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Jun 30
Insperity Q2 2025 Earnings Report
Insperity reported a Q2 2025 net loss driven by rising healthcare costs, despite growth in employees paid and revenues.
Key Takeaways
Insperity experienced a challenging Q2 2025, reporting a net loss of $5 million despite 3% revenue growth to $1.658 billion. The company saw a 1% increase in average worksite employees paid and adjusted EPS of $0.26. Rising healthcare costs pressured margins, leading to a 14% drop in gross profit.
Revenue increased 3% year-over-year to $1.658 billion.
Reported net loss of $5 million and EPS of $(0.14), with adjusted EPS at $0.26.
Gross profit dropped 14% due to elevated healthcare costs.
Average worksite employees paid rose 1% to 309,115.
Insperity
Insperity
Forward Guidance
Insperity expects continued growth in worksite employees paid and is actively managing costs with strategic pricing and benefit plan changes to counter healthcare cost pressures.
Positive Outlook
- Expected Q3 average WSEEs paid to rise to 312,200–315,300.
- Adjusted EPS guidance for Q3 set between $0.06 and $0.49.
- Adjusted EBITDA projected between $170M and $205M for FY25.
- Ongoing investment in Workday partnership to enhance offerings.
- Cost control measures and pricing strategies being implemented.
Challenges Ahead
- Q2 reported net loss and lowered full-year guidance.
- Continued pressure from elevated healthcare and pharmacy claims.
- Gross profit down 14% YoY, weighing on profitability.
- Operating income turned negative in the quarter.
- Expectations of high variability in healthcare cost trends.