Insperity Q1 revenue rises 2%, slightly beats estimates

Insperity

30/04/2026 21:49

Overview

U.S. HR solutions provider's Q1 revenue rose 2% yr/yr, slightly beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations; adjusted EBITDA also exceeded estimates

Operating expenses decreased 1% on restructuring charges primarily related to severance associated with a workforce realignment

Outlook

Insperity sees Q2 adjusted EPS between $0.02 and $0.50

Company expects full-year 2026 adjusted EBITDA of $170 mln to $230 mln

Insperity expects margin recovery plan to continue throughout 2026

Result Drivers

HIGHER PRICING - Revenue per worksite employee rose 3% on higher pricing, partially offsetting a 1% decline in average paid worksite employees

MARGIN RECOVERY EFFORTS - Margin recovery was supported by pricing and client renewal strategy, new UnitedHealthcare contract terms, plan design changes, and lower than expected claim cost trend

OPERATING EXPENSES - Decreased 1% to $240 million in Q1 2026, including $9 million in restructuring charges primarily related to severance associated with a workforce realignment.

Company press release: ID:nBw7crFxja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$1.90 bln
$1.89 bln (4 Analysts)
Q1 Adjusted EPS
Beat
$1.31
$1.23 (5 Analysts)
Q1 Net Income
$33 mln
Q1 Adjusted EBITDA
Beat
$103 mln
$92.83 mln (4 Analysts)
Q1 Operating income
Miss
$62 mln
$67.40 mln (4 Analysts)
Q1 Gross Profit
$302 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the employment services peer group is "buy."

Wall Street's median 12-month price target for Insperity Inc is $36.00, about 3.3% below its April 29 closing price of $37.21

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)