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1. Company Snapshot

1.a. Company Description

Insperity, Inc.provides human resources (HR) and business solutions to improve business performance for small and medium-sized businesses.The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services.


It also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; personnel record management services; and employer liability management services, as well as solutions for middle market.In addition, the company offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; retirement; and insurance services.As of December 31, 2021, it operated through 85 sales offices in the United States.


The company was formerly known as Administaff, Inc.and changed its name to Insperity, Inc.in March 2011.


The company was founded in 1986 and is headquartered in Kingwood, Texas.

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1.b. Last Insights on NSP

Insperity, Inc.'s recent performance was negatively impacted by weaker-than-expected Q3 earnings and revenues, as well as reduced 2025 guidance. The company's third-quarter results missed estimates, with a decrease in earnings and revenues. Multiple law firms, including Edelson Lechtzin LLP, Pomerantz Law Firm, and Bragar Eagel & Squire, P.C., are investigating potential claims on behalf of investors, alleging violations of federal securities laws and misleading business information. These factors have likely contributed to the company's current challenges.

1.c. Company Highlights

2. Insperity's Q3 2025 Earnings: A Challenging Quarter with a Promising Outlook

Insperity reported a challenging Q3 2025, with adjusted EPS coming in at -$0.20, significantly below the estimated $0.22. Adjusted EBITDA was $10 million, also below expectations. The company's gross profit per worksite employee declined to $208 per month, down from $247 in Q3 2024, primarily due to higher-than-expected benefits costs of $20 million. The average number of paid worksite employees increased by 1.2% over Q3 2024 to 312,842.

Publication Date: Nov -05

📋 Highlights
  • Unit Growth Within Forecast:: Average paid worksite employees rose 1.2% YoY to 312,842 in Q3 2025.
  • Adjusted Earnings Below Forecast:: Adjusted EPS was -$0.20, and adjusted EBITDA fell to $10 million, missing targets due to $20 million higher benefits costs.
  • Healthcare Cost Pressure:: Benefits cost trend surged 9.1% YoY, driven by unexpected health care claims, prompting pricing hikes and a new UnitedHealthcare contract.
  • HRScale Growth Catalyst:: HR360 sales exceeded budget by 45% YoY, with HRScale expected to drive margin recovery and client retention for mid-market firms.
  • 2026 Margin Recovery Plan:: Gross profit per worksite employee is projected to rebound in 2026, supported by pricing adjustments and a 2% gross benefits cost reduction via the UHC contract.

Benefits Costs and Pricing Initiatives

The most significant challenge Insperity faced was the unexpected increase in health care claims costs, leading to a benefits cost trend of 9.1% for Q3 2025 over Q3 2024. To address this, the company took decisive actions, including increasing pricing and negotiating a new agreement with UnitedHealthcare. As CFO Jim Allison noted, "We expect this agreement to add additional support and contribute substantially to our margin recovery." Insperity's pricing changes are expected to attract and retain the right clients at the right price, producing sustainable forward-looking profitability.

Growth Prospects with HRScale

Insperity is rolling out its HRScale solution, a joint solution with Workday, designed to enhance its PEO solution set for mid-market companies. The company expects HRScale to be a significant growth catalyst, particularly given the broader macro trends impacting the industry. With recent booked sales success, including HR360 sales substantially over budget and 45% greater than the same period last year, Insperity is confident in its growth prospects.

Valuation and Outlook

Insperity's current valuation metrics indicate a mixed picture. The P/E Ratio stands at 82.77, while the P/S Ratio is 0.21. The EV/EBITDA ratio is 16.38. Analysts estimate next year's revenue growth at 6.4%. Given the challenges faced by Insperity in Q3 2025, the company's efforts to address benefits costs and drive growth through HRScale are crucial. If successful, these initiatives could lead to a rebound in gross profit and margins in 2026, potentially justifying the current valuation.

3. NewsRoom

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Insperity Stock Down 55% From Highs as Hedge Fund Buys $13 Million Stake — Is It A Turnaround Bet?

Nov -30

Source: fool.com

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Insperity Recognized as a 2025 Inc. Power Partner Award Winner

Nov -13

Source: businesswire.com

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Insperity Stock Declines 23% After Reporting Q3 Earnings Miss

Nov -07

Source: zacks.com

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Y Intercept Hong Kong Ltd Purchases New Shares in Insperity, Inc. $NSP

Nov -06

Source: defenseworld.net

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Insperity Posts Downbeat Q3 Results, Joins IAC, Archer-Daniels-Midland And Other Big Stocks Moving Lower In Tuesday's Pre-Market Session

Nov -04

Source: benzinga.com

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Insperity, Inc. (NSP) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Insperity Announces Third Quarter Results and New UnitedHealthcare Contract

Nov -03

Source: businesswire.com

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INSPERITY INVESTIGATION ALERT: Bragar Eagel & Squire, P.C. is Investigating Insperity, Inc. on Behalf of Insperity Stockholders and Encourages Investors to Contact the Firm

Nov -01

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Human Resources and Business Solutions

Expected Growth: 7%

Insperity's 7% growth in Human Resources and Business Solutions is driven by increasing demand for outsourced HR services, expansion of existing client relationships, and strategic acquisitions. Additionally, the company's focus on mid-market businesses and its comprehensive suite of services, including payroll, benefits, and performance management, contribute to its growth momentum.

7. Detailed Products

Worksite Employee Solutions

Provides human capital management solutions for small and medium-sized businesses, including payroll processing, benefits administration, and compliance services.

Performance Management

Offers performance management tools and services to help businesses improve employee performance and productivity.

Time and Attendance

Provides time and attendance tracking solutions to help businesses manage employee work hours and reduce labor costs.

Benefits and Insurance Services

Offers a range of benefits and insurance services, including health, dental, and vision insurance, as well as retirement planning and other benefits.

Retirement Services

Provides retirement plan administration and recordkeeping services to help businesses offer competitive retirement benefits.

Business Performance Benchmarking

Offers benchmarking tools and services to help businesses measure and improve their performance.

HR Services

Provides HR consulting and outsourcing services to help businesses manage HR functions, including compliance, recruitment, and employee relations.

8. Insperity, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Insperity, Inc. faces moderate threat from substitutes due to the presence of various HR outsourcing companies and PEOs that offer similar services.

Bargaining Power Of Customers

Insperity, Inc. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's services are often customized, making it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

Insperity, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's scale and size also give it negotiating power over its suppliers.

Threat Of New Entrants

The HR outsourcing and PEO industry has high barriers to entry, including regulatory hurdles and the need for significant capital investment. This makes it difficult for new entrants to compete with established players like Insperity, Inc.

Intensity Of Rivalry

The HR outsourcing and PEO industry is highly competitive, with several established players competing for market share. Insperity, Inc. faces intense rivalry from companies like ADP, Paychex, and TriNet.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.61%
Debt Cost 7.98%
Equity Weight 19.39%
Equity Cost 9.76%
WACC 8.32%
Leverage 415.72%

11. Quality Control: Insperity, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Korn Ferry

A-Score: 5.8/10

Value: 6.2

Growth: 5.8

Quality: 6.3

Yield: 4.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Avis Budget Group

A-Score: 5.6/10

Value: 9.6

Growth: 5.8

Quality: 5.0

Yield: 1.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
EMCOR

A-Score: 5.5/10

Value: 2.8

Growth: 9.1

Quality: 7.1

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
ManpowerGroup

A-Score: 5.0/10

Value: 8.3

Growth: 2.9

Quality: 3.6

Yield: 9.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Robert Half

A-Score: 5.0/10

Value: 6.4

Growth: 3.2

Quality: 5.5

Yield: 8.0

Momentum: 0.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Insperity

A-Score: 4.8/10

Value: 5.3

Growth: 6.9

Quality: 5.1

Yield: 7.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.14$

Current Price

35.14$

Potential

-0.00%

Expected Cash-Flows