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Sep 30
Insperity Q3 2025 Earnings Report
Insperity reported a net loss in Q3 2025 due to elevated healthcare costs, despite modest revenue and WSEE growth.
Key Takeaways
Q3 2025 results showed a net loss for Insperity, driven by rising benefits costs, although revenues grew 4% and WSEEs increased slightly. A new UHC contract aims to improve profitability outlook.
Q3 revenue rose 4% YoY to $1.623 billion on higher pricing and WSEE growth.
Net loss of $20 million with a diluted EPS of $(0.53).
Gross profit fell 15% YoY due to elevated healthcare claims.
312,842 average worksite employees paid during Q3, up 1% YoY.
Insperity
Insperity
Insperity Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Insperity expects continued margin pressure in Q4 2025 but anticipates long-term improvements from its extended UnitedHealthcare contract and Workday partnership.
Positive Outlook
- New UnitedHealthcare contract reduces large claim pooling level and improves cost structure for 2026.
- Strategic partnership with Workday (HRScale) is expected to drive future growth.
- Stable WSEE growth with guided Q4 increase of up to 1.9%.
- Improved alignment of pricing with benefits cost trends.
- Operational expenses reduced through cost management initiatives.
Challenges Ahead
- Q4 guidance projects another net loss and negative adjusted EPS.
- Healthcare costs remain a major drag on profitability.
- Adjusted EBITDA projected to be negative in Q4 2025.
- Worksite employee growth remains modest at 1% YoY.
- Pressure from macroeconomic conditions continues to challenge operations.