Insperity, Inc. (NSP)

Insperity's stock price has experienced a significant decline over the past year, with a 44.94% decrease between January 6, 2025, and January 5, 2026, and a 61% drop over the last three years. Key events impacting the stock in the past six months include the Q2 2025 earnings report, where Insperity met revenue expectations but missed non-GAAP profit estimates due to higher-than-expected benefits costs, leading to lowered full-year guidance. The Q3 2025 earnings report showed an adjusted EPS loss significantly below estimates due to a spike in healthcare/benefits costs. Increased healthcare costs throughout 2025 have been a recurring theme, impacting profitability and leading to revised financial guidance. A strategic partnership with Workday and the development of its HRScale solution are seen as catalysts for future growth, particularly in the mid-market segment. A renewed contract with UnitedHealthcare is expected to significantly decrease healthcare costs, setting up more positive margin expectations for 2026. There has been significant insider buying in the last quarter of 2025, which can be considered a positive signal.

Insperity's demand seasonality is influenced by hiring trends and client retention. The company has demonstrated strong client retention, averaging 99% per month in Q2 2025. Net hiring within the client base showed some improvement in Q2 2025, slightly exceeding expectations and Q2 2024 levels, but remained below historical norms. The company's sales organization changes implemented early in 2025 showed improved sales efficiency in Q2, which is encouraging as they approach the "fall selling season," and the year-end selling season is also noted as a very active period. Fluctuations in benefits costs can impact profitability, and the company anticipates these costs to taper down in the latter half of the year due to planned demographic changes and migrations.

Insperity, Inc. is a leading provider of human resources and business performance solutions, primarily serving small and medium-sized businesses in the United States. The company operates within the Industrials sector, specifically in the Staffing & Employment Services industry, offering Professional Employer Organization services. Insperity's major products and services are offered through its Workforce Optimization and Workforce Synchronization solutions, which include payroll and tax administration, employee benefits, workers' compensation and risk management, government compliance, performance management, recruiting and retention services, technology solutions, and business consulting services.

Insperity, Inc. primarily operates within the United States. As of December 31, 2021, the company had 85 sales offices across the country. With 2023 revenues of $6.5 billion, Insperity has over 90 locations throughout the U.S., indicating a significant national presence.

In the past year, Insperity has received positive recognition for its brand and services. In 2025, Insperity was named to Inc.'s Best in Business List in the Best Customer Service and Best Community Initiatives categories, highlighting its North Star Network thought leadership program. Additionally, in 2025, Forbes recognized Insperity on several "America's Best Employers" lists, including for company culture, by state, for women, and as a midsize employer.

Insperity, Inc. has a mixed ownership structure, with a significant portion held by institutional investors, approximately 50.36% to 80.52% of the company's stock. Insiders own between 4.67% and 33.40% of the stock, while individual investors and public companies hold the remainder. Major institutional owners include BlackRock, Inc., Vanguard Group Inc., and Mawer Investment Management Ltd. The largest individual shareholder is Paul J. Sarvadi, the co-founder, Chairman, and Chief Executive Officer, who owns 7.42 million shares, representing 19.67% of the company.