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HOUSTON - Insperity, Inc. (NYSE:NSP) reported second-quarter adjusted earnings that fell well short of analyst expectations, while also issuing guidance that largely disappointed investors. Shares of the human resources solutions provider tumbled 6% premarket following the announcement.
The company posted adjusted earnings per share of $0.26 for the second quarter, significantly below the analyst consensus of $0.41. Revenue came in at $1.66 billion, matching analyst expectations and representing a 3% increase YoY. The average number of worksite employees paid per month grew 1% from the same period last year to 309,115.
Insperity reported a net loss of $5 million, or -$0.14 per diluted share on a GAAP basis, compared to positive earnings in the year-ago period. The company attributed the disappointing results primarily to higher-than-expected benefits costs, with healthcare expenses driven by "continued elevated pharmacy trends and frequency of large claim activity."
"Despite our reported Q2 results and the associated lower guidance for this year, we have experienced recent growth momentum and are executing a plan over the balance of the year that we believe lays the foundation for accelerated growth and improved profitability in 2026," said Paul J. Sarvadi, Insperity chairman and chief executive officer.
For the third quarter of 2025, Insperity forecasts adjusted earnings per share between $0.06 and $0.49, compared to the analyst consensus of $0.31. For the full fiscal year 2025, the company expects adjusted earnings per share of $1.81 to $2.51, with the midpoint of $2.16 falling below the analyst consensus of $2.48.
Gross profit decreased 14% to $223 million in the second quarter, while operating expenses decreased 3% to $230 million. The company returned $64 million to shareholders during the first six months of 2025 through share repurchases and dividends.
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