Financial Performance - Revenues for Q1 2025 were $1,863 million, a 3.4% increase from $1,802 million in Q1 2024[12] - Gross profit decreased to $310 million in Q1 2025, down 10.1% from $345 million in Q1 2024[12] - Operating income fell to $68 million in Q1 2025, a decline of 37.0% compared to $108 million in Q1 2024[12] - Net income for Q1 2025 was $51 million, down 35.4% from $79 million in Q1 2024[12] - Basic net income per share decreased to $1.37 in Q1 2025 from $2.11 in Q1 2024, a decline of 35.0%[12] - Total revenue for Q1 2025 was $1,863 million, a 3% increase from $1,802 million in Q1 2024[34] - Revenues from the Northeast region increased by 3% to $526 million in Q1 2025 compared to $509 million in Q1 2024[34] - Basic earnings per share (EPS) for Q1 2025 was $1.34, compared to $2.14 in Q1 2024[57] Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $443 million in Q1 2025, compared to $31 million provided in Q1 2024[13] - The company reported a decrease in cash, cash equivalents, and restricted cash to $846 million at the end of Q1 2025, down from $978 million at the end of Q1 2024[13] - Cash and cash equivalents totaled $1,039 million as of March 31, 2025, compared to $693 million in 2024, indicating a significant increase[43] - The outstanding balance on the revolving credit facility was $369 million as of March 31, 2025, with an available borrowing capacity of $280 million[48] - As of March 31, 2025, the company had outstanding borrowings totaling $370 million under its Facility, which bears interest at a variable market rate[115] - The average interest rate for the three-month period ended March 31, 2025, was 6.2%[50] Operating Expenses - Total operating expenses increased to $242 million in Q1 2025, up from $237 million in Q1 2024[12] - Accrued workers' compensation costs were reduced by $7 million in Q1 2025 and $9 million in Q1 2024 due to changes in estimated losses related to prior periods[26] - The ending balance for incurred but not paid workers' compensation claims was $196 million as of March 31, 2025, down from $215 million in 2024, representing an 8.8% decrease[27] - The average discount rate for workers' compensation cost estimates was 4.0% in Q1 2025, down from 4.5% in Q1 2024[26] Shareholder Returns - The company declared and paid dividends totaling $23 million in Q1 2025, up from $21 million in Q1 2024, with a dividend per share of $0.60 compared to $0.57[55] - The company repurchased 45,000 shares under its Repurchase Program during the three months ended March 31, 2025, with an additional 1,407,764 shares authorized for repurchase[53] - The company withheld 179,065 shares to satisfy tax withholding obligations for long-term incentive and restricted stock unit awards during Q1 2025[54] Strategic Initiatives and Risks - The company plans to develop a joint solution with Workday, Inc., which may enhance future product offerings[10] - The company has faced challenges related to data security and third-party provider failures, which could impact future operations[10] - The company believes that the outcome of ongoing litigation will not have a material adverse effect on its financial position or results of operations[58] Accounts Receivable - The company reported unbilled accounts receivable of $819 million as of March 31, 2025, compared to $810 million at the end of 2024[32]

Financial Data and Key Metrics Changes - The company reported Q1 2025 adjusted EPS of $1.57 and adjusted EBITDA of $102 million, which fell below guidance due to higher than expected benefits costs [5][6] - The average number of paid worksite employees increased by 0.7% year-over-year to 306,023, but growth was slightly below guidance due to delays and cancellations in new client starts [5][6] - Gross profit per worksite employee decreased to $338 per month from $378 in Q1 2024, attributed to an 8.4% increase in benefits costs per covered employee [6][9] Business Line Data and Key Metrics Changes - Client retention improved to 91% in Q1 2025 from 88% in Q1 2024, indicating strong client loyalty despite market challenges [20] - Client net hiring was slightly positive but significantly weaker compared to historical norms [6][20] - The company experienced a 3% increase in worksite employees paid from new client sales compared to Q1 2024, despite overall hiring challenges [5][6] Market Data and Key Metrics Changes - A client survey indicated that 66% of respondents expect the economic climate to negatively affect their business, up from 29% in January [16] - The percentage of clients expecting to add employees in the coming quarter decreased to 34% from 43% [16] - The Northeast region showed better results compared to other areas, but overall trends were consistent across the nation [70] Company Strategy and Development Direction - The company is focusing on mitigating benefits cost challenges through pricing adjustments and plan design changes, with a forecasted benefits cost per covered employee range of 6.5% to 7.5% for the full year [10][35] - The strategic partnership with Workday is a key focus, with a go-to-market plan established to target mid-market businesses, which is expected to significantly drive growth starting in 2026 [30][31] - The company aims to leverage the Workday partnership to enhance service offerings and client engagement, particularly for businesses with 150 to 5,000 employees [88] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the unexpected rise in benefits costs but remains optimistic about future profitability improvements in 2026 [10][64] - The company anticipates a modest improvement in worksite employee growth throughout the year, barring significant changes in the macroeconomic environment [36] - Management noted that the current period of uncertainty is less likely to be a temporary spike, suggesting a more cautious approach to forecasting [86] Other Important Information - Operating expenses were managed slightly below budget, with a 2% increase year-over-year, primarily due to investments in the Workday partnership [11][12] - The company returned $23 million in cash dividends and repurchased 224,000 shares at a cost of $19 million in Q1 [12] - The effective tax rate for the quarter was 29%, consistent with the previous year [12] Q&A Session Summary Question: Can you elaborate on the onboarding pauses mentioned in Q1? - Management noted a dramatic reversal in small business optimism due to government actions, leading to delays and cancellations in onboarding new clients [40][41] Question: What is the expected cadence of spending for the Workday partnership? - The company anticipates stable spending throughout the year, with costs expected to decrease in subsequent years as the project matures [45][48] Question: What actions from Washington could improve customer sentiment? - Management believes that stabilizing the tax system and regulatory environment could significantly boost confidence among clients [53][54] Question: How quickly can pricing adjustments be made in response to healthcare costs? - Pricing changes are already being implemented, with expectations for improved margins as the year progresses [63][64] Question: Are there regional or industry differences in healthcare costs and hiring hesitancy? - The company has observed better results in the Northeast, but overall trends are consistent across the nation [70] Question: What is the expected profitability from the Workday partnership? - Management anticipates higher upfront pricing and ongoing revenue contributions from the new joint solution, though specific figures are still being analyzed [78][79]

Earnings Call and Webcast Q1 2025 Q1 results reflecting macroeconomic turbulence and healthcare cost volatility in stark contrast with the solid execution of our game plan for building the foundation for future growth acceleration Three initiatives expected to mitigate the recent healthcare trend effects in 2026 include recently implemented pricing plan, 2026 health plan design changes, and early contract renewal negotiations with UnitedHealthcare. Continued focus on the Insperity/Workday strategic partners ...

分组1 - Insperity, Inc. reported quarterly earnings of $1.57 per share, missing the Zacks Consensus Estimate of $2.01 per share, and down from $2.27 per share a year ago, representing an earnings surprise of -21.89% [1] - The company posted revenues of $1.86 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.43%, compared to year-ago revenues of $1.8 billion [2] - Insperity has surpassed consensus EPS estimates three times over the last four quarters, but has topped consensus revenue estimates only once in the same period [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with Insperity shares having added about 1.4% since the beginning of the year, contrasting with the S&P 500's decline of -6% [3] - The current consensus EPS estimate for the coming quarter is $0.71 on $1.68 billion in revenues, and for the current fiscal year, it is $3.46 on $6.91 billion in revenues [7] - The Staffing Firms industry, to which Insperity belongs, is currently in the bottom 7% of the Zacks Industry Rank, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - The company reported first quarter adjusted EPS of $1.57 and adjusted EBITDA of $102 million, which fell below guidance due to higher than expected benefits costs [5][6] - The average number of paid worksite employees increased by 0.7% year-over-year to 306,023, but growth was slightly below guidance due to delays and cancellations in new client starts [5][6] - Gross profit per worksite employee decreased to $338 per month from $378 in the prior year, attributed to an 8.4% increase in benefits costs per covered employee [6][10] Business Line Data and Key Metrics Changes - Client retention improved to 91% in Q1, a significant increase from 88% in the previous year, indicating strong client loyalty [18] - Client net hiring was slightly positive but remained weak compared to historical norms [6][33] Market Data and Key Metrics Changes - A client survey indicated that 66% of respondents expect the economic climate to negatively affect their business, up from 29% in January [15] - The percentage of clients expecting to add employees decreased to 34% from 43% [15] Company Strategy and Development Direction - The company is focusing on mitigating the impact of rising benefits costs through pricing adjustments and plan design changes, with a forecasted benefits cost per covered employee of 6.5% to 7.5% for the full year [9][34] - The strategic partnership with Workday is seen as a significant growth driver, with plans to launch a joint solution targeting mid-market businesses [25][29] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the unexpected rise in benefits costs but remains optimistic about future profitability improvements as pricing adjustments are implemented [10][36] - The company has reduced its worksite employee growth forecast for the year to 0.5% to 3% due to macroeconomic uncertainties [33][34] Other Important Information - Operating expenses increased slightly by 2% year-over-year, primarily due to investments in the Workday partnership [10][11] - The company returned $23 million in cash dividends and repurchased 224,000 shares at a cost of $19 million during the quarter [11] Q&A Session Summary Question: Can you elaborate on the onboarding pauses mentioned? - Management noted that optimism in the small business community reversed dramatically due to government actions, leading to delays and cancellations in onboarding new clients [40][41] Question: What is the expected cadence of spending for the Workday partnership? - The company anticipates stable spending throughout the year, with a gradual decrease in costs expected in years three to five of the partnership [45][48] Question: What actions from Washington could improve customer confidence? - Management believes that minor changes in tax policy or regulatory environments could significantly boost confidence among clients [54] Question: How quickly can pricing adjustments be made in response to healthcare costs? - Pricing changes are already being implemented, with expectations for improvements in gross margins as the year progresses [63][64] Question: Are there regional differences in healthcare costs or hiring hesitancy? - The company has seen better results in the Northeast, but overall trends appear to be consistent across the nation [70]

Exhibit 99.1 Insperity Announces First Quarter Results HOUSTON – April 29, 2025 – Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America's best businesses, today reported results for the first quarter ended March 31, 2025. Insperity will be hosting a conference call today at 8:30 a.m. ET to discuss these results and our updated 2025 outlook and will be posting an accompanying presentation to its investor website at http://ir.insperity.com. Cash outl ...

Company Overview - Insperity, Inc. (NSP) shares have increased by approximately 4.8% over the past month, outperforming the S&P 500 [1] - Recent earnings report indicates important drivers for the stock's performance [1] Earnings Estimates - Fresh estimates for Insperity have trended upward in the past month [2] - The overall direction and magnitude of estimate revisions appear promising [4] VGM Scores - Insperity has a strong Growth Score of A, but a low Momentum Score of F [3] - The stock received an A grade on the value side, placing it in the top 20% for this investment strategy [3] - The aggregate VGM Score for Insperity is A, which is significant for investors not focused on a single strategy [3] Industry Performance - Insperity is part of the Zacks Staffing Firms industry, where ManpowerGroup (MAN) has gained 6.2% over the past month [5] - Manpower reported revenues of $4.4 billion for the last quarter, reflecting a year-over-year decline of 5% [5] - Manpower's EPS for the same period was $1.02, down from $1.45 a year ago [5] Future Outlook - For the current quarter, Manpower is expected to post earnings of $0.59 per share, indicating a year-over-year change of -37.2% [6] - The Zacks Consensus Estimate for Manpower has changed by -1.1% over the last 30 days [6] - Manpower holds a Zacks Rank 5 (Strong Sell), and its VGM Score is C [6]

Core Insights - Insperity, Inc. reported strong fourth-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][2] Financial Performance - Adjusted earnings were 5 cents per share, surpassing the consensus estimate by over 100%, but down 93.3% year over year [2] - Revenues reached $1.6 billion, beating the Zacks Consensus Estimate by 1% and increasing 2.1% from the previous year [2] - Gross profit declined 2% year over year to $218 million, with a gross margin of 13.5%, down 60 basis points from Q4 2023 [4] - Operating expenses rose 17% year over year to $233 million, with operating expenses per worksite employee per month increasing 19% to $251 [4] - The company reported an operating loss of $15 million compared to an operating income of $23 million in the same quarter last year [5] - Adjusted EBITDA for the quarter was $23 million, a decrease of 41% year over year [5] Employee Metrics - The average number of worksite employees paid per month decreased by 2% year over year to 309,093 [3] - Revenue per worksite employee per month increased by 4% from the previous year to $1,739 [3] Balance Sheet & Cash Flow - Insperity ended Q4 2024 with cash and cash equivalents of $1 billion, up from $470 million in the previous quarter [6] - Long-term debt remained flat at $369 million [6] - The company distributed $22 million in cash dividends during the quarter, with capital expenditures totaling $13 million [6] Guidance - For Q1 2025, Insperity's earnings guidance is set at $1.89-$2.15 per share, with the midpoint slightly above the Zacks Consensus Estimate of $2.01 [7] - For the full year 2025, the company expects adjusted EPS to be in the range of $3.10-$3.95, with the midpoint lower than the Zacks Consensus Estimate of $3.57 [8] - Adjusted EBITDA guidance for 2025 is projected at $240-$285 million [8]

Core Viewpoint - Insperity, Inc. reported strong fourth-quarter 2024 results with earnings and revenues exceeding expectations, yet the stock declined significantly post-release due to market reactions [1][2]. Financial Performance - Adjusted earnings were 5 cents per share, surpassing the consensus estimate by over 100%, but down 93.3% year over year [2]. - Revenues reached $1.6 billion, beating the Zacks Consensus Estimate by 1% and increasing 2.1% from the previous year [2]. - Gross profit decreased by 2% year over year to $218 million, with a gross margin of 13.5%, down 60 basis points from Q4 2023 [4]. - Operating expenses rose 17% year over year to $233 million, with operating expenses per worksite employee per month increasing 19% to $251 [4]. Operational Metrics - The average number of worksite employees paid per month fell by 2% year over year to 309,093, while revenue per worksite employee per month increased by 4% to $1,739 [3]. - The company reported an operating loss of $15 million compared to an operating income of $23 million in the same quarter last year [5]. Cash Flow and Balance Sheet - Insperity ended Q4 2024 with cash and cash equivalents of $1 billion, up from $470 million in the previous quarter, while long-term debt remained stable at $369 million [6]. - The company distributed $22 million in cash dividends during the quarter, with capital expenditures totaling $13 million [6]. Guidance - For Q1 2025, Insperity's earnings guidance is set at $1.89-$2.15 per share, with the midpoint of $2.02 exceeding the Zacks Consensus Estimate of $1.98 [7]. - For the full year 2025, the company expects adjusted EPS to be in the range of $3.10-$3.95, with the midpoint of $3.53 lower than the consensus estimate of $3.80 [8].

Supplement to Earnings Release Safe Harbor Statement The statements contained herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify such forward-looking statements by the words "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "forecasts," "likely," "possibly," "probably," "could," "goal," "opportunity," "objective," "target," ...