Insperity Q2 Earnings: -$5mln Loss, $1.658bln Revenue, $0.26 EPS

Insperity Inc. reported Q2 earnings of -$5 million, compared to $18 million in the same period last year. EPS was -$0.14, down from $0.48 YoY. Adjusted EPS was $0.26, beating analysts' expectations of $0.41. Revenue increased to $1.658 billion from $1.605 billion YoY. The company provided EPS guidance of $0.06-$0.49 for Q3 and $1.81-$2.51 for FY22.

Insperity Inc. (NYSE: NSP) reported a net loss of $5 million for the second quarter of 2025, marking a significant decline from the $18 million net income reported in the same period last year. The company's earnings per share (EPS) dropped to -$0.14, down from $0.48 year-over-year (YoY), while adjusted EPS came in at $0.26, which was slightly above analysts' expectations of $0.41. Revenue increased to $1.658 billion, up 3% from $1.605 billion YoY.

The primary driver of Insperity's underperformance was a 14% decline in gross profit, largely attributed to surging healthcare costs. Elevated pharmacy trends and large claim activity eroded margins despite the revenue growth [1]. The company's year-to-date gross profit dropped 12% to $533 million, highlighting the sector-wide strain [1].

Despite the earnings miss, Insperity's management remains optimistic about the company's long-term prospects. The company's chairman and CEO, Paul J. Sarvadi, stated that recent growth momentum and strategic plans lay the foundation for accelerated growth and improved profitability in 2026. The company also announced a targeted go-live date for Insperity HRScale, a joint solution with Workday, in early 2026, signaling a shift toward technology-driven growth [3].

For the third quarter of 2025, Insperity forecast adjusted EPS between $0.06 and $0.49, compared to the analyst consensus of $0.31. For the full fiscal year 2025, the company expects adjusted EPS of $1.81 to $2.51, with the midpoint of $2.16 falling below the analyst consensus of $2.48 [2].

Insperity's strategic response includes pricing adjustments, benefit redesign, and a partnership with Workday to develop Insperity HRScale. The company returned $64 million to shareholders during the first six months of 2025 through share repurchases and dividends [3].

References:
- [1] https://www.ainvest.com/news/insperity-q2-earnings-temporary-setback-deeper-challenge-2508/
- [2] https://www.investing.com/news/earnings/insperity-shares-fall-6-as-guidance-disappoints-following-q2-earnings-miss-93CH-4165905
- [3] https://www.stocktitan.net/news/NSP/insperity-announces-second-quarter-0q2t7woeidvv.html