Highlights

  • Third-quarter 2026 adjusted EBITDA rose 210% year on year to US$31 million, above the midpoint of the forecast range.
  • Adjusted Earnings reached US$0.22 per share, compared with an adjusted loss of US$0.20 in the third quarter of 2025.
  • Average paid worksite employees totaled 307,265, down 1.8% from a year earlier as the company prioritized margins.
  • Full-year adjusted EBITDA guidance was narrowed to US$194 million to US$214 million, with the midpoint essentially unchanged.

Insperity, Inc. (NYSE:NSP) has narrowed its 2026 outlook after a third quarter in which pricing actions and tighter costs pushed adjusted earnings back into positive territory. Discussing results on 29 October 2026, management said adjusted EPS, adjusted EBITDA and paid worksite employees all landed above the midpoints of their forecast ranges.

Margin recovery remains the human resources services provider's top priority for 2026, and the company kept the midpoint of its full-year adjusted EBITDA outlook steady while tightening the range.

Pricing and Cost Control Lift Quarterly Results

Gross profit rose 6% year on year to US$207 million in the third quarter of 2026, in line with the company's forecast. Gross Profit per worksite employee increased 8% to US$225 per month, reversing a 1% decline in the second quarter. Operating expenses fell 5% to US$209 million, mainly reflecting lower corporate staffing and compensation costs.

Adjusted EBITDA, a non-GAAP measure, climbed 210% to US$31 million, and adjusted EPS was US$0.22, a US$0.42 improvement on the prior-year adjusted loss of US$0.20. Average paid worksite employees totaled 307,265, down 1.8%.

Benefits Costs and Client Mix

Year-on-year pricing increases continued to accelerate through 2026, while benefits cost per covered employee rose 3.7%, in line with expectations. Client mix also improved as the company retained more profitable accounts and exited less profitable ones.

Workers' compensation was a partial offset. Current-period costs were relatively stable, but favorable prior-year reserve adjustments were smaller than in the third quarter of 2025, which management linked to rising claim severity across the market. Management acknowledged that the Margin recovery effort has involved trade-offs that have weighed on sales and client retention.

Cash Returns and Technology Initiatives

During the quarter, Insperity paid US$23 million in dividends and repurchased 131,000 shares at a total cost of US$6 million. Adjusted cash stood at US$119 million at quarter-end, up from US$95 million at the end of the second quarter.

The HRScale offering is on track to meet its stated targets, with several thousand employees in implementation, while some clients are starting on HR360 with plans to upgrade later. The company is also rolling out an HR360 AI Agent to early adopters and developing conversational intelligence features.

Fourth-Quarter and 2026 Guidance

For the fourth quarter of 2026, Insperity expects 306,000 to 308,000 average paid worksite employees, adjusted EBITDA of US$24 million to US$44 million and adjusted EPS of US$0.07 to US$0.42, compared with an adjusted loss of US$0.60 a year earlier. For the full year, it now forecasts adjusted EBITDA of US$194 million to US$214 million, up 48% to 63%, and adjusted EPS of US$1.93 to US$2.28, with paid worksite employees down 1.3% to 1.5%.