Overview

• U.S. HR solutions provider's Q1 revenue rose 2% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations; adjusted EBITDA also exceeded estimates

• Operating expenses decreased 1% on restructuring charges primarily related to severance associated with a workforce realignment

Outlook

• Insperity sees Q2 adjusted EPS between $0.02 and $0.50

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

• Insperity expects margin recovery plan to continue throughout 2026

Result Drivers

• HIGHER PRICING - Revenue per worksite employee rose 3% on higher pricing, partially offsetting a 1% decline in average paid worksite employees

• MARGIN RECOVERY EFFORTS - Margin recovery was supported by pricing and client renewal strategy, new UnitedHealthcare contract terms, plan design changes, and lower than expected claim cost trend

• OPERATING EXPENSES - Decreased 1% to $240 million in Q1 2026, including $9 million in restructuring charges primarily related to severance associated with a workforce realignment.

Company press release: ID:nBw7crFxja

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$1.90 bln	$1.89 bln (4 Analysts)
Q1 Adjusted EPS	Beat	$1.31	$1.23 (5 Analysts)
Q1 Net Income		$33 mln
Q1 Adjusted EBITDA	Beat	$103 mln	$92.83 mln (4 Analysts)
Q1 Operating income	Miss	$62 mln	$67.40 mln (4 Analysts)
Q1 Gross Profit		$302 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 $36.00, about 3.3% below its April 29 closing price of $37.21

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

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