TriNet (TNET) Mixed Outlook: Truist Maintains Hold Amid Uncertain Timing

Core Insights - TriNet Group, Inc. (NYSE:TNET) is facing macroeconomic challenges, including rising medical care utilization and uncertain SMB business environment, impacting employee levels and insurance costs [2][4] - The company reported Q3 2025 revenues of $1.2 billion, a slight decrease of 2% year-over-year, but is expected to improve growth trajectory following the completion of its repricing initiatives [3] - Despite challenges, TriNet achieved its highest-ever customer net promoter score and maintained strong customer retention, with free cash flow increasing to $191 million from $154 million year-over-year [4] Financial Performance - Q3 2025 total revenues were $1.2 billion, down 2% from the previous year [3] - Free cash flow for the first nine months of the year was $191 million, up from $154 million in the prior year [4] - Operating cash flow increased to $242 million from $214 million year-over-year [4] Analyst Outlook - Truist initiated coverage on TriNet with a Hold rating and a price target of $62, citing macroeconomic uncertainty as a headwind [2] - The firm anticipates that TriNet will eventually reprice its insurance book and resume worksite employee growth, although the timeline remains uncertain [2] - Truist appreciates TriNet's use of indirect channels and offshore labor, which may support better growth and margins over time [2]