Insperity Shares Plunge 26.81% on Q3 Loss, Guidance Cut as Healthcare Costs Crush Margins

The share price fell to its lowest level since April 2020 today, with an intraday decline of 26.81%.

Insperity’s Q3 2025 earnings report revealed a quarterly adjusted loss of $0.20 per share, a sharp reversal from a $0.39 profit in the prior-year period, missing the Zacks Consensus Estimate by 190.91%. Revenue rose 4% year-over-year to $1.62 billion but fell short of the $1.63 billion consensus. The underperformance stemmed from surging healthcare costs, which reduced gross profit per worksite employee to $208 from $247 and pressured adjusted EBITDA to $10 million. Full-year guidance was slashed to $119–$153 million, reflecting ongoing margin compression.

The stock’s 30% pre-market plunge and 52-week low underscored investor skepticism. Year-to-date, shares have lost 43.1%, lagging the S&P 500’s 16.3% gain. Q4 2025 adjusted EPS guidance now ranges from -$0.79 to -$0.16, far below the $0.06 consensus. A Zacks Rank downgrade to #3 (Hold) reflects expectations of market alignment. Management cited a partnership with UnitedHealthcare to cap large health claims at $500,000 from 2026 as a long-term stability measure, alongside cost-cutting initiatives and AI-driven efficiency gains.

While the staffing industry’s weak Zacks ranking and macroeconomic uncertainties complicate near-term recovery, Insperity highlighted resilience in its HR360 platform, which saw 45% year-over-year sales growth. Analysts remain cautious, with a median 12-month price target of $56.00 implying 19.5% potential upside but no strong buy ratings. The path to normalized profitability hinges on the effectiveness of cost controls and strategic partnerships, with 2026’s UnitedHealthcare agreement offering a key inflection point.