A professional employer organization (PEO) based in Houston that handles payroll, benefits, and HR for small and mid-sized U.S. businesses—acting as a co-employer for roughly three hundred thousand worksite employees through its HR360 and Insperity Premier services. Founded in 1986 as Administaff by two entrepreneurs who sketched out the idea on a yellow legal pad, it rebranded to Insperity in 2011 to blend "inspiration" and "prosperity." It has sponsored a professional golf tournament since 2004.
Insperity returned to Q2 profit at $4M after a year-ago loss as operating costs fell
Insperity swung to a Q2 profit after four straight quarters of losses or near-breakeven. rose 1.7% to $1,686.0M and was $0.10 versus -$0.14 a year earlier, as lower salaries and cut operating expenses 8% while benefits and workers' compensation costs still pressured to 12.9%. The company is back to quarterly profit but margin remains near its lowest in years with debt up 13.6%.
Key takeaways
was $4.0M in Q2 2026, reversing a $5.0M loss in Q2 2025, while rose 13% to $36.0M on lower operating costs.
rose 1.7% to $1,686.0M, driven by a 3% increase in revenue per worksite employee per month that was partly offset by a 1% decline in average paid worksite employees.
fell 3% to $217.0M and was 12.9%, down 0.6 points , as higher benefits and workers' compensation costs outpaced pricing gains.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 2% on higher pricing, but gross profit fell 3% as benefits and workers' compensation costs climbed.
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Revenues increased 2% to $1.7 billion in Q2 2026, driven by a 3% rise in per per month despite a 1% decline in average WSEEs paid.
decreased 3% to $217 million, with gross profit per per month down $3 to $237, as higher benefits and workers' compensation costs outpaced pricing gains.
Operating expenses fell 8% to $211.0M from an 11% reduction in salaries on lower headcount and a 35% drop in .
Cash and equivalents ended at $619.0M, up 40.4% , with $50.0M drawn on the $750.0M during the quarter; rose 13.6% to $419.0M.
What changed
Chubb workers' compensation renewal (flagged for before Sept 30, 2026) was not disclosed in this filing; Q2 per worksite employee fell $3 to $237 on higher comp costs, showing the pressure persists.
Average paid worksite employees declined 1% in Q2 2026 after a 1% Q1 decline, continuing the step-down from the 1% 2025 full-year increase rather than the prior 2-3% guide.
Benefits and workers' comp cost trajectory: Q2 of 12.9% is down from 13.4% a year ago and 15.9% in Q1, with costs still climbing against pricing.
was $48.0M in Q2 versus -$79.0M a year earlier, a reversal from the 2025 year-to-date outflows that included the $440.0M employee retention tax credit distributions.
rose to $419.0M from $369.0M at FY2025 year-end, the first increase since 2020; fell 45.5% to $61.0M.
What to watch
Chubb workers' compensation renewal terms disclosed before September 30, 2026 and their effect on direct costs per worksite employee.
Q3 2026 average paid worksite employee growth after two straight quarters of 1% decline.
Trajectory of as benefits and workers' compensation costs persist into the UnitedHealthcare renewal window.
Q3 and further draws on the $750.0M after $50.0M borrowed in Q2.
Operating expenses fell 8% to $211 million, primarily due to an 11% reduction in salaries from lower headcount and a 35% drop in .
swung to $4 million from a $5 million loss a year ago, while rose 13% to $36 million, reflecting lower operating costs.
Liquidity remains supported by $619 million in cash and equivalents and a $750 million , though $50 million was drawn during the quarter for timing needs.
Quantitative and Qualitative Disclosures About Market Risk
We are primarily exposed to market risks from fluctuations in interest rates and the effects of those fluctuations on the market values of our cash equivalent short-term investments, our available-for-sale marketable securities and our borrowings under our Facility, which bears…
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We are primarily exposed to market risks from fluctuations in interest rates and the effects of those fluctuations on the market values of our cash equivalent short-term investments, our available-for-sale marketable securities and our borrowings under our Facility, which bears interest at a variable market rate. As of June 30, 2026, we had outstanding letters of credit and borrowings totaling $420 million under the Facility. Please read Note 5 to the Consolidated Financial Statements, “Long-Term Debt,” for additional information.
The cash equivalent short-term investments consist primarily of overnight investments, which are not significantly exposed to interest rate risk, except to the extent that changes in interest rates will ultimately affect the amount of interest income earned on these investments. As a result, the market values of these securities are affected by changes in prevailing interest rates.
We attempt to limit our exposure to interest rate risk primarily through diversification and low investment turnover. Our investment policy is designed to maximize after-tax interest income while preserving our principal investment.
There have been no material changes in our risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 under “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in…
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There have been no material changes in our risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025 under “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II.