Insperity Inc (NSP)
NYSE:NSP
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Insperity
(NYSE:NSP)
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Rating:50Neutral
Price Target:
$36.00
â–²(24.57% Upside)
Action:ReiteratedDate:05/01/26
The score is held down primarily by weak financial quality—especially the sharp deterioration in operating/free cash flow and the thin, highly levered balance sheet—despite strong recent revenue growth. The earnings call supports a margin-recovery narrative (guidance reiterated and cost/benefit trends improving), while technicals are positive but show overbought risk. Valuation is mixed: an attractive dividend yield is offset by loss-driven negative P/E and cash flow concerns.
Positive Factors
Recurring, scalable PEO business model
Insperity's core PEO structure produces recurring, contractually-linked service fees that scale with client employee counts and payroll. That model creates predictable revenue streams, client stickiness via co-employment, and cross-sell optionality to non‑PEO HR solutions, supporting durable top-line base.
Negative Factors
Severe cash flow deterioration
A large swing to negative operating and free cash flow materially raises liquidity and funding risk. Sustained cash consumption limits the company's ability to invest in tech, absorb benefit volatility, maintain dividends or repurchase shares, and increases reliance on credit facilities during downtimes.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, scalable PEO business model
Insperity's core PEO structure produces recurring, contractually-linked service fees that scale with client employee counts and payroll. That model creates predictable revenue streams, client stickiness via co-employment, and cross-sell optionality to non‑PEO HR solutions, supporting durable top-line base.
Read all positive factors
Insperity (NSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend Yield6.37%
Average Volume (3M)1.14M
Price to Earnings (P/E)7.7
Beta (1Y)1.10
Revenue Growth3.04%
EPS Growth-139.52%
CountryUS
Employees306,023
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)1.31
Shares Outstanding38,169,180
10 Day Avg. Volume1,049,093
30 Day Avg. Volume1,142,598
Financial Highlights & Ratios
PEG Ratio1.95
Price to Book (P/B)31.99
Price to Sales (P/S)0.22
P/FCF Ratio-4.76
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit1.35
Enterprise Value/Ebitda23.33
Forecast
1Y Price Target
$39.50Price Target Upside36.68% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.12
Revenue Forecast (FY)$6.96B
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 solutio...
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...
Insperity Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down where Insperity earns sales across regions, highlighting geographic strengths and concentration risk. Regional trends reveal growth opportunities, exposure to local economic cycles or regulatory changes, and where the company’s sales and marketing efforts are most effective.
Breaks down where Insperity earns sales across regions, highlighting geographic strengths and concentration risk. Regional trends reveal growth opportunities, exposure to local economic cycles or regulatory changes, and where the company’s sales and marketing efforts are most effective.
Data provided by:
The Fly
The FlyInsperity Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Neutral
The call portrayed a company in recovery: solid early progress on margin restoration (improved gross profit trends, controlled operating expenses, improved benefit-cost dynamics) and a promising HRScale rollout and AI strategy that can drive medium-term growth. Offsetting these positives are near-term headwinds—declining worksite employee counts, lower new-sales activity, elevated attrition tied to margin actions, a significant Q1 tax-related EPS hit and seasonal cash pressure. Management maintained full-year adjusted EBITDA guidance but lowered unit guidance, signaling confidence in profitability recovery while acknowledging slower top-line momentum.Positive Updates
Adjusted EBITDA and EPS Beat Midpoint
Adjusted EPS of $1.31 and adjusted EBITDA of $103 million in Q1 2026 both exceeded the midpoint of guidance; adjusted EBITDA was up 1% versus $102M in Q1 2025.
Negative Updates
Worksite Employee Base Contraction
Average paid worksite employees were 303,049 in Q1 2026, a 1.0% decrease versus Q1 2025; full-year WSE guidance downgraded to 303,000–307,000 (a decline of 1.0%–2.3% vs 2025) and Q2 WSE expected down 1.5%–2.1% YoY.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA and EPS Beat Midpoint
Adjusted EPS of $1.31 and adjusted EBITDA of $103 million in Q1 2026 both exceeded the midpoint of guidance; adjusted EBITDA was up 1% versus $102M in Q1 2025.
Read all positive updates
Company Guidance
Insperity reiterated full‑year adjusted EBITDA guidance of $170M–$230M while trimming unit guidance to 303,000–307,000 average paid worksite employees for 2026 (a 1.0%–2.3% decline vs. 2025) and guiding Q2 WSEs to 302,500–304,500 (down 1.5%–2.1% yoy); full‑year adjusted EPS is $1.60–$2.60 (Q2 $0.02–$0.50) with a FY adjusted tax rate of ~36% and ~38.5M weighted average shares outstanding. In Q1 the company reported adjusted EPS of $1.31 and adjusted EBITDA of $103M, average paid WSEs of 303,049 (‑1.0% vs. Q1 2025), total gross profit of $302M (‑3%), gross profit per WSE of $332/month, benefit cost per covered employee +5% yr/yr (improved from ~9% last year), operating expenses $240M (‑1%; ‑5% ex $9M restructuring), $13M invested in HRScale in Q1 ($8M opex, $5M capex), $36M adjusted cash, $23M dividends paid, 171k shares repurchased for $4M, and ~$380M unused credit capacity (~$330M available); management expects a flatter quarterly earnings pattern due to UnitedHealthcare pooling change ($1M→$500k).Insperity Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
28
Negative
Cash Flow
18
Very Negative
| 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 | 435.00M | 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
Neutral
28.90
Price Trends
25.39
Positive
32.15
Negative
39.85
Negative
Market Momentum
0.71
Negative
59.72
Neutral
81.59
Negative
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 28.9 is above the 20-day moving average (MA) of 27.06, above the 50-day MA of 25.39, and below the 200-day MA of 39.85, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 81.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NSP.
Insperity Risk Analysis
Insperity disclosed 22 risk factors in its most recent earnings report. Insperity reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Insperity Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.45B | 13.73 | 13.94% | 2.89% | 5.44% | 8.92% | |
65 Neutral | $794.65M | 16.87 | 23.66% | 0.88% | 8.37% | 4.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $2.11B | 4.81 | 185.63% | 1.81% | -1.40% | -0.67% | |
53 Neutral | $1.41B | 137.58 | -0.81% | 4.96% | 4.77% | -115.03% | |
53 Neutral | $2.72B | 45.87 | 9.98% | 8.65% | -6.08% | -35.51% | |
50 Neutral | $1.36B | 7.72 | -7.69% | 6.37% | 3.04% | -139.52% |
* Industrials Sector Average
NSP
Insperity
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-34.13
-54.46%
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Insperity Corporate Events
Business Operations and StrategyFinancial Disclosures
Insperity Announces Realignment Plan and Workforce Reductions
Negative
Feb 10, 2026
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 mi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.