Insperity (NSP) AI Stock Analysis

• Market Cap: $887.00M
• Dividend Yield: 6.37%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 3.19%
• EPS Growth: -86.21%
• Country: US
• Employees: 306,023
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.60
• Shares Outstanding: 37,728,424
• 10 Day Avg. Volume: 1,261,974
• 30 Day Avg. Volume: 1,269,401
• PEG Ratio: 1.95
• Price to Book (P/B): 31.99
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -4.76
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.77
• Enterprise Value/Ebitda: 13.37
• 1Y Price Target: $42.33
• Price Target Upside: 80.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.44
• Revenue Forecast (FY): $7.26B

• Rating: 43 Neutral
• Price Target: $21.00 ▼(-10.68% Downside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is held down primarily by weakened financial performance—especially the sharp deterioration in cash flow, margin compression, and high leverage versus equity. Technicals also remain bearish with the stock below key moving averages. Offsetting factors include constructive 2026 recovery guidance and a high dividend yield, but the very high P/E and execution risks (healthcare claims and modest WSE outlook) limit upside confidence.

Positive Factors

Scalable PEO business model

Insperity's PEO model produces recurring, payroll-linked service fees and benefits-administration margins that scale with worksite employees. This creates a sticky revenue base and predictable fee cashflows over time, supporting durability if retention and benefits economics hold.

High client retention and stable WSE base

Very high monthly client retention (~99%) and modest WSE growth provide a stable recurring revenue foundation. Low churn means revenue is less reliant on constant new sales, helping preserve service-fee revenue and easing recovery of profitability if pricing and claims trends improve.

HRScale strategic investment and rollout

HRScale is a multi-year strategic platform intended to expand addressable market, improve client retention and enable higher-margin subscription services. Successful rollout can convert legacy clients, drive sticky revenue, and reduce operating leverage, boosting structural margin potential over time.

Negative Factors

Dramatic cash-flow deterioration

A sharp shift to large negative operating and free cash flow materially raises liquidity and funding risk. Sustained cash burn can constrain investments, shareholder returns and the HRScale rollout, and may force greater reliance on borrowings or asset sales if operating cash recovery is delayed.

High leverage and thin equity cushion

Very high debt-to-equity leaves a thin capital buffer against continued losses or further working-capital strain. This reduces financial flexibility, raises refinancing and covenant risks, and magnifies the impact of any additional margin or cash-flow setbacks over the next several quarters.

Persistent margin pressure from healthcare claims

Benefits underwriting and claims are core to PEO gross profit. Ongoing elevated healthcare claims structurally compress margins and make earnings recovery dependent on successful pricing, plan design and renegotiations—processes that take quarters and can leave margins volatile.

Insperity Business Overview & Revenue Model

Company Description

Insperity, Inc. provides human resources (HR) and business solutions to improve business performance for small and medium-sized businesses. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. It also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; personnel record management services; and employer liability management services, as well as solutions for middle market. In addition, the company offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; time and attendance; performance management; organizational planning; recruiting; employment screening; retirement; and insurance services. As of December 31, 2021, it operated through 85 sales offices in the United States. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. The company was founded in 1986 and is headquartered in Kingwood, Texas.

How the Company Makes Money

Insperity generates most of its revenue through its PEO services, where client companies enter a co-employment arrangement and Insperity provides an integrated package of HR-related services. Under this model, Insperity bills clients based largely on covered worksite employees and their payroll (i.e., fees that scale with employee count and compensation levels). The amounts billed typically include (1) service fees for HR administration, payroll processing, benefits administration, compliance support, and risk management, and (2) pass-through labor-related costs Insperity administers on the client’s behalf, such as wages, payroll taxes, and insurance/benefit premiums; while these pass-through amounts inflate reported revenue, profitability depends mainly on the service fee component and the margin Insperity earns from administering benefits and other programs. A key economic driver is benefits-related gross profit: by sponsoring and administering benefit plans at scale (e.g., health benefits) and managing associated underwriting/claims and premium pricing dynamics, Insperity can earn a margin when the aggregate cost of benefits and workers’ compensation programs is lower than the amounts charged to clients. Insperity also earns revenue from its non-PEO offerings (often marketed as HR solutions or HCM/administrative services), which are typically priced as recurring subscriptions and/or per-employee-per-month fees for access to HR technology, payroll/HR administration, and advisory services without a full PEO co-employment relationship. Additional factors influencing earnings include retention and growth in worksite employees, wage inflation (which can increase billings), pricing and renewal decisions for benefits plans, claims experience in benefits and workers’ compensation programs, and sales/marketing effectiveness in acquiring new clients. Significant partnerships: null.

Insperity Financial Statement Overview

Summary

Despite sharp 2025 revenue acceleration, profitability and cash generation deteriorated materially: net income and operating profit turned negative, margins compressed, leverage is high versus a thin equity base, and operating/free cash flow swung deeply negative—raising liquidity and funding risk if not reversed.

Income Statement

Revenue accelerated sharply in 2025 (annual revenue growth of ~81%), but profitability deteriorated materially: net income turned slightly negative and operating profit moved to a small loss, with EBITDA margin compressing to ~0.3% versus ~3.0% in 2024. Gross margin also stepped down to ~13.2% from ~16.0% in 2024, indicating weaker unit economics and/or pricing pressure. Overall, strong top-line momentum is outweighed by the abrupt margin collapse and return to losses.

Balance Sheet

Leverage is high and worsening: debt stayed roughly flat (~$435M), while equity declined to ~$46M in 2025 (from ~$97M in 2024), pushing debt relative to equity to ~9.5x. Total assets also fell in 2025, and returns to shareholders turned negative alongside the net loss. The balance sheet is workable but thinly capitalized, leaving limited cushion if profitability and cash generation remain pressured.

Cash Flow

Cash generation weakened dramatically in 2025: operating cash flow swung to about -$278M (from +$520M in 2024) and free cash flow turned to about -$309M (from +$482M in 2024), with a steep negative free-cash-flow growth rate. Despite only a small net loss, the company consumed substantial cash, signaling unfavorable working-capital dynamics and/or elevated cash uses that materially raise liquidity and funding risk if sustained.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.81B	6.58B	6.49B	5.94B	4.97B
Gross Profit	900.00M	1.05B	1.04B	1.01B	820.10M
EBITDA	35.00M	198.00M	295.00M	300.29M	214.32M
Net Income	-7.00M	91.00M	171.00M	179.35M	124.08M
Balance Sheet
Total Assets	2.20B	2.60B	2.12B	2.04B	1.75B
Cash, Cash Equivalents and Short-Term Investments	660.00M	1.05B	709.00M	765.90M	607.60M
Total Debt	454.00M	435.00M	427.00M	424.99M	433.59M
Total Liabilities	2.16B	2.50B	2.03B	1.96B	1.75B
Stockholders Equity	46.00M	97.00M	94.00M	81.28M	-1.77M
Cash Flow
Free Cash Flow	-309.00M	482.00M	158.37M	317.36M	227.25M
Operating Cash Flow	-278.00M	520.00M	198.49M	347.69M	260.15M
Investing Cash Flow	-31.00M	-38.00M	-21.73M	-32.12M	-31.01M
Financing Cash Flow	-90.00M	-173.00M	-155.01M	-141.15M	-208.07M

Insperity Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSP, the sentiment is Neutral. The current price of 23.51 is above the 20-day moving average (MA) of 21.66, below the 50-day MA of 32.51, and below the 200-day MA of 43.29, indicating a neutral trend. The MACD of -2.82 indicates Negative momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 66.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NSP.

Insperity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	73 Outperform	$3.18B	13.73	13.94%	2.89%	3.65%	5.71%
BBSI	71 Outperform	$719.30M	16.87	23.66%	0.88%	9.64%	9.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	59 Neutral	$2.29B	20.45	10.26%	8.65%	-7.27%	-43.88%
MAN	51 Neutral	$1.23B	11.44	-0.65%	4.96%	-2.44%	-156.01%
TNET	48 Neutral	$1.78B	18.31	111.30%	1.81%	0.99%	-47.02%
NSP	43 Neutral	$887.00M	-210.19	-7.69%	6.37%	3.19%	-86.21%

Insperity Corporate Events

Insperity Announces Realignment Plan and Workforce Reductions

On February 10, 2026, Insperity announced a Realignment Plan that will eliminate about 4% of its non-sales roles as part of an internal reorganization aimed at boosting efficiency and sharpening focus on key business areas, with an estimated $9 million in one-time severance and related charges largely recognized in the first quarter of 2026 and excluded from non-GAAP metrics. The company also reported a 2025 net loss of $7 million despite 4% revenue growth to $6.8 billion and modest WSEE gains, as elevated benefits costs pressured margins, prompting management to emphasize margin recovery, cost efficiencies and disciplined hiring, while returning $109 million to shareholders in 2025 and issuing 2026 guidance that points to a planned rebound in adjusted EBITDA and earnings.

The most recent analyst rating on (NSP) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Insperity stock, see the NSP Stock Forecast page.