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1. Company Snapshot

1.a. Company Description

Insperity, Inc.provides human resources (HR) and business solutions to improve business performance for small and medium-sized businesses.The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services.


It also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; personnel record management services; and employer liability management services, as well as solutions for middle market.In addition, the company offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; retirement; and insurance services.As of December 31, 2021, it operated through 85 sales offices in the United States.


The company was formerly known as Administaff, Inc.and changed its name to Insperity, Inc.in March 2011.


The company was founded in 1986 and is headquartered in Kingwood, Texas.

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1.b. Last Insights on NSP

Insperity's recent performance was negatively impacted by a fourth-quarter 2025 loss, a revenue miss, and a weak 2026 EPS outlook. The company's Q4 earnings announcement was weaker than expected, overshadowing modest WSEE growth and a higher cash balance. Insperity's shares reached a new 52-week low, trading as low as $30.37 and last trading at $30.13, with a volume of 745047 shares traded. The company's quarterly loss of $0.6 per share versus the Zacks Consensus Estimate of a loss of $0.49, compares to earnings of $0.05 per share a year ago.

1.c. Company Highlights

2. Insperity's Q4 2025 Earnings: A Challenging Year with a Path to Recovery

Insperity reported adjusted EPS of -$0.60 for Q4 2025, missing estimates of -$0.46551, and adjusted EBITDA of -$13 million. The average number of paid worksite employees was 312,377, a 1.1% increase over Q4 2024. Gross profit per worksite employee was $183 per month, in line with forecasts. Operating expenses decreased by 6% compared to Q4 2024. For the full year 2025, adjusted EBITDA declined 51% to $131 million, and adjusted EPS declined 71% to $1.03.

Publication Date: Feb -15

📋 Highlights
  • Q4 2025 Earnings Decline: Adjusted EPS was -$0.60, and adjusted EBITDA was -$13 million, reflecting significant operational challenges.
  • Workforce Rightsizing: Approximately 4% of non-sales staff were cut to align costs with future operational needs and stabilize financial performance.
  • HRScale Investment: $15 million allocated to HRScale, including $10 million in operating expenses, as part of a strategic partnership with Workday to drive future growth.
  • Credit Facility Expansion: Borrowing capacity increased to $750 million, with a maturity extension to 2028, supporting liquidity and operational flexibility.
  • 2026 Profitability Recovery: Adjusted EBITDA guidance of $170–$230 million (30–76% increase) and EPS of $1.69–$2.72 (64–164% increase) projected, driven by cost reductions and pricing strategies.

Financial Performance and Guidance

The company's guidance for 2026 indicates a range of -$1.5% to +1.5% growth in average paid worksite employees. Insperity expects adjusted EBITDA to be between $170 million and $230 million, representing a 30% to 76% increase, and adjusted EPS to be between $1.69 and $2.72, a 64% to 164% increase. The forecasted growth is driven by design changes, renegotiated contracts, and pricing and client selection strategies.

Operational Highlights and Strategic Initiatives

Insperity invested $15 million in HRScale, a joint solution with Workday, including $10 million in operating expenses and $5 million in capitalized costs. The company expects HRScale to positively impact year-end retention in 2026 and drive growth in 2027. As Paul Sarvadi mentioned, "We believe that the combination of sold HRScale accounts to new clients and retention of larger HR360 accounts may provide a step-up into 2027 to launch year two of our three-year plan."

Valuation and Growth Prospects

With a P/E Ratio of -136.61 and an EV/EBITDA of 14.37, the market is pricing in a challenging recovery. Analysts estimate revenue growth of 8.7% for next year. The Dividend Yield is 9.35%, which may attract income investors. Insperity's ROE is -7.69%, and ROIC is -1.72%, indicating a need for improvement in profitability. The company's path to recovery and growth will be closely watched by investors.

3. NewsRoom

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Insperity and Workday Announce General Availability of Insperity HRScale

Feb -26

Source: businesswire.com

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Insperity Stock Price Decreases 18% After Reporting Loss in Q4

Feb -12

Source:

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Insperity (NYSE:NSP) Hits New 12-Month Low After Earnings Miss

Feb -12

Source: defenseworld.net

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Insperity, Inc. (NSP) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.com

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Insperity, Inc. (NSP) Reports Q4 Loss, Lags Revenue Estimates

Feb -10

Source: zacks.com

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ASSA ABLOY acquires NSP Security in the UK

Feb -03

Source: prnewswire.com

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Critical Analysis: Insperity (NYSE:NSP) vs. Resources Connection (NASDAQ:RGP)

Feb -02

Source: defenseworld.net

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Insperity: A High-Quality PEO Trading At A Cyclical Low

Jan -02

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Human Resources and Business Solutions

Expected Growth: 7%

Insperity's 7% growth in Human Resources and Business Solutions is driven by increasing demand for outsourced HR services, expansion of existing client relationships, and strategic acquisitions. Additionally, the company's focus on mid-market businesses and its comprehensive suite of services, including payroll, benefits, and performance management, contribute to its growth momentum.

7. Detailed Products

Worksite Employee Solutions

Provides human capital management solutions for small and medium-sized businesses, including payroll processing, benefits administration, and compliance services.

Performance Management

Offers performance management tools and services to help businesses improve employee performance and productivity.

Time and Attendance

Provides time and attendance tracking solutions to help businesses manage employee work hours and reduce labor costs.

Benefits and Insurance Services

Offers a range of benefits and insurance services, including health, dental, and vision insurance, as well as retirement planning and other benefits.

Retirement Services

Provides retirement plan administration and recordkeeping services to help businesses offer competitive retirement benefits.

Business Performance Benchmarking

Offers benchmarking tools and services to help businesses measure and improve their performance.

HR Services

Provides HR consulting and outsourcing services to help businesses manage HR functions, including compliance, recruitment, and employee relations.

8. Insperity, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Insperity, Inc. faces moderate threat from substitutes due to the presence of various HR outsourcing companies and PEOs that offer similar services.

Bargaining Power Of Customers

Insperity, Inc. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's services are often customized, making it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

Insperity, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's scale and size also give it negotiating power over its suppliers.

Threat Of New Entrants

The HR outsourcing and PEO industry has high barriers to entry, including regulatory hurdles and the need for significant capital investment. This makes it difficult for new entrants to compete with established players like Insperity, Inc.

Intensity Of Rivalry

The HR outsourcing and PEO industry is highly competitive, with several established players competing for market share. Insperity, Inc. faces intense rivalry from companies like ADP, Paychex, and TriNet.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.61%
Debt Cost 7.98%
Equity Weight 19.39%
Equity Cost 9.76%
WACC 8.32%
Leverage 415.72%

11. Quality Control: Insperity, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Korn Ferry

A-Score: 5.8/10

Value: 6.6

Growth: 5.7

Quality: 6.3

Yield: 4.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
EMCOR

A-Score: 5.4/10

Value: 3.3

Growth: 9.1

Quality: 6.8

Yield: 0.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Avis Budget Group

A-Score: 5.2/10

Value: 8.6

Growth: 5.8

Quality: 3.9

Yield: 1.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Robert Half

A-Score: 5.0/10

Value: 6.0

Growth: 3.2

Quality: 6.0

Yield: 8.0

Momentum: 0.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
ManpowerGroup

A-Score: 4.9/10

Value: 9.0

Growth: 2.9

Quality: 3.6

Yield: 8.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Insperity

A-Score: 4.3/10

Value: 2.8

Growth: 6.9

Quality: 3.9

Yield: 8.0

Momentum: 0.0

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.13$

Current Price

21.13$

Potential

-0.00%

Expected Cash-Flows