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Insperity
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Updated Jul 30, 2026
Insperity Q2 2026: Margin Recovery Drives Operating Turnaround Despite 1% WSEE Decline and 35% Workers' Comp Cost Spike
Insperity's Q2 2026 results demonstrate a decisive operational recovery at the expense line — total operating expenses fell 8% year-over-year to $211 million — converting a $7 million operating loss in Q2 2025 into $6 million of operating income in Q2 2026. The improvement is structural, not revenue-driven: average WSEEs paid declined 1% for both the quarter and the first six months, and gross profit contracted 3% as workers' compensation costs surged 35% per WSEE per month, driven partly by elevated healthcare cost trends. The critical strategic tension is that margin recovery efforts are themselves suppressing WSEE growth — management explicitly states that new client sales and retention decreased 'due in part to our margin recovery efforts' — setting up a trade-off between near-term profitability and the platform scale that determines long-run revenue.
Tone: mixedRevenue
$6.8B
NSP 10-K · FY 2025
Employees
4,200
Revenue FY2024
$6.6B
Founded
1986
Profile
NSP 10-K Item 1 · Feb 11, 2026Insperity is a professional employer organization (PEO) and comprehensive business performance solutions provider serving small and medium-sized businesses across the United States. The company co-employs worksite employees under Client Service Agreements, assuming responsibility for payroll, benefits, workers' compensation, and HR compliance. Its core offerings span three PEO HR Solutions tiers — HR360, HR360 Select Edition, and the newly developed HRScale — as well as traditional payroll, talent acquisition, retirement, and insurance services.
Read filing description ↓ Collapse description ↑
We provide an array of human resources and business solutions designed to help improve business performance. Since our formation in 1986, we have evolved from being solely a professional employer organization, an industry we pioneered, to our current position as a comprehensive business performance solutions provider. Our long-term strategy is to provide the best small and medium-sized businesses in the United States with our specialized human resources service offerings and to leverage our buying power and expertise to provide additional valuable services to clients. Our comprehensive HR services offerings are provided through our Insperity HR360 solution, our Insperity HR360 Select Edition solution, and our Insperity HRScale solution, which encompass a broad range of HR functions. Our PEO HR Solutions are designed to improve the productivity and profitability of small and medium-sized businesses. These solutions relieve business owners and key executives of many employer-related administrative and regulatory burdens, which enables them to focus on the core competencies of their businesses. We enter into a Client Service Agreement with each of our PEO HR Solutions clients under which we and our client act as co-employers of the employees who work at the client worksite. Under the CSA, we assume responsibility for personnel administration and assist our clients in complying with employment-related governmental regulations, while the client retains the employees' services in its business and remains the employer for other purposes. We accomplish the objectives of our PEO HR Solutions through a high-touch/high-tech approach to service delivery. As of December 31, 2025, we had 73 physical office locations in 44 markets, with four regional service centers, and serviced an average of 312,377 WSEEs per month in the fourth quarter of 2025.
Primary products
- Insperity HR360
- Insperity HR360 Select Edition
- Insperity HRScale
- Insperity HRCore
- Talent Acquisition Services
- Retirement Services
Business segments
End markets
Geographies
Named competitors
“We believe Insperity is one of the largest PEO service providers in the United States.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Total revenue increased from $6,581 million in 2024 to $6,812 million in 2025, driven by a 1% increase in average WSEEs paid per month and a 3% increase in revenue per WSEE.
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