Core Insights - Insperity, Inc. (NYSE:NSP) is recognized as one of the 15 Best 52-Week Low Dividend Stocks to Invest in [1] - Truist analyst Tobey Sommer has lowered the price target for Insperity from $50 to $35 while maintaining a Hold rating, citing a challenging quarter and reduced FY25 guidance, although management remains optimistic about recovering earnings shortfalls [2] - The company launched HRScale, a strategic initiative with Workday, during the quarter, and operating expenses decreased by 4% to $220 million [3] Financial Performance - Insperity reported Q3 2025 revenue of $1.62 billion, reflecting a 4% increase year-over-year [4] - The average number of worksite employees (WSEEs) paid per month grew by 1% year-over-year to 312,842 [4] - Operating expenses included $11 million related to the Workday partnership, down from $19 million in the prior-year quarter [3]

Financial Performance - Q3 2025 - Q3 average paid worksite employees increased by 1%[8] - Adjusted EBITDA decreased by 74%[11] - Adjusted EPS decreased by 151%[11] - Operating expenses decreased by 4% compared to Q3 2024[13] Financial Performance - YTD September 2025 - Average paid worksite employees increased by 1%[15] - Adjusted EBITDA decreased by 42%[18] - Adjusted EPS decreased by 54%[18] Balance Sheet and Cash Flow - Adjusted Cash was $120 million as of September 30, 2025[20] - Total Debt was $369 million as of September 30, 2025[20] - Adjusted EBITDA was $144 million YTD September 30, 2025[20] Q4 and FY 2025 Outlook - Q4 2025 Adjusted EBITDA is projected at $(25) million, a decrease of 209% year-over-year[22] - FY 2025 Adjusted EBITDA is projected between $119 million and $153 million, a decrease of 56% to 43% year-over-year[22] - FY 2025 Adjusted EPS is projected between $0.84 and $1.47, a decrease of 77% to 59% year-over-year[22]

Core Insights - Insperity reported a net loss of $20 million for Q3 2025, with diluted EPS at $(0.53), while adjusted EBITDA was $10 million and adjusted EPS was $(0.20) [5][7] - The company announced a multi-year contract extension with UnitedHealthcare, expected to provide significant cost reductions and improve financial outlook for 2026 [4][7] - Insperity's revenues for Q3 2025 increased by 4% year-over-year to $1.6 billion, driven by a 3% increase in revenue per worksite employee (WSEE) and a 1% increase in the average number of WSEEs [2][6] Financial Performance - Q3 2025 revenues reached $1.623 billion, up from $1.561 billion in Q3 2024, marking a 4% increase [7][22] - Gross profit decreased by 15% to $195 million in Q3 2025, primarily due to higher-than-expected benefits costs [3][22] - Operating expenses decreased by 4% to $220 million in Q3 2025 compared to $228 million in Q3 2024 [4][22] Year-to-Date Results - Year-to-date revenues increased by 4% to $5.1 billion, with an average of 309,327 WSEEs paid per month, also up by 1% [6][8] - Year-to-date net income was $26 million, with diluted EPS at $0.69 and adjusted EBITDA at $144 million [8][9] - The company returned $87 million to shareholders through share repurchases and cash dividends in the first nine months of 2025 [7][9] Strategic Developments - The rollout of HRScale, a strategic joint development offering with Workday, is expected to enhance Insperity's market position and drive future growth [2][4] - The new contract with UnitedHealthcare will reduce the pooling level for large claims to $500,000 starting January 1, 2026, which is anticipated to provide outstanding value for plan participants [4][7] Guidance and Outlook - Insperity provided updated guidance for 2025, projecting an average of 313,000 WSEEs paid in Q4 2025, with adjusted EPS expected to range from $(0.79) to $(0.16) [11][29] - The company anticipates a year-over-year decrease in adjusted EBITDA for Q4 2025, projecting a range of $(25) million to $9 million [11][29]