Tue, Apr 29, 8:42 PM (16 days ago)
**Insperity, Inc. (NSP) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,863 million, up 3% YoY. - **Gross Profit:** $310 million, down 10% YoY. - **Operating Income:** $68 million, down 37% YoY. - **Net Income:** $51 million, down 35% YoY. - **EPS:** $1.35, down 35% YoY. - **Adjusted EBITDA:** $102 million, down 28% YoY. - **Cash Flow from Operations:** Negative $443 million, impacted by timing of client payments and payroll taxes. **Key Metrics:** - **WSEEs (Worksite Employees):** Average increased by 1% YoY. - **Revenue per WSEE:** $2,029, up 3% YoY. - **Gross Profit per WSEE:** $338, down 11% YoY. **Trends and Uncertainties:** - **Health Insurance Costs:** Increased by 8.4% due to higher claim activity. - **Workers’ Compensation Costs:** Increased by 13%. - **Payroll Taxes:** Increased by 5%. - **Operating Expenses:** Increased by 2%. - **Cash Flow Volatility:** Significant impact from timing of client payments and payroll taxes. **Future Operations Impact:** - **Liquidity:** $568 million in cash, cash equivalents, and marketable securities as of March 31, 2025. - **Debt:** $369 million outstanding under the revolving credit facility. - **Stock Repurchase:** $45,000 shares repurchased in Q1 2025. - **Dividends:** $23 million paid in Q1 2025. **Management Discussion:** - **Revenue Growth:** Driven by a 1% increase in WSEEs and a 3% increase in revenue per WSEE. - **Cost Management:** Focus on controlling direct costs and operating expenses. - **Strategic Partnerships:** Continued development of joint solutions with Workday, Inc. - **Market Risks:** Exposure to interest rate fluctuations and market values of investments. **Conclusion:** Insperity faced challenges in Q1 2025 with decreased profitability and cash flow volatility. However, the company remains focused on strategic initiatives and cost management to drive future growth and stability.