Is Insperity profitable in 2026?

Yes but under pressure: Q1 2026 adjusted EPS was $1.31, down from $1.57 a year earlier, and full-year 2026 guidance spans a wide $1.60 to $2.60 range. The company is still recovering from a Q2 2025 collapse when adjusted EPS fell 70% year over year to $0.26.

Why did Insperity stock crash in 2025?

On August 1, 2025 Insperity shares fell 24.35% in a single day, erasing about $540 million in market value, after Q2 2025 adjusted EPS dropped 70% to $0.26 on unexpectedly high pharmacy and insurance claims costs. Multiple securities class-action law firms subsequently investigated the April 29 to August 1, 2025 disclosure period.

Is Insperity losing customers to Rippling or Deel?

Insperity's average worksite employees fell to about 303,049 in Q1 2026, down roughly 1% year over year, with full-year 2026 guidance projecting a further 1.0% to 2.3% decline. Meanwhile rivals Rippling and Deel are expanding PEO and EOR offerings into the same mid-market SMB segment Insperity serves.

Could AI replace Insperity's HR services?

Insperity itself says AI can automate repetitive tasks like payroll processing, benefits enrollment and compliance Q&A, as stated in June 2026 company materials. But its co-employment liability, insurance risk-pooling, and regulatory compliance functions are harder to automate, which is why it frames AI as a support tool via its Workday-powered HRScale platform rather than a replacement.

Who is Insperity's biggest competitor?

ADP, through its TotalSource PEO division, is the largest rival, with over 1.1 million clients and FY2025 revenue above $19 billion company-wide as of June 2026. TriNet is a closer-scale competitor with about 340,000 worksite employees in 2025, versus Insperity's roughly 303,000 in Q1 2026.

Is Insperity a safe company to join right now?

Insperity cut $9 million in severance charges during Q1 2026 restructuring, and corporate headcount estimates range from about 4,173 to 4,200 employees in 2025-2026, down from 4,347-4,500 in 2024. The company is also mid-execution on a margin-recovery plan that involves shedding some clients.

Job boards and HR platforms · United States

Insperity

insperity.com ↗

PEO firm handling payroll, benefits, and HR compliance for mid-sized US employers.

Losing its protection

Assessed 22 July 2026 · Evidence as of 22 July 2026

The structural protection is eroding.

On the recordSince 22 July 2026 · Checkable from July 29, 2026 · Every call on the record Checkpoint: Q2 2026 earnings call covering worksite employee trend and margin recovery plan

The call

Insperity's legal and insurance protections stay intact, but shrinking worksite employees and healthcare cost shocks show it losing ground to PEO rivals and software-native entrants.

Insperity runs a professional employer organization, or PEO, that handles payroll, benefits, and HR for small and mid-sized businesses. It has some real advantages from insurance rules and liability protection that are hard to copy, but bigger companies like ADP and Paychex offer similar services and have more money and reach, while newer software companies like Rippling and Deel are stealing customers by being cheaper and easier to use. The real question is whether Insperity can stop losing clients and fix its healthcare cost problem, or whether it keeps shrinking and losing money.

Why

AI pressure: AI-driven HR copilots (Workday AI, ADP Assist, Rippling AI agents). AI copilots automate payroll and HR admin tasks, slowly cutting demand for human PEO service reps. Could AI do the core job? Only partly.

Bigger players: ADP TotalSource, Paychex PEO, TriNet. ADP, Paychex, and TriNet compete head-on for PEO clients while Insperity's worksite employee count keeps falling. Could a giant copy it? Yes, easily.

What protects it. State licensing rules, workers' comp risk pooling, and co-employment liability law protect the core PEO model from pure software rivals.

What would change this call

Worksite-employee count in Q2 2026 and later earnings (next report ~July 29, 2026). Continued decline would show clients leaving for rivals or shrinking headcounts, not stabilizing.
Rippling or Deel publicly disclosing mid-market PEO/EOR client wins named as former Insperity customers. Would confirm software-native entrants are directly displacing Insperity in mid-market.
Resolution of the securities class-action tied to the April to August 2025 class period. A costly settlement or finding would signal deeper trust/liability damage beyond earnings volatility.

Key numbers

Worksite employees fell to 303,049, down ~1% YoY (2026-04-30)
Q2 2025 adjusted EPS dropped 70% YoY to $0.26 (2025-08-28)
FY2025 revenue hit $6.81B, up 3.5% YoY (2026-07-05)

Named risks

Uncontrolled healthcare claims costs caused a 70% EPS collapse in Q2 2025. Severity: high
Securities class-action litigation over April to August 2025 disclosures remains unresolved. Severity: medium
Worksite employee base shrinking for multiple quarters amid SMB weakness and rival expansion. Severity: high
Margin-recovery plan relies on price hikes and client shedding, risking further attrition. Severity: medium
Transactional HR labor (payroll, tier-1 support) is openly AI-automatable per management. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
ADP (TotalSource)	gaining on	1.1M+ clients and $19B+ FY2025 revenue vs Insperity's ~100,000 clients, June 2026
Paychex	gaining on	TTM revenue $6.33B up 16.4% YoY through Feb 2026 vs Insperity's ~3% growth
TriNet	contesting	~340,000 worksite employees in 2025 vs Insperity's ~303,000 in Q1 2026
Rippling	gaining on	Expanding PEO/EOR offerings into mid-market SMB segment as of 2026
Deel	gaining on	Expanding PEO/EOR into mid-market SMB, pressuring Insperity's core base in 2026

Questions people ask

Is Insperity profitable in 2026?: Yes but under pressure: Q1 2026 adjusted EPS was $1.31, down from $1.57 a year earlier, and full-year 2026 guidance spans a wide $1.60 to $2.60 range. The company is still recovering from a Q2 2025 collapse when adjusted EPS fell 70% year over year to $0.26.
Why did Insperity stock crash in 2025?: On August 1, 2025 Insperity shares fell 24.35% in a single day, erasing about $540 million in market value, after Q2 2025 adjusted EPS dropped 70% to $0.26 on unexpectedly high pharmacy and insurance claims costs. Multiple securities class-action law firms subsequently investigated the April 29 to August 1, 2025 disclosure period.
Is Insperity losing customers to Rippling or Deel?: Insperity's average worksite employees fell to about 303,049 in Q1 2026, down roughly 1% year over year, with full-year 2026 guidance projecting a further 1.0% to 2.3% decline. Meanwhile rivals Rippling and Deel are expanding PEO and EOR offerings into the same mid-market SMB segment Insperity serves.
Could AI replace Insperity's HR services?: Insperity itself says AI can automate repetitive tasks like payroll processing, benefits enrollment and compliance Q&A, as stated in June 2026 company materials. But its co-employment liability, insurance risk-pooling, and regulatory compliance functions are harder to automate, which is why it frames AI as a support tool via its Workday-powered HRScale platform rather than a replacement.
Who is Insperity's biggest competitor?: ADP, through its TotalSource PEO division, is the largest rival, with over 1.1 million clients and FY2025 revenue above $19 billion company-wide as of June 2026. TriNet is a closer-scale competitor with about 340,000 worksite employees in 2025, versus Insperity's roughly 303,000 in Q1 2026.
Is Insperity a safe company to join right now?: Insperity cut $9 million in severance charges during Q1 2026 restructuring, and corporate headcount estimates range from about 4,173 to 4,200 employees in 2025-2026, down from 4,347-4,500 in 2024. The company is also mid-execution on a margin-recovery plan that involves shedding some clients.

Timeline

2026-06-12Insperity promotes AI-ready HRScale positioning at SHRM26 conference
2026-06-03CEO Paul Sarvadi buys ~$7.93 million in Insperity shares
2026-06-01Bizjournals reports on Insperity-Workday HRScale partnership for midsized businesses
2026-05-05CEO Sarvadi buys ~$2.87 million in Insperity shares
2026-04-30Q1 2026 results: revenue $1.9B, worksite employees ~303,049, EPS $1.31
2026-03-20NSP stock hits 52-week low of $18.57
2026-03-17CEO Sarvadi buys ~$4.6 million in Insperity shares
2026-03-04Insperity celebrates 40th anniversary
2025-08-01NSP shares fall 24.35% in one day after Q2 2025 earnings miss
2025-04-29Start of securities class-action class period against Insperity

Revision history

22 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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