Insperity Stock Declines 17% After Reporting Q1 Earnings Miss

Insperity, Inc. (NSP) Q1 2025 Results Summary Core Viewpoint - Insperity, Inc. reported lower-than-expected first-quarter 2025 results, leading to a 17% decline in stock price since the earnings release on April 29 due to disappointing earnings and weak EPS guidance [1] Financial Performance - Adjusted earnings per share (EPS) were 1.57 cents, missing the consensus estimate by 21.9% and decreasing 30.8% year over year [2] - Revenues totaled $1.9 billion, slightly missing the Zacks Consensus Estimate but increasing 3.4% from the previous year [2] - Gross profit declined 10% year over year to $310 million, with a gross margin of 16.6%, down 250 basis points from Q1 2024 [4] - Operating income fell 37% year over year to $68 million, with operating income per worksite employee (WSEE) per month at $74 compared to $118 in the prior year [5] Employee Metrics - The average number of worksite employees paid per month increased by 1% year over year to 306,023 [3] - Revenue per worksite employee (WSEE) per month rose 3% from the year-ago quarter to $2,029 [3] Guidance and Outlook - For 2025, the adjusted EPS guidance was lowered to $2.23-$3.28 from the previous range of $3.10-$3.95, with the mid-point of $2.76 exceeding the Zacks Consensus Estimate of $2.48 [1] - Q2 guidance for EPS is set at 29-67 cents per share, with the mid-point of 48 cents above the Zacks Consensus Estimate of 41 cents [7] - Adjusted EBITDA guidance for 2025 was reduced to $190-$245 million from $240-$285 million [7] Balance Sheet and Cash Flow - As of the end of Q1 2025, cash and cash equivalents stood at $551 million, down from $1 billion in the previous quarter [6] - Long-term debt remained flat at $369 million, and the company distributed $23 million in cash dividends during the quarter [6]