<span item_type="fundamental" item_id="24da1898e79b5660567a7036f962b2b6" counter_id="ST/US/NSP" env="prod"></span><span item_type="announcement" item_id="643777744853075201" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 1.895 B, beating the estimate of USD 1.893 B.</p><p>EPS: As of FY2026 Q1, the actual value is USD 0.88, beating the estimate of USD 0.8613.</p><p>EBIT: As of FY2026 Q1, the actual value is USD 61 M.</p><p></p><p>Insperity, Inc. operates as a single reportable segment, HR Solutions <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1000753/000100075326000050/nsp-20260331.htm"></span>.</p><h4>Revenue</h4><ul><li>Total Revenues for Q1 2026 were $1,895 million, an increase of 2% compared to $1,863 million in Q1 2025 .</li><li>Revenues per Worksitetime Employee (WSEE) per month increased 3% ($55) in Q1 2026 .</li></ul><h4>PEO HR Solutions Revenue by Region (Three Months Ended March 31)</h4><ul><li><strong>Northeast</strong>: $527 million in 2026, $526 million in 2025 (0% change) .</li><li><strong>Southeast</strong>: $271 million in 2026, $257 million in 2025 (5% change) .</li><li><strong>Central</strong>: $342 million in 2026, $335 million in 2025 (2% change) .</li><li><strong>Southwest</strong>: $350 million in 2026, $347 million in 2025 (1% change) .</li><li><strong>West</strong>: $386 million in 2026, $377 million in 2025 (2% change) .</li><li><strong>Other revenue</strong>: $19 million in 2026, $21 million in 2025 (-10% change) .</li></ul><h4>Gross Profit</h4><ul><li>Gross profit for Q1 2026 decreased 3% to $302 million, compared to $310 million in Q1 2025 .</li><li>Gross profit per WSEE per month for Q1 2026 decreased $6 to $332, compared to $338 in Q1 2025 .</li></ul><h4>Operating Expenses</h4><ul><li>Total operating expenses for Q1 2026 decreased 1% to $240 million, compared to $242 million in Q1 2025 .</li><li>Operating expenses per WSEE per month for Q1 2026 remained flat compared to Q1 2025 .</li><li><strong>Salaries (corporate and sales staff)</strong>: Decreased 8% to $131 million in Q1 2026, primarily due to an 8% decrease in Business Performance Advisor (BPA), service, and support headcount .</li><li><strong>Restructuring charges</strong>: $9 million in Q1 2026, primarily due to severance costs from a workforce realignment .</li><li><strong>Stock-based compensation</strong>: Increased 18% to $13 million in Q1 2026, primarily due to additional compensation expense related to performance-based restricted stock unit awards .</li><li><strong>Commissions</strong>: Decreased 9% to $10 million in Q1 2026, primarily due to lower channel commissions .</li><li><strong>Advertising</strong>: Increased 57% to $11 million in Q1 2026, due to increased sponsorships and digital advertising .</li><li><strong>General and administrative expenses</strong>: Decreased 8% to $55 million in Q1 2026, primarily due to a decrease in professional services fees and travel and training expenses .</li></ul><h4>Profitability Metrics (Three Months Ended March 31)</h4><ul><li><strong>Operating income</strong>: $62 million in 2026, $68 million in 2025 (-9% change) .</li><li><strong>Net income</strong>: $33 million in 2026, $51 million in 2025 (-35% change) .</li><li><strong>Adjusted EBITDA</strong>: Increased 1% to $103 million in Q1 2026, compared to $102 million in Q1 2025 .</li><li><strong>Adjusted net income</strong>: Decreased 15% to $50 million in Q1 2026, compared to $59 million in Q1 2025 .</li><li><strong>Effective income tax rate</strong>: 48% for Q1 2026, compared to 29% for Q1 2025, primarily due to an additional $10 million income tax related to the vesting of long-term incentive and restricted stock awards where the vesting date price was below the grant date price .</li></ul><h4>Operational Metrics</h4><ul><li><strong>Average WSEEs paid</strong>: Decreased 1% in Q1 2026 compared to Q1 2025, partially impacted by margin recovery efforts, with the average number of WSEEs paid being 303,049 in Q1 2026, down from 306,023 in Q1 2025 .</li><li><strong>Middle market sector WSEEs</strong>: Increased 9% during Q1 2026 compared to Q1 2025, representing approximately 29% of total average paid WSEEs in Q1 2026 .</li><li><strong>Health insurance costs</strong>: Increased $28 per WSEE per month and 5.2% on a cost per covered employee basis in Q1 2026 compared to Q1 2025, while the percentage of WSEEs covered under health insurance plans was 63% in Q1 2026, down from 64% in Q1 2025 .</li><li><strong>Workers’ compensation costs</strong>: Increased 30%, or $7 per WSEE per month, in Q1 2026 compared to Q1 2025, with these costs as a percentage of non-bonus payroll cost being 0.31% in Q1 2026, up from 0.24% in Q1 2025 .</li><li><strong>Payroll tax costs</strong>: Increased 2% on a 0.3% decrease in payroll costs, or $27 per WSEE per month, with payroll taxes as a percentage of payroll costs remaining at 8% in both Q1 2026 and Q1 2025 .</li></ul><h4>Cash Flow and Liquidity</h4><ul><li>Net cash used in operating activities was -$67 million for the three months ended March 31, 2026 .</li><li>Net cash used in investing activities was -$6 million for the three months ended March 31, 2026, primarily due to property and equipment purchases .</li><li>Net cash used in financing activities was -$46 million for the three months ended March 31, 2026, which included -$23 million in dividends paid and -$4 million for repurchased or withheld stock .</li><li>Cash, cash equivalents, and marketable securities totaled $555 million at March 31, 2026 .</li><li>Working capital was $142 million at March 31, 2026, an increase from $102 million at December 31, 2025 .</li><li>The outstanding balance on the revolving credit facility was $369 million at March 31, 2026, with an unused commitment of $380 million .</li><li>As of March 31, 2026, Insperity, Inc. was authorized to repurchase an additional 1,407,764 shares under its repurchase program .</li></ul><h4>Outlook and Strategy</h4><p>Insperity, Inc. anticipates that its current cash, marketable securities, operational cash flows, and available credit facility will be sufficient to cover liquidity needs for the remainder of 2026 . For longer-term capital and liquidity requirements, the company plans to leverage these existing sources, supplemented by potential public and private debt or equity financing .</p>

Insperity | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 1.895 B