Insperity, Inc.
- Open
- 45.04
- Day high
- 45.61
- Day low
- 43.82
- Prev close
- 44.37
- Volume
- 289K
- Mkt cap
- $1.7B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 25.9
- P/S
- 0.3
- Yield
- 5.27%
- Per share
- $2.40
- ▲Insiders net buying $10.8M over the last 3 months (4 open-market buys, 0 sales)
- 🏛Institutions mixed (13F)
Insperity, Inc. (NSP) is a Industrials company listed on NYSE. The stock is down 27% over the past year. Over the trailing 3 months, insiders filed 4 open-market buys and 0 sales (SEC Form 4).
Insperity, Inc. (NSP) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NSP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $1.24 | $1.31 | +5.6% | $1.9B | +0.0% |
| Aug 1, 2025 | $0.41 | $0.26 | -36.6% | $1.7B | +2.9% |
| Oct 31, 2024 | $0.32 | $0.39 | +21.9% | $1.6B | -3.4% |
| Aug 1, 2024 | $0.73 | $0.86 | +17.8% | $1.6B | -0.9% |
| May 1, 2024 | $2.13 | $2.27 | +6.6% | $1.8B | -0.4% |
| Feb 8, 2024 | $0.61 | $0.75 | +23.0% | $1.6B | -0.2% |
| Oct 31, 2023 | $0.86 | $1.46 | +69.8% | $1.6B | +0.8% |
| Aug 1, 2023 | $1.24 | $0.64 | -48.4% | $1.6B | +1.6% |
| Feb 9, 2023 | $0.91 | $1.21 | +33.0% | $1.5B | -1.1% |
| Oct 31, 2022 | $0.97 | $1.23 | +26.8% | $1.4B | -1.1% |
| Aug 1, 2022 | $0.99 | $1.16 | +17.2% | $1.4B | +1.4% |
| Feb 10, 2022 | $0.73 | $0.34 | -53.4% | $1.3B | +4.5% |
NSP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 4, 2026 | SARVADI PAUL Jdirector, officer: Chairman of the Board & CEO | Buy | 233,000 | $34.05 |
| May 20, 2026 | MASTERSON ELLEN Hdirector | Grant | 6,201 | — |
| May 20, 2026 | Ramchand Lathadirector | Grant | 6,201 | — |
| May 20, 2026 | JONES ELIdirector | Grant | 6,201 | — |
| May 20, 2026 | Mehl Randalldirector | Grant | 6,201 | — |
| May 20, 2026 | WILMINGTON PHILIP Wdirector | Grant | 6,201 | — |
| May 20, 2026 | RAWSON RICHARD Gdirector | Grant | 6,201 | — |
| May 20, 2026 | CLIFFORD TIMdirector | Grant | 6,201 | — |
| May 20, 2026 | KAUFMAN CAROL Rdirector | Grant | 6,201 | — |
| May 20, 2026 | MORPHY JOHN Mdirector | Grant | 6,201 | — |
| May 20, 2026 | Lumelleau John Ldirector | Grant | 6,201 | — |
| May 6, 2026 | SARVADI PAUL Jdirector, officer: Chairman of the Board & CEO | Buy | 50,057 | $28.20 |
| May 6, 2026 | SARVADI PAUL Jdirector, officer: Chairman of the Board & CEO | Buy | 400 | $30.00 |
| May 6, 2026 | SARVADI PAUL Jdirector, officer: Chairman of the Board & CEO | Buy | 49,543 | $29.26 |
| Mar 19, 2026 | SARVADI PAUL Jdirector, officer: Chairman of the Board & CEO | Buy | 2,000 | $22.98 |
Source: NSP SEC Form 4 filings, latest Jun 4, 2026. For informational purposes only — not investment advice.
See the full NSP insider & 13F page →Insperity, Inc. company profile
Overview
Insperity, Inc. (NYSE:NSP) is a leading provider of human resources and business solutions founded in 1986 and headquartered in Kingwood, Texas. Originally known as Administaff, Inc., the company changed its name to Insperity in March 2011 and went public in 1997. The company has grown to become one of the largest professional employer organizations (PEOs) in the United States, serving small and medium-sized businesses through 85 sales offices nationwide. Insperity operates primarily as a comprehensive HR outsourcing provider, managing human resources functions for over 300,000 worksite employees across thousands of client companies.
Business
Insperity operates in the professional employer organization (PEO) industry, which is a specialized segment of human resources outsourcing. A PEO creates a co-employment relationship where the PEO becomes the employer of record for tax and insurance purposes while the client company maintains day-to-day management and control of employees. This arrangement allows small and medium-sized businesses to access enterprise-level HR services, benefits, and compliance support that would otherwise be cost-prohibitive. The company's core offerings are organized into several key solutions: 1. Workforce Optimization represents the company's traditional PEO services, providing comprehensive HR outsourcing including payroll administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services. This segment generates the majority of the company's revenue. 2. Workforce Synchronization offers a lighter-touch approach to HR services while still maintaining the co-employment relationship, designed for clients who want some internal HR capabilities while outsourcing specific functions. 3. Insperity Premier is the company's cloud-based human capital management platform that delivers PEO services through an integrated technology solution, targeting clients who prefer more self-service capabilities. 4. Workforce Acceleration provides human capital management and payroll services without the co-employment relationship, serving as a traditional payroll and HR service provider for companies that don't need full PEO services. 5. MarketPlace operates as an e-commerce portal offering various business products and services to clients, generating additional revenue streams beyond core HR services. The company also offers specialized services including personnel record management, employer liability management, time and attendance systems, recruiting, employment screening, retirement services, and insurance products. Revenue is heavily concentrated in the PEO business model, with Workforce Optimization and related PEO services representing approximately 85-90% of total revenue based on recent financial disclosures.
Revenue model
Insperity generates revenue primarily through service fees charged to client companies for managing their HR functions and employee administration. The company's business model is built around charging fees based on the number of worksite employees it manages, creating a recurring revenue stream that scales with client workforce size. The primary revenue model works as follows: Clients pay Insperity a monthly fee per employee (typically ranging from $200-400 per employee per month based on service level), and Insperity handles all payroll processing, benefits administration, and HR compliance. The company also collects and remits payroll taxes, manages workers' compensation insurance, and provides employee benefits through its large group purchasing power. Insperity's gross profit comes from the spread between what clients pay and the actual costs of wages, benefits, taxes, and insurance. Key paying customers are small and medium-sized businesses, typically with 10-1,000 employees, who lack the scale or expertise to efficiently manage complex HR functions internally. These businesses value Insperity's ability to provide enterprise-level benefits packages, compliance expertise, and risk management that would be difficult to achieve independently. Several factors significantly impact Insperity's margins. Healthcare cost inflation represents the largest margin pressure, as the company bears the risk for medical claims through its self-insured health plans. When healthcare costs rise faster than pricing adjustments, margins compress. Workers' compensation claims and unemployment rates also directly affect profitability. Conversely, the company benefits from economies of scale as it grows its worksite employee base, spreading fixed costs across a larger revenue base. Interest rate environments affect the company's substantial cash balances held for payroll and tax remittances. Employment levels at client companies directly drive revenue, making the business sensitive to economic cycles and small business hiring trends. The company's recent strategic partnership with Workday represents a potential margin enhancer through premium pricing for integrated technology solutions.
Competitive moat
Insperity's competitive moat is moderately strong but not insurmountable, built primarily on operational scale, regulatory expertise, and client switching costs. The company benefits from significant economies of scale in benefits purchasing power, allowing it to offer Fortune 500-level health insurance and retirement plans to small businesses at competitive rates. This scale advantage becomes more pronounced as the company grows its worksite employee base, currently managing over 300,000 employees. The PEO industry requires substantial regulatory and compliance expertise across multiple jurisdictions, creating barriers to entry for new competitors. Insperity's 35+ year operating history has built deep institutional knowledge in areas like workers' compensation, employment law, and benefits administration. The complexity of managing co-employment relationships and maintaining compliance across different states creates operational hurdles for potential entrants. Client switching costs provide some protection, as changing PEO providers requires significant administrative effort, employee communication, and potential disruption to payroll and benefits. However, these switching costs are not prohibitively high, and clients do change providers based on service quality and pricing. The company faces meaningful competitive threats from several directions. Large competitors like ADP and Paychex have substantial resources and technology capabilities that could challenge Insperity's market position. Technology disruption poses a longer-term risk, as cloud-based HR platforms and automated compliance tools could reduce the need for full-service PEO relationships. The rise of direct-to-employee benefits platforms and gig economy employment models could also erode demand for traditional PEO services. Insperity's strategic partnership with Workday represents both an opportunity to strengthen its moat through enhanced technology capabilities and an acknowledgment that pure-play PEO models may face pressure from integrated technology solutions. The company's moat is sufficient to maintain market position in the near term but requires continued investment in technology and service differentiation to remain competitive long-term.
Risks & safety
Insperity presents a moderate margin of safety with solid financial fundamentals but elevated leverage due to its business model structure. • Liquidity position: Strong with $551 million in cash and short-term investments as of Q1 2025, providing substantial cushion for operations and strategic investments • Cash flow characteristics: Highly seasonal with negative operating cash flow of -$443 million in Q1 2025 due to payroll tax timing, but historically generates strong positive cash flow of $520 million for full year 2024 • Debt and solvency: High debt-to-equity ratio of 3.66x appears concerning but is largely due to payroll liabilities and client fund obligations rather than traditional debt; current ratio of 1.13x indicates adequate short-term liquidity • Valuation metrics: Trading at 16.6x P/E ratio and 9.2x EV/EBITDA, representing reasonable valuations for a mature service business; however, price-to-book ratio of 28.5x reflects asset-light business model • Profitability trends: Recent margin pressure from healthcare cost inflation, with gross profit per worksite employee declining from $378 to $338 per month year-over-year in Q1 2025 • Other considerations: $62 million investment in Workday partnership creates near-term earnings pressure but potential long-term upside; 99% client retention rate provides revenue stability; exposure to small business economic cycles creates some volatility risk
Recent development
Over the past few years, Insperity has undertaken several strategic initiatives to position itself for long-term growth and competitive differentiation. The most significant development is the company's exclusive strategic partnership with Workday, announced in 2023 as a five-year, $150 million investment to develop integrated HR technology and service solutions. This partnership targets the growing mid-market segment of companies with 100-1,000 employees, combining Workday's leading HR technology platform with Insperity's PEO services. The corporate Workday platform launched in April 2025, with client tenant capabilities being developed for joint go-to-market efforts. The company has also implemented a role-based sales organization optimization strategy, restructuring its sales teams around product specialization across PEO services, traditional employment services, and mid-market solutions. This reorganization aims to improve sales efficiency and better serve different client segments with tailored approaches. Alongside this, Insperity has consolidated its employment services and PEO service teams to create operational efficiencies. Artificial intelligence integration represents another key strategic focus, with the company developing AI capabilities to enhance service efficiency and leverage its deep HR expertise. Rather than replacing human interaction, the AI strategy aims to augment service capabilities and create operational efficiencies across the organization. In response to persistent healthcare cost inflation, Insperity has implemented a three-pronged healthcare cost mitigation strategy: strategic pricing adjustments across its client base, evaluation of benefit plan design changes to encourage more cost-sharing, and acceleration of contract renewal discussions with UnitedHealthcare to better align costs with pricing. The company has also been encouraging clients to select less expensive health plans with higher deductibles and co-pays, viewing this as a positive demographic shift that helps control overall healthcare costs. These strategic moves reflect Insperity's recognition that the traditional PEO model faces pressure from technology disruption and the need to differentiate through enhanced capabilities and integrated solutions.
NSP company profile · for informational purposes only — not investment advice.
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