INSPERITY, INC.
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 29, 2026
NSP$49.82-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001000753-26-000087
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0001000753-26-000104
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 161 previous paragraphs and 159 current paragraphs.
98 unchanged; 47 reworded; 12 added; 13 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 31 previous and 32 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
•Adjusted EBITDA increased 210% to $31 million
Current report
•Adjusted net income (loss) and adjusted EPS increased 200% and 210% to $8 million and $0.22, respectively
Current report
•Adjusted EBITDA increased 18% to $170 million
Current report
•Adjusted net income (loss) and adjusted EPS increased 16% and 13% to $71 million and $1.85, respectively
Current report
Net Income (Loss) and
Current report
•Revenues per WSEE per month increased 4%, or $62, while the average WSEEs paid decreased 2%
Current report
estimate in workers’ compensation; however, in Q3 2025, there was a reduction of $5 million, or 0.05% of non-bonus payroll costs.
Current report
•Commissions expense for Q3 2026 decreased 23% to $10 million, or $3 per WSEE per month, compared to Q3 2025. The decrease was primarily due to lower manager commissions associated with our PEO HR Solutions paid during Q3 2026.
Current report
•Restructuring charges for YTD 2026 were $9 million, or $3 per WSEE per month, primarily due to severance costs related to a workforce realignment.
Current report
•Commissions expense for YTD 2026 decreased 12% to $30 million, or $1 per WSEE per month, compared to YTD 2025. The decrease was primarily due to lower commissions associated with our PEO HR Solutions, as well as a decrease in the amount of sales channel referral fees paid during YTD 2026.
Current report
Interest expense increased $1 million in YTD 2026 compared to YTD 2025.
Current report
•Workers’ compensation plan funding — During YTD 2026 and YTD 2025, we received $27 million and $28 million, respectively, for the return of excess claim funds related to the workers’ compensation program, which resulted in an increase in working capital.
Removed paragraphs (13)
Previous report
•Adjusted EBITDA increased 13% to $36 million
Previous report
•Adjusted net income and adjusted EPS increased 30% and 31% to $13 million and $0.34, respectively
Previous report
•Adjusted EBITDA increased 4% to $139 million
Previous report
•Adjusted net income and adjusted EPS decreased 9% and 10% to $63 million and $1.64, respectively
Previous report
Year-over-Year Growth Percentage
Previous report
Net Income (Loss) andYear-over-Year Growth Percentage(in millions)
Previous report
Year-over-Year Growth Percentage
Previous report
(in millions)
Previous report
•Average WSEEs paid decreased 1%
Previous report
•Average WSEEs paid decreased 1%
Previous report
(in millions)
Previous report
•Advertising expense for Q2 2026 increased 27% to $14 million, or $3 per WSEE per month, compared to Q2 2025. The increase was primarily due to the timing of sponsorships and digital advertising.
Previous report
Interest expense was flat in YTD 2026 compared to YTD 2025.
Reworded paragraphs (47)
Previous wording
Insperity, Inc. (“Insperity,” “we,” “our,” and “us”) provides an array of human resources (“HR”) and business solutions designed to help improve business performance. Our comprehensive HR services offerings are provided through our professional employer organization (“PEO”) services, known as our Insperity® HR 360 solution, our Insperity® HR 360 Select Edition, and our Insperity HRScale TM solution (together, our “PEO HR Solutions”), which we provide by entering into a co-employment relationship with our clients. Our PEO HR Solutions encompass a broad range of HR functions, including payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services. Our Insperity HR 360 solution and Insperity HR 360 Select Edition provide access to our web-based human capital management platform, the Insperity Premier TMplatform, while our Insperity HRScale solution provides access to the Workday Human Capital Management platform.
Current wording
Insperity, Inc. (“Insperity,” “we,” “our,” and “us”) provides an array of human resources (“HR”) and business solutions designed to help improve business performance. Our comprehensive HR services offerings are provided through our professional employer organization (“PEO”) services, known as our Insperity® HR 360 solution, our Insperity® HR 360 Select Edition, and our Insperity HRScale® solution (together, our “PEO HR Solutions”), which we provide by entering into a co-employment relationship with our clients. Our PEO HR Solutions encompass a broad range of HR functions, including payroll and employment administration, employee benefits, workers’ compensation, government compliance, performance management, and training and development services. Our Insperity HR 360 solution and Insperity HR 360 Select Edition provide access to our web-based human capital management platform, the Insperity Premier TMplatform, while our Insperity HRScale solution provides access to the Workday Human Capital Management platform.
Previous wording
•Average number of WSEEs paid per month decreased 1%
Current wording
•Average number of WSEEs paid per month decreased 2%
Previous wording
•Net income and diluted earnings per share (“EPS”) increased 180% and 171% to $4 million and $0.10, respectively
Current wording
•Net income (loss) and diluted earnings (loss) per share (“EPS”) increased 95% and 96% to $(1) million and $(0.02), respectively
Previous wording
•Net income and diluted EPS both decreased 20% to $37 million and $0.97, respectively
Current wording
•Net income and diluted EPS both increased 38% to $36 million and $0.95, respectively
Previous wording
Please read “Non-GAAP Financial Measures” for a reconciliation of adjusted EBITDA, adjusted net income, and adjusted EPS to their most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”).
Current wording
Please read “Non-GAAP Financial Measures” for a reconciliation of adjusted EBITDA, adjusted net income (loss), and adjusted EPS to their most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”).
Previous wording
•During Q2 2026, average WSEEs paid decreased 1% compared to Q2 2025. The number of WSEEs paid from new client sales and client retention decreased due in part to our margin recovery efforts, while the net change in our client base increased compared to Q2 2025.
Current wording
•During Q3 2026, average WSEEs paid decreased 2% compared to Q3 2025. The number of WSEEs paid from new client sales and client retention decreased due in part to our margin recovery efforts, while the net change in our client base increased compared to Q3 2025.
Previous wording
•During the first six months of 2026 (“YTD 2026”), average WSEEs paid decreased 1% compared to the first six months of 2025 (“YTD 2025”). The number of WSEEs paid from new client sales and client retention decreased due in part to our margin recover efforts, while the net change in our client base increased when compared to YTD 2025.
Current wording
•During the first nine months of 2026 (“YTD 2026”), average WSEEs paid decreased 1% compared to the first nine months of 2025 (“YTD 2025”). The number of WSEEs paid from new client sales and client retention decreased due in part to our margin recovery efforts, while the net change in our client base increased when compared to YTD 2025.
Previous wording
Our revenues for YTD 2026 were $3.6 billion, an increase of 2%, primarily due to the following:
Current wording
Our revenues for YTD 2026 were $5.2 billion, an increase of 2%, primarily due to the following:
Previous wording
•Revenues per WSEE per month increased 3%, or $50
Current wording
•Revenues per WSEE per month increased 3%, or $56, while the average WSEEs paid decreased 1%
Previous wording
We generally define the middle market sector as those companies with approximately 150 to 5,000 WSEEs. Currently, we have a dedicated sales management, service personnel, and consulting staff who concentrate solely on the middle market sector. Our average number of WSEEs per month in our middle market sector increased 10% during YTD 2026 compared to YTD 2025, representing approximately 29% and 26% of our total average paid WSEEs in YTD 2026 and YTD 2025, respectively.
Current wording
We generally define the middle market sector as those companies with approximately 150 to 5,000 WSEEs. We have a dedicated sales management, service personnel, and consulting staff who concentrate solely on the middle market sector. Our average number of WSEEs per month in our middle market sector increased 10% during YTD 2026 compared to YTD 2025, representing approximately 29% and 26% of our total average paid WSEEs in YTD 2026 and YTD 2025, respectively.
Previous wording
Gross profit for Q2 2026 decreased 3% to $217 million compared to $223 million in Q2 2025. Gross profit per WSEE per month for Q2 2026 decreased $3 to $237 compared to $240 in Q2 2025 due primarily to higher direct costs, offset in part by higher average pricing, as discussed below.
Current wording
Gross profit for Q3 2026 increased 6% to $207 million compared to $195 million in Q3 2025. Gross profit per WSEE per month for Q3 2026 increased $17 to $225 compared to $208 in Q3 2025 due to higher average pricing, offset in part by higher direct costs.
Previous wording
Our pricing objectives attempt to achieve a level of revenue per WSEE that matches or exceeds changes in primary direct costs and operating expenses. Our revenues per WSEE per month increased $53 due to higher average pricing of 3%.
Current wording
Our pricing objectives attempt to achieve a level of revenue per WSEE that matches or exceeds changes in primary direct costs and operating expenses. Our revenues per WSEE per month increased $62 due to higher average pricing of 4%.
Previous wording
The net increase in direct costs between Q2 2026 and Q2 2025 attributable to the changes in cost estimates for benefits and workers’ compensation totaled $4 million as discussed below. The $53 per WSEE per month increase in direct costs is due primarily to the direct cost component changes as follows:
Current wording
The net increase in direct costs between Q3 2026 and Q3 2025 attributable to the changes in cost estimates related to prior periods for benefits and workers’ compensation totaled $5 million as discussed below.
Previous wording
•The cost of group health insurance and related employee benefits increased $25 per WSEE per month and increased 5.2% on a cost per covered employee basis in Q2 2026 as compared to Q2 2025.
Current wording
•The cost of group health insurance and related employee benefits increased $12 per WSEE per month and increased 3.7% on a cost per covered employee basis in Q3 2026 as compared to Q3 2025.
Previous wording
•The percentage of WSEEs covered under our health insurance plans was 62% in Q2 2026 compared to 63% in Q2 2025.
Current wording
•The percentage of WSEEs covered under our health insurance plans was 61% in Q3 2026 compared to 62% in Q3 2025.
Previous wording
•Workers’ compensation costs increased 35%, or $8 per WSEE per month, in Q2 2026 compared to Q2 2025 and has been impacted, in part, by elevated health care cost trends.
Current wording
•Workers’ compensation costs increased 27%, or $7 per WSEE per month, in Q3 2026 compared to Q3 2025 and has been impacted, in part, by elevated health care cost trends.
Previous wording
•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.32% in Q2 2026 compared to 0.23% in Q2 2025.
Current wording
•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.34% in Q3 2026 compared to 0.27% in Q3 2025.
Previous wording
•Our continued discipline around our client selection, workplace safety and claims management has allowed for claims to be closed out at amounts below our original cost estimates, resulting in a reduction in workers’ compensation costs of $3 million, or 0.03% of non-bonus payroll costs in Q2 2026, compared to a reduction of $8 million, or 0.09% of non-bonus payroll costs in Q2 2025.
Current wording
•Our continued discipline around our client selection, workplace safety and claims management has at times allowed for claims to be closed out at amounts below our original cost estimates. In Q3 2026 there was no change in
Previous wording
•Payroll taxes increased 2% on a 4% increase in payroll costs, or $22 per WSEE per month.
Current wording
•Payroll taxes increased 2% on a 3% increase in payroll costs, or $25 per WSEE per month.
Previous wording
•Payroll taxes as a percentage of payroll costs were 7% in both Q2 2026 and Q2 2025.
Current wording
•Payroll taxes as a percentage of payroll costs were 6% in both Q3 2026 and Q3 2025.
Previous wording
Gross profit for YTD 2026 decreased 3% to $519 million compared to $533 million in YTD 2025. Gross profit per WSEE per month for YTD 2026 decreased $5 to $284 compared to $289 in YTD 2025 due primarily to higher direct costs, offset in part by higher average pricing, as discussed below.
Current wording
Gross profit for YTD 2026 decreased to $726 million compared to $728 million in YTD 2025. Gross profit per WSEE per month for YTD 2026 increased $3 to $264 compared to $261 in YTD 2025 due to higher average pricing, offset in part by higher direct costs.
Previous wording
Our pricing objectives attempt to achieve a level of revenue per WSEE that matches or exceeds changes in primary direct costs and operating expenses. Our revenues per WSEE per month increased $50 due to higher average pricing of 3%.
Current wording
Our pricing objectives attempt to achieve a level of revenue per WSEE that matches or exceeds changes in primary direct costs and operating expenses. Our revenues per WSEE per month increased $56 due to higher average pricing of 3%.
Previous wording
The net decrease in direct costs between YTD 2026 and YTD 2025 attributable to the changes in cost estimates for benefits and workers’ compensation totaled $8 million as discussed below. The $58 per WSEE per month increase in direct costs is due primarily to the direct cost component changes as follows:
Current wording
There was no net change in direct costs between YTD 2026 and YTD 2025 attributable to the changes in cost estimates related to prior periods for benefits and workers’ compensation as discussed below. The $53 per WSEE per month increase in direct costs is due primarily to the direct cost component changes as follows:
Previous wording
•The cost of group health insurance and related employee benefits increased $27 per WSEE per month, or 5.2% on a cost per covered employee basis in YTD 2026 as compared to YTD 2025.
Current wording
•The cost of group health insurance and related employee benefits increased $22 per WSEE per month, or 4.6% on a cost per covered employee basis in YTD 2026 as compared to YTD 2025.
Previous wording
•Reported results include changes in estimated claims run-off related to prior periods, which was a decrease in costs of $4 million, or $2 per WSEE per month, in YTD 2026 compared to an increase in costs of $11 million, or $6 per WSEE per month, in YTD 2025.
Current wording
•Reported results include changes in estimated claims run-off related to prior periods, which was a decrease in costs of $4 million, or $1 per WSEE per month, in YTD 2026 compared to an increase in costs of $9 million, or $3 per WSEE per month, in YTD 2025.
Previous wording
•Workers’ compensation costs increased 33%, or $7 per WSEE per month, in YTD 2026 compared to YTD 2025.
Current wording
•Workers’ compensation costs increased 30%, or $7 per WSEE per month, in YTD 2026 compared to YTD 2025.
Previous wording
•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.31% in YTD 2026 compared to 0.24% in YTD 2025.
Current wording
•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.32% in YTD 2026 compared to 0.25% in YTD 2025.
Previous wording
•Our continued discipline around our client selection, workplace safely and claims management has allowed for claims to be closed out at amounts below our original cost estimates, resulting in a reduction in workers’ compensation costs of $7 million, or 0.04% of non-bonus payroll costs, in YTD 2026 compared to a reduction of $14 million, or 0.09% of non-bonus payroll costs, in YTD 2025.
Current wording
•Our continued discipline around our client selection, workplace safety and claims management has allowed for claims to be closed out at amounts below our original cost estimates, resulting in a reduction in workers’ compensation costs of $7 million, or 0.03% of non-bonus payroll costs, in YTD 2026 compared to a reduction of $20 million, or 0.08% of non-bonus payroll costs, in YTD 2025.
Previous wording
•Payroll taxes increased 2% on a 2% increase in payroll costs, or $24 per WSEE per month.
Current wording
•Payroll taxes increased 2% on a 2% increase in payroll costs, or $25 per WSEE per month.
Previous wording
Operating expenses for Q2 2026 decreased 8% to $211 million compared to $230 million in Q2 2025. Operating expenses per WSEE per month for Q2 2026 decreased 7% to $230 compared to $248 in Q2 2025.
Current wording
Operating expenses for Q3 2026 decreased 5% to $209 million compared to $220 million in Q3 2025. Operating expenses per WSEE per month for Q3 2026 decreased 3% to $227 compared to $235 in Q3 2025.
Previous wording
•Salaries of corporate and sales staff for Q2 2026 decreased 11% to $115 million, or $14 per WSEE per month, compared to Q2 2025. The decrease was primarily due to a 6% decrease in BPA, service and support headcount and staff compensation levels in Q2 2026 compared to Q2 2025.
Current wording
•Salaries of corporate and sales staff for Q3 2026 decreased 5% to $119 million, or $4 per WSEE per month, compared to Q3 2025. The decrease was primarily due to a 6% decrease in BPA, service and support headcount in Q3 2026 compared to Q3 2025.
Previous wording
•Stock-based compensation expense for Q2 2026 decreased 35% to $13 million, or $8 per WSEE per month, compared to Q2 2025. The decrease was primarily due to lower value time-based restricted stock unit awards granted under our incentive plan in 2026.
Current wording
•Stock-based compensation expense for Q3 2026 decreased 25% to $12 million, or $4 per WSEE per month, compared to Q3 2025. The decrease was primarily due to lower value time-based restricted stock unit awards granted under our incentive plan in 2026.
Previous wording
Operating expenses for YTD 2026 decreased 4% to $451 million compared to $472 million in YTD 2025. Operating expenses per WSEE per month for YTD 2026 decreased 4% to $247 compared to $256 in YTD 2025.
Current wording
Operating expenses for YTD 2026 decreased 5% to $660 million compared to $692 million in YTD 2025. Operating expenses per WSEE per month for YTD 2026 decreased 3% to $240 compared to $248 in YTD 2025.
Previous wording
•Salaries of corporate and sales staff for YTD 2026 decreased 9% to $246 million, or $12 per WSEE per month, compared to YTD 2025. The decrease was primarily due to a 6% decrease in BPA, service and support headcount and staff compensation levels in YTD 2026 compared to YTD 2025.
Current wording
•Salaries of corporate and sales staff for YTD 2026 decreased 8% to $365 million, or $9 per WSEE per month, compared to YTD 2025. The decrease was primarily due to a 6% decrease in BPA, service and support headcount in YTD 2026 compared to YTD 2025.
Previous wording
•Stock-based compensation expense for YTD 2026 decreased 16% to $26 million, or $3 per WSEE per month, compared to YTD 2025. The decrease was primarily due to lower value time-based restricted stock unit awards granted under our incentive plan in 2026, offset in part by an increase in LTIP awards expense.
Current wording
•Stock-based compensation expense for YTD 2026 decreased 19% to $38 million, or $3 per WSEE per month, compared to YTD 2025. The decrease was primarily due to lower value time-based restricted stock unit awards granted under our incentive plan in 2026, offset in part by an increase in LTIP awards expense.
Previous wording
•Advertising expense for YTD 2026 increased 39% to $25 million, or $4 per WSEE per month, compared to YTD 2025 due to a change in timing of advertising spend.
Current wording
•Advertising expense for YTD 2026 increased 29% to $36 million, or $3 per WSEE per month, compared to YTD 2025 primarily due to a change in timing of advertising spend.
Previous wording
Interest income decreased $5 million in YTD 2026 compared to YTD 2025 primarily due to lower interest rates on overnight, investment and deposit holdings.
Current wording
Interest income decreased $4 million in YTD 2026 compared to YTD 2025 primarily due to lower interest rates on overnight, investment and deposit holdings.
Previous wording
For the six months ended June 30, 2026, our provision for income taxes differed from the U.S. statutory rate primarily due to state income taxes, non-deductible expenses and vesting of restricted and long-term incentive stock awards. The decrease in net income without a corresponding change in non-deductible expenses resulted in a higher effective tax rate for the period. During the first six months of 2026 we recognized $9 million of income tax expense related to the vesting of
Current wording
For the nine months ended September 30, 2026, our provision for income taxes differed from the U.S. statutory rate primarily due to state income taxes, non-deductible expenses and vesting of restricted and long-term incentive stock awards. During the first nine months of 2026 we recognized $9 million of income tax expense related to the vesting of certain long-term incentive and restricted stock awards, primarily due to the vesting date price being below the grant date price. During the first nine months of 2025, we recognized $1 million of income tax expense related to the vesting of long-term incentive and restricted stock awards.
Previous wording
(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.
Current wording
(1)Non-GAAP effective tax rate excludes the income tax impact from stock-based compensation, restructuring charges, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.
Previous wording
Following is a reconciliation of net income (loss) (GAAP) to adjusted net income (non-GAAP):
Current wording
Following is a reconciliation of net income (loss) (GAAP) to adjusted net income (loss) (non-GAAP):
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The $45 per WSEE per month increase in direct costs is due primarily to the direct cost component changes as follows:
Current report — wording carried from elsewhere
MANAGEMENT’S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•Revenues per WSEE per month increased 3%, or $53
Previous report — wording carried elsewhere
•Reported results include changes in estimated claims run-off related to prior periods, which was a reduction in costs of $1 million, or $1 per WSEE per month, in Q2 2026, but did not impact costs in Q2 2025.
Previous report — wording carried elsewhere
long-term incentive and restricted stock awards. During the first six months of 2025, we recognized $1 million of income tax expense related to the vesting of long-term incentive and restricted stock awards.