Insperity reported a sharp improvement in third-quarter earnings as higher pricing lifted revenue and gross profit per worksite employee, while lower operating expenses supported its margin-recovery effort. The improvement came despite a 2% decline in the average number of employees it paid for client companies.
The human-resources services provider also reported year-to-date growth in revenue, net income and adjusted earnings, and said it repurchased $6 million of its shares during the quarter.
Key details
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Revenue rose 2% to $1.7 billion in the third quarter. Average paid worksite employees fell 2% year over year to 307,265, but revenue per employee increased 4%, primarily because of higher pricing.
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Gross profit increased 6% to $207 million. Gross profit per worksite employee rose 8% to $225. Benefits costs per covered employee were up 4% from a year earlier.
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Operating expenses fell 5% to $209 million. Insperity attributed the decline primarily to lower compensation-related costs following a reduction in corporate staff.
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The quarterly loss narrowed substantially. Net loss improved 95% to $1 million, and diluted loss per share improved 96% to 2 cents. Adjusted EBITDA rose 210% to $31 million, while adjusted earnings per share increased 210% to 22 cents.
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Year-to-date revenue was up 2%, despite a smaller workforce base. For the first nine months of 2026, average paid worksite employees declined 1% to 305,359.
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Year-to-date earnings also improved. Net income rose 38% to $36 million and adjusted EBITDA increased 18% to $170 million. Diluted earnings per share climbed 38% to 95 cents; adjusted earnings per share rose 13% to $1.85.
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Insperity repurchased 131,000 shares during the quarter for a total cost of $6 million.
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Management pointed to AI as part of its strategy. Chief Executive Paul Sarvadi said the company plans to combine AI with the expertise of its HR professionals to support clients and strengthen its offering. The company said it would discuss an updated 2026 outlook on its conference call.
Plain-English implications
The quarter’s improvement was driven by higher pricing and lower operating costs, which lifted gross profit and adjusted earnings even as the number of paid worksite employees declined. The results mark progress on Insperity’s stated margin-recovery priority; the release does not provide the updated 2026 outlook figures.