Insperity reported second-quarter 2026 results with revenue of $1.686 billion, a 2% increase year-over-year, and adjusted EBITDA of $36 million, up 13% versus Q2 2025. GAAP net income was $4 million and diluted EPS was $0.10 for the quarter; adjusted diluted EPS was $0.34. The company reiterated updated 2026 guidance covering Q3 and the full year and outlined margin-recovery progress tied to pricing, benefit changes and expense management.
Financial Highlights
- Revenue: $1,686 million in Q2 2026, up 2% year-over-year; year-to-date revenue $3,581 million, up 2%.
- Gross profit: $217 million in Q2 2026, down 3% versus Q2 2025; gross profit per WSEE $237 (Q2).
- Operating income: $6 million in Q2 2026 versus a loss of $7 million in Q2 2025.
- Net income: GAAP net income of $4 million for Q2 2026 (diluted EPS $0.10); YTD net income $37 million (diluted EPS $0.97).
- Adjusted results: Adjusted EBITDA $36 million in Q2 2026 (up 13%); adjusted EPS $0.34 in Q2 2026 (up 31%).
Business Highlights
- Worksite employee trend: Average paid WSEEs declined 1% year-over-year to 305,764 in Q2 2026 and averaged 304,407 YTD.
- Revenue per WSEE increased ~3% year-over-year, reflecting higher pricing that partially offset lower WSEE counts.
- Benefits and cost management: Benefits costs per covered employee rose ~5% versus prior year; company implemented benefit plan and policy changes as part of margin recovery.
- Operating discipline: Operating expenses decreased 8% in Q2 2026 versus Q2 2025, reflecting expense management and lower stock-based compensation expense.
- Capital and liquidity actions: Repurchased ~172,000 shares for $4 million YTD, paid $46 million in dividends, incurred $13 million in capital expenditures, and borrowed $50 million in Q2 for working capital (outstanding borrowings $420 million at June 30, 2026).
Original SEC Filing:
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