TriNet reported lower revenue and earnings for the third quarter, alongside a decline in worksite employees, but said earnings came in ahead of its forecast. The human-resources services provider reaffirmed its 2026 outlook and now expects adjusted diluted earnings per share to land at the top end of its guidance range.
CEO Mike Simonds said customer retention improved and new sales returned to year-over-year growth. He also pointed to improving broker-channel momentum and investments in sales, customer service and newer offerings.
Key details
- Revenue fell: Third-quarter revenue declined 5% year over year to $1.2 billion. Professional service revenue was down 7% to $157 million.
- Worksite employee count contracted: TriNet had approximately 295,000 worksite employees, down 11% from a year earlier.
- Net income and adjusted earnings were lower: Net income was $31 million, or $0.65 per diluted share, compared with $34 million, or $0.70 per share, a year earlier. Adjusted net income was $44 million, or $0.94 per share, versus $55 million, or $1.11 per share.
- Adjusted EBITDA declined: It was $89 million, with a 7.6% margin, compared with $100 million and an 8.2% margin in the prior-year quarter.
- Cash generation improved: Cash from operating activities rose 11% to $80 million. TriNet reported $53 million in free cash flow.
- 2026 outlook was reaffirmed: The company expects full-year diluted earnings per share at the high end of its guidance range. Its revenue guidance remains $4.75 billion to $4.90 billion, with professional service revenue of $647 million to $663 million.
- Growth efforts cited: TriNet said its broker channel is gaining momentum and that sales investments are helping performance in the fall selling season. It also highlighted TriNet Leave, powered by Cocoon, TriNet Recruit and TriNet Spend as additions to its offering.
What changes for investors
The update is an improvement in TriNet’s earnings outlook, not a broader increase to its full-year guidance: the company kept its ranges intact while raising its expectation within the diluted EPS range. The quarter’s reported figures still show year-over-year declines in revenue, earnings, adjusted EBITDA and worksite employees, while operating cash flow increased.