Operating margins remain under pressure, reaching a low of 1.7% in 2025Q4, as the company struggles to scale fixed costs against a 5.1% revenue decline in 2026Q1.
| 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 |
|---|
| Sales/Revenue | 4.94B | 5.01B | 5.05B | 4.92B | 4.88B | 4.54B | 4.03B | 3.86B | 3.5B | 3.27B | 3.06B | 2.66B | 2.19B | 1.64B | 1.02B |
| Revenue Growth % | -3.02% | -0.85% | 2.66% | 0.76% | 7.6% | 12.54% | 4.62% | 10.08% | 6.96% | 7.02% | 15.08% | 21.23% | 33.4% | 61.35% | - |
| Cost of Goods Sold | 4.07B | 4.14B | 4.1B | 3.82B | 3.77B | 3.6B | 3.24B | 3.17B | 2.84B | 2.68B | 2.6B | 2.26B | 1.82B | 1.33B | 813.59M |
| COGS % of Revenue | - | 82.63% | 81.16% | 77.61% | 77.09% | 79.36% | 80.34% | 82.26% | 81.04% | 81.8% | 85.1% | 85.1% | 83% | 81.08% | 79.84% |
| Gross Profit | 874M | 870M | 952M | 1.1B | 1.12B | 937M | 793M | 684M | 664M | 596M | 456.12M | 396.22M | 372.96M | 311.03M | 205.47M |
| Gross Margin % | 17.68% | 17.37% | 18.84% | 22.39% | 22.91% | 20.64% | 19.66% | 17.74% | 18.96% | 18.2% | 14.9% | 14.9% | 17% | 18.92% | 20.16% |
| Gross Profit Growth % | - | -8.61% | -13.61% | -1.52% | 19.42% | 18.16% | 15.94% | 3.01% | 11.41% | 30.67% | 15.12% | 6.24% | 19.91% | 51.37% | - |
| Operating Expenses | 601M | 604M | 664M | 633M | 620M | 482M | 425M | 416M | 413M | 379M | 332.16M | 317.9M | 286.17M | 244.69M | 143.65M |
| OpEx % of Revenue | - | 12.06% | 13.14% | 12.86% | 12.69% | 10.62% | 10.54% | 10.79% | 11.79% | 11.57% | 10.85% | 11.95% | 13.05% | 14.88% | 14.1% |
| Selling, General & Admin | 485M | 470M | 521M | 496M | 483M | 378M | 338M | 327M | 324M | 301M | 265.37M | 236.38M | 193.92M | 161.64M | 97.81M |
| SG&A % of Revenue | - | 9.38% | 10.31% | 10.08% | 9.89% | 8.33% | 8.38% | 8.48% | 9.25% | 9.19% | 8.67% | 8.89% | 8.84% | 9.83% | 9.6% |
| Research & Development | 70M | 71M | 68M | 65M | 73M | 50M | 40M | 43M | 49M | 45M | 31.44M | 27.56M | 26.1M | 19.95M | 16.72M |
| R&D % of Revenue | - | 1.42% | 1.35% | 1.32% | 1.49% | 1.1% | 0.99% | 1.12% | 1.4% | 1.37% | 1.03% | 1.04% | 1.19% | 1.21% | 1.64% |
| Other Operating Expenses | 2M | 63M | 75M | 72M | 64M | 54M | 47M | 46M | 40M | 3M | 751K | 1.14M | 478K | 471K | 57K |
| Operating Income | 273M | 266M | 288M | 469M | 499M | 455M | 368M | 268M | 251M | 217M | 123.96M | 78.32M | 86.79M | 66.34M | 61.83M |
| Operating Margin % | 5.52% | 5.31% | 5.7% | 9.53% | 10.21% | 10.02% | 9.12% | 6.95% | 7.17% | 6.63% | 4.05% | 2.94% | 3.96% | 4.03% | 6.07% |
| Operating Income Growth % | - | -7.64% | -38.59% | -6.01% | 9.67% | 23.64% | 37.31% | 6.77% | 15.67% | 75.06% | 58.28% | -9.76% | 30.83% | 7.29% | - |
| EBITDA | 372M | 352M | 374M | 590M | 588M | 514M | 415M | 314M | 291M | 250M | 159.31M | 131.13M | 171.19M | 140.18M | 93.02M |
| EBITDA Margin % | 7.52% | 7.03% | 7.4% | 11.99% | 12.04% | 11.32% | 10.29% | 8.14% | 8.31% | 7.63% | 5.21% | 4.93% | 7.8% | 8.53% | 9.13% |
| EBITDA Growth % | -1.85% | -5.88% | -36.61% | 0.34% | 14.4% | 23.86% | 32.17% | 7.9% | 16.4% | 56.93% | 21.48% | -23.4% | 22.13% | 50.69% | - |
| D&A (Non-Cash Add-back) | 99M | 86M | 86M | 121M | 89M | 59M | 47M | 46M | 40M | 33M | 35.35M | 52.82M | 84.4M | 73.84M | 31.2M |
| EBIT | 286M | 279M | 288M | 541M | 521M | 461M | 399M | 312M | 251M | 217M | 124.71M | 79M | 86.79M | 66.81M | 61.88M |
| Net Interest Income | -38M | -21M | 2M | 32M | -17M | -14M | -11M | 2M | -10M | -17M | -20M | -19M | -54.19M | -45.72M | -9.71M |
| Interest Income | 17M | 35M | 64M | 72M | 22M | 6M | 10M | 23M | 12M | 3M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 55M | 56M | 62M | 40M | 39M | 20M | 21M | 21M | 22M | 20M | 20M | 19M | 54.19M | 45.72M | 9.71M |
| Other Income/Expense | -48M | -49M | -62M | 32M | -17M | -14M | -11M | 2M | -10M | -17M | -19.51M | -18.31M | -53.72M | -45.25M | -9.65M |
| Pretax Income | 225M | 217M | 226M | 501M | 482M | 441M | 357M | 270M | 241M | 200M | 104.45M | 60.01M | 33.08M | 21.08M | 52.18M |
| Pretax Margin % | 4.55% | 4.33% | 4.47% | 10.18% | 9.87% | 9.71% | 8.85% | 7% | 6.88% | 6.11% | 3.41% | 2.26% | 1.51% | 1.28% | 5.12% |
| Income Tax | 66M | 62M | 53M | 126M | 127M | 103M | 85M | 58M | 49M | 22M | 43.05M | 28.32M | 17.58M | 7.94M | 20.34M |
| Effective Tax Rate % | 29.33% | 28.57% | 23.45% | 25.15% | 26.35% | 23.36% | 23.81% | 21.48% | 20.33% | 11% | 41.21% | 47.18% | 53.15% | 37.64% | 38.99% |
| Net Income | 159M | 155M | 173M | 375M | 355M | 338M | 272M | 212M | 192M | 178M | 61.41M | 31.7M | 15.5M | 13.15M | 31.83M |
| Net Margin % | 3.22% | 3.09% | 3.42% | 7.62% | 7.27% | 7.44% | 6.74% | 5.5% | 5.48% | 5.44% | 2.01% | 1.19% | 0.71% | 0.8% | 3.12% |
| Net Income Growth % | -4.79% | -10.4% | -53.87% | 5.63% | 5.03% | 24.26% | 28.3% | 10.42% | 7.87% | 189.87% | 93.74% | 104.52% | 17.87% | -58.7% | - |
| Net Income (Continuing) | 159M | 155M | 173M | 375M | 355M | 338M | 272M | 212M | 192M | 178M | 61.41M | 31.7M | 15.5M | 13.15M | 31.83M |
| Discontinued Operations | 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 |
| EPS (Diluted) | 3.38 | 3.16 | 3.43 | 6.58 | 5.61 | 5.07 | 4.00 | 2.99 | 2.66 | 2.49 | 0.85 | 0.44 | 0.22 | 0.05 | 0.46 |
| EPS Growth % | -0.32% | -7.87% | -47.87% | 17.29% | 10.65% | 26.75% | 33.78% | 12.41% | 6.83% | 192.94% | 93.18% | 100% | 367.09% | -89.76% | - |
| EPS (Basic) | - | 3.19 | 3.46 | 6.58 | 5.66 | 5.12 | 4.06 | 3.03 | 2.73 | 2.57 | 0.88 | 0.45 | 0.24 | 0.05 | 0.49 |
| Diluted Shares Outstanding | 47M | 48M | 50M | 57M | 64M | 67M | 68M | 71M | 72.3M | 71.39M | 71.97M | 72.62M | 59.57M | 68.33M | 68.8M |
| Basic Shares Outstanding | 47M | 48M | 50M | 57M | 63M | 66M | 67M | 70M | 70.39M | 69.18M | 70.16M | 70.23M | 56.16M | 68.33M | 65.42M |
| Dividend Payout Ratio | - | 33.55% | 21.39% | - | - | - | - | - | - | - | - | - | - | 2719.88% | 236.72% |
Insurance margin volatility
As indicated by the most recent quarterly data, TriNet's revenue growth has entered a contractionary phase, with year-over-year figures declining by 5.1% in 2026Q1, signaling potential weakness in the underlying worksite employee base and a broader slowdown in client headcount across its core professional verticals.
The consistent deceleration from positive growth in early 2024 to current negative territory suggests that the company's reliance on high-cost innovation hubs may be exposing it to cyclical downturns in venture-backed hiring. Investors should monitor whether this trend reflects a permanent shift in client retention or merely a temporary adjustment in the broader employment landscape.
Based on reported financial statements, TriNet's gross margin has exhibited significant volatility, fluctuating from a high of 23.1% in 2026Q1 to a low of 12.4% in 2025Q4, largely driven by the pass-through nature of insurance premiums and the inherent unpredictability of medical loss ratios.
The structural reliance on third-party insurance carriers creates a margin profile that is highly sensitive to healthcare utilization trends. The inability to maintain consistent gross margins suggests that the company may lack the pricing power necessary to fully offset rising input costs during periods of elevated medical inflation.
According to historical income statements, TriNet's operating margin has struggled to scale, reaching a low of 1.7% in 2025Q4, which implies that the company's fixed cost base, particularly in SG&A, is not sufficiently flexible to absorb the recent top-line revenue contraction observed in recent quarters.
The lack of meaningful operating leverage indicates that the company's investment in sales and compliance infrastructure remains a heavy burden during periods of stagnant growth. Without a clear path to optimizing these fixed expenses, profitability will likely remain tethered to the volatility of insurance-related service revenues.
Analysis of recent filings reveals that net income has been highly inconsistent, swinging from a $91.0M profit in 2024Q1 to a $23.0M loss in 2024Q4, suggesting that reported EPS is heavily influenced by non-operating items and the timing of insurance reserve adjustments rather than core operational performance.
The presence of stock-based compensation, which reached $16.0M in 2026Q1, further complicates the assessment of true economic earnings. Investors should be cautious of relying on headline EPS figures, as the underlying quality of these earnings appears susceptible to accounting nuances inherent in the PEO business model.
While management maintains a strong cash position, the persistent revenue contraction and thin operating margins suggest that the company's competitive moat may be eroding, as evidenced by the 5.1% revenue decline in 2026Q1, which challenges the long-term sustainability of its current service-based business model.
Short-term performance metrics indicate that the company is struggling to differentiate itself from lower-cost horizontal competitors. If the current trend of negative growth continues, the company may be forced to reconsider its capital allocation strategy, potentially shifting focus from share repurchases to more aggressive, and potentially dilutive, operational restructuring.
Quick answers to the most common questions about buying TNET stock.
For fiscal year 2025, TriNet Group, Inc. (TNET) reported total revenue of $5.01B. This represents a 391.6% increase compared to $1.02B in 2012.
TriNet Group, Inc. (TNET) is profitable, generating $155.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.1%.
TriNet Group, Inc. (TNET) reported an operating income of $266.0M, resulting in an operating profit margin of 5.3%. This margin reflects the operational efficiency of the business before interest and taxes.
TriNet Group, Inc. (TNET) generated $870.0M in gross profit for the year, representing a gross profit margin of 17.4%. This demonstrates the company's core pricing power and production efficiency.