Revenue growth has slowed to 1.7% as of 2026Q1, while gross margins remain highly sensitive to benefit costs, fluctuating between a 19.1% peak and a 10.3% trough.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 6.84B | 6.81B | 6.58B | 6.49B | 5.94B | 4.97B | 4.29B | 4.31B | 3.83B | 3.3B | 2.94B | 2.6B | 2.36B | 2.26B | 2.16B | 1.98B | 1.72B | 1.65B | 1.72B | 1.57B | 1.39B | 1.17B | 969.53M | 891.72M | 849.02M | 4.37B | 3.71B | 2.26B | 1.68B | 1.21B | 899.6M |
| Revenue Growth % | 3.04% | 3.51% | 1.46% | 9.21% | 19.42% | 16% | -0.64% | 12.7% | 16.01% | 12.2% | 12.97% | 10.43% | 4.51% | 4.51% | 9.24% | 14.91% | 4.03% | -4.14% | 9.84% | 12.99% | 18.8% | 20.64% | 8.73% | 5.03% | -80.59% | 17.92% | 64.04% | 34.32% | 38.69% | 34.9% | 25.61% |
| Cost of Goods Sold | 5.96B | 5.91B | 5.53B | 5.45B | 4.93B | 4.15B | 3.48B | 3.58B | 3.15B | 2.73B | 2.45B | 2.17B | 1.95B | 1.86B | 1.78B | 1.62B | 1.42B | 1.37B | 1.38B | 1.26B | 1.11B | 933.86M | 771.83M | 693.75M | 682.63M | 4.21B | 3.57B | 2.17B | 1.61B | 1.16B | 861.6M |
| COGS % of Revenue | - | 86.79% | 84.01% | 84.01% | 82.97% | 83.51% | 81.18% | 83.01% | 82.19% | 82.65% | 83.29% | 83.18% | 82.87% | 82.57% | 82.29% | 82.2% | 82.64% | 82.58% | 80.07% | 80.51% | 79.65% | 79.84% | 79.61% | 77.8% | 80.4% | 96.23% | 96.26% | 96.04% | 95.92% | 95.78% | 95.78% |
| Gross Profit | 881M | 900M | 1.05B | 1.04B | 1.01B | 820.1M | 806.85M | 732.93M | 681.91M | 572.73M | 491.61M | 437.87M | 403.81M | 393.25M | 382.22M | 351.77M | 298.54M | 287.97M | 343.74M | 305.92M | 282.73M | 235.76M | 197.69M | 197.97M | 166.39M | 165.01M | 138.53M | 89.5M | 68.6M | 51.2M | 38M |
| Gross Margin % | 12.87% | 13.21% | 15.99% | 15.99% | 17.03% | 16.49% | 18.82% | 16.99% | 17.81% | 17.35% | 16.71% | 16.82% | 17.13% | 17.43% | 17.71% | 17.8% | 17.36% | 17.42% | 19.93% | 19.49% | 20.35% | 20.16% | 20.39% | 22.2% | 19.6% | 3.77% | 3.74% | 3.96% | 4.08% | 4.22% | 4.22% |
| Gross Profit Growth % | - | -14.45% | 1.45% | 2.55% | 23.31% | 1.64% | 10.09% | 7.48% | 19.06% | 16.5% | 12.27% | 8.44% | 2.68% | 2.89% | 8.65% | 17.83% | 3.67% | -16.23% | 12.36% | 8.2% | 19.92% | 19.25% | -0.14% | 18.98% | 0.83% | 19.12% | 54.79% | 30.47% | 33.98% | 34.74% | 30.58% |
| Operating Expenses | 897M | 910M | 935M | 818M | 760.99M | 646.77M | 612.16M | 546.3M | 502.87M | 442.79M | 385.3M | 361.69M | 352.64M | 333.69M | 310.54M | 294.46M | 261.48M | 260.93M | 278.76M | 243.71M | 221.16M | 191.99M | 175.56M | 173.69M | 168.24M | 146.48M | 116.3M | 78.9M | 57.4M | 42M | 31.4M |
| OpEx % of Revenue | - | 13.36% | 14.21% | 12.61% | 12.81% | 13.01% | 14.28% | 12.66% | 13.13% | 13.42% | 13.1% | 13.89% | 14.96% | 14.79% | 14.38% | 14.9% | 15.2% | 15.78% | 16.17% | 15.52% | 15.92% | 16.41% | 18.11% | 19.48% | 19.82% | 3.35% | 3.14% | 3.49% | 3.41% | 3.46% | 3.49% |
| Selling, General & Admin | 530M | 241M | 891M | 728M | 720.33M | 573.3M | 580.98M | 517.58M | 480.03M | 424.61M | 368.66M | 343.12M | 331.26M | 312.62M | 292.29M | 279.24M | 246.57M | 244.34M | 263.19M | 227.55M | 205.73M | 176.82M | 158.05M | 152.93M | 146.6M | 129.59M | 104.3M | 70.4M | 53.7M | 39.8M | 29.9M |
| SG&A % of Revenue | - | 3.54% | 13.54% | 11.22% | 12.13% | 11.53% | 13.55% | 12% | 12.54% | 12.87% | 12.53% | 13.18% | 14.05% | 13.86% | 13.54% | 14.13% | 14.34% | 14.78% | 15.26% | 14.49% | 14.81% | 15.12% | 16.3% | 17.15% | 17.27% | 2.96% | 2.81% | 3.11% | 3.19% | 3.28% | 3.32% |
| Research & Development | 0 | 0 | 13M | 0 | 13.2M | 10.9M | 8.7M | 7.8M | 6M | 4.1M | 3M | 3.3M | 4.1M | 3.6M | 2.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 0.2% | - | 0.22% | 0.22% | 0.2% | 0.18% | 0.16% | 0.12% | 0.1% | 0.13% | 0.17% | 0.16% | 0.13% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 669M | 31M | 90M | 27.46M | 62.57M | 22.49M | 20.92M | 22.84M | 18.18M | 16.64M | -113K | 47K | -2.65M | 187K | 15.22M | 14.91M | 16.59M | 15.57M | 16.16M | 15.44M | 15.17M | 17.51M | 20.76M | 21.64M | 16.88M | 12M | 8.5M | 3.7M | 2.2M | 1.5M |
| Operating Income | -16M | -10M | 117M | 219M | 250.24M | 173.33M | 194.69M | 186.63M | 179.04M | 129.94M | 106.31M | 65.7M | 47.47M | 56.22M | 67.49M | 57.31M | 37.06M | 27.03M | 64.98M | 62.21M | 61.56M | 43.77M | 22.13M | 24.27M | -1.85M | 18.54M | 22.23M | 10.6M | 11.2M | 9.2M | 6.6M |
| Operating Margin % | -0.23% | -0.15% | 1.78% | 3.38% | 4.21% | 3.49% | 4.54% | 4.33% | 4.68% | 3.94% | 3.61% | 2.52% | 2.01% | 2.49% | 3.13% | 2.9% | 2.15% | 1.64% | 3.77% | 3.96% | 4.43% | 3.74% | 2.28% | 2.72% | -0.22% | 0.42% | 0.6% | 0.47% | 0.67% | 0.76% | 0.73% |
| Operating Income Growth % | - | -108.55% | -46.58% | -12.48% | 44.37% | -10.97% | 4.32% | 4.24% | 37.78% | 22.23% | 61.81% | 38.39% | -15.56% | -16.7% | 17.76% | 54.65% | 37.09% | -58.4% | 4.45% | 1.05% | 40.67% | 97.76% | -8.83% | 1412.11% | -109.98% | -16.62% | 109.75% | -5.36% | 21.74% | 39.39% | 200% |
| EBITDA | 29M | 35M | 161M | 262M | 290.9M | 211.88M | 225.88M | 215.36M | 201.88M | 148.12M | 122.95M | 84.26M | 68.86M | 77.26M | 85.68M | 72.53M | 52.01M | 43.59M | 80.52M | 78.76M | 77.1M | 59.25M | 39.9M | 46.46M | 20.01M | 35.61M | 34.2M | 18.2M | 15.4M | 11.9M | 8.3M |
| EBITDA Margin % | 0.42% | 0.51% | 2.45% | 4.04% | 4.9% | 4.26% | 5.27% | 4.99% | 5.27% | 4.49% | 4.18% | 3.24% | 2.92% | 3.42% | 3.97% | 3.67% | 3.02% | 2.64% | 4.67% | 5.02% | 5.55% | 5.07% | 4.12% | 5.21% | 2.36% | 0.81% | 0.92% | 0.81% | 0.92% | 0.98% | 0.92% |
| EBITDA Growth % | -76.03% | -78.26% | -38.55% | -9.93% | 37.3% | -6.2% | 4.89% | 6.68% | 36.29% | 20.47% | 45.91% | 22.37% | -10.87% | -9.83% | 18.12% | 39.46% | 19.31% | -45.86% | 2.24% | 2.16% | 30.12% | 48.49% | -14.12% | 132.21% | -43.82% | 4.13% | 87.93% | 18.18% | 29.41% | 43.37% | 151.52% |
| D&A (Non-Cash Add-back) | 45M | 45M | 44M | 43M | 40.66M | 38.55M | 31.19M | 28.72M | 22.84M | 18.18M | 16.64M | 18.57M | 21.39M | 21.03M | 18.18M | 15.22M | 14.95M | 16.56M | 15.54M | 16.55M | 15.53M | 15.48M | 17.77M | 22.18M | 21.86M | 17.07M | 11.97M | 7.6M | 4.2M | 2.7M | 1.7M |
| EBIT | 11M | 20M | 154M | 252M | 259.63M | 175.78M | 197.29M | 197.29M | 187.03M | 133.35M | 107.57M | 66.08M | 48M | 59.56M | 71.69M | 57.31M | 37.06M | 27.03M | 64.98M | 62.21M | 61.56M | 43.77M | 22.13M | 24.27M | 67K | 18.54M | 22.23M | 12M | 11.3M | 9.2M | 6.6M |
| Net Interest Income | 3M | 6M | 9M | 6M | -4.81M | -5.01M | -5.42M | 3.01M | 3.32M | 200K | -1.13M | -80K | 153K | 158K | 609K | 969K | 961K | 1.62M | 7.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 27M | 30M | 37M | 33M | 9.39M | 2.45M | 2.6M | 10.66M | 7.99M | 3.41M | 1.27M | 379K | 153K | 158K | 609K | 969K | 961K | 1.62M | 7.04M | 0 | 0 | 0 | 0 | 0 | 0 | 4.13M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 24M | 24M | 28M | 27M | 14.21M | 7.46M | 8.02M | 7.65M | 4.67M | 3.21M | 2.4M | 459K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 3M | 6M | 9M | 6M | -4.81M | -5.01M | -5.42M | 3.01M | 3.32M | 200K | -1.13M | -80K | 153K | -2.49M | 796K | -6.54M | 961K | 1.62M | 7.04M | 11.22M | 10.52M | 3.98M | 8.61M | 196K | -3.66M | 848K | 4.38M | 3.7M | 3.4M | 2.7M | -1.8M |
| Pretax Income | -13M | -4M | 126M | 225M | 245.43M | 168.32M | 189.27M | 189.64M | 182.36M | 130.14M | 105.18M | 65.62M | 47.63M | 53.73M | 68.29M | 50.77M | 38.02M | 28.65M | 72.02M | 73.44M | 72.08M | 47.75M | 30.74M | 24.47M | -3.6M | 19.39M | 26.61M | 14.2M | 14.6M | 11.9M | 4.8M |
| Pretax Margin % | -0.19% | -0.06% | 1.91% | 3.47% | 4.13% | 3.38% | 4.42% | 4.4% | 4.76% | 3.94% | 3.58% | 2.52% | 2.02% | 2.38% | 3.16% | 2.57% | 2.21% | 1.73% | 4.18% | 4.68% | 5.19% | 4.08% | 3.17% | 2.74% | -0.42% | 0.44% | 0.72% | 0.63% | 0.87% | 0.98% | 0.53% |
| Income Tax | 12M | 3M | 35M | 54M | 66.08M | 44.24M | 51.03M | 38.54M | 46.95M | 45.74M | 39.19M | 26.23M | 19.62M | 21.7M | 27.89M | 20.3M | 15.58M | 12.07M | 26.24M | 25.95M | 25.58M | 17.76M | 11.53M | 9.48M | 484K | 9.03M | 9.71M | 4.9M | 5.5M | 4.5M | 2.2M |
| Effective Tax Rate % | -92.31% | -75% | 27.78% | 24% | 26.92% | 26.28% | 26.96% | 20.32% | 25.74% | 35.15% | 37.26% | 39.97% | 41.2% | 40.39% | 40.84% | 39.99% | 40.98% | 42.15% | 36.43% | 35.33% | 35.48% | 37.2% | 37.5% | 38.76% | -13.46% | 46.58% | 36.5% | 34.51% | 37.67% | 37.82% | 45.83% |
| Net Income | -25M | -7M | 91M | 171M | 179.35M | 124.08M | 138.24M | 151.1M | 135.41M | 84.4M | 65.99M | 39.39M | 28M | 32.03M | 40.4M | 30.47M | 22.44M | 16.57M | 45.78M | 47.49M | 46.51M | 29.98M | 19.21M | 12.86M | -4.08M | 10.36M | 16.9M | 9.4M | 9.1M | 7.4M | 2.6M |
| Net Margin % | -0.37% | -0.1% | 1.38% | 2.64% | 3.02% | 2.5% | 3.22% | 3.5% | 3.54% | 2.56% | 2.24% | 1.51% | 1.19% | 1.42% | 1.87% | 1.54% | 1.3% | 1% | 2.65% | 3.02% | 3.35% | 2.56% | 1.98% | 1.44% | -0.48% | 0.24% | 0.46% | 0.42% | 0.54% | 0.61% | 0.29% |
| Net Income Growth % | -139.68% | -107.69% | -46.78% | -4.66% | 44.54% | -10.24% | -8.51% | 11.58% | 60.44% | 27.9% | 67.53% | 40.66% | -12.57% | -20.72% | 32.6% | 35.78% | 35.39% | -63.8% | -3.6% | 2.12% | 55.11% | 56.08% | 49.33% | 415.22% | -139.4% | -38.72% | 79.79% | 3.3% | 22.97% | 184.62% | 136.36% |
| Net Income (Continuing) | -25M | -7M | 91M | 171M | 179.35M | 124.08M | 138.24M | 151.1M | 135.41M | 84.4M | 65.99M | 39.39M | 28M | 32.03M | 40.4M | 30.47M | 22.44M | 16.57M | 45.78M | 47.49M | 46.51M | 29.98M | 19.21M | 14.98M | -2.92M | 10.36M | 16.9M | 9.4M | 9.1M | 7.4M | 2.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.66 | -0.18 | 2.39 | 4.47 | 4.64 | 3.18 | 3.54 | 3.74 | 3.27 | 2.01 | 1.55 | 0.79 | 0.53 | 0.63 | 0.78 | 0.58 | 0.43 | 0.33 | 0.90 | 0.87 | 0.82 | 0.56 | 0.36 | 0.24 | -0.08 | 0.18 | 0.29 | 0.17 | 0.16 | 0.13 | 0.06 |
| EPS Growth % | -139.91% | -107.53% | -46.53% | -3.66% | 45.91% | -10.17% | -5.35% | 14.37% | 62.69% | 29.68% | 96.2% | 49.06% | -15.87% | -19.23% | 34.48% | 34.88% | 30.3% | -63.33% | 3.45% | 6.1% | 46.43% | 55.56% | 50% | 420% | -141.67% | -37.93% | 70.59% | 6.25% | 23.08% | 116.67% | 140% |
| EPS (Basic) | - | -0.18 | 2.39 | 4.53 | 4.71 | 3.22 | 3.57 | 3.76 | 3.29 | 2.02 | 1.55 | 0.79 | 0.53 | 0.63 | 0.79 | 0.58 | 0.43 | 0.33 | 0.91 | 0.89 | 0.85 | 0.58 | 0.37 | 0.24 | -0.08 | 0.19 | 0.31 | 0.17 | 0.16 | 0.14 | 0.06 |
| Diluted Shares Outstanding | 37.7M | 38M | 38M | 38.34M | 38.62M | 38.95M | 38.82M | 40.35M | 41.47M | 41.24M | 41.74M | 48.62M | 49.42M | 49.74M | 50.13M | 50.99M | 50.74M | 49.83M | 51.15M | 54.59M | 56.71M | 53.54M | 53.36M | 54.74M | 54.41M | 57.54M | 58.28M | 55.29M | 58.71M | 55.85M | 44.42M |
| Basic Shares Outstanding | 37.7M | 38M | 38M | 37.83M | 38.12M | 38.47M | 38.5M | 40.19M | 41.22M | 41.03M | 41.61M | 48.62M | 49.42M | 49.7M | 50.01M | 50.81M | 50.51M | 49.54M | 50.47M | 53.36M | 55.04M | 51.69M | 51.92M | 53.6M | 54.41M | 54.51M | 53.41M | 55.29M | 57.78M | 52.86M | 44.42M |
| Dividend Payout Ratio | - | - | 97.8% | 49.25% | 42.71% | 116.2% | 44.76% | 32.18% | 24.67% | 77.92% | 31.21% | 53.7% | 248.15% | 54.28% | 105.76% | 51.66% | 60.28% | 80.08% | 27.11% | 25.06% | 21.55% | 24.64% | - | - | - | - | - | - | - | - | 11.54% |
Rising medical benefit costs
According to the latest quarterly filings, Insperity's revenue growth has decelerated to 1.7% as of 2026Q1, reflecting a cooling in worksite employee expansion that suggests the company's core PEO model is struggling to maintain its historical momentum within the current small and medium-sized business environment.
The deceleration in top-line growth appears to indicate that the company is facing increased competition or a broader slowdown in SMB hiring activity. Investors should monitor whether this trend represents a temporary cyclical trough or a more permanent loss of market share to automated HCM competitors.
As reported in recent financial statements, Insperity's gross margin has exhibited significant volatility, swinging from a high of 19.1% in 2024Q1 to a low of 10.3% in 2025Q4, highlighting the company's sensitivity to unpredictable medical benefit costs and insurance-related pass-through expenses.
The thin and fluctuating gross margin profile suggests that Insperity lacks the pricing power to fully insulate its bottom line from healthcare inflation. This structural vulnerability warrants further investigation into the company's ability to adjust client service fees in alignment with rising actuarial risks.
Based on the provided income statement data, Insperity's operating income has frequently dipped into negative territory, with a recent operating margin of -2.8% in 2025Q4, demonstrating that SG&A expenses are currently scaling faster than the company's ability to generate service fee revenue.
The inability to maintain positive operating leverage suggests that the company's high-touch service model may be becoming prohibitively expensive to support at current volume levels. Management appears to be struggling to achieve the necessary administrative efficiency to offset the inherent volatility of the PEO business model.
Analysis of the reported figures reveals that stock-based compensation, which reached $20 million in 2025Q2, continues to weigh on net income, complicating the assessment of true operational profitability during periods where the company is already reporting negative net margins.
The presence of significant stock-based compensation during quarters of net losses suggests that shareholders are bearing the cost of dilution without the benefit of bottom-line growth. This practice may obscure the underlying operational performance and warrants caution regarding the sustainability of current compensation structures.
While the company maintains a high-touch service moat, the persistent negative net margin of -0.10% suggests that the current business model may be fundamentally misaligned with the rising cost of medical benefits and the competitive pressures of the modern HCM software landscape.
Short-sellers may focus on the company's inability to return to consistent profitability, viewing the current margin compression as a structural decline rather than a temporary mismatch. The reliance on gross revenue reporting may also be masking a deeper deterioration in the value proposition of the core PEO offering.
Quick answers to the most common questions about buying NSP stock.
For fiscal year 2025, Insperity, Inc. (NSP) reported total revenue of $6.81B. This represents a 657.2% increase compared to $899.6M in 1996.
Insperity, Inc. (NSP) reported a net loss of $7.0M for the fiscal year ending 2025.
Insperity, Inc. (NSP) reported an operating income of $-10.0M, resulting in an operating profit margin of -0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Insperity, Inc. (NSP) generated $900.0M in gross profit for the year, representing a gross profit margin of 13.2%. This demonstrates the company's core pricing power and production efficiency.