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Insperity
(NYSE:NSP)
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Rating:58Neutral
Price Target:
$49.00
▼(-8.48% Downside)
Action:Reiterated
Date:07/30/26
NSP’s score is held back primarily by weakened profitability and elevated leverage despite strong TTM revenue growth and a sharp rebound in free cash flow. Technicals are a meaningful positive with the stock trading well above major moving averages. Valuation is mixed (high dividend yield but negative P/E due to losses), while the earnings call points to margin recovery progress and reiterated EBITDA guidance tempered by ongoing unit declines and weaker new sales.
Positive Factors
Strong revenue growth
Revenue growth of roughly 41% indicates strong demand for Insperity’s HR outsourcing services and expanding client-related activity. If sustained, greater payroll and worksite-employee scale can support recurring service revenue, improve platform utilization, and create operating leverage over the next several quarters.
Negative Factors
Profitability deterioration
Insperity’s strong revenue growth is not yet translating into durable earnings, as recent losses and significant gross-margin compression indicate weaker operating leverage. Continued pressure on benefit costs, pricing, or service economics could limit reinvestment capacity and make future earnings less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Revenue growth of roughly 41% indicates strong demand for Insperity’s HR outsourcing services and expanding client-related activity. If sustained, greater payroll and worksite-employee scale can support recurring service revenue, improve platform utilization, and create operating leverage over the next several quarters.
Read all positive factors
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.
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The Fly
The FlyInsperity (NSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.91B
Dividend Yield4.78%
Average Volume (3M)431.00K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth2.64%
EPS Growth-140.86%
CountryUS
Employees304,407
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.42
Shares Outstanding38,195,270
10 Day Avg. Volume356,267
30 Day Avg. Volume431,003
Financial Highlights & Ratios
PEG Ratio2.00
Price to Book (P/B)31.99
Price to Sales (P/S)0.22
P/FCF Ratio-4.76
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit1.58
Enterprise Value/Ebitda25.72
Forecast
1Y Price Target
$51.75Price Target Upside-3.34% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)2.11
Revenue Forecast (FY)$6.89B
Insperity Business Overview & Revenue Model
Company Description
Insperity, Inc. (NSP) delivers comprehensive human resources and business solutions primarily designed to enhance the operational efficiency and performance of small and medium-sized enterprises. The company's core HR services are provided through...
How the Company Makes Money
Insperity makes money primarily by charging fees tied to worksite employees and the payroll it administers for client companies, with most revenue generated through its PEO services. Under the PEO model, Insperity enters into a co-employment arran...
Insperity Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call showed meaningful progress on margin recovery and operational efficiency—evidenced by improved gross profit trends, controlled operating expenses (ex-restructuring) and stable adjusted EBITDA—alongside promising early traction for HRScale and AI initiatives. Offsetting these positives were continued unit declines (worksite employees and new sales), a 17% drop in adjusted EPS driven in part by a higher effective tax rate and near-term restructuring and investment costs. Management reiterated full-year adjusted EBITDA guidance but lowered unit growth expectations due to weaker SMB sentiment and the deliberate margin-focused sales/renewal approach.Positive Updates
Adjusted EBITDA Beat and Stability
Adjusted EBITDA of $103.0M in Q1 2026, up 1% versus $102.0M in Q1 2025, and above the midpoint of the company's expected range; full-year adjusted EBITDA guidance reiterated at $170M–$230M.
Negative Updates
Adjusted EPS Decline
Adjusted EPS was $1.31 in Q1 2026, down 17% versus $1.57 in Q1 2025; higher effective tax rate (41% vs 29% in prior year quarter) contributed to the EPS decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Beat and Stability
Adjusted EBITDA of $103.0M in Q1 2026, up 1% versus $102.0M in Q1 2025, and above the midpoint of the company's expected range; full-year adjusted EBITDA guidance reiterated at $170M–$230M.
Read all positive updates
Company Guidance
Management reiterated full-year adjusted EBITDA guidance of $170M–$230M while updating other metrics: Q1 results were adjusted EPS $1.31 and adjusted EBITDA $103M with average paid worksite employees (WSEs) at 303,049 (‑1.0% YoY), total gross profit $302M (‑3%), gross profit per WSE $332/month, benefit cost per covered employee +5% YoY, operating expenses $240M (‑1%; ‑5% ex $9M restructuring), $13M invested in HRScale ($8M opex, $5M capex), dividends paid $23M, 171k shares repurchased for $4M, adjusted cash $36M, and $380M unused credit capacity ($330M borrowable). For the full year 2026 they now forecast average WSEs of 303,000–307,000 (down 1.0%–2.3% vs 2025), adjusted EPS $1.60–$2.60, a 36% effective tax rate and ~38.5M weighted average shares; Q2 guidance is 302,500–304,500 average WSEs (‑1.5% to ‑2.1% YoY), adjusted EBITDA $18M–$46M and adjusted EPS $0.02–$0.50. Management noted the UnitedHealthcare pooling change ($1M to $500k) and margin recovery progress as drivers that should flatten quarterly earnings and help offset lower unit growth.Insperity Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.87B | 6.81B | 6.58B | 6.49B | 5.94B | 4.97B |
| Gross Profit | 880.00M | 900.00M | 1.05B | 1.04B | 1.01B | 820.10M |
| EBITDA | 54.00M | 65.00M | 198.00M | 295.00M | 300.29M | 214.32M |
| Net Income | -16.00M | -7.00M | 91.00M | 171.00M | 179.35M | 124.08M |
Balance Sheet | ||||||
| Total Assets | 2.23B | 2.20B | 2.60B | 2.12B | 2.04B | 1.75B |
| Cash, Cash Equivalents and Short-Term Investments | 619.00M | 660.00M | 1.05B | 709.00M | 765.90M | 607.60M |
| Total Debt | 478.00M | 435.00M | 435.00M | 427.00M | 424.99M | 433.59M |
| Total Liabilities | 2.17B | 2.16B | 2.50B | 2.03B | 1.96B | 1.75B |
| Stockholders Equity | 61.00M | 46.00M | 97.00M | 94.00M | 81.28M | -1.77M |
Cash Flow | ||||||
| Free Cash Flow | 275.00M | -309.00M | 482.00M | 158.37M | 317.36M | 227.25M |
| Operating Cash Flow | 306.00M | -278.00M | 520.00M | 198.49M | 347.69M | 260.15M |
| Investing Cash Flow | -15.00M | -31.00M | -38.00M | -21.73M | -32.12M | -31.01M |
| Financing Cash Flow | -10.00M | -90.00M | -173.00M | -155.01M | -141.15M | -208.07M |
Insperity Technical Analysis
Positive
53.54
Price Trends
50.02
Positive
46.77
Positive
38.42
Positive
Market Momentum
0.19
Negative
53.47
Neutral
50.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSP, the sentiment is Positive. The current price of 53.54 is above the 20-day moving average (MA) of 48.52, above the 50-day MA of 50.02, and above the 200-day MA of 38.42, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 50.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NSP.
Insperity Risk Analysis
Insperity disclosed 1 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $226.85M | 27.66 | 11.98% | 1.41% | -7.54% | 237.08% | |
70 Outperform | $771.41M | 22.90 | 15.76% | 1.01% | 5.59% | -33.45% | |
69 Neutral | $40.05B | 22.28 | 47.11% | 4.04% | 13.97% | 12.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $3.26B | 19.00 | 188.17% | 1.61% | -2.83% | 26.75% | |
58 Neutral | $1.91B | -119.48 | -24.52% | 4.78% | 2.64% | -140.86% | |
54 Neutral | $2.08B | 17.30 | 5.75% | 3.23% | 7.25% | ― |
* Industrials Sector Average
NSP
Insperity
50.18
7.15
16.63%
BBSI
Barrett Business Services
31.83
-9.42
-22.84%
MAN
ManpowerGroup
44.64
12.60
39.32%
PAYX
Paychex
112.50
-6.99
-5.85%
TNET
TriNet Group
71.03
9.78
15.96%
HQI
HireQuest
16.32
7.93
94.61%
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.