--- title: "Insperity | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 1.895 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/284954444.md" datetime: "2026-05-02T03:47:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284954444.md) - [en](https://longbridge.com/en/news/284954444.md) - [zh-HK](https://longbridge.com/zh-HK/news/284954444.md) --- # Insperity | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 1.895 B Revenue: As of FY2026 Q1, the actual value is USD 1.895 B, beating the estimate of USD 1.893 B. EPS: As of FY2026 Q1, the actual value is USD 0.88, beating the estimate of USD 0.8613. EBIT: As of FY2026 Q1, the actual value is USD 61 M. Insperity, Inc. operates as a single reportable segment, HR Solutions . #### Revenue - Total Revenues for Q1 2026 were $1,895 million, an increase of 2% compared to $1,863 million in Q1 2025 . - Revenues per Worksitetime Employee (WSEE) per month increased 3% ($55) in Q1 2026 . #### PEO HR Solutions Revenue by Region (Three Months Ended March 31) - **Northeast**: $527 million in 2026, $526 million in 2025 (0% change) . - **Southeast**: $271 million in 2026, $257 million in 2025 (5% change) . - **Central**: $342 million in 2026, $335 million in 2025 (2% change) . - **Southwest**: $350 million in 2026, $347 million in 2025 (1% change) . - **West**: $386 million in 2026, $377 million in 2025 (2% change) . - **Other revenue**: $19 million in 2026, $21 million in 2025 (-10% change) . #### Gross Profit - Gross profit for Q1 2026 decreased 3% to $302 million, compared to $310 million in Q1 2025 . - Gross profit per WSEE per month for Q1 2026 decreased $6 to $332, compared to $338 in Q1 2025 . #### Operating Expenses - Total operating expenses for Q1 2026 decreased 1% to $240 million, compared to $242 million in Q1 2025 . - Operating expenses per WSEE per month for Q1 2026 remained flat compared to Q1 2025 . - **Salaries (corporate and sales staff)**: Decreased 8% to $131 million in Q1 2026, primarily due to an 8% decrease in Business Performance Advisor (BPA), service, and support headcount . - **Restructuring charges**: $9 million in Q1 2026, primarily due to severance costs from a workforce realignment . - **Stock-based compensation**: Increased 18% to $13 million in Q1 2026, primarily due to additional compensation expense related to performance-based restricted stock unit awards . - **Commissions**: Decreased 9% to $10 million in Q1 2026, primarily due to lower channel commissions . - **Advertising**: Increased 57% to $11 million in Q1 2026, due to increased sponsorships and digital advertising . - **General and administrative expenses**: Decreased 8% to $55 million in Q1 2026, primarily due to a decrease in professional services fees and travel and training expenses . #### Profitability Metrics (Three Months Ended March 31) - **Operating income**: $62 million in 2026, $68 million in 2025 (-9% change) . - **Net income**: $33 million in 2026, $51 million in 2025 (-35% change) . - **Adjusted EBITDA**: Increased 1% to $103 million in Q1 2026, compared to $102 million in Q1 2025 . - **Adjusted net income**: Decreased 15% to $50 million in Q1 2026, compared to $59 million in Q1 2025 . - **Effective income tax rate**: 48% for Q1 2026, compared to 29% for Q1 2025, primarily due to an additional $10 million income tax related to the vesting of long-term incentive and restricted stock awards where the vesting date price was below the grant date price . #### Operational Metrics - **Average WSEEs paid**: Decreased 1% in Q1 2026 compared to Q1 2025, partially impacted by margin recovery efforts, with the average number of WSEEs paid being 303,049 in Q1 2026, down from 306,023 in Q1 2025 . - **Middle market sector WSEEs**: Increased 9% during Q1 2026 compared to Q1 2025, representing approximately 29% of total average paid WSEEs in Q1 2026 . - **Health insurance costs**: Increased $28 per WSEE per month and 5.2% on a cost per covered employee basis in Q1 2026 compared to Q1 2025, while the percentage of WSEEs covered under health insurance plans was 63% in Q1 2026, down from 64% in Q1 2025 . - **Workers’ compensation costs**: Increased 30%, or $7 per WSEE per month, in Q1 2026 compared to Q1 2025, with these costs as a percentage of non-bonus payroll cost being 0.31% in Q1 2026, up from 0.24% in Q1 2025 . - **Payroll tax costs**: Increased 2% on a 0.3% decrease in payroll costs, or $27 per WSEE per month, with payroll taxes as a percentage of payroll costs remaining at 8% in both Q1 2026 and Q1 2025 . #### Cash Flow and Liquidity - Net cash used in operating activities was -$67 million for the three months ended March 31, 2026 . - Net cash used in investing activities was -$6 million for the three months ended March 31, 2026, primarily due to property and equipment purchases . - Net cash used in financing activities was -$46 million for the three months ended March 31, 2026, which included -$23 million in dividends paid and -$4 million for repurchased or withheld stock . - Cash, cash equivalents, and marketable securities totaled $555 million at March 31, 2026 . - Working capital was $142 million at March 31, 2026, an increase from $102 million at December 31, 2025 . - The outstanding balance on the revolving credit facility was $369 million at March 31, 2026, with an unused commitment of $380 million . - As of March 31, 2026, Insperity, Inc. was authorized to repurchase an additional 1,407,764 shares under its repurchase program . #### Outlook and Strategy Insperity, Inc. anticipates that its current cash, marketable securities, operational cash flows, and available credit facility will be sufficient to cover liquidity needs for the remainder of 2026 . 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