Company: NSP
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001000753-25-000023
Chunk: 30

Company: INSPERITY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 7
Chunk 30
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108 (37)%Other income (expense), net4 3 33 %Net income51 79 (35)%Diluted EPS1.35 2.08 (35)%Non-GAAP financial measures(1):Adjusted net income$59 $86 (31)%Adjusted EBITDA102 142 (28)%Adjusted EPS1.57 2.27 (31)%Average WSEEs paid306,023 303,904 1 %Statistical data (per WSEE per month):Revenues(2)$2,029 $1,977 3 %Gross profit338 378 (11)%Operating expenses264 260 2 %Operating income74 118 (37)%Net income56 87 (36)%

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(1)Please read “Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.

(2)Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month as follows:

Three Months Ended March 31,(per WSEE per month)20252024Gross billings$13,228 $12,595 Less: WSEE payroll cost11,199 10,618 Revenues$2,029 $1,977 

Insperity | 2025 First Quarter Form 10-Q20

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Key Operating Metrics

We monitor certain key metrics to measure our performance, including:

•WSEEs

•Adjusted EBITDA

•Adjusted EPS

Our growth in the number of WSEEs paid is affected by three primary sources: new client sales, client retention and the net change in WSEEs paid at existing clients through new hires and employee terminations.

•During Q1 2025, average WSEEs paid increased 1% compared to Q1 2024. The number of WSEEs paid from new client sales and client retention increased compared with Q1 2024, while the net change in our client base decreased compared with Q1 2024.

Average WSEEs Paid and

Year-over-Year Growth Percentage

Insperity | 2025 First Quarter Form 10-Q21

MANAGEMENT’S DISCUSSION AND ANALYSIS OF