worksite employee (WSEE) per month moved up 2% from the year-ago quarter to $1,780.
Insperity's Q4 Operating Results
Gross profit decreased 21% from the year-ago quarter to $172 million. The gross margin was 10.3%, down 320 basis points from the fourth quarter of 2024. Operating expenses declined 4% year over year to $220 million. Operating expenses per WSEE per month dipped 7% on a year-over-year basis to $233.
NSP reported an operating loss of $46 million compared with the year-ago quarter’s $15 million operating loss. The company witnessed an operating loss per WSEE per month of $49 compared with the year-ago quarter’s $16 loss.
Balance Sheet & Cash Flow of NSP
Insperity exited fourth-quarter 2025 with cash and cash equivalents of $642 million compared with $422 million in the preceding quarter. The long-term debt was $369 million, flat sequentially.
In the reported quarter, NSP distributed $38 million as cash dividends. The capital expenditure totaled $9 million.
NSP's Q1 & 2026 Guidance
For the first quarter of 2026, NSP’s guidance for EPS is kept at $1.03-$1.5. Insperity’s view for adjusted EBITDA is kept at $81-$111 million.
For 2026, the company’s adjusted EPS guidance is kept at $1.69-$2.72. The guidance for adjusted EBITDA is set at $170-$230 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -33% due to these changes.
VGM Scores
At this time, Insperity has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Insperity has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.