Overview

• HR solutions provider's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company returned $109 mln to shareholders through buybacks and dividends in 2025

Outlook

• Insperity expects Q1 2026 adjusted EPS between $1.03 and $1.50

• Company projects full-year 2026 adjusted EBITDA of $170 mln to $230 mln

Result Drivers

• HIGHER BENEFITS COSTS - Gross profit decreased 21% due to elevated benefits costs driven by inpatient, outpatient, and pharmacy trends

• OPERATING EXPENSE REDUCTION - Operating expenses decreased 6% due to reduced costs from Workday partnership and office consolidation

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Slight Miss*	$1.67 bln	$1.68 bln (5 Analysts)
Q4 Adjusted EPS	Miss	-$0.60	-$0.47 (5 Analysts)
Q4 Net Income		-$33 mln
Q4 Adjusted EBITDA	Miss	-$13 mln	-$8.62 mln (5 Analysts)
Q4 Gross Profit		$172 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy."

• Wall Street's median 12-month price target for Insperity Inc is $37.50, about 2.2% above its February 9 closing price of $36.70

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw7KxDVLa

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