TriNet Group Q4 Earnings Call Highlights

Core Insights - TriNet Group faced a challenging 2025, marked by healthcare inflation and a slow hiring market, but managed to achieve results at the top end of earnings guidance with improved cash flow [4][7][18] - The company is focusing on investments in client service, operational efficiency, and go-to-market execution to drive growth in 2026 [1][3] Financial Performance - TriNet reported a GAAP loss per share of $0.01 in Q4 2025, with full-year GAAP earnings per diluted share of $3.20 and adjusted earnings per diluted share of $4.73, at the top end of guidance [18] - Adjusted EBITDA for 2025 was $425 million, with a margin of 8.5%, and free cash flow improved to $234 million, up 16% year over year [19][18] - Total revenue declined by 2% year over year in Q4 and fell 1% for the full year, attributed to pricing gains offset by lower worksite employee volumes [8] Client and Employee Metrics - Total worksite employees (WSEs) decreased by 10% year over year to approximately 323,000, with retention dropping to around 80% [9][7] - Client employment growth rate remained weak, with low single-digit growth for the second consecutive year, particularly in technology and professional services sectors [9] Insurance and Cost Management - Insurance Services revenue was flat for the full year, with a 9% increase in revenue per average co-employed WSE due to health fee increases [10] - The insurance cost ratio (ICR) improved to 90.8% for 2025, with guidance for 2026 set between 90.75% and 89.25% [12][13] Strategic Initiatives for 2026 - TriNet is focusing on Administrative Services Only (ASO) growth, expanding broker partnerships, and enhancing its salesforce to drive recovery, with a revenue guidance of $4.75 billion to $4.9 billion for 2026 [5][14][20] - The company plans to launch "TriNet Assistant," an AI-powered HR tool, and simplify its health plan offerings through benefit bundles [17] Shareholder Returns - TriNet returned $235 million to shareholders in 2025 through dividends and share repurchases, with an increase in buyback authorization to $400 million [20][23]