olivLaw · US equity research
Insperity, Inc. NSP
Services-Help Supply Services · SIC 7363 · Vertical: Services-Help Supply Services (SIC 7363)
Insperity provides outsourced human resources to small and medium-sized US businesses through a co-employment (PEO) model, with HR360 as its largest offering. In 2026 the company is in a margin recovery phase after profitability contracted in 2025 and the paid worksite employee base slipped slightly. It reported revenues of about 6.8 billion USD in 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Insperity, Inc. (NSP) stock was 51.69 USD (+3.42% on the day), with market capitalisation 2.0 bn USD, P/E 564.4 on diluted EPS of 0.09 USD over the last 12 months, dividend yield 4.64%, beta 0.53, 52-week range 19.90–54.44 USD. Latest reported quarter (Q3 2026): revenue of 1.7 bn USD (+1.7% YoY), net income of -1.0 m USD, diluted EPS -0.02 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 52.9
- neutral
- Bollinger (20, 2)
- 46.58 – 54.67
- in the upper half of the band · %B 0.63 · band width 16.0%
- SMA 50 / 200
- 50.10 / 39.59
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.40 / 0.42
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +8.7% | −1.1% | +9.8 pp | — |
| 3 months | +1.1% | −0.5% | +1.6 pp | — |
| 6 months | +79.8% | +4.4% | +75.4 pp | — |
| Year to date | +33.5% | +12.3% | +21.2 pp | — |
| 1 year | +39.6% | +13.5% | +26.0 pp | +28.9% |
| 3 years | −52.4% | +76.4% | −128.8 pp | −36.8% |
| 5 years | −57.6% | +63.7% | −121.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.6 bn | 1.9 bn | 1.7 bn | 1.6 bn | 1.7 bn | 1.9 bn | 1.7 bn | 1.7 bn |
| Gross profit | 218.0 m | 310.0 m | 223.0 m | 195.0 m | 172.0 m | 302.0 m | 217.0 m | 207.0 m |
| Operating income | -15.0 m | 68.0 m | -7.0 m | -25.0 m | -46.0 m | 62.0 m | 6.0 m | -2.0 m |
| Depreciation & amortisation | 11.0 m | 11.0 m | 11.0 m | 11.0 m | 12.0 m | 11.0 m | 10.0 m | 10.0 m |
| Interest expense | 7.0 m | 6.0 m | 6.0 m | 6.0 m | 6.0 m | 6.0 m | 6.0 m | 7.0 m |
| Pre-tax income | -13.0 m | 72.0 m | -6.0 m | -24.0 m | -46.0 m | 63.0 m | 5.0 m | -1.0 m |
| Income tax | -4.0 m | 21.0 m | -1.0 m | -4.0 m | -13.0 m | 30.0 m | 1.0 m | 0 |
| Net income | -9.0 m | 51.0 m | -5.0 m | -20.0 m | -33.0 m | 33.0 m | 4.0 m | -1.0 m |
| Diluted EPS | -0.24 ≈ | 1.35 | -0.14 | -0.53 | -0.87 ≈ | 0.88 | 0.10 | -0.02 |
| Operating cash flow | 619.0 m | -443.0 m | -79.0 m ≈ | -11.0 m ≈ | 255.0 m | -67.0 m | 48.0 m ≈ | -4.0 m ≈ |
| Capex | 13.0 m | 6.0 m | 7.0 m ≈ | 9.0 m ≈ | 9.0 m | 6.0 m | 7.0 m ≈ | 13.0 m ≈ |
| Dividends paid | 22.0 m | 23.0 m | 22.0 m ≈ | 23.0 m ≈ | 22.0 m | 23.0 m | 23.0 m ≈ | 23.0 m ≈ |
| Share repurchases | 11.0 m | 19.0 m | 0 ≈ | 0 ≈ | 0 | 4.0 m | 0 ≈ | 6.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 33-quarter history (min 10.9, median 27.0, max 508.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.8 bn | 4.3 bn | 4.3 bn | 5.0 bn | 5.9 bn | 6.5 bn | 6.6 bn | 6.8 bn |
| Revenue YoY | +16.0% | +12.7% | −0.6% | +16.0% | +19.4% | +9.2% | +1.5% | +3.5% |
| Net income | 135.4 m | 151.1 m | 138.2 m | 124.1 m | 179.0 m | 171.0 m | 91.0 m | -7.0 m |
| Net income YoY | +60.4% | +11.6% | −8.5% | −10.2% | +44.3% | −4.5% | −46.8% | −107.7% |
| Diluted EPS | 3.22 | 3.70 | 3.54 | 3.18 | 4.64 | 4.47 | 2.42 | -0.19 |
| Diluted EPS YoY | +60.2% | +14.9% | −4.3% | −10.2% | +45.9% | −3.7% | −45.9% | −107.9% |
| net % | 3.5% | 3.5% | 3.2% | 2.5% | 3.0% | 2.6% | 1.4% | -0.1% |
| Free cash flow | 149.2 m | 148.8 m | 248.2 m | 227.3 m | 317.0 m | 158.0 m | 482.0 m | -309.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 642.0 m USD
- Financial debt
- 369.0 m USD
- Net debt
- -273.0 m USD
- Equity
- 46.0 m USD
- Total assets
- 2.2 bn USD
- Debt / equity
- 8.02x
- Current ratio
- 1.06x
- ROE
- -9.8%
- ROA
- -0.3%
- FCF margin
- -4.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 4.3 bn | 5.0 bn | 5.9 bn | 6.5 bn | 6.6 bn | 6.8 bn | SEC (XBRL)· 11 Feb 2026verified |
| Gross profit | 806.9 m | 820.1 m | 1.0 bn | 1.0 bn | 1.1 bn | 900.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Operating income | 194.7 m | 173.3 m | 250.0 m | 219.0 m | 117.0 m | -10.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Depreciation & amortisation | 31.2 m | 38.5 m | 41.0 m | 43.0 m | 44.0 m | 45.0 m | SEC (XBRL)· 11 Feb 2026verified |
| EBITDA | 225.9 m ≈ | 211.9 m ≈ | 291.0 m ≈ | 262.0 m ≈ | 161.0 m ≈ | 35.0 m ≈ | SEC (XBRL)· 11 Feb 2026derived |
| Interest expense | 8.0 m | 7.5 m | 14.0 m | 27.0 m | 28.0 m | 24.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Pre-tax income | 189.3 m | 168.3 m | 245.0 m | 225.0 m | 126.0 m | -4.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Income tax | 51.0 m | 44.2 m | 66.0 m | 54.0 m | 35.0 m | 3.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Net income | 138.2 m | 124.1 m | 179.0 m | 171.0 m | 91.0 m | -7.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Diluted EPS | 3.54 | 3.18 | 4.64 | 4.47 | 2.42 | -0.19 | SEC (XBRL)· 11 Feb 2026verified |
| Weighted average diluted shares | — | 38.9 m | 39.0 m | 38.0 m | 38.0 m | 38.0 m | SEC (XBRL)· 11 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 554.8 m | 576.0 m | 733.0 m | 693.0 m | 1.0 bn | 642.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Receivables | 6.6 m | 10.5 m | 13.9 m | 16.0 m | 9.0 m | 6.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Current assets | 1.1 bn | 1.2 bn | 1.5 bn | 1.6 bn | 2.1 bn | 1.7 bn | SEC (XBRL)· 11 Feb 2026verified |
| Property, plant & equipment, net | 216.3 m | 210.7 m | 200.0 m | 197.0 m | 192.0 m | 177.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Goodwill | 12.7 m | 12.7 m | — | — | — | — | SEC (XBRL)· 11 Feb 2022verified |
| Total assets | 1.6 bn | 1.8 bn | 2.0 bn | 2.1 bn | 2.6 bn | 2.2 bn | SEC (XBRL)· 11 Feb 2026verified |
| Accounts payable | 6.2 m | 6.4 m | 7.7 m | 11.0 m | 10.0 m | 6.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Long-term debt | 369.4 m | 369.4 m | 369.4 m | 369.0 m | 369.0 m | 369.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Current liabilities | 904.9 m | 1.1 bn | 1.4 bn | 1.4 bn | 1.9 bn | 1.6 bn | SEC (XBRL)· 11 Feb 2026verified |
| Equity | 44.1 m † | -2.0 m † | 81.0 m † | 94.0 m † | 97.0 m † | 46.0 m † | SEC (XBRL)· 11 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 346.4 m | 260.2 m | 347.0 m | 198.0 m | 520.0 m | -278.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Capex | 98.1 m | 32.9 m | 30.0 m | 40.0 m | 38.0 m | 31.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Free cash flow | 248.2 m ≈ | 227.3 m ≈ | 317.0 m ≈ | 158.0 m ≈ | 482.0 m ≈ | -309.0 m ≈ | SEC (XBRL)· 11 Feb 2026derived |
| Investing cash flow | -98.6 m | -31.0 m | -32.0 m | -22.0 m | -38.0 m | -31.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Financing cash flow | -53.6 m | -208.1 m | -141.0 m | -155.0 m | -173.0 m | -90.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Dividends paid | 61.9 m | 144.2 m | 77.0 m | 84.0 m | 89.0 m | 90.0 m | SEC (XBRL)· 11 Feb 2026verified |
| Share repurchases | — | 69.7 m | 73.0 m | 131.0 m | 63.0 m | 19.0 m | SEC (XBRL)· 11 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 51 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet55
- Growth39
- Quality75
- Returns84
- Valuation29
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.02 – 137.89 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)87.66 – 137.89 (Mid 106.59)WACC 8.6% · starting FCFF 218.0 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -25.7%
- Peers: EV/EBITDA17.69 – 21.28 (Mid 19.98)3 companies used · median multiple 9.2x · quartiles 7.8x – 10.0xDLHC, EFOR, MAN
- Peers: P/E1.68 – 2.38 (Mid 2.16)8 companies used · median multiple 23.5x · quartiles 18.3x – 26.0xAMN, BBSI, EFOR, HQI, KFRC, MAN, RCMT, RHI
- Dividend discount (DDM)0.02 – 0.03 (Mid 0.03)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 51/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 0.0% | 50 (vs peers) | 8% |
| FCF conversion · Quality | 6,566.7% | 100 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | 4.7% | 39 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | -2.9x | 100 (on a fixed band) | 13% |
| Interest coverage · Balance sheet | 0.8x | 0 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 1.1x | 26 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 564.4x | 0 (vs peers) | 13% |
| EV/EBITDA · Valuation | 28.4x | 0 (on a fixed band) | 13% |
| FCF yield · Valuation | 10.0% | 100 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | 5.1% | 73 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | 46.2% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet55/100 · 3/3 factors with a value
- Growth· partial39/100 · 1/2 factors with a value
- Quality75/100 · 2/3 factors with a value
- Returns84/100 · 2/2 factors with a value
- Valuation29/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Insperity, Inc. (NSP). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 6.8 bn USD in 2025; YoY growth 3.5%; net margin 0.0%; ROE 4.6%; net debt/EBITDA -2.9x.
The estimated value range is 9.68–11.83 USD per share (median of 4 methods, agreement: low); assumptions are illustrative. Against the central value of 11.07 USD, the price of 51.69 USD leaves a potential of -78.6% (value / price − 1) and a margin of safety of -367.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 51/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 6,566.7%
- Net debt / EBITDA: -2.9x
- FCF yield: 10.0%
- Shareholder yield (distributions): 5.1%
- Payout ratio (FCF): 46.2%
What contradicts it
- Interest coverage: 0.8x
- Current ratio: 1.1x
- P/E (TTM): 564.4x
- EV/EBITDA: 28.4x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y.
Versus the vertical median
Services-Help Supply Services (SIC 7363) · same industry (4-digit SIC) · compared with 16 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| RHIRobert Half Inc. | 4.6 bn | 37.2 | 9.8% | 2.3% | −7.2% | +66% / −45% |
| MANManpowergroup Inc. | 2.2 bn | 18.5 | 5.8% | 0.6% | +0.6% | +63% / −37% |
| NSPInsperity, Inc. | 2.0 bn | 564.4 | 4.6% | 0.0% | +3.5% | +40% / −52% |
| AMNAmn Healthcare Services, Inc. | 1.8 bn | 17.8 | 15.6% | 3.1% | −8.5% | +187% / −30% |
| EFOREverforth, Inc. | 1.5 bn | 22.7 | 3.7% | 1.7% | −2.9% | −18% / −59% |
| KFRCKforce Inc | 1.0 bn | 24.4 | 30.5% | 3.0% | −5.4% | +98% / −16% |
| BBSIBarrett Business Services, Inc. | 802.2 m | 24.4 | 16.3% | 2.8% | +8.4% | −6% / +20% |
| TBITrueBlue, Inc. | 300.0 m | — | -15.9% | -2.6% | +3.1% | +101% / −29% |
| RCMTRcm Technologies, Inc. | 248.1 m | 15.1 | 39.5% | 5.1% | unavailable | +78% / +29% |
| HQIHireQuest, Inc. | 246.4 m | 30.9 | 12.1% | 27.1% | −11.4% | +104% / +20% |
| TTECTTEC Holdings, Inc. | 75.4 m | — | -108.2% | -10.2% | −3.2% | −54% / −92% |
| DLHCDlh Holdings Corp. | 53.5 m | — | -20.8% | -8.5% | −13.0% | −41% / −73% |
| BGSFBgsf, Inc | 41.8 m | — | -4.4% | -2.3% | −10.6% | −15% / −60% |
| STRRStar Equity Holdings, Inc. | 35.5 m | — | -18.2% | -4.3% | +22.9% | −5% / −39% |
| CIRCCircle8 Group Inc. | 26.7 m | — | — | -19.4% | −1.5% | −89% / −94% |
| YFORYY Group Holding Ltd. | 4.3 m | — | -94.1% | -11.8% | +29.4% | −100% / unavailable |
| KELYAKelly Services, Inc. | — | — | -24.3% | -6.7% | −1.9% | +96% / −19% |
1- and 3-year price returns: for NSP from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 26.32 Total return -49% · Per year -49% | 46.53 Total return -10% · Per year -10% | 70.08 Total return 36% · Per year 36% |
| 3 years | 25.63 Total return -50% · Per year -21% | 50.98 Total return -1% · Per year -0% | 84.30 Total return 64% · Per year 18% |
| 5 years | 24.97 Total return -51% · Per year -13% | 55.86 Total return 9% · Per year 2% | 101.40 Total return 97% · Per year 15% |
- Exit P/E± 12.75
- Net margin± 8.92
- Annual revenue growth± 7.31
- Annual dilution± 0.75
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Insperity provides outsourced human resources to small and medium-sized US businesses through a co-employment (PEO) model, with HR360 as its largest offering. In 2026 the company is in a margin recovery phase after profitability contracted in 2025 and the paid worksite employee base slipped slightly. It reported revenues of about 6.8 billion USD in 2025 3.
SWOT
Strengths
- The company has an integrated human resources platform, a broad service range and a benefits package that is hard for small firms to match 1.
- Recognition of the co-employment model by federal and state authorities gives the industry a supportive regulatory framework 1.
- The Workday partnership for HRScale could extend the offering to growing companies and the middle market 13.
Weaknesses
- Profitability contracted sharply in 2025 and net income turned negative, showing how sensitive margins are to costs 1.
- The number of paid worksite employees slipped slightly in 2026, showing that the margin recovery strategy has a cost for growth 2.
- Geographic concentration in a few large states exposes results to regional economic factors 1.
Opportunities
- The middle market segment is growing faster than the total base, and expanding HRScale could attract clients seeking more advanced solutions 2.
- AI initiatives could lower operating costs and improve services for clients 3.
- If the margin recovery is consolidated, the company could resume growth in 2027 on the basis of its 2026 results 3.
Threats
- An economic slowdown or credit crunch could reduce clients' headcount and their ability to pay 1.
- Rising health and workers' compensation costs could erode margins if they cannot be passed on fully to clients 13.
- Disputes over COVID-era employee retention tax credits could lead to unexpected financial obligations 1.
Risks
- ERC claimshigh
If tax authorities reject employee retention tax credit claims filed on behalf of clients, the company could face losses or penalties 1.
- Health insurance costshigh
The main health insurance contract expires at the end of 2028, and replacing it on competitive terms could be difficult if few providers offer national coverage 1.
- Geographic concentrationmedium
If economies in New York, California or Texas weaken, a large share of revenues could be hit at the same time 1.
- Credit facility obligationsmedium
The credit facility contains restrictions and financial covenants; a failure to comply could lead to acceleration of the debt 1.
- Loss of key staff and talentlow
A shortage of skilled workers or rising labor costs could affect service quality and the company's growth 1.
Investment thesis
What would need to be true (bull case)
- Guidance for 2026 showing a visible recovery in adjusted EBITDA, supported by better pricing and expense control, could help rebuild investor confidence 3.
- The middle market segment, with faster growth in employees, could become a growth driver if HRScale expands as planned 12.
- A leading position in the PEO model and a regulatory framework developed with authorities could strengthen the competitive advantage over the long term 1.
What would break the thesis
- Profitability fell sharply in 2025, and the 2026 recovery depends on pricing success, which could be hard to hold if clients leave 13.
- A slight decline in paid worksite employees and rising borrowings could limit the capacity to invest in growth 2.
- Risks tied to tax credits, health costs and geographic exposure are significant and could compress margins in periods of economic stress 1.
What to watch
- Delivery of the 2026 adjusted EBITDA guidance and the third quarter outlookQ3 2026
- Trend in average paid worksite employees, especially in the middle market segmentQ3 2026
- Status of ERC tax credit claims and any related obligations2026
- Launch and adoption of HRScale and progress of AI initiativesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
Insperity, Inc. provides a set of human resources and business performance solutions, building on the professional employer organization (PEO) model it pioneered in 1986. Through its PEO HR Solutions, the company becomes co-employer of clients' worksite employees, taking on payroll, benefits, workers' compensation and compliance administration while the client keeps control of its business. Its core services are HR360, HR360 Select Edition and HRScale, the last developed with Workday 1.
Revenue depends on the number of enrolled clients and paid worksite employees, plus a markup applied to payroll cost. Reported revenues include only the markup, not the full payroll, and direct costs include payroll taxes, benefit plans and workers' compensation 1. As of 2025 the company operated 73 offices in 44 markets and four regional service centers 1.
For 2026 the company has made margin recovery its top priority; over the first six months revenues rose slightly while net income fell. Updated 2026 guidance points to adjusted EBITDA between 185 and 225 million USD, implying the expected profit recovery is weighted to the second half of the year 3.
Segments
HR360 and HR360 Select Edition
HR360 is the company's largest revenue source, offered to small and medium-sized businesses wanting a full human resources package including the Insperity Premier platform. HR360 Select Edition is a lower-cost option with a typically longer commitment, aimed mainly at the middle market 1.
HRScale
HRScale is the newest offering, developed with Workday for growing and middle market companies. It is priced above HR360, and an initial group of clients was expected to start using it in the first quarter of 2026 1. The company ties its growth goals and AI initiatives to this product 3.
HRCore and complementary services
HRCore is a traditional payroll and human capital management solution, and complementary products include talent acquisition, retirement, insurance, contractor management and Perks+. These are generally offered only alongside the core solutions 1.
Market context
The company serves the US small and medium-sized business market, where demand depends on economic activity and access to credit. The PEO industry is regulated at state level, and 42 states have laws recognizing PEOs or requiring licensing 1. The middle market segment, generally companies with about 150 to 5,000 worksite employees, is growing its share, reaching roughly 29% of paid employees in the first six months of 2026 2.
The business is geographically concentrated, with New York, California and Texas accounting for a large share of worksite employees, so it is sensitive to economic and regulatory conditions in those states 1. The company also notes that its margin recovery strategy weighs on new sales and client retention, which can limit growth in paid employees 2.
Trends
- Growth in the middle markettailwind
Average paid worksite employees in the middle market rose 10% in the first six months of 2026, which could support the portfolio over time if the trend holds 2.
- Benefit cost pressureheadwind
Benefits cost per covered employee rose 5% in the second quarter and in the first six months of 2026, a direct pressure on margins 3. If pricing cannot offset cost growth, results could stay under pressure.
- AI and client hiringmixed
The company notes that AI tools may reduce clients' need to hire for certain roles, which could slow the growth of paid worksite employees. At the same time, AI initiatives are part of its growth plan 13.
- Margin recovery through pricingmixed
Average pricing rose and revenue per worksite employee increased 3% in the second quarter. This supported revenues but coincided with a slightly lower number of paid employees 2.
Competitive position
The supplied sources do not explicitly name direct competitors. The company describes its market in terms of the PEO industry as a whole and providers of human resources services to small and medium-sized businesses 1. Competition is described as arising from the PEO industry environment, pricing pressure and the need to win new clients 2.
Differentiation rests on the breadth of its services, its proprietary technology platform and a benefits package that small clients could not obtain alone, which the company says gives it a competitive advantage over smaller firms 1. However, client retention and pricing concerns could erode that advantage if other providers offer better terms 1.
- Other US PEO providers
The sources do not name specific rivals but describe the PEO industry as made up of several providers offering comparable services to small and medium-sized clients.
- Human resources software vendors
Human capital management platforms, including those offered through technology partners, may compete with the company's solutions for clients preferring a less integrated model.
- Local payroll and benefits providers
Smaller firms offering payroll and benefits administration may attract price-sensitive clients, especially in markets with more local competition.
- Insurance and benefits brokers
Insurers and benefits brokers may cover part of client needs without offering the integrated co-employment model.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report20 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report01 May 2026
- Current report30 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement14 Apr 2026
- Annual report11 Feb 2026
- Current report10 Feb 2026Results of operations · Exit or disposal costs · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Insperity, Inc. · 11 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Insperity, Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Insperity, Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.