Insperity Stock Declines 23% After Reporting Q3 Earnings Miss

Core Insights - Insperity, Inc. (NSP) reported disappointing third-quarter 2025 results, leading to a 22.8% decline in stock price since the earnings release on November 3 due to poor earnings, revenues, and weak EPS guidance [1][3] Financial Performance - For Q3 2025, NSP registered an adjusted loss of $0.20 per share, missing the consensus estimate of a $0.22 profit, and down from earnings of $0.39 per share in the same quarter last year [3][9] - Revenues for Q3 2025 were $1.6 billion, slightly missing the Zacks Consensus Estimate but representing a 4% increase from the previous year [3][9] - Gross profit decreased by 15% year-over-year to $195 million, with a gross margin of 12%, down 140 basis points from Q3 2024 [5][9] - Operating loss for the quarter was $25 million, compared to an operating income of $1 million in the year-ago quarter [6] Guidance and Outlook - For Q4 2025, NSP's guidance for loss per share is set at 79-16 cents, lower than the Zacks Consensus Estimate of 7 cents per share [1] - The adjusted EPS guidance for 2025 has been lowered to $0.84-$1.47 from a previous range of $1.81-$2.51, which is also below the Zacks Consensus Estimate of $2.11 per share [2] - Adjusted EBITDA guidance for Q4 is maintained at -$29 to $9 million, while the 2025 guidance is reduced to $119-$153 million from $170-$205 million [8][9] Employee Metrics - The average number of worksite employees paid per month increased by 1% year-over-year to 312,842, with revenues per worksite employee per month rising by 3% to $1,729 [4] Balance Sheet and Cash Flow - As of the end of Q3 2025, NSP had cash and cash equivalents of $422 million, down from $441 million in the previous quarter, with long-term debt remaining flat at $369 million [7]