A month has gone by since the last earnings report for Insperity, Inc. (NSP Quick QuoteNSP - Free Report) . Shares have lost about 4.1% 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 latest earnings report in order to get a better handle on the important drivers.

Insperity Q2 Earnings Beat Estimate

Insperity reported impressive second-quarter 2026 results, with earnings and revenues beating the Zacks Consensus Estimate.

NSP reported adjusted earnings of 34 cents per share in the second quarter of 2026, up 31% year over year and surpassing the Zacks Consensus Estimate of 33 cents by 3.0%. Revenues increased 2% to $1.69 billion and beat the consensus mark of $1.67 billion by 0.5%.

Results benefited from lower operating expenses and progress across the company’s margin recovery initiatives. However, average paid worksite employees, or WSEEs, declined 1% to 305,764, partly offsetting higher pricing and revenue per employee.

NSP Advances Margin Recovery Plan

Adjusted EBITDA rose 13% year over year to $36 million. Reported net income improved to $4 million from a loss of $5 million in the prior-year quarter, whereas diluted earnings were 10 cents per share against a loss of 14 cents.

Management said that all three components of its recovery plan contributed to the quarterly results. These included pricing and client retention actions, benefit plan and policy changes, and operating expense management. The company expects the cumulative impacts of these measures to support a significant profit recovery during 2026.

Insperity's Unit Economics Remain Pressured

Revenues per WSEE per month increased 3% to $1,838, reflecting higher pricing. Gross billings per WSEE rose to $11,895 from $11,385, while payroll cost per WSEE increased to $10,057 from $9,597.

Despite the pricing gains, gross profit declined 3% to $217 million. Gross profit per WSEE slipped 1% to $237 as benefit costs per covered employee increased 5%. The higher benefit expenses continued to pressure unit profitability, even as pricing helped support top-line growth.

NSP Reduces Expenses & Workday Costs

Operating expenses decreased 8% year over year to $211 million. Salaries, wages and payroll taxes declined 11% to $115 million, while stock-based compensation fell 35% to $13 million. These reductions more than offset a 27% increase in advertising expenses to $14 million.

The quarter included $8 million in costs related to Insperity’s strategic partnership with Workday, down from $14 million a year earlier. Lower partnership spending and broader expense discipline helped the company generate operating income of $6 million against an operating loss of $7 million in the prior-year period.

Insperity's 1H Results Stay Mixed

For the first six months of 2026, revenues increased 2% to $3.58 billion as revenues per WSEE advanced 3%. Average paid WSEEs declined 1% to 304,407, reflecting continued softness in employee volumes.

First-half adjusted EBITDA increased 4% to $139 million, but adjusted earnings declined 10% to $1.64 per share. Gross profit fell 3% to $519 million, while adjusted operating expenses decreased 6% to $442 million. Reported net income declined 20% to $37 million, partly reflecting higher income tax expenses.

NSP Maintains Liquidity While Returning Cash

Insperity ended June with $95 million of adjusted cash, cash equivalents and marketable securities, up from $57 million at the end of 2025. In the second quarter, the company borrowed $50 million for working capital purposes, bringing outstanding credit-facility borrowings to $420 million.

Cash outlays during the first six months included $46 million in dividends and $13 million in capital expenditure. NSP also repurchased approximately 172,000 shares for $4 million, maintaining shareholder distributions while continuing to fund operating and technology priorities.

Insperity Sets Q3 & 2026 Guidance

For the third quarter of 2026, management expects average paid WSEEs of 305,500-307,500, indicating a year-over-year decline of 1.7-2.3%. The adjusted bottom line is projected between a loss of 9 cents and earnings of 41 cents per share, while adjusted EBITDA is anticipated to be $14-$41 million.

For 2026, Insperity updated the average paid WSEEs forecast to 305,000-307,000 from the preceding quarter’s view of 303,000-307,000. It marks a decline of 1-1.6% from the 1-2.3% given during the first quarter of 2026.

Adjusted earnings are updated to $1.88-$2.43 per share from the first-quarter 2026 view of $1.6-$2.6, with a revised adjusted EBITDA expectation of $185-$225 million compared with the preceding quarter’s view of $170-$230 million. Management plans to focus on its refined sales approach, HRScale development and artificial intelligence initiatives as it works to restore growth momentum.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in estimates revision.

The consensus estimate has shifted 50% due to these changes.

VGM Scores

At this time, Insperity has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top quintile for value investors.

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

Insperity has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Insperity belongs to the Zacks Staffing Firms industry. Another stock from the same industry, ManpowerGroup (MAN Quick QuoteMAN - Free Report) , has gained 19.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Manpower reported revenues of $4.86 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $0.99 for the same period compares with $0.78 a year ago.

For the current quarter, Manpower is expected to post earnings of $1.01 per share, indicating a change of +21.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.

Manpower has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.