Revenue has hovered near $1.2B with year-over-year declines, while gross margin swung between 13.7% and 24.5% and diluted EPS moved from -$0.02 to $1.89, suggesting earnings are highly sensitive to insurance cost pass-throughs and reserve timing.
TriNet Group, Inc. (TNET) annual income statement — 14-year revenue, gross profit & net income history
| 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 | 4.83B | 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 % | -5.13% | -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 | 3.9B | 4.12B | 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 | - | 82.32% | 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 | 930M | 886M | 952M | 1.1B | 1.12B | 937M | 793M | 684M | 664M | 596M | 456.12M | 396.22M | 372.96M | 311.03M | 205.47M |
| Gross Margin % | 19.27% | 17.68% | 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 % | - | -6.93% | -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 | 640M | 613M | 664M | 633M | 620M | 482M | 425M | 416M | 413M | 379M | 332.16M | 317.9M | 286.17M | 244.69M | 143.65M |
| OpEx % of Revenue | - | 12.24% | 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 | 499M | 476M | 521M | 496M | 483M | 378M | 338M | 327M | 324M | 301M | 265.37M | 236.38M | 193.92M | 161.64M | 97.81M |
| SG&A % of Revenue | - | 9.5% | 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 | 72M | 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 | 4M | 66M | 75M | 72M | 64M | 54M | 47M | 46M | 40M | 3M | 751K | 1.14M | 478K | 471K | 57K |
| Operating Income | 290M | 273M | 288M | 469M | 499M | 455M | 368M | 268M | 251M | 217M | 123.96M | 78.32M | 86.79M | 66.34M | 61.83M |
| Operating Margin % | 6.01% | 5.45% | 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 % | - | -5.21% | -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 | 365M | 346M | 374M | 590M | 588M | 549M | 450M | 314M | 297M | 252M | 162.96M | 131.13M | 171.19M | 140.18M | 93.02M |
| EBITDA Margin % | 7.56% | 6.91% | 7.4% | 11.99% | 12.04% | 12.09% | 11.16% | 8.14% | 8.48% | 7.69% | 5.32% | 4.93% | 7.8% | 8.53% | 9.13% |
| EBITDA Growth % | -0.27% | -7.49% | -36.61% | 0.34% | 7.1% | 22% | 43.31% | 5.72% | 17.86% | 54.64% | 24.27% | -23.4% | 22.13% | 50.69% | - |
| D&A (Non-Cash Add-back) | 75M | 73M | 86M | 121M | 89M | 94M | 82M | 46M | 46M | 35M | 39M | 52.82M | 84.4M | 73.84M | 31.2M |
| EBIT | 290M | 273M | 288M | 541M | 521M | 461M | 399M | 312M | 251M | 217M | 124.71M | 79M | 86.79M | 66.81M | 61.88M |
| Net Interest Income | -53M | -56M | 2M | 32M | -17M | -14M | -11M | 2M | -10M | -17M | -20M | -19M | -54.19M | -45.72M | -9.71M |
| Interest Income | 0 | 0 | 64M | 72M | 22M | 6M | 10M | 23M | 12M | 3M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 53M | 56M | 62M | 40M | 39M | 20M | 21M | 21M | 22M | 20M | 20M | 19M | 54.19M | 45.72M | 9.71M |
| Other Income/Expense | -53M | -56M | -62M | 32M | -17M | -14M | -11M | 2M | -10M | -17M | -19.51M | -18.31M | -53.72M | -45.25M | -9.65M |
| Pretax Income | 237M | 217M | 226M | 501M | 482M | 441M | 357M | 270M | 241M | 200M | 104.45M | 60.01M | 33.08M | 21.08M | 52.18M |
| Pretax Margin % | 4.91% | 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 | 65M | 62M | 53M | 126M | 127M | 103M | 85M | 58M | 49M | 22M | 43.05M | 28.32M | 17.58M | 7.94M | 20.34M |
| Effective Tax Rate % | 27.43% | 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 | 172M | 155M | 173M | 375M | 355M | 338M | 272M | 212M | 192M | 178M | 61.41M | 31.7M | 15.5M | 13.15M | 31.83M |
| Net Margin % | 3.56% | 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 % | 29.32% | -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) | 172M | 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) | 3.66 | 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 % | 34.9% | -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 | 46M | 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% |
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 $273.0M, resulting in an operating profit margin of 5.4%. This margin reflects the operational efficiency of the business before interest and taxes.
TriNet Group, Inc. (TNET) generated $886.0M in gross profit for the year, representing a gross profit margin of 17.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue contraction and insurance cost volatility
Metrics are mathematically derived from official filings.
Top-Line Contraction Persists Despite Earnings Beat
Based on TriNet's reported figures, quarterly revenue has hovered near $1.2B with year-over-year growth of -4.6% in Q3 2026 and -4.8% in Q2 2026, indicating a sustained contraction in the core client base.
The consistent negative top-line trend suggests headcount pressure within the worksite employee base rather than a temporary pricing dip. Investors should monitor whether the Q2 2026 earnings strength reflects durable demand or simply margin management on a shrinking revenue base. Until WSE trends stabilize, growth-based re-rating appears constrained.
Gross Margin Swings Track Insurance Pass-Throughs
As reported in financial statements, TriNet's gross margin ranged from 13.7% in Q4 2025 to 24.5% in Q1 2026, a spread that appears driven largely by insurance cost of service fluctuations.
The wide quarterly gross margin range suggests a cost base heavily influenced by claims and premium pass-throughs rather than structural pricing power. This may indicate that medical loss ratio movements, not commercial execution, are the dominant driver of reported profitability. Peer gross margins from ADP and Paychex, which exceed 48% and 74% respectively, highlight how far TriNet's model sits from a software-like margin profile.
Net Income Volatility Obscures Underlying Trend
According to reported figures, diluted EPS swung from -$0.02 in Q4 2025 to $1.89 in Q1 2026, with the Q1 result partly reflecting elevated gross profit that may not repeat.
The magnitude of quarterly EPS swings suggests reported earnings are sensitive to reserve adjustments and timing of insurance-related items. Stock-based compensation remains modest at roughly $16M to $18M per quarter, so dilution-related distortions appear limited. Investors should treat the Q1 and Q2 2026 earnings as potentially non-recurring until reserve trends are clarified.
Thin Operating Margin Limits Scaling Benefits
Based on TriNet's reported figures, operating margin in Q3 2026 compressed to 4.3% from 11.1% in Q1 2026, while SG&A held near $120M to $128M per quarter.
Relatively fixed SG&A against falling gross profit indicates limited operating leverage in either direction, with margin outcomes dictated largely by gross profit volatility. The stability of SG&A suggests management has controlled overhead, yet the thin operating margin leaves little cushion for adverse claims experience. Operating income appears more sensitive to insurance costs than to administrative efficiency.
Earnings Beat May Reflect Timing Rather Than Trend
As reported in financial statements, the Q2 2026 EPS beat coincided with a gross profit decline year-over-year, raising the question of whether favorable reserve timing rather than structural improvement drove the result.
A bearish reading would argue that the reported beat masks continued revenue erosion and that gross profit declines may reverse if claims normalize. Operating margins below 6% across most recent quarters suggest limited tolerance for healthcare cost inflation or regulatory changes affecting co-employment. Investors should view the raised guidance as contingent on sustained margin performance rather than proof of a durable inflection.