TriNet(TNET) - 2025 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2025 decreased by 2% to $1.2 billion compared to the same period last year[5] - Professional service revenues for Q4 2025 decreased by 7% to $169 million compared to the same period last year[5] - Net loss for Q4 2025 was $1 million, or $(0.01) loss per share, compared to a net loss of $23 million, or $(0.46) loss per share, in Q4 2024[5] - Adjusted Net Income for Q4 2025 was $21 million, or $0.46 per diluted share, compared to $22 million, or $0.44 per diluted share, in Q4 2024[5] - Full-year 2025 total revenues decreased by 1% to $5.0 billion compared to 2024[5] - Full-year 2025 net income was $155 million, or $3.20 per diluted share, compared to $173 million, or $3.43 per diluted share, in 2024[5] - Adjusted EBITDA for the year ended December 31, 2025, was $425 million, a decrease of 12% compared to $485 million in 2024[16] - Adjusted EBITDA for Q4 2025 was $57 million, with a margin of 4.7%, compared to $60 million and 4.7% in Q4 2024[24] - Full-year 2025 Adjusted EBITDA reached $425 million, down from $485 million in 2024, reflecting a margin decrease from 9.6% to 8.5%[24] - Net income for Q4 2025 was a loss of $1 million, compared to a loss of $23 million in Q4 2024, while full-year net income was $155 million, down from $173 million in 2024[24] - Adjusted Net Income for Q4 2025 was $21 million, slightly down from $22 million in Q4 2024, while full-year Adjusted Net Income was $230 million, down from $269 million[24] Guidance and Projections - Full-year 2026 guidance for total revenues is projected between $4.75 billion and $4.90 billion[7] - Full-year 2026 guidance for Adjusted Net Income per share is projected between $3.70 and $4.70[7] - The company expects a decrease in net income for 2026 guidance, with a low estimate of a 34% decline and a high estimate of a 6% decline compared to 2025[25] - Adjusted Net Income per share for 2025 was $4.73, with guidance for 2026 ranging from $3.70 to $4.70[25] Cash Flow and Assets - Cash and cash equivalents decreased by 20% to $287 million from $360 million in 2024[19] - Total assets decreased by 8% to $3,797 million from $4,119 million in 2024[19] - Net cash provided by operating activities increased by 9% to $303 million from $279 million in 2024[20] - Free Cash Flow for 2025 was $234 million, an increase from $201 million in 2024, with a Free Cash Flow Conversion Ratio of 55%[24] Stockholder Equity and Compensation - Total stockholders' equity decreased by 22% to $54 million from $69 million in 2024[19] - TriNet's stock repurchase program was increased by $336 million, bringing the total available for repurchase to $400 million[4] - Stock-based compensation for 2025 was $65 million, with a projected increase of 3% for 2026[25] Employee Metrics - Average Worksite Employees (WSEs) decreased by 9% year-over-year to approximately 324,000 in Q4 2025[5] Insurance Services - Insurance service revenues for the year ended December 31, 2025, remained flat at $4,224 million compared to 2024[17] - The Insurance Cost Ratio improved slightly to 94% in Q4 2025 from 95% in Q4 2024[16] Restructuring Costs - Restructuring costs for 2025 were $11 million, with a projected increase of 33% for 2026[25]