Insperity (NYSE:NSP) Posts Earnings Results, Misses Estimates By $0.13 EPS

Insperity (NYSE:NSP) posted its quarterly earnings results on Tuesday. The business services provider reported ($0.60) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.47) by ($0.13), FiscalAI reports. Insperity had a negative net margin of 0.10% and a negative return on equity of 10.38%. The business had revenue of $1.67 billion during the quarter, compared to the consensus estimate of $1.68 billion. During the same quarter last year, the company posted $0.05 EPS. The firm’s revenue was up 3.4% on a year-over-year basis. Insperity updated its Q1 2026 guidance to 1.030-1.500 EPS and its FY 2026 guidance to 1.690-2.720 EPS.

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

• Reported Q4 results included an adjusted EPS of -$0.60 and adjusted EBITDA of -$13M (or -$11M excluding a $2.8M sales-office consolidation charge), and paid worksite employees ended at 312,377, slightly below management’s forecast due to client net hiring volatility.
• 2026 guidance targets material profitability recovery: average paid worksite employees guidance of -1.5% to +1.5%, full-year Adjusted EBITDA $170M–$230M and Adjusted EPS $1.69–$2.72 (Q1 Adjusted EPS $1.03–$1.50); the board will exclude a $9M restructuring charge from adjusted metrics.
• Management is pursuing margin-recovery levers — higher pricing (average increases “in the teens”), stricter client selection, and a renegotiated UnitedHealthcare contract (pooling cut to $500k) — but warns healthcare claim trends remain elevated and ~60% of clients still face renewals this year.
• HRScale (Insperity’s Workday joint solution) is entering beta with payroll live expected April 1 and management expects about 6,000–8,000 paid worksite employees on HRScale by year-end, positioning a larger TAM and potential revenue/retention benefits in 2027 and beyond.
• Cost actions include a right-sizing removing ~4% of non-sales headcount, a one-time $9M restructuring charge, and expected ~$20M operating expense savings in 2026, while Q4 op expenses were down 6% year-over-year.

Insperity Price Performance

Shares of NSP stock traded down $2.12 on Thursday, hitting $27.88. 357,944 shares of the company’s stock were exchanged, compared to its average volume of 1,117,740. The company has a 50 day moving average of $40.60 and a 200 day moving average of $44.70. The stock has a market cap of $1.05 billion, a P/E ratio of -139.28 and a beta of 0.47. The company has a debt-to-equity ratio of 4.24, a current ratio of 1.12 and a quick ratio of 1.12. Insperity has a 12 month low of $27.78 and a 12 month high of $95.98.

Insperity Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 23rd. Shareholders of record on Tuesday, December 9th were paid a dividend of $0.60 per share. The ex-dividend date was Tuesday, December 9th. This represents a $2.40 annualized dividend and a yield of 8.6%. Insperity’s dividend payout ratio is presently 521.74%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. increased its holdings in Insperity by 140.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,471,160 shares of the business services provider’s stock worth $56,963,000 after purchasing an additional 859,326 shares in the last quarter. Two Sigma Investments LP boosted its position in Insperity by 601.2% during the 3rd 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 during the period. Jacobs Levy Equity Management Inc. grew its holdings in Insperity by 39.7% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 860,020 shares of the business services provider’s stock worth $42,313,000 after acquiring an additional 244,350 shares during the last quarter. UBS Group AG increased its position in Insperity by 138.9% in the 3rd quarter. UBS Group AG now owns 309,781 shares of the business services provider’s stock valued at $15,241,000 after acquiring an additional 180,132 shares during the period. Finally, Man Group plc raised its stake in shares of Insperity by 232.8% during the second quarter. Man Group plc now owns 222,763 shares of the business services provider’s stock valued at $13,393,000 after acquiring an additional 155,833 shares during the last quarter. 93.44% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

NSP has been the subject of a number of research reports. The Goldman Sachs Group set a $62.00 target price on shares of Insperity in a research note on Monday, January 5th. Roth Mkm set a $62.00 price objective on shares of Insperity in a research report on Monday, January 5th. Weiss Ratings restated a “sell (d)” rating on shares of Insperity in a report on Monday, December 29th. Truist Financial lowered their target price on Insperity from $50.00 to $35.00 and set a “hold” rating on the stock in a research note on Tuesday, November 4th. Finally, Zacks Research downgraded Insperity from a “hold” rating to a “strong sell” rating in a research note on Tuesday, February 3rd. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Insperity currently has a consensus rating of “Reduce” and a consensus price target of $47.50.

Insperity Company Profile

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.