Insperity Reports Q4 Earnings Miss Amid Strategic Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy NSP?
Source: seekingalpha
Insperity Inc's stock fell 11.59% as it hit a 52-week low, reflecting investor concerns following its Q4 earnings report.
The company reported a non-GAAP EPS of -$0.60, missing expectations by $0.13, and a revenue of $1.67 billion, which was $10 million below forecasts. Despite achieving stability in employee count, the weak revenue growth and uncertain future outlook have raised doubts about profitability, leading to a significant drop in stock price amid broader market conditions.
The implications of this earnings miss could affect investor confidence and the company's ability to attract new clients, especially as it anticipates price increases for 60% of its clients upon renewal. Insperity's strategic initiatives, including the HRScale solution launch, may provide future growth opportunities, but the immediate outlook remains challenging.
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Analyst Views on NSP
Wall Street analysts forecast NSP stock price to rise
2 Analyst Rating
1 Buy
0 Hold
1 Sell
Hold
Current: 25.710
Low
62.00
Averages
62.00
High
62.00
Current: 25.710
Low
62.00
Averages
62.00
High
62.00
About NSP
Insperity, Inc. provides an array of human resources (HR) and business solutions designed to help improve business performance. Its HR services offerings are provided through its Workforce Optimization and Workforce Synchronization solutions, which encompass a range of human resources functions, including payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services, along with its cloud-based human capital management platform, its Insperity Premier platform. Workforce Optimization is its comprehensive HR outsourcing solution and includes the same compliance and administrative services as Workforce Optimization and allows clients to select, for an additional fee, from the strategic HR products and services that are included with Workforce Optimization. It offers a comprehensive traditional payroll and human capital management solution, known as its Workforce Acceleration solution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Small Cap Industrial Stocks by RSI Rankings
- Lowest RSI Stocks: Insperity (NSP) leads with an RSI of 21, indicating potential undervaluation and a rebound opportunity for investors to consider.
- Close Competitors: CBIZ (CBZ) and Eve Holding (EVEX) follow closely with an RSI of 26, suggesting they may also present rebound opportunities worth exploring by investors.
- Industry Distribution: The stocks span various industrial sub-sectors including Human Resource Services, Aerospace, Heavy Electrical Equipment, and Research Consulting, highlighting the diversity and potential investment opportunities within small-cap industrial stocks.
- RSI Indicator Interpretation: The RSI is a momentum oscillator that measures the speed and magnitude of price changes, with readings above 70 generally indicating overbought conditions, prompting investors to exercise caution with high RSI stocks.
See More
High Dividend Stocks Favored Amid Market Turbulence
- Investor Preference: During turbulent and uncertain market conditions, many investors gravitate towards high dividend-yielding stocks, which typically possess high free cash flows and reward shareholders with substantial dividend payouts.
- Sector Analysis: Analysts have rated three high-yielding stocks in the industrials sector, namely Insperity Inc (NYSE:NSP), Karat Packaging Inc (NASDAQ:KRT), and Quad/Graphics Inc (NYSE:QUAD), indicating market confidence in these companies.
- Dividend Appeal: High dividend stocks serve as a safe haven for investors seeking stable returns amid market uncertainty, potentially attracting more investors looking for reliable income streams.
- Market Trends: As market volatility increases, the rising interest in high dividend stocks reflects a growing demand for safe assets, which may influence future investment strategies and capital flows.
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Insperity Q4 2025 Earnings Call Insights and Strategic Outlook
- Sales and Retention Achievements: Insperity successfully completed its fall sales and retention campaign in Q4 2025, achieving measurable margin recovery, with new booked HR360 sales remaining within 2% of the prior year, demonstrating the company's ability to maintain stability amid challenges.
- HRScale Solution Launch: The rollout of HRScale, a joint solution with Workday, is considered one of the most significant transformations at Insperity, with expectations of attracting 6,000 to 8,000 paid employees by year-end 2026, driving future growth and client retention.
- Financial Performance and Outlook: The CFO reported an adjusted EPS of -$0.60 and adjusted EBITDA of -$13 million for Q4, while forecasting a 30% to 76% increase in adjusted EBITDA for 2026, reflecting the company's confidence in future recovery.
- Organizational Restructuring and Pricing Strategy: The company is realigning approximately 4% of non-sales staff to meet future needs, while anticipating that 60% of clients will face price increases upon renewal, further supporting margin recovery efforts.
See More
Insperity Reports Q4 Earnings Miss
- Earnings Miss: Insperity's Q4 non-GAAP EPS of -$0.60 fell short by $0.13, indicating challenges in profitability that could undermine investor confidence and stock performance.
- Lackluster Revenue Growth: The company's Q4 revenue of $1.67 billion, up 3% year-over-year, still missed expectations by $10 million, reflecting weak market demand that may pressure future performance.
- Employee Count Stability: Average paid WSEEs increased by 1% to 312,377 in Q4, demonstrating stability in workforce management, which is crucial for maintaining service quality amidst growth challenges.
- Uncertain Future Outlook: For Q1 2026, average paid WSEEs are projected between 303,000 and 305,000, indicating a cautious approach to future growth that may affect market perceptions of the company's long-term prospects.
See More
INSPERITY INC FY ADJUSTED EPS PROJECTION: $1.69 TO $2.72
- Market Overview: The current market outlook indicates a range between $1.69 and $2.72 for the specified asset.
- Investment Insights: The analysis suggests potential investment strategies based on the projected price fluctuations.
See More
INSPERITY REPORTS Q4 GROSS PROFIT OF $172 MILLION
- Financial Performance: The company reported a gross profit of $172 million for the fourth quarter.
- Growth Insights: This figure indicates a significant increase in profitability compared to previous quarters.
See More
Analysis of Small Cap Industrial Stocks by RSI Rankings
- Lowest RSI Stocks: Insperity (NSP) leads with an RSI of 21, indicating potential undervaluation and a rebound opportunity for investors to consider.
- Close Competitors: CBIZ (CBZ) and Eve Holding (EVEX) follow closely with an RSI of 26, suggesting they may also present rebound opportunities worth exploring by investors.
- Industry Distribution: The stocks span various industrial sub-sectors including Human Resource Services, Aerospace, Heavy Electrical Equipment, and Research Consulting, highlighting the diversity and potential investment opportunities within small-cap industrial stocks.
- RSI Indicator Interpretation: The RSI is a momentum oscillator that measures the speed and magnitude of price changes, with readings above 70 generally indicating overbought conditions, prompting investors to exercise caution with high RSI stocks.
See More
High Dividend Stocks Favored Amid Market Turbulence
- Investor Preference: During turbulent and uncertain market conditions, many investors gravitate towards high dividend-yielding stocks, which typically possess high free cash flows and reward shareholders with substantial dividend payouts.
- Sector Analysis: Analysts have rated three high-yielding stocks in the industrials sector, namely Insperity Inc (NYSE:NSP), Karat Packaging Inc (NASDAQ:KRT), and Quad/Graphics Inc (NYSE:QUAD), indicating market confidence in these companies.
- Dividend Appeal: High dividend stocks serve as a safe haven for investors seeking stable returns amid market uncertainty, potentially attracting more investors looking for reliable income streams.
- Market Trends: As market volatility increases, the rising interest in high dividend stocks reflects a growing demand for safe assets, which may influence future investment strategies and capital flows.
See More
Insperity Q4 2025 Earnings Call Insights and Strategic Outlook
- Sales and Retention Achievements: Insperity successfully completed its fall sales and retention campaign in Q4 2025, achieving measurable margin recovery, with new booked HR360 sales remaining within 2% of the prior year, demonstrating the company's ability to maintain stability amid challenges.
- HRScale Solution Launch: The rollout of HRScale, a joint solution with Workday, is considered one of the most significant transformations at Insperity, with expectations of attracting 6,000 to 8,000 paid employees by year-end 2026, driving future growth and client retention.
- Financial Performance and Outlook: The CFO reported an adjusted EPS of -$0.60 and adjusted EBITDA of -$13 million for Q4, while forecasting a 30% to 76% increase in adjusted EBITDA for 2026, reflecting the company's confidence in future recovery.
- Organizational Restructuring and Pricing Strategy: The company is realigning approximately 4% of non-sales staff to meet future needs, while anticipating that 60% of clients will face price increases upon renewal, further supporting margin recovery efforts.
See More
Insperity Reports Q4 Earnings Miss
- Earnings Miss: Insperity's Q4 non-GAAP EPS of -$0.60 fell short by $0.13, indicating challenges in profitability that could undermine investor confidence and stock performance.
- Lackluster Revenue Growth: The company's Q4 revenue of $1.67 billion, up 3% year-over-year, still missed expectations by $10 million, reflecting weak market demand that may pressure future performance.
- Employee Count Stability: Average paid WSEEs increased by 1% to 312,377 in Q4, demonstrating stability in workforce management, which is crucial for maintaining service quality amidst growth challenges.
- Uncertain Future Outlook: For Q1 2026, average paid WSEEs are projected between 303,000 and 305,000, indicating a cautious approach to future growth that may affect market perceptions of the company's long-term prospects.
See More
INSPERITY INC FY ADJUSTED EPS PROJECTION: $1.69 TO $2.72
- Market Overview: The current market outlook indicates a range between $1.69 and $2.72 for the specified asset.
- Investment Insights: The analysis suggests potential investment strategies based on the projected price fluctuations.
See More
INSPERITY REPORTS Q4 GROSS PROFIT OF $172 MILLION
- Financial Performance: The company reported a gross profit of $172 million for the fourth quarter.
- Growth Insights: This figure indicates a significant increase in profitability compared to previous quarters.
See More
