Overview

* Insperity ( NSP ) Q3 revenue grows 4% yr/yr but misses analyst expectations

* Adjusted EPS for Q3 misses consensus, reflecting elevated healthcare costs

* Company extends UnitedHealthcare contract through 2028 for cost savings and strategic alignment

Outlook

* Insperity sees Q4 2025 adjusted EPS between $(0.79) and $(0.16)

* Company expects full-year 2025 adjusted EPS of $0.84 to $1.47

* Insperity ( NSP ) anticipates 2025 adjusted EBITDA between $119 mln and $153 mln

Result Drivers

* HEALTHCARE COSTS - Elevated healthcare costs, including inpatient, outpatient, and pharmacy trends, negatively impacted gross profit

* UHC CONTRACT EXTENSION - Multi-year contract extension with UnitedHealthcare expected to provide significant cost reductions and strategic alignment

* HRScale ROLLOUT - Launch of HRScale, a joint solution with Workday, expected to drive future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.62 $1.63

Revenue bln bln (5

Analysts

)

Q3 Miss -$0.20 $0.22 (5

Adjusted Analysts

EPS )

Q3 Net -$20 mln

Income

Q3 Gross $195 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the employment services peer group is "buy."

* Wall Street's median 12-month price target for Insperity Inc ( NSP ) is $56.00, about 21.2% above its October 31 closing price of $44.12

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)