Insperity's Q4 losses widen as high benefit costs drag down performance

LootboxPhobia · 2026-02-14T02:13:05+00:00

Insperity's fourth-quarter loss exceeded expectations, with a loss of $0.60 per share, and revenue increased 3% year-over-year to $1.67 billion. Gross profit declined 21% to $172 million, impacted by higher benefits costs and increased claims frequency. Looking ahead to fiscal year 2026, the company expects a median adjusted earnings per share of $2.21, below analyst expectations.

LootboxPhobia

2026-02-14 02:13:05

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Houston - Human Resources and Business Performance Solutions Provider Insperity, Inc. (NYSE:NSP) reported a quarterly loss that exceeded expectations, despite a slight increase in revenue, as high benefit costs continued to pressure profitability.

The company posted an adjusted quarterly loss of $0.60 per share, compared to analysts’ estimates of a $0.47 per share loss. Revenue rose 3% year-over-year to $1.67 billion, slightly below the consensus estimate of $1.68 billion. The stock remained unchanged after the announcement.

Insperity’s fourth-quarter performance was mainly impacted by a 21% decline in gross profit to $172 million, primarily due to “persistently high benefit costs” related to inpatient, outpatient, and pharmacy trends, as well as increased frequency of large claims. This overshadowed the company’s achievement of a 1% increase in average paid Worksite Employees (WSEEs) to 312,377.

Chairman and CEO Paul J. Sarvadi stated, “We achieved key milestones during the year-end transition, with improved gross margins, and we believe this will significantly restore the company’s profitability this year.”

For the full fiscal year 2025, Insperity reported a net loss of $7 million, or $0.19 per share, compared to net income of $91 million, or $2.42 per share, in 2024. Adjusted EBITDA decreased from $270 million last year to $131 million.

Looking ahead, the company provided guidance for fiscal 2026 with an adjusted EPS range of $1.69 to $2.72, with a median of $2.21, below analysts’ expectations of $2.44 per share. Insperity expects the average WSEEs for the year to be between 305,400 and 314,700.

Chief Financial Officer James D. Allison stated, “In 2025, we addressed profitability challenges and took significant measures aimed at restoring margins through pricing and customer selection, new contracts and plan design changes with UnitedHealth, and operational expense efficiencies.”

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