Insperity (NYSE:NSP) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Insperity (NYSE:NSP) announced its earnings results on Wednesday. The business services provider reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.02, FiscalAI reports. Insperity had a negative return on equity of 28.26% and a negative net margin of 0.37%.The company had revenue of $1.69 billion for the quarter, compared to analyst estimates of $1.67 billion. During the same period in the prior year, the company posted $0.26 EPS. The firm’s quarterly revenue was up 1.7% compared to the same quarter last year. Insperity updated its FY 2026 guidance to 1.880-2.430 EPS and its Q3 2026 guidance to -0.090-0.410 EPS.

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

• Q2 results exceeded expectations, with adjusted EPS of $0.34 and adjusted EBITDA of $36 million, up 31% and 13% year over year, respectively, supported by pricing actions and operating expense reductions.
• Average paid worksite employees declined 1.1% year over year to 305,764, and full-year guidance now calls for a 1%–1.6% decrease, indicating that sales and retention remain pressured by the margin recovery initiative.
• Insperity raised its full-year outlook to adjusted EBITDA of $185 million–$225 million and adjusted EPS of $1.88–$2.43, representing growth of 41%–72% and 83%–136%, respectively, although the company maintained a wide range because of healthcare cost uncertainty.
• Insperity HRScale launched with nearly 8,000 worksite employees sold, including more than 5,000 already live, while management said the Workday-based platform could expand the addressable market and eventually deliver profitability at least comparable to HR360.
• The company is increasing marketing, sales staffing, agency offerings, and AI capabilities to support the fall selling season, but elevated healthcare cost trends and rising workers’ compensation claim severity remain risks to second-half results.

Insperity Stock Performance

NSP traded down $0.10 during midday trading on Thursday, hitting $53.08. 577,581 shares of the company were exchanged, compared to its average volume of 972,225. The company’s 50 day simple moving average is $40.89 and its 200 day simple moving average is $34.51. The firm has a market capitalization of $2.03 billion, a price-to-earnings ratio of -79.18 and a beta of 0.55. Insperity has a 1-year low of $18.57 and a 1-year high of $60.50. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 5.51.

Insperity Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were given a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 4.5%. The ex-dividend date of this dividend was Thursday, June 4th. Insperity’s dividend payout ratio (DPR) is currently -358.21%.

Insperity News Summary

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Insperity reported second-quarter revenue of approximately $1.69 billion, up 1.7% year over year and ahead of expectations. Adjusted EPS of $0.34 also exceeded consensus estimates near $0.32-$0.33, while EPS improved from $0.26 a year earlier. Insperity Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management issued 2026 adjusted EBITDA guidance of $185 million to $225 million and said its HRScale offering has reached nearly 8,000 sold worksite employees, supporting the company’s longer-term growth strategy. Full-year adjusted EPS guidance of $1.88-$2.43 is above the cited consensus estimate of $1.84. Insperity 2026 EBITDA and HRScale Update
• Positive Sentiment: Insperity insiders, including CEO Paul Sarvadi, have made substantial open-market purchases in recent months. Those purchases may signal management confidence in the company’s valuation and outlook.
• Neutral Sentiment: Management’s third-quarter EPS guidance ranges from a loss of $0.09 to a profit of $0.41, compared with consensus of $0.17. The broad range reflects seasonal and operating uncertainty, making the midpoint difficult for investors to assess. Insperity Q2 2026 Earnings Call Transcript
• Negative Sentiment: Underlying operating trends were weaker: average paid worksite employees fell 1% to 305,764, gross profit declined 3% to $217 million, and reported second-quarter net income was only $4 million. The company also had $420 million outstanding under its credit facility, increasing balance-sheet sensitivity.

Analyst Upgrades and Downgrades

NSP has been the topic of several research reports. Zacks Research downgraded Insperity from a “hold” rating to a “strong sell” rating in a research report on Tuesday, June 30th. Weiss Ratings upgraded Insperity from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, July 15th. Roth Capital reissued a “buy” rating and issued a $59.00 price objective on shares of Insperity in a report on Thursday. Wall Street Zen upgraded Insperity from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Truist Financial set a $52.00 target price on Insperity and gave the stock a “hold” rating in a report on Wednesday, July 22nd. One analyst has rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $49.67.

Insider Activity

In related news, CEO Paul J. Sarvadi bought 233,000 shares of the stock in a transaction dated Wednesday, June 3rd. The shares were purchased at an average price of $34.05 per share, for a total transaction of $7,933,650.00. Following the completion of the purchase, the chief executive officer directly owned 1,105,912 shares of the company’s stock, valued at $37,656,303.60. This represents a 26.69% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 5.77% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Insperity

Several hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. increased its holdings in shares of Insperity by 140.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,471,160 shares of the business services provider’s stock valued at $56,963,000 after purchasing an additional 859,326 shares in the last quarter. Invesco Ltd. boosted its holdings in Insperity by 117.8% during the fourth quarter. Invesco Ltd. now owns 1,137,255 shares of the business services provider’s stock worth $44,035,000 after buying an additional 615,100 shares in the last quarter. Two Sigma Investments LP boosted its holdings in Insperity by 601.2% during the third quarter. Two Sigma Investments LP now owns 470,820 shares of the business services provider’s stock worth $23,164,000 after buying an additional 403,679 shares in the last quarter. AQR Capital Management LLC grew its position in Insperity by 289.5% during the fourth quarter. AQR Capital Management LLC now owns 483,085 shares of the business services provider’s stock valued at $18,599,000 after buying an additional 359,069 shares during the period. Finally, Jacobs Levy Equity Management Inc. grew its position in Insperity by 39.7% during the third quarter. Jacobs Levy Equity Management Inc. now owns 860,020 shares of the business services provider’s stock valued at $42,313,000 after buying an additional 244,350 shares during the period. Hedge funds and other institutional investors own 93.44% of the company’s stock.

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.