Insperity(NYSE) NSP

Insperity helps small businesses manage their employees. They handle tricky tasks like payroll and health insurance. This lets owners spend more time growing their business.

Managing the HR Office

• PEO HR Solutions: Services provided through a co-employment model where responsibilities are shared; generated $1.9 billion in revenue in Q1 2026.
• Traditional HR Solution: Payroll and employee management software for businesses that do not share employer responsibilities.
• Specialized Services: Support for hiring, retirement plans, and insurance products provided as additions to core HR solutions.

Scaling the Business

• Workday: Formed a strategic partnership to launch a specialized HR solution using the Workday technology platform.
• Workforce Realignment: Reduced non-sales staff numbers in early 2026 to help recover profit margins.
• Middle Market Focus: Increased the share of middle-market clients to 29% of the total paid employee base in Q1 2026.

Why Co-Employment Works

Insperity uses a co-employment model to group workers from many small businesses together. This gives small firms the bargaining power to provide high-quality health benefits and retirement plans.

Key Performance Figures

• Revenue hit $1.9 billion in Q1 2026, up 2% from Q1 2025.
• Net income reached $33 million in Q1 2026, down 35% from the previous year.
• Gross profit per employee per month was $332 in Q1 2026, down 2% year-over-year.
• Adjusted EBITDA rose to $103 million in Q1 2026, a 1% increase from 2025.
• Operating cash flow deficit narrowed to $67 million in Q1 2026, an improvement from 2025.

Bottom Line

Insperity has transitioned from a payroll provider to a full-service human resources partner. Its focus on technology platforms and middle-market firms supports its long-term growth in the business services sector.