Why Is Insperity (NSP) Down 6.5% Since Last Earnings Report?

Core Viewpoint - Insperity, Inc. reported disappointing Q3 2025 earnings, missing estimates and showing a significant decline in profitability compared to the previous year [2][5][11]. Financial Performance - Insperity registered an adjusted loss of $0.20 per share, contrasting with the consensus estimate of earnings at $0.22 per share and down from $0.39 per share a year ago [2]. - Revenues for the quarter were $1.6 billion, slightly missing the Zacks Consensus Estimate but reflecting a 4% increase year-over-year [2]. - Gross profit decreased by 15% year-over-year to $195 million, with a gross margin of 12%, down 140 basis points from Q3 2024 [4]. - Operating loss was reported at $25 million, compared to an operating income of $1 million in the same quarter last year [5]. - Adjusted EBITDA for the quarter was $10 million, representing an 87.5% decline year-over-year [5]. Employee Metrics - The average number of worksite employees paid per month increased by 1% year-over-year to 312,842 [3]. - Revenues per worksite employee (WSEE) per month rose by 3% from the previous year to $1,729 [3]. - Operating expenses decreased by 4% year-over-year to $220 million, with operating expenses per WSEE per month also falling by 4% to $246 [4]. Balance Sheet & Cash Flow - As of the end of Q3 2025, Insperity had cash and cash equivalents of $422 million, down from $441 million in the previous quarter [6]. - Long-term debt remained flat at $369 million [6]. - The company distributed $11.1 million in cash dividends during the quarter, with capital expenditures totaling $5.6 million [6]. Guidance - For Q4 2025, Insperity's guidance for loss per share is set between $0.79 and $0.16, with adjusted EBITDA expected to range from -$29 million to $9 million [7]. - The adjusted earnings per share (EPS) guidance for 2025 has been lowered to a range of $0.84 to $1.47, down from the previous estimate of $1.81 to $2.51 [7]. - Adjusted EBITDA guidance for 2025 has also been reduced to $119 million to $153 million, compared to the earlier range of $170 million to $205 million [7]. Market Sentiment - Estimates for Insperity have trended downward, with a significant shift of -241.05% in consensus estimates over the past month [8]. - The company currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [11]. Industry Comparison - Insperity operates within the Zacks Staffing Firms industry, where competitor Robert Half has seen a 7.5% gain over the past month despite reporting a year-over-year revenue decline of 7.5% [12]. - Robert Half's expected earnings for the current quarter indicate a change of -43.4% from the previous year, with a Zacks Rank of 5 (Strong Sell) as well [13].