Insperity(US:NSP)2025-11-04 00:52Financial Performance - Revenues for Q3 2025 were $1,623 million, a 4% increase from $1,561 million in Q3 2024[12] - Gross profit decreased to $195 million in Q3 2025, down 15% from $229 million in Q3 2024[12] - Net loss for Q3 2025 was $20 million, compared to a net income of $3 million in Q3 2024, resulting in a diluted loss per share of $0.53[12] - Operating income for the nine months ended September 30, 2025, was $36 million, down 73% from $132 million in the same period of 2024[12] - Revenue for the three months ended September 30, 2025, was $1,623 million, a 4% increase from $1,561 million in 2024, while revenue for the nine months ended September 30, 2025, was $5,144 million, also a 4% increase from $4,968 million in 2024[36] - Net income for the nine months ended September 30, 2025, was $26 million, compared to $100 million in the same period of 2024[60] Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $533 million for the nine months ended September 30, 2025, compared to $99 million for the same period in 2024[14] - The company reported a decrease in cash, cash equivalents, and restricted cash to $688 million at the end of Q3 2025, down from $748 million at the end of Q3 2024[14] - The company’s cash and cash equivalents totaled $440 million as of September 30, 2025, down from $1,055 million at December 31, 2024, primarily due to fluctuations in client payroll processing cycles[43] - Cash and cash equivalents increased to $1,039 million in Q3 2025 from $693 million in Q3 2024, representing a 50% increase[45] - The outstanding balance on the revolving credit facility was $369 million as of September 30, 2025, with an available borrowing capacity of $280 million[51] - The company had $1 million in outstanding letters of credit issued under the revolving credit facility as of September 30, 2025[51] Operating Expenses - Total operating expenses for Q3 2025 were $220 million, a slight decrease from $228 million in Q3 2024[12] - Payroll taxes, benefits, and workers' compensation costs increased to $1,428 million in Q3 2025, up from $1,332 million in Q3 2024[12] - The company reduced accrued workers' compensation costs by $20 million and $25 million for the nine months ended September 30, 2025 and 2024, respectively, due to changes in estimated losses related to prior periods[28] - Total accrued workers' compensation costs were $186 million as of September 30, 2025, down from $207 million in 2024, with a current portion of $79 million and a long-term portion of $107 million[29] Strategic Initiatives - The company is focused on enhancing service and technology offerings to meet new regulations and client expectations[10] - Strategic partnerships and joint solutions with Workday, Inc. are expected to provide anticipated benefits, although integration challenges remain[10] Financial Position - As of September 30, 2025, the company reported a cash surplus of $10 million above the required $9 million maintenance level, with total premiums owed to United at $26 million[25] - The company maintains an accumulated cash surplus in the health insurance plan of $9 million, which is reported as a long-term prepaid health insurance asset[25] - The total fair value of financial assets measured at fair value was $660 million as of September 30, 2025, down from $1,305 million at the end of 2024[47] - The carrying value of borrowings under the revolving credit facility approximates fair value and is classified as Level 2 in the fair value hierarchy[50] - The company was in compliance with all financial covenants under the Credit Agreement as of September 30, 2025[54] Shareholder Returns - The company declared and paid dividends totaling $68 million during the nine months ended September 30, 2025, compared to $67 million in 2024[58] - The company repurchased 45,000 shares under its stock repurchase program during the nine months ended September 30, 2025[56]