Insperity — research brief (BMC #099 on gallery, queue id 183)

Prepared 2026-10-13 (America/Chicago). Insperity, Inc. is public (NYSE / NYSE Texas: NSP), headquartered in Kingwood (Houston), Texas, and reports in US dollars on a calendar fiscal year. FY2025 = year ended Dec 31, 2025 (the latest full year), labeled with Insperity's own fiscal year per the project's fiscal-year rule. Labels: FACT = stated by Insperity in its Form 10-K or results releases filed with the SEC. SECONDARY = third-party press (none used). INFERENCE = interpretation or arithmetic by this project.

Sources (accessed 2026-10-13)

Form 10-K for fiscal 2025 (year ended Dec 31, 2025; filed Feb 11, 2026): https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm
Fourth quarter and full year 2025 results release (Feb 10, 2026, Form 8-K Ex. 99.1): https://www.sec.gov/Archives/edgar/data/1000753/000100075326000009/a12312025-ex991earningsrel.htm
Second quarter 2026 results release (Jul 29, 2026, Form 8-K Ex. 99.1) — context only, not used for ranking: https://www.sec.gov/Archives/edgar/data/1000753/000100075326000086/a06302026-ex991earningsrel.htm
IR / corporate: https://ir.insperity.com · https://www.insperity.com
Logo: project monogram ("IN" on a blue tile), not Insperity's official logo. Trademark of its owner; identification only.

Teaching arc

Insperity is a professional employer organization (PEO): it becomes the co-employer of its small and mid-sized clients' staff ("worksite employees", WSEEs), runs their payroll, payroll taxes, benefits, workers' compensation and HR compliance, and bills a comprehensive service fee each payroll = the payroll itself plus a markup computed as a percentage of payroll. Only the markup is revenue. The business lives on the spread between that markup and the direct costs it bundles (payroll taxes, health benefits, workers' comp). FY2025 revenue $6.81B (+4%) on $45.6B of gross billings; health costs jumped, so gross profit fell 14% and Insperity posted a FY2025 net loss of $7M.

Key figures, FY2025 (FACT unless labeled)

Revenues $6,812M vs $6,581M (+4%); FY2023 $6,486M.
Gross billings $45,565M less WSEE payroll cost $38,753M = revenues $6,812M (revenue is the markup only).
Average WSEEs paid per month 310,089 (+1%); Q4 2025 average 312,377 (+1%).
Per WSEE per month: gross billings $12,245; payroll $10,414; revenue $1,831 (+3%, +$46 on ~3% higher pricing); gross profit $242 (−15%); operating expenses $245 (vs $253); operating income $(3); net income $(2).
Payroll taxes, benefits and workers' compensation costs (direct costs) $5,912M (+7%).
Gross profit $900M (−14%, from $1,052M).
Operating expenses $910M (−3%): salaries, wages and payroll taxes $518M; stock-based comp $61M; commissions $45M; advertising $38M; G&A $203M; D&A $45M. Includes $48M for the Workday strategic partnership.
Operating loss $(10)M (vs income $117M). Interest income $30M; interest expense $24M.
FY2025 net loss $7M (vs net income $91M); diluted EPS $(0.19) (vs $2.42).
Adjusted EBITDA (non-GAAP) $131M (−51%); adjusted EPS $1.03 (−71%); adjusted net income $39M.
Benefits cost per covered employee +9.2% (+$61 per WSEE per month); 63% of WSEEs covered by Insperity health plans (64% in 2024). Prior-period claims run-off added $11M of cost (vs −$29M in 2024).
Workers' comp costs +15% (+$3 per WSEE per month); 0.26% of non-bonus payroll; $29M favorable reserve reduction.
Payroll taxes ~7% of payroll costs (+5% on +4% payroll).
Cash outlays 2025: dividends $90M; buybacks ~232,000 shares for $19M; capex $31M. Adjusted cash (non-GAAP) $57M at Dec 31, 2025; $370M borrowed under a $750M credit facility.
Balance sheet Dec 31, 2025: cash $642M; payroll taxes and deductions payable $544M; accrued WSEE payroll $764M; total assets $2,203M; stockholders' equity $46M.

INFERENCE (project arithmetic)

Revenue ≈ 15.0% of gross billings ($6,812M / $45,565M) and ≈ 17.6% of WSEE payroll ($6,812M / $38,753M).
Direct costs ≈ 86.8% of revenue; gross profit ≈ 13.2% of revenue; operating loss ≈ −0.1% of revenue.
Roughly: of every $1,831 per WSEE per month in revenue, ~$1,589 pays taxes/benefits/workers' comp and ~$245 pays Insperity's own people and overhead.

Model details (FACT)

PEO HR Solutions: HR360 (formerly Workforce Optimization; largest revenue source; full service incl. Insperity Premier HCM platform), HR360 Select Edition (formerly Workforce Synchronization; lower-cost, longer commitment, middle market, strategic HR add-ons for a fee), HRScale (new, co-developed with Workday on Workday HCM; priced above HR360; first clients expected Q1 2026).
Traditional (non-PEO) payroll/HCM: HR Core (formerly Workforce Acceleration), built on a third-party HR software suite.
Other offerings (generally sold with the above): Talent Acquisition Services, Retirement Services (401(k) recordkeeping), Insurance Services (licensed agency), Contractor Management (1099; third-party platform), Perks+ (earned-wage access, paycard, rewards; for HR Core clients).
Client Service Agreement (CSA): co-employment; for most HR360 clients pricing set for one year and terminable on 30 days' notice; middle-market CSAs generally price for two years; HRScale expected to carry longer commitments. Fees remitted no later than payroll date (wire/ACH). Insperity is liable for WSEE wages and payroll taxes regardless of client payment.
Target clients: businesses with ~10 to 5,000 employees; Insperity estimates ~10% of SMB WSEEs are "good fit". Middle market (150–5,000 WSEEs) ≈ 26% of average paid WSEEs (2025 and 2024); clients >1,000 WSEEs ≈ 2% of WSEEs in 2025.
Client selection: risk-based underwriting; avoids higher-risk NAICS codes.
Client retention ~83% in 2025 (81% in 2024); five-year average ~84%.
Footprint: 90 sales offices in 44 markets (73 physical office locations); four regional service centers. ~4,200 corporate employees at Dec 31, 2025; average BPAs (Business Performance Advisors) 612 in 2025 vs 769 in 2024 (trained BPAs 599 vs 698).
Lead sources: direct sales, digital advertising, traditional advertising, third-party channel programs, referrals, marketing alliances. Proprietary bid system prices each prospect's employee census.
Marketing: title sponsor of the Insperity Invitational presented by UnitedHealthcare (PGA Tour Champions); multiyear brand partnership with Tiger Woods (Aug 2025); Jim Nantz national spokesperson.
Key partners: UnitedHealthcare (≈85% of participants' health coverage; contract through Dec 31, 2028, 180-day cancellation), Kaiser, Blue Shield of California, HMSA BCBS Hawaii, Harvard Pilgrim; Chubb workers' comp program since 2007 (fully insured; Insperity retains first $1.5M per occurrence for claims on/after Oct 1, 2019, subject to aggregate caps); Workday (HRScale).
Competition: in-house HR is primary competitor; national PEOs incl. ADP and Paychex PEO divisions, TriNet, Vensure, Rippling.
Staff support ratio averaged 55% above PEO industry average (2022–2024, NAPEO surveys); gross profit and operating income per WSEE exceeded industry averages by 113% and 94% (company analysis).
Regulation: CPEO certification for two primary PEO subsidiaries; 42 states recognize/license PEOs.
Founded 1986; pioneered the PEO industry.

Latest quarter context (FACT; not used for ranking)

Q2 2026 (quarter ended Jun 30, 2026): revenue +2% to $1.7B; average paid WSEEs 305,764 (−1%); net income $4M; adjusted EBITDA $36M (+13%). Updated FY2026 guidance (not a result): average WSEEs 305,000–307,000; adjusted EBITDA $185–225M.

Atlas main engine

usage-based — revenue is a markup computed as a percentage of each worksite employee's payroll, billed with every payroll run, so it scales with the number of WSEEs paid and their pay (per-employee, per-payroll metering); CSAs are cancellable on 30 days' notice with one-year pricing, so it is not a fixed multi-year enterprise contract. FY2025 revenue $6.81B (+4%) on 310,089 average WSEEs.

# Insperity — research brief (BMC #099 on gallery, queue id 183) Prepared 2026-10-13 (America/Chicago). Insperity, Inc. is **public** (NYSE / NYSE Texas: NSP), headquartered in Kingwood (Houston), Texas, and reports in US dollars on a **calendar fiscal year**. **FY2025 = year ended Dec 31, 2025** (the latest full year), labeled with Insperity's own fiscal year per the project's fiscal-year rule. Labels: **FACT** = stated by Insperity in its Form 10-K or results releases filed with the SEC. **SECONDARY** = third-party press (none used). **INFERENCE** = interpretation or arithmetic by this project. ## Sources (accessed 2026-10-13) - Form 10-K for fiscal 2025 (year ended Dec 31, 2025; filed Feb 11, 2026): https://www.sec.gov/Archives/edgar/data/1000753/000100075326000011/nsp-20251231.htm - Fourth quarter and full year 2025 results release (Feb 10, 2026, Form 8-K Ex. 99.1): https://www.sec.gov/Archives/edgar/data/1000753/000100075326000009/a12312025-ex991earningsrel.htm - Second quarter 2026 results release (Jul 29, 2026, Form 8-K Ex. 99.1) — context only, not used for ranking: https://www.sec.gov/Archives/edgar/data/1000753/000100075326000086/a06302026-ex991earningsrel.htm - IR / corporate: https://ir.insperity.com · https://www.insperity.com - Logo: project monogram ("IN" on a blue tile), **not** Insperity's official logo. Trademark of its owner; identification only. ## Teaching arc **Insperity is a professional employer organization (PEO): it becomes the co-employer of its small and mid-sized clients' staff ("worksite employees", WSEEs), runs their payroll, payroll taxes, benefits, workers' compensation and HR compliance, and bills a comprehensive service fee each payroll = the payroll itself plus a markup computed as a percentage of payroll. Only the markup is revenue. The business lives on the spread between that markup and the direct costs it bundles (payroll taxes, health benefits, workers' comp). FY2025 revenue $6.81B (+4%) on $45.6B of gross billings; health costs jumped, so gross profit fell 14% and Insperity posted a FY2025 net loss of $7M.** ## Key figures, FY2025 (FACT unless labeled) - **Revenues $6,812M** vs $6,581M (**+4%**); FY2023 $6,486M. - Gross billings $45,565M less WSEE payroll cost $38,753M = revenues $6,812M (revenue is the markup only). - Average WSEEs paid per month **310,089** (+1%); Q4 2025 average 312,377 (+1%). - Per WSEE per month: gross billings $12,245; payroll $10,414; **revenue $1,831** (+3%, +$46 on ~3% higher pricing); gross profit $242 (−15%); operating expenses $245 (vs $253); operating income $(3); net income $(2). - Payroll taxes, benefits and workers' compensation costs (direct costs) **$5,912M** (+7%). - **Gross profit $900M** (−14%, from $1,052M). - Operating expenses **$910M** (−3%): salaries, wages and payroll taxes $518M; stock-based comp $61M; commissions $45M; advertising $38M; G&A $203M; D&A $45M. Includes **$48M** for the Workday strategic partnership. - **Operating loss $(10)M** (vs income $117M). Interest income $30M; interest expense $24M. - **FY2025 net loss $7M** (vs net income $91M); diluted EPS $(0.19) (vs $2.42). - Adjusted EBITDA (non-GAAP) **$131M** (−51%); adjusted EPS $1.03 (−71%); adjusted net income $39M. - Benefits cost per covered employee **+9.2%** (+$61 per WSEE per month); 63% of WSEEs covered by Insperity health plans (64% in 2024). Prior-period claims run-off added $11M of cost (vs −$29M in 2024). - Workers' comp costs +15% (+$3 per WSEE per month); 0.26% of non-bonus payroll; $29M favorable reserve reduction. - Payroll taxes ~7% of payroll costs (+5% on +4% payroll). - Cash outlays 2025: dividends $90M; buybacks ~232,000 shares for $19M; capex $31M. Adjusted cash (non-GAAP) $57M at Dec 31, 2025; $370M borrowed under a $750M credit facility. - Balance sheet Dec 31, 2025: cash $642M; payroll taxes and deductions payable $544M; accrued WSEE payroll $764M; total assets $2,203M; stockholders' equity $46M. ## INFERENCE (project arithmetic) - Revenue ≈ **15.0%** of gross billings ($6,812M / $45,565M) and ≈ **17.6%** of WSEE payroll ($6,812M / $38,753M). - Direct costs ≈ **86.8%** of revenue; gross profit ≈ **13.2%** of revenue; operating loss ≈ −0.1% of revenue. - Roughly: of every $1,831 per WSEE per month in revenue, ~$1,589 pays taxes/benefits/workers' comp and ~$245 pays Insperity's own people and overhead. ## Model details (FACT) - PEO HR Solutions: **HR360** (formerly Workforce Optimization; largest revenue source; full service incl. Insperity Premier HCM platform), **HR360 Select Edition** (formerly Workforce Synchronization; lower-cost, longer commitment, middle market, strategic HR add-ons for a fee), **HRScale** (new, co-developed with Workday on Workday HCM; priced above HR360; first clients expected Q1 2026). - Traditional (non-PEO) payroll/HCM: **HR Core** (formerly Workforce Acceleration), built on a third-party HR software suite. - Other offerings (generally sold with the above): Talent Acquisition Services, Retirement Services (401(k) recordkeeping), Insurance Services (licensed agency), Contractor Management (1099; third-party platform), Perks+ (earned-wage access, paycard, rewards; for HR Core clients). - Client Service Agreement (CSA): co-employment; for most HR360 clients pricing set for one year and terminable on 30 days' notice; middle-market CSAs generally price for two years; HRScale expected to carry longer commitments. Fees remitted no later than payroll date (wire/ACH). Insperity is liable for WSEE wages and payroll taxes regardless of client payment. - Target clients: businesses with ~10 to 5,000 employees; Insperity estimates ~10% of SMB WSEEs are "good fit". Middle market (150–5,000 WSEEs) ≈ 26% of average paid WSEEs (2025 and 2024); clients >1,000 WSEEs ≈ 2% of WSEEs in 2025. - Client selection: risk-based underwriting; avoids higher-risk NAICS codes. - Client retention ~83% in 2025 (81% in 2024); five-year average ~84%. - Footprint: 90 sales offices in 44 markets (73 physical office locations); four regional service centers. ~4,200 corporate employees at Dec 31, 2025; average BPAs (Business Performance Advisors) 612 in 2025 vs 769 in 2024 (trained BPAs 599 vs 698). - Lead sources: direct sales, digital advertising, traditional advertising, third-party channel programs, referrals, marketing alliances. Proprietary bid system prices each prospect's employee census. - Marketing: title sponsor of the Insperity Invitational presented by UnitedHealthcare (PGA Tour Champions); multiyear brand partnership with Tiger Woods (Aug 2025); Jim Nantz national spokesperson. - Key partners: **UnitedHealthcare** (≈85% of participants' health coverage; contract through Dec 31, 2028, 180-day cancellation), Kaiser, Blue Shield of California, HMSA BCBS Hawaii, Harvard Pilgrim; **Chubb** workers' comp program since 2007 (fully insured; Insperity retains first $1.5M per occurrence for claims on/after Oct 1, 2019, subject to aggregate caps); **Workday** (HRScale). - Competition: in-house HR is primary competitor; national PEOs incl. ADP and Paychex PEO divisions, TriNet, Vensure, Rippling. - Staff support ratio averaged 55% above PEO industry average (2022–2024, NAPEO surveys); gross profit and operating income per WSEE exceeded industry averages by 113% and 94% (company analysis). - Regulation: CPEO certification for two primary PEO subsidiaries; 42 states recognize/license PEOs. - Founded 1986; pioneered the PEO industry. ## Latest quarter context (FACT; not used for ranking) - Q2 2026 (quarter ended Jun 30, 2026): revenue +2% to $1.7B; average paid WSEEs 305,764 (−1%); net income $4M; adjusted EBITDA $36M (+13%). Updated FY2026 guidance (not a result): average WSEEs 305,000–307,000; adjusted EBITDA $185–225M. ## Atlas main engine - **usage-based** — revenue is a markup computed as a percentage of each worksite employee's payroll, billed with every payroll run, so it scales with the number of WSEEs paid and their pay (per-employee, per-payroll metering); CSAs are cancellable on 30 days' notice with one-year pricing, so it is not a fixed multi-year enterprise contract. FY2025 revenue $6.81B (+4%) on 310,089 average WSEEs.