Insperity, Inc. reported a net loss of $5 million and diluted EPS of $(0.14) for the second quarter of 2025. Adjusted EBITDA was $32 million and adjusted EPS was $0.26, both missing analyst estimates. Revenues for the quarter increased 3% to $1.7 billion, with average paid worksite employees (WSEEs) up 1% from Q2 2024.
Gross profit decreased 14% to $223 million in Q2 2025 from $260 million in Q2 2024, primarily due to higher-than-expected benefits costs. These elevated healthcare costs were driven by continued high pharmacy trends and an increased frequency of large claim activity. Operating expenses decreased 3% to $230 million, including $14 million for the Workday strategic partnership.
Insperity further updated its full-year 2025 guidance, lowering adjusted EPS to a range of $1.81 to $2.51 and adjusted EBITDA to $170 million to $205 million. This represents a significant reduction from previous forecasts, reflecting ongoing margin pressures from healthcare costs. The company announced that Insperity HR Scale, its joint solution with Workday, has a targeted go-live date with beta clients early next year, with sales and marketing efforts already underway.
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