Insperity (NSP) AI Stock Analysis

• Market Cap: $834.93M
• Dividend Yield: 6.37%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• 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: 1,469,438
• 30 Day Avg. Volume: 1,038,506
• 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: 0.76
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.71
• Enterprise Value/Ebitda: 12.24
• 1Y Price Target: $42.33
• Price Target Upside: 84.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.44
• Revenue Forecast (FY): $7.26B

• Rating: 43 Neutral
• Price Target: $21.50 ▼(-6.28% 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

High client retention / sticky PEO base

Very high retention indicates a sticky client base and recurring revenue from PEO service fees. With retention near 99% monthly, churn risk is low, supporting predictable revenue and cross-sell opportunities. This durability underpins revenue stability and reduces customer acquisition dependence over the next several quarters.

Platform strategy (HRScale) progressing

HRScale is a structural investment to lower per‑employee service costs, broaden TAM and create subscription-like recurring revenue. Early beta rollouts and a multi-thousand WSE target imply potential secular margin and retention improvements as platform adoption scales, offering lasting operational leverage if execution continues.

Enhanced liquidity / credit flexibility

A larger, extended revolving facility materially improves financial flexibility, providing a multi-quarter runway to fund HRScale, weather claims volatility, and execute cost actions without immediate refinancing pressure. This reduces short-term liquidity risk and supports strategic execution while turnaround progresses.

Negative Factors

Severe cash flow weakness

A dramatic cash outflow shift is a durable concern: material negative operating and free cash flow strains working capital and funding. Even with adjusted earnings improving, sustained cash consumption increases reliance on credit, limits reinvestment capacity and raises the prospect of liquidity actions if cash trends don't reverse.

High leverage and thin equity cushion

A thinly capitalized balance sheet with high debt relative to equity reduces financial flexibility and increases covenant and refinancing risk. This limited equity cushion amplifies downside from further losses or adverse claims experience, potentially forcing asset sales, dilutive capital raises, or constrained strategic choices over the next several quarters.

Margin compression and profitability deterioration

Widening margin pressure—largely from elevated healthcare claims and benefit costs—erodes the core economics of the PEO model, which relies on benefits-related gross profit. Persistently compressed margins limit cash generation and make the business sensitive to claims cycles, meaning profit recovery must be sustained to restore financial health.

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 revenue primarily through its Professional Employer Organization (PEO) services, where it acts as a co-employer for its clients. The company charges a fee based on a percentage of the client's payroll, which includes various services such as payroll processing, benefits administration, and compliance management. Additionally, Insperity earns revenue from its HR software solutions and consulting services, which can be offered on a subscription basis or as one-time fees. Key revenue streams include the fees from PEO services, HR software subscriptions, and consulting projects. Insperity's growth is also bolstered by strategic partnerships with various service providers in areas like insurance and employment services, allowing it to enhance its offerings and attract more clients.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 22.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSP, the sentiment is Negative. The current price of 22.94 is below the 20-day moving average (MA) of 31.32, below the 50-day MA of 37.83, and below the 200-day MA of 47.37, indicating a bearish trend. The MACD of -5.19 indicates Positive momentum. The RSI at 24.75 is Positive, neither overbought nor oversold. The STOCH value of 19.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSP.

Insperity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	73 Outperform	$3.11B	12.08	13.89%	2.89%	3.65%	5.71%
BBSI	66 Neutral	$795.90M	14.91	24.08%	0.88%	9.64%	9.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	59 Neutral	$2.39B	17.80	10.02%	8.65%	-7.27%	-43.88%
MAN	51 Neutral	$1.20B	-89.53	-0.64%	4.96%	-2.44%	-156.01%
TNET	48 Neutral	$1.63B	10.87	111.30%	1.81%	0.99%	-47.02%
NSP	43 Neutral	$834.93M	-117.01	-9.79%	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.

Insperity Expands Credit Facility with Amegy Bank

On December 15, 2025, Insperity, Inc. announced an Eighth Amendment to its Amended and Restated Credit Agreement with Zions Bancorporation, N.A. dba Amegy Bank and other lenders. This amendment increases the borrowing capacity under its revolving credit facility from $650 million to $750 million, with a potential increase to $800 million, extends the maturity date to December 15, 2028, and adjusts financial covenants, potentially enhancing Insperity’s financial flexibility and operational capacity.

The most recent analyst rating on (NSP) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Insperity stock, see the NSP Stock Forecast page.