Company: NSP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001000753-25-000107
Chunk: 26

Company: INSPERITY, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 26
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 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 MeasureNon-bonus payroll costNon-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.Bonus payroll cost varies from period to period, but has no direct impact to our ultimate workers’ compensation costs under the current program.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 securitiesExcludes 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.EBITDARepresents net income computed in accordance with GAAP, plus:•  interest expense,•  income tax expense,•  depreciation and amortization expense, and•  amortization of SaaS implementation costs.Adjusted EBITDARepresents EBITDA plus:•  non-cash stock-based compensation.Adjusted net incomeRepresents net income computed in accordance with GAAP, excluding:•  non-cash stock-based compensation.Adjusted EPSRepresents diluted net income per share computed in accordance with GAAP, excluding:•  non-cash stock-based compensation.

Insperity | 2025 Third Quarter Form 10-Q33

     MANAGEMENT’S DISCU