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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): February 10, 2025

Insperity, Inc.
(Exact name of registrant as specified in its charter)
Delaware1-1399876-0479645
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

19001 Crescent Springs Drive
Kingwood, Texas 77339

(Address of principal executive offices and zip code)


Registrant’s telephone number, including area code: (281) 358-8986
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTicker symbol(s)Name of each exchange on which registered
Common Stock, $.01 par value per shareNSPNew York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under The Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under The Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02. Results of Operations and Financial Condition.
On February 10, 2025, Insperity, Inc. issued a press release announcing the company’s financial and operating results for the quarter and year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated by reference.
Item 9.01.    Financial Statements and Exhibits.
(d)Exhibits



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
INSPERITY, INC.
By:
/s/ Christian P. Callens
Christian P. Callens
Senior Vice President of Legal,
General Counsel & Secretary
        


Date: February 10, 2025



Exhibit 99.1
Insperity Announces Fourth Quarter and Full Year 2024 Results
HOUSTON – February 10, 2025 – Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today reported results for the fourth quarter and year ended December 31, 2024. Insperity will be hosting a conference call today at 8:30 a.m. ET to discuss these results and our 2025 outlook and will be posting an accompanying presentation to its investor website at http://ir.insperity.com.
•Q4 average number of WSEEs paid of 309,000 within our expected range
•Q4 net loss of $9 million; adjusted EBITDA of $23 million
•Q4 diluted EPS of $(0.22); adjusted EPS of $0.05
•2024 average number of paid WSEEs of 307,000
•2024 net income of $91 million; adjusted EBITDA of $270 million
•2024 diluted EPS of $2.42; adjusted EPS of $3.58
•Return to shareholders of $152 million during 2024 through the repurchase of 697,000 shares at a cost of $63 million and $89 million in cash dividends
Fourth Quarter Results
The average number of worksite employees (“WSEE”) paid per month decreased 2% from Q4 2023 to 309,093 WSEEs. Revenues in Q4 2024 increased 2% to $1.6 billion on a 4% increase in revenue per WSEE on higher pricing, offset by the 2% decrease in paid WSEEs.
“We are pleased with our fourth quarter and full year 2024 results including an exceptional year-end sales and client retention campaign, accomplishing an important growth inflection point entering the new year,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We expect to build on this momentum with growth acceleration in 2025. We are also focused on reaching significant milestones in our Workday strategic partnership this year, with the goal of enhancing our growth trajectory in 2026 and beyond.”
Gross profit decreased 2% from Q4 2023 to $218 million. Q4 2024 gross profit per employee was in line with the prior year period.
Operating expenses increased 17% over Q4 2023, in line with our forecast, and included approximately $19 million associated with the implementation of our Workday strategic partnership.
Reported net loss and diluted EPS were $9 million and $(0.22), respectively. Adjusted EBITDA and adjusted EPS were $23 million and $0.05, respectively.
Full Year Results
The average number of WSEEs paid per month decreased 2% from 2023 to 307,261 WSEEs. Revenues increased by 1% to $6.6 billion on a 3% increase in revenue per WSEE, offset in part by the 2% decrease in paid WSEEs.
Gross profit increased 1% on a 3% increase in gross profit per WSEE per month, primarily due to increased pricing and more favorable results from our benefits costs program and payroll taxes.
Operating expenses increased 14% over 2023. Operating expenses for 2024 include approximately $57 million associated with the implementation of our Workday strategic partnership as well as ongoing investments in our sales, service and technology areas, and the impact of the recent inflationary environment.
Reported net income and diluted EPS were $91 million and $2.42, respectively. Adjusted EBITDA and adjusted EPS were $270 million and $3.58, respectively.
“We are pleased with our 2024 financial results, particularly considering the macroeconomic conditions that impacted our growth,” said James D. Allison, executive vice president of finance, chief financial officer and treasurer. “Our


balance sheet remains strong, as we balance investments in our long-term business strategy and returns to shareholders through dividends and share repurchases.”
Cash outlays in 2024 included the repurchase of approximately 697,000 shares of our common stock at a cost of $63 million, dividends totaling $89 million, and capital expenditures of $38 million. Adjusted cash at December 31, 2024 totaled $134 million and $280 million remains available under our $650 million credit facility.
2025 Guidance
The company also announced its guidance for 2025, including the first quarter of 2025. Please refer to the accompanying financial tables at the end of this press release for the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures.
Q1 2025Full Year 2025
Average WSEEs paid306,500—309,000313,400—319,500
Year-over-year increase0.9%—1.7%2.0%—4.0%
Adjusted EPS(1)
$1.89—$2.15$3.10—$3.95
Year-over-year increase (decrease)(17)%—(5)%(13)%—10%
Adjusted EBITDA (in millions)$121—$135$240—$285
Year-over-year increase (decrease)(15)%—(5)%(11)%—6%
_______________________________
(1)Adjusted EPS includes an estimated $(0.06) for Q1 2025 and full year 2025 related to a higher effective income tax rate.
Definition of Key Metrics
Average WSEEs paid — Determined by calculating the company’s cumulative WSEEs paid during the period divided by the number of months in the period.
Adjusted EPS — Represents diluted net income per share computed in accordance with GAAP, excluding the impact of non-cash stock-based compensation.
Adjusted EBITDA — Represents net income computed in accordance with GAAP, plus interest expense, income taxes, depreciation and amortization expense, amortization of SaaS implementation costs and non-cash stock-based compensation.
Conference Call and Webcast
Insperity will be hosting a conference call today at 8:30 a.m. ET to discuss these results and the guidance discussed in this press release, and answer questions from investment analysts. To listen in, call 888-506-0062 and use conference i.d. number 405371. The call will also be webcast at http://ir.insperity.com. The conference call script will be available at the same website later today. A replay of the conference call will be available at 877-481-4010, conference i.d. number 51901. The webcast will be archived for one year.
About Insperity
Since 1986, Insperity’s mission has been to help businesses succeed so communities prosper. Offering the most comprehensive suite of scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need for sustained growth. With 2024 revenues of $6.6 billion and more than 100 sales offices throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit http://www.insperity.com.


Forward-Looking Statements
The statements contained herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify such forward-looking statements by the words “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “forecasts,” “likely,” “possibly,” “probably,” “could,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, including our strategic partnership with Workday, Inc.; projected or anticipated benefits or other consequences of such plans or strategies; or projections involving anticipated revenues, earnings, average number of worksite employees, benefits and workers’ compensation costs, or other operating results. We base these forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are:
•adverse economic conditions;
•failure to comply with or meet client expectations regarding certain COVID-19 relief programs;
•bank failures or other events affecting financial institutions; labor shortages, increasing competition for highly skilled workers, and evolving employee expectations regarding the workplace;
•impact of inflation;
•vulnerability to regional economic factors because of our geographic market concentration;
•failure to comply with covenants under our credit facility;
•impact of a future outbreak of highly infectious or contagious disease;
•our liability for WSEE payroll, payroll taxes and benefits costs, or other liabilities associated with actions of our client companies or WSEEs, including if our clients fail to pay us;
•increases in health insurance costs and workers’ compensation rates and underlying claims trends, health care reform, financial solvency of workers’ compensation carriers, other insurers or financial institutions, state unemployment tax rates, liabilities for employee and client actions or payroll-related claims;
•an adverse determination regarding our status as the employer of our WSEEs for tax and benefit purposes and an inability to offer alternative benefit plans following such a determination;
•cancellation of client contracts on short notice, or the inability to renew client contracts or attract new clients;
•the ability to secure competitive replacement contracts for health insurance and workers’ compensation insurance at expiration of current contracts;
•regulatory and tax developments and possible adverse application of various federal, state and local regulations;
•failure to manage growth of our operations and the effectiveness of our sales and marketing efforts;
•the impact of the competitive environment and other developments in the human resources services industry, including the PEO industry, on our growth and/or profitability;
•an adverse final judgment or settlement of claims against Insperity;
•disruptions of our information technology systems or failure to enhance our service and technology offerings to address new regulations or client expectations;
•our liability or damage to our reputation relating to disclosure of sensitive or private information as a result of data theft, cyberattacks or security vulnerabilities;
•failure of third-party providers, such as financial institutions, data centers or cloud service providers;
•our ability to fully realize the anticipated benefits of our strategic partnership and plans to develop a joint solution with Workday, Inc.; and
•our ability to integrate or realize expected returns on future product offerings, including through acquisitions, strategic partnerships, and investments.
These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate.
Any forward-looking statements are made only as of the date hereof and, unless otherwise required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SUMMARY FINANCIAL INFORMATION
Insperity, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
 December 31, 2024December 31, 2023
(in millions)
Assets
Cash and cash equivalents$1,039 $693 
Restricted cash69 57 
Marketable securities16 16 
Accounts receivable, net829 694 
Prepaid insurance and related assets25 7 
Other current assets107 128 
Total current assets2,085 1,595 
Property and equipment, net192 197 
Right-of-use leased assets65 57 
Deposits and prepaid health insurance195 215 
Goodwill and other intangible assets, net13 13 
Deferred income taxes, net34 20 
Other assets13 23 
Total assets$2,597 $2,120 
Liabilities and stockholders' equity
Accounts payable$10 $11 
Payroll taxes and other payroll deductions payable901 566 
Accrued worksite employee payroll cost730 559 
Accrued health insurance costs19 46 
Accrued workers’ compensation costs71 60 
Accrued corporate payroll and commissions82 64 
Other accrued liabilities117 130 
Total current liabilities1,930 1,436 
Accrued workers’ compensation costs, net of current135 163 
Long-term debt369 369 
Operating lease liabilities, net of current66 58 
Total noncurrent liabilities570 590 
Stockholders’ equity:
Common stock1 1 
Additional paid-in capital222 185 
Treasury stock, at cost(864)(831)
Retained earnings738 739 
Total stockholders' equity97 94 
Total liabilities and stockholders’ equity$2,597 $2,120 


SUMMARY FINANCIAL INFORMATION
Insperity, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months Ended 
December 31,		Year Ended 
December 31,
(in millions, except per share amounts)20242023Change20242023Change
Operating results:
Revenues(1)
$1,613 $1,580 2 %$6,581 $6,486 1 %
Payroll taxes, benefits and workers’ compensation costs1,395 1,358 3 %5,529 5,449 1 %
Gross profit218 222 (2)%1,052 1,037 1 %
Salaries, wages and payroll taxes128 112 14 %521 461 13 %
Stock-based compensation14 11 27 %61 53 15 %
Commissions13 13 — 47 47 — 
Advertising10 7 43 %38 37 3 %
General and administrative expenses57 45 27 %224 177 27 %
Depreciation and amortization11 11 — 44 43 2 %
Total operating expenses233 199 17 %935 818 14 %
Operating income (loss)(15)23 (165)%117 219 (47)%
Other income (expense):
Interest income9 8 13 %37 33 12 %
Interest expense(7)(7)— (28)(27)4 %
Income (loss) before income tax expense(13)24 (154)%126 225 (44)%
Income tax (benefit) expense(4)5 (180)%35 54 (35)%
Net income (loss)$(9)$19 (147)%$91 $171 (47)%
Net income (loss) per share of common stock
Basic$(0.22)$0.52 (142)%$2.44 $4.53 (46)%
Diluted$(0.22)$0.52 (142)%$2.42 $4.47 (46)%
____________________________________
(1)Revenues are comprised of gross billings less WSEE payroll costs as follows:
Three Months Ended 
December 31,		Year Ended 
December 31,
(in millions)
2024202320242023
Gross billings
$11,617 $11,378 $43,752 $43,141 
Less: WSEE payroll cost
10,004 9,798 37,171 36,655 
Revenues
$1,613 $1,580 $6,581 $6,486 


SUMMARY FINANCIAL INFORMATION
Insperity, Inc.
KEY FINANCIAL AND STATISTICAL DATA
Three Months Ended 
December 31,		Year Ended 
December 31,
20242023Change20242023Change
Average WSEEs paid309,093 315,072 (2)%307,261 312,102 (2)%
Statistical data (per WSEE per month):
Revenues(1)
$1,739 $1,672 4 %$1,785 $1,732 3 %
Gross profit235 235 — 285 277 3 %
Operating expenses251 211 19 %253 219 16 %
Operating income(16)24 (167)%32 58 (45)%
Net income(10)20 (150)%25 46 (46)%
____________________________________
(1)Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month follows:
Three Months Ended 
December 31,		Year Ended 
December 31,
(per WSEE per month)2024202320242023
Gross billings$12,528 $12,037 $11,866 $11,519 
Less: WSEE payroll cost
10,789 10,365 10,081 9,787 
Revenues$1,739 $1,672 $1,785 $1,732 

SUMMARY FINANCIAL INFORMATION
Insperity, Inc.
Non-GAAP FINANCIAL MEASURES
(Unaudited)

Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below.
Non-GAAP MeasureDefinitionBenefit of Non-GAAP Measure
Non-bonus payroll cost
Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.

Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program.
Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.

We include these non-GAAP financial measures because we believe they are useful to investors in allowing for greater transparency related to the costs incurred under our current workers’ compensation program.
Adjusted cash, cash equivalents and marketable securities
Excludes funds associated with:
•  federal and state income tax withholdings,
•  employment taxes,
•  other payroll deductions, and
•  client prepayments.
We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. Adjusted EBITDA is used by our lenders to assess our leverage and ability to make interest payments.
EBITDA
Represents net income computed in accordance with GAAP, plus:
•  interest expense,
•  income tax expense,
•  depreciation and amortization expense, and
•  amortization of SaaS implementation costs.
Adjusted EBITDA
Represents EBITDA plus:
•  non-cash stock-based compensation.
Adjusted net income
Represents net income computed in accordance with GAAP, excluding:
•  non-cash stock-based compensation.
Adjusted EPS
Represents diluted net income per share computed in accordance with GAAP, excluding:
•  non-cash stock-based compensation.
Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):
Three Months Ended December 31,Year Ended December 31,
(in millions, except per WSEE per month)2024202320242023
Per WSEEPer WSEEPer WSEEPer WSEE
Payroll cost
$10,004 $10,789 $9,798 $10,365 $37,171 $10,081 $36,655 $9,787 
Less: Bonus payroll cost
1,690 1,823 1,634 1,728 5,101 1,383 4,978 1,329 
Non-bonus payroll cost
$8,314 $8,966 $8,164 $8,637 $32,070 $8,698 $31,677 $8,458 
Payroll cost % change period over period
2 %4 %3 %— 1 %3 %7 %1 %
Non-bonus payroll cost % change period over period
2 %4 %5 %2 %1 %3 %8 %2 %

SUMMARY FINANCIAL INFORMATION
Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):
(in millions)December 31,
2024		December 31,
2023
Cash, cash equivalents and marketable securities
$1,055 $709 
Less:
Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions
830 510 
Client prepayments91 28 
Adjusted cash, cash equivalents and marketable securities
$134 $171 
Following is a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP):
(in millions, except per WSEE per month)Three Months Ended December 31,Year Ended December 31,
2024202320242023
Per WSEEPer WSEEPer WSEEPer WSEE
Net income (loss)$(9)$(10)$19 $20 $91 $25 $171 $46 
Income tax (benefit) expense(4)(4)5 5 35 8 54 14 
Interest expense
7 8 7 7 28 8 27 7 
Amortization of SaaS implementation costs4 4 3 3 11 3 6 2 
Depreciation and amortization
11 12 11 12 44 12 43 11 
EBITDA
9 10 45 47 209 56 301 80 
Stock-based compensation
14 15 11 12 61 17 53 14 
Adjusted EBITDA
$23 $25 $56 $59 $270 $73 $354 $94 
Net income % change period over period(147)%(150)%(50)%(51)%(47)%(46)%(4)%(10)%
Adjusted EBITDA % change period over period(59)%(58)%(29)%(31)%(24)%(22)%1 %(6)%
Following is a reconciliation of net income (GAAP) to adjusted net income (non-GAAP):
Three Months Ended December 31,Year Ended December 31,
(in millions)2024202320242023
Net income (loss)$(9)$19 $91 $171 
Non-GAAP adjustments:
Stock-based compensation14 11 61 53 
Tax effect(4)(1)(17)(12)
Total non-GAAP adjustments, net10 10 44 41 
Adjusted net income$1 $29 $135 $212 
Net income % change period over period(147)%(50)%(47)%(4)%
Adjusted net income % change period over period(97)%(38)%(36)%(2)%

SUMMARY FINANCIAL INFORMATION
Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):
Three Months Ended December 31,Year Ended December 31,
2024202320242023
Diluted EPS
$(0.22)$0.52 $2.42 $4.47 
Non-GAAP adjustments:
Stock-based compensation0.37 0.30 1.61 1.38 
Tax effect(0.10)(0.07)(0.45)(0.33)
Total non-GAAP adjustments, net0.27 0.23 1.16 1.05 
Adjusted EPS$0.05 $0.75 $3.58 $5.52 
Diluted EPS % change period over period(142)%(47)%(46)%(4)%
Adjusted EPS % change period over period(93)%(38)%(35)%(1)%


SUMMARY FINANCIAL INFORMATION


The following is a reconciliation of GAAP to non-GAAP financial measures for first quarter and full year 2025 guidance:
Q1 2025Full Year 2025
(in millions, except per share amounts)GuidanceGuidance
Net income
$61 - $70$71 - $102
Income tax expense
26  - 3130 - 44
Interest expense
6 25 
SaaS implementation amortization2 4 
Depreciation and amortization
1144
EBITDA
106 - 120174 - 219
Stock-based compensation
1566
Adjusted EBITDA
$121 - $135$240 - $285
Diluted EPS
$1.61 - $1.87 $1.87 - $2.72 
Non-GAAP adjustments:
Stock-based compensation
0.40 1.75 
Tax effect(0.12)(0.52)
Total non-GAAP adjustments, net0.28 1.23 
Adjusted EPS
$1.89 - $2.15 $3.10 - $3.95 

v3.25.0.1
Document and Entity Information Document
Feb. 10, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 10, 2025
Entity Registrant Name Insperity, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 1-13998
Entity Tax Identification Number 76-0479645
Entity Address, Address Line One 19001 Crescent Springs Drive
Entity Address, City or Town Kingwood
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77339
City Area Code 281
Local Phone Number 358-8986
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001000753
Amendment Flag false
Common Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, $.01 par value per share
Trading Symbol NSP
Security Exchange Name NYSE
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