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what it is
Insperity runs payroll, benefits, compliance, and HR admin for small and midsize businesses that want one outside partner.
how it gets paid
Last year Insperity made $6.8B in revenue. Payroll & employment administration was the main engine at $2.10B, or 31% of sales.
why it's growing
Revenue grew 3.5% last year. Revenue rose 4% to $1.62B. Worksite employees paid per month increased 1%.
what just happened
The quarter showed revenue growth, but earnings fell apart, with EPS at -$0.53 in the latest reported quarter.
At a glance
B balance sheet — gets the job done, barely
50/100 earnings predictability — expect surprises
38.2x trailing p/e — you're paying up for this one
6.4% dividend yield — cash in your pocket every quarter
22.0% return on capital — every dollar works hard here
xvary composite: 45/100 — below average
What they do
Insperity runs payroll, benefits, compliance, and HR admin for small and midsize businesses that want one outside partner.
Insperity wins by bundling payroll, benefits, workers’ comp, and compliance into one service that is hard to rip out. It has 83 sales offices in 48 markets, so your local business can buy a national platform with actual people behind it. Switching costs (changing providers) → moving several back-office systems at once → so what: leaving is operationally painful, which helps retention.
How they make money
$6.8B
annual revenue · their business grew +3.5% last year
Payroll & employment administration
$2.10B
+4.0%
Employee benefits services
$1.80B
+3.0%
Workers' compensation services
$1.30B
+1.0%
Government compliance services
$0.90B
+4.0%
Training & development services
$0.70B
0.0%
The products that matter
outsourced HR, payroll, and benefits admin
HR Outsourcing
$6.8B revenue · 300,000+ worksite employees
it is the whole company. That simplifies the story for you: there is no hidden growth engine. If execution improves, the stock works. If claims costs stay hot, there is nowhere else for earnings strength to come from.
entire business
Key numbers
6.4%
dividend yield
You are getting about $2.45 a share in annual cash at a $38.22 stock price, but FY2026 earnings are estimated at only $2.00 a share. Translation: the payout looks generous, but coverage is tight.
4.0%
operating margin
Operating margin → profit left after running the business → so what: on every $100 of revenue, only $4 is left before interest and taxes.
22.0%
return on capital
Return on capital → profit earned on the money used in the business → so what: the business model works when execution is clean.
$369M
long-term debt
Debt is 21% of capital, which is manageable, but thin margins mean you should watch cash coverage more than the raw debt number.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $369M (21% of capital)
- net profit margin 1.3% — keeps 1 cents of every dollar in revenue
- return on equity 44% — $0.44 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in NSP 3 years ago → it's now worth $3,670.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
The quarter showed revenue growth, but earnings fell apart, with EPS at -$0.53 in the latest reported quarter.
Revenue rose 4% to $1.62B. Worksite employees paid per month increased 1%, while revenue per worksite employee rose 3%, and management started cutting costs.
$1.62B
revenue
$0.53
eps
14.2%
gross margin
the number that mattered
The 1% growth in worksite employees mattered most because this business needs client employment growth, not just price, to drive cleaner expansion.
-
insperity posted mixed third-quarter results.
-
the top line rose 4% vs. prior year, to $1.62 billion.
-
the number of worksite employees paid per month increased 1%, while revenue per worksite employee (wsee) rose 3% from the year-ago period.the wsee metric is important, as it reflects the company’s revenue-generating potential and is influenced by new client additions, client retention, and net hiring trends among existing clients. nonetheless, the bottom line slipped into the red, with a $0.53 per-share loss, versus a $0.07 per-share profit a year earlier. during the quarter, costs rose due to higher inpatient and outpatient utilization, increased pharmacy spending, and a greater frequency of large claims.
-
insperity has begun implementing measures to reduce costs.
-
recently, the company entered into a multi-year extension of its contract with unitedhealthcare that will lower the threshold for large claims to $500,000 beginning in 2026.
source: company earnings report, 2026
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What could go wrong
insperity's risk stack is unusually concentrated: a 1.0% margin leaves almost no buffer when healthcare utilization jumps or client hiring slows.
med
client employment is the revenue base
Insperity serves more than 300,000 worksite employees. If small and midsize clients cut headcount, the fee base falls with them.
This risk hits the core $6.8B revenue line, not some minor side business.
med
healthcare utilization can erase earnings fast
Third-quarter results swung from a $0.07 profit to a $0.53 loss as inpatient, outpatient, pharmacy, and large-claim costs climbed.
That is the problem with a 1.0% net margin. Small cost misses create oversized EPS damage.
med
the dividend yield is only comforting if earnings recover
A 6.4% dividend yield looks attractive because the stock is down hard from the $96 high. If full-year EPS stays near $1.00, income investors stop treating the dividend as support and start treating it as a question.
That would pressure both valuation and sentiment at the same time.
the key insight: revenue risk and cost risk are stacked on top of each other here. If client headcount softens while claims stay elevated, the turnaround story gets much harder to defend.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
worksite employee growth
That figure rose 1% in the latest quarter. If it stays around that level, revenue growth will depend more on pricing than on real client expansion.
trend
revenue per worksite employee
It rose 3% last quarter. You want this to hold up because it is the clearest sign Insperity still has pricing strength even while hiring stays soft.
risk
medical and pharmacy cost trend
This is the leak management is trying to fix. If utilization stays elevated, the earnings rebound story gets pushed out again.
calendar
2026 UnitedHealthcare contract reset
The new contract lowers the large-claim threshold to $500,000 starting in 2026. You should want to see that show up in cleaner claims performance, not just nicer management language.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts do not expect near-term price leadership here.
risk profile
average
stability score 3 — not a bunker stock, but not a free-fall story either.
chart momentum
below average
technical score 4 — the chart still looks like a stock trying to earn back trust.
earnings predictability
50 / 100
the earnings stream is uneven. If you own this, expect quarterly numbers to keep moving sentiment around.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 155 buyers vs. 128 sellers in 3q2025. total institutional holdings: 37.6M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$31
$90
$38
current price
$61
target midpoint · +60% from current · 3-5yr high: $70 (+85% · 20% ann'l return)
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