Insperity NSP Q2 2026 earnings

¹ Adjusted EPS reflects an effective tax rate of 27% in Q3 2026 and 36% for the full year 2026 and 38.6 million outstanding shares for both Q3 and full year 2026.

Definition of Key Metrics

Average WSEEs paid — Determined by calculating the company’s cumulative WSEEs paid during the period divided by the number of months in the period.

Adjusted EPS — Represents diluted net income per share computed in accordance with GAAP, excluding the impact of non-cash stock-based compensation and restructuring charge.

Adjusted EBITDA — Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense, amortization of SaaS implementation costs, non-cash stock-based compensation, and restructuring charge.

Conference Call and Webcast

Insperity will be hosting a conference call today at 5:00 p.m. ET to discuss these results and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 888-506-0062 and use conference i.d. number 531909. The call will also be webcast at http://ir.insperity.com. The conference call script will be available at the same website later today. A replay of the conference call will be available at 877-481-4010, conference i.d. number 54244. The webcast will be archived for one year.

About Insperity

Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2025 revenues of $6.8 billion and sales and service operations throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify such forward-looking statements by the words “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “forecasts,” “likely,” “possibly,” “probably,” “could,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, including our strategic partnership with Workday, Inc.; projected or anticipated benefits or other consequences of such plans or strategies; or projections involving anticipated revenues, earnings, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base these forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are:

• adverse economic conditions;
• disallowance of, or other liabilities associated with, employee retention tax credits under certain COVID-19 relief programs;
• labor shortages, increasing competition for highly skilled workers, and evolving employee expectations regarding the workplace;
• impact of inflation and changes in U.S. trade policy;
• vulnerability to regional economic factors because of our geographic market concentration;
• failure to comply with covenants under our credit facility;
• impact of a future outbreak of highly infectious or contagious disease;
• bank failures or other events affecting financial institutions;
• our liability for WSEE payroll, payroll taxes and benefits costs, or other liabilities associated with actions of our client companies or WSEEs, including if our clients fail to pay us;
• increases in health insurance costs and workers’ compensation rates and underlying claims trends;
• financial solvency of workers’ compensation carriers, other insurers or financial institutions;
• the ability to adjust service fees for increases in state and local taxes, including state unemployment tax rates;
• an adverse determination regarding our status as the employer of our WSEEs for tax and benefit purposes and an inability to offer alternative benefit plans following such a determination;
• cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients;
• disruption from healthcare reform or the inability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts;
• regulatory and tax developments and possible adverse application of various federal, state and local regulations;
• failure to manage growth of our operations and the effectiveness of our sales and marketing efforts;
• the impact of the competitive environment and other developments in the human resources services industry, including the professional employer organization (or PEO) industry, on our growth and/or profitability;
• an adverse final judgment or settlement of claims against Insperity;
• disruptions of our information technology systems or failure to enhance our service and technology offerings to address new regulations or client expectations;
• our liability or damage to our reputation relating to disclosure of sensitive or private information as a result of data theft, cyberattacks or security vulnerabilities;
• failure of third-party providers, such as financial institutions, data centers or cloud service providers;
• our ability to fully realize the anticipated benefits of our strategic partnership and joint solution with Workday, Inc.; and
• our ability to integrate or realize expected returns on future product offerings, including through acquisitions, strategic partnerships, and investments.

These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate.

Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SUMMARY FINANCIAL INFORMATION

Insperity, Inc.

(1)Revenues are comprised of gross billings less WSEE payroll costs as follows:

(1)Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month as follows:

NON-GAAP FINANCIAL MEASURES

Non-GAAP FINANCIAL MEASURES

(Unaudited)

Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below.

Non-GAAP Measure

Non-bonus payroll cost Adjusted cash, cash equivalents and marketable securities Adjusted operating expenses

EBITDA

Adjusted EBITDA

Adjusted net income

Adjusted EPS

Definition

Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.

Excludes funds associated with:

• federal and state income tax withholdings,
• employment taxes,
• other payroll deductions, and
• client prepayments.

Represents operating expenses excluding the impact of the following:

• restructuring charges.

Represents net income computed in accordance with GAAP, plus:

• interest expense,
• income tax expense,
• depreciation and amortization expense, and
• amortization of SaaS implementation costs.

Represents EBITDA plus:

• non-cash stock-based compensation, and
• restructuring charges.

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)

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)

Benefit of Non-GAAP Measure

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.

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.

____________________________________ | (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. | | | | | |

Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):

Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):

Following is a reconciliation of operating expenses (GAAP) to adjusted operating expenses (non-GAAP):

Following is a reconciliation of net income (loss) (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):

Following is a reconciliation of net income (loss) (GAAP) to adjusted net income (non-GAAP):

Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):

The following is a reconciliation of GAAP to non-GAAP financial measures for third quarter and full year 2026 guidance: