Insperity, Inc 10-Q for FY2026 Q2

Insperity, Inc. (NSP)

10-Q 2026-07-30 For: 2026-06-30

Added on July 31, 2026

About this 10-Q

Insperity, Inc filed this 10-Q on July 30, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.69B; up 1.7% from $1.66B a year earlier
Net income: $4M; compared with a net loss of $5M a year earlier
Diluted EPS: $0.10; compared with -$0.14 a year earlier

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or
☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

			For the transition period from _______________ to _______________


Delaware						76-0479645
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


19001 Crescent Springs Drive
Kingwood,	Texas	77339
(Address of principal executive offices)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	NSP	New York Stock Exchange
		NYSE Texas


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Emerging growth company	☐
Smaller reporting company	☐


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


		Page

	Forward Looking Statements	4
Part I, Item 1.	Financial Statements	6
	Consolidated Balance Sheets	6
	Consolidated Statements of Operations	7
	Consolidated Statements of Stockholders’ Equity	9
	Consolidated Statements of Cash Flows	10
	Notes to Consolidated Financial Statements	11
Part I, Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Part I, Item 3.	Quantitative and Qualitative Disclosures about Market Risk	39
Part I, Item 4.	Controls and Procedures	39
Part II, Item 1.	Legal Proceedings	40
Part II, Item 1A.	Risk Factors	40
Part II, Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Part II, Item 5.	Other Information	40
Part II, Item 6.	Exhibits	41


(in millions)	June 30, 2026		December 31, 2025
Assets
Cash and cash equivalents	$	619	$	642
Restricted cash	81		82
Marketable securities	—		18
Accounts receivable, net	878		826
Prepaid insurance and related assets	57		6

Income taxes receivable	26		29
Funds held for clients and other current assets	106		119
Total current assets	1,767		1,722
Property and equipment, net of accumulated depreciation	170		177
Right-of-use (“ROU”) leased assets	57		63
Prepaid health insurance	9		9
Deposits – health insurance	8		8
Deposits – workers’ compensation	160		148
Goodwill and other intangible assets, net	13		13
Deferred income taxes, net	—		22
Other assets	50		41
Total assets	$	2,234	$	2,203

Liabilities and stockholders' equity
Accounts payable	$	10	$	6
Payroll taxes and other payroll deductions payable	534		544
Accrued worksite employee payroll costs	760		764
Accrued health insurance costs	61		30
Accrued workers’ compensation costs	83		84
Accrued corporate payroll and commissions	54		78

Client funds liability and other accrued liabilities	85		114
Total current liabilities	1,587		1,620
Accrued workers’ compensation costs, net of current	103		102
Long-term debt	419		369
Operating lease liabilities, net of current	59		66
Deferred income taxes, net	5		—

Total noncurrent liabilities	586		537
Commitments and contingencies
Common stock	1		1
Additional paid-in capital	255		257
Treasury stock, at cost	(824)		(850)
Retained earnings	629		638
Total stockholders' equity	61		46
Total liabilities and stockholders’ equity	$	2,234	$	2,203


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share amounts)	2026		2025		2026		2025

Revenues	$	1,686	$	1,658	$	3,581	$	3,521
Payroll taxes, benefits and workers’ compensation costs	1,469		1,435		3,062		2,988
Gross profit	217		223		519		533
Salaries, wages and payroll taxes	115		129		255		271
Stock-based compensation	13		20		26		31
Commissions	10		10		20		21
Advertising	14		11		25		18
General and administrative expenses	49		49		104		109
Depreciation and amortization	10		11		21		22
Total operating expenses	211		230		451		472
Operating income (loss)	6		(7)		68		61
Other income (expense):
Interest income	5		7		12		17
Interest expense	(6)		(6)		(12)		(12)
Income (loss) before income tax (benefit) expense	5		(6)		68		66
Income tax (benefit) expense	1		(1)		31		20
Net income (loss)	$	4	$	(5)	$	37	$	46

Net income (loss) per share of common stock
Basic	$	0.10	$	(0.14)	$	0.98	$	1.22
Diluted	$	0.10	$	(0.14)	$	0.97	$	1.22


	Common Stock Issued			Additional Paid-In Capital		Treasury Stock		Retained Earnings and AOCI		Total
(in millions)	Shares	Amount

Balance at December 31, 2025	55	$	1	$	257	$	(850)	$	638	$	46
Purchase of treasury stock, at cost	—	—		—		(4)		—		(4)
Issuance of equity-based incentive awards and dividend equivalents	—	—		(26)		27		(1)		—
Stock-based compensation expense	—	—		26		—		—		26
Other	—	—		(2)		3		1		2
Dividends paid	—	—		—		—		(46)		(46)

Net income	—	—		—		—		37		37
Balance at June 30, 2026	55	$	1	$	255	$	(824)	$	629	$	61

Balance at December 31, 2024	55	$	1	$	222	$	(864)	$	738	$	97
Purchase of treasury stock, at cost	—	—		—		(19)		—		(19)
Issuance of equity-based incentive awards and dividend equivalents	—	—		(25)		28		(3)		—
Stock-based compensation expense	—	—		30		1		—		31
Other	—	—		1		1		—		2
Dividends paid	—	—		—		—		(45)		(45)

Net income	—	—		—		—		46		46
Balance at June 30, 2025	55	$	1	$	228	$	(853)	$	736	$	112


	Six Months Ended June 30,
(in millions)	2026		2025

Cash flows from operating activities
Net income	$	37	$	46
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	21		22
Stock-based compensation	26		31
Deferred income taxes	27		12
Changes in operating assets and liabilities:
Accounts receivable	(52)		(14)
Prepaid insurance and related assets	(51)		(16)
Other current assets	(13)		1
Other assets and ROU assets	—		(6)
Accounts payable	4		(4)
Payroll taxes and other payroll deductions payable	(10)		(535)
Accrued worksite employee payroll costs	(4)		(14)
Accrued health insurance costs	31		38
Accrued workers’ compensation costs	—		(14)
Accrued corporate payroll, commissions and other accrued liabilities	(38)		(40)
Income taxes payable/receivable	3		(29)
Total adjustments	(56)		(568)
Net cash used in operating activities	(19)		(522)
Cash flows from investing activities
Marketable securities:
Purchases	(10)		(10)
Proceeds from maturities	6		12
Proceeds from dispositions	22		—
Property and equipment purchases	(13)		(13)
Net cash provided by (used in) investing activities	5		(11)
Cash flows from financing activities
Purchase of treasury stock	(4)		(19)
Dividends paid	(46)		(45)
Borrowings under revolving line of credit	50		—
Client funds liability and other	(21)		(14)
Net cash used in financing activities	(21)		(78)
Net decrease in cash, cash equivalents, restricted cash, funds held for clients, and deposits – workers’ compensation	(35)		(611)
Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation beginning of period	945		1,344
Cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation end of period	$	910	$	733
Supplemental cash flow information:
ROU assets obtained in exchange for lease obligations	$	3	$	10


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2026		2025		% Change		2026		2025		% Change

Northeast	$	446	$	452	(1)	%	$	973	$	978	(1)	%
Southeast	250		238		5	%	521		495		5	%
Central	308		301		2	%	650		636		2	%
Southwest	314		311		1	%	664		658		1	%
West	353		339		4	%	739		716		3	%
	1,671		1,641		2	%	3,547		3,483		2	%
Other revenue	15		17		(12)	%	34		38		(11)	%
Total revenue	$	1,686	$	1,658	2	%	$	3,581	$	3,521	2	%


(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

June 30, 2026
U.S. Treasury bills	$	—	$	—	$	—	$	—


December 31, 2025
U.S. Treasury bills	$	18	$	—	$	—	$	18


(amounts per share)	2026		2025

First quarter	$	0.60	$	0.60
Second quarter	0.60		0.60


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


TABLE OF CONTENTS


FORWARD LOOKING STATEMENTS


FORWARD LOOKING STATEMENTS


FINANCIAL STATEMENTS (Unaudited)


(in millions, except per share, WSEE and statistical data)	Three Months Ended June 30,						Six Months Ended June 30,
	2026		2025		% Change		2026		2025		% Change

Financial data:
Revenues	$	1,686	$	1,658	2	%	$	3,581	$	3,521	2	%
Gross profit	217		223		(3)	%	519		533		(3)	%
Operating expenses	211		230		(8)	%	451		472		(4)	%
Operating income	6		(7)		186	%	68		61		11	%
Other income (expense), net	(1)		1		(200)	%	—		5		(100)	%
Net income (loss)	4		(5)		180	%	37		46		(20)	%
Diluted EPS	0.10		(0.14)		171	%	0.97		1.22		(20)	%

Non-GAAP financial measures(1):
Adjusted net income	$	13	$	10	30	%	$	63	$	69	(9)	%
Adjusted EBITDA	36		32		13	%	139		134		4	%
Adjusted EPS	0.34		0.26		31	%	1.64		1.83		(10)	%

Average WSEEs paid	305,764		309,115		(1)	%	304,407		307,569		(1)	%

Statistical data (per WSEE per month):
Revenues(2)	$	1,838	$	1,788	3	%	$	1,961	$	1,908	3	%
Gross profit	237		240		(1)	%	284		289		(2)	%
Operating expenses	230		248		(7)	%	247		256		(4)	%
Operating income	7		(8)		188	%	37		33		12	%
Net income (loss)	4		(5)		180	%	20		25		(20)	%


	Three Months Ended June 30,				Six Months Ended June 30,
(per WSEE per month)	2026		2025		2026		2025
Gross billings	$	11,895	$	11,385	$	12,624	$	12,302
Less: WSEE payroll cost	10,057		9,597		10,663		10,394
Revenues	$	1,838	$	1,788	$	1,961	$	1,908


Net Income (Loss) and Year-over-Year Growth Percentage (in millions)


Adjusted EBITDA and Year-over-Year Growth Percentage (in millions)


EPS and Year-over-Year Growth Percentage (amounts per share)


Adjusted EPS and Year-over-Year Growth Percentage (amounts per share)


Gross Profit and Year-over-Year Growth Percentage (in millions)


Gross Profit per WSEE per Month and Year-over-Year Growth Percentage


	Three Months Ended June 30,
							per WSEE
(in millions, except per WSEE)	2026		2025		% Change		2026		2025		% Change

Salaries	$	115	$	129	(11)	%	$	125	$	139	(10)	%

Stock-based compensation	13		20		(35)	%	14		22		(36)	%
Commissions	10		10		—		11		11		—
Advertising	14		11		27	%	15		12		25	%

General and administrative:
Amortization of SaaS implementation costs	2		1		100	%	2		1		100	%
Workday SaaS licensing and implementation expense	4		7		(43)	%	4		8		(50)	%
All other general and administrative	43		41		5	%	48		43		12	%
Total general and administrative	49		49		—		54		52		4	%
Depreciation and amortization	10		11		(9)	%	11		12		(8)	%
Total operating expenses	$	211	$	230	(8)	%	$	230	$	248	(7)	%


Non-GAAP Measure	Definition	Benefit of Non-GAAP Measure
Non-bonus payroll cost	Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.	Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs. Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program. We include these non-GAAP financial measures because we believe they are useful to investors in allowing for greater transparency related to the costs incurred under our current workers’ compensation program.
Adjusted cash, cash equivalents and marketable securities	Excludes funds associated with: • federal and state income tax withholdings, • employment taxes, • other payroll deductions, and • client prepayments.	We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. Adjusted EBITDA is used by our lenders to assess our leverage and ability to make interest payments.

Adjusted operating expenses	Represents operating expenses excluding the impact of the following: • restructuring charges.

EBITDA	Represents net income computed in accordance with GAAP, plus: • interest expense, • income tax expense, • depreciation and amortization expense, and • amortization of SaaS implementation costs.

Adjusted EBITDA	Represents EBITDA plus: • non-cash stock-based compensation, and • restructuring charges.

Adjusted net income	Represents net income computed in accordance with GAAP, excluding: • non-cash stock-based compensation, • restructuring charges, and • the income tax effect at our effective tax rate of these pre-tax adjustments.(1)

Adjusted EPS	Represents diluted net income per share computed in accordance with GAAP, excluding: • non-cash stock-based compensation, • restructuring charges, and • the income tax effect at our effective tax rate of these pre-tax adjustments.(1)


____________________________________
(1)Non-GAAP effective tax rate excludes the income tax impact from stock-based compensation, restructuring charges, and changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.


(in millions, except per WSEE per month)	Three Months Ended June 30,												Six Months Ended June 30,
	2026						2025						2026						2025
				Per WSEE						Per WSEE						Per WSEE						Per WSEE

Payroll cost	$	9,225		$	10,057		$	8,900		$	9,597		$	19,476		$	10,663		$	19,181		$	10,394
Less: Bonus payroll cost	980			1,069			705			760			3,098			1,696			2,948			1,598
Non-bonus payroll cost	$	8,245		$	8,988		$	8,195		$	8,837		$	16,378		$	8,967		$	16,233		$	8,796
Payroll cost % change period over period	4		%	5		%	2		%	1		%	2		%	3		%	4		%	3		%
Non-bonus payroll cost % change period over period	1		%	2		%	4		%	3		%	1		%	2		%	3		%	2		%


Period	Total Number of Shares Purchased(1)(2)	Average Price Paid per Share		Total Number of Shares Purchased Under Announced Program(2)	Maximum Number of Shares Available for Purchase under Announced Program(2)
04/01/2026 — 04/30/2026	633	$	29.34	—	1,407,764
05/01/2026 — 05/31/2026	—	—		—	1,407,764
06/01/2026 — 06/30/2026	—	—		—	1,407,764
Total	633	$	29.34	—


Exhibit No		Exhibit
10.1	*	F orm of Director Restricted Stock Unit Agreement for awards granted to non-employee directors on or after January 1, 2026.
10.2		Second Amendment to the Insperity, Inc. Incentive Plan, as amended and restated effective May 22, 2023 (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on May 20, 2026).
31.1	*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	**	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	**	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	*	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	*	Inline XBRL Extension Definition Linkbase Document.
101.LAB	*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (embedded with the Inline XBRL document).


			____________________________________


			*			Filed with this report.

			**			Furnished with this report.


	INSPERITY, INC.

Date: July 29, 2026	By:	/s/ James D. Allison
		James D. Allison
		Executive Vice President of Finance, Chief Financial Officer & Treasurer
		(Principal Financial Officer)

	By:	/s/ Sean P. Duffy
		Sean P. Duffy
		Senior Vice President of Finance and Accounting
		(Principal Accounting Officer)


Grant Date: _____________	By:

	Name:	Paul J. Sarvadi

	Title:	Chairman of the Board and Chief Executive Officer


1.			I have reviewed this quarterly report on Form 10-Q of Insperity, Inc.;


2.			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;