Company: NSP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001000753-25-000107
Chunk: 45

Company: INSPERITY, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 7
Chunk 45
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 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 DISCUSSION AND ANALYSIS OF      FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Following is a reconciliation of payroll cost (GAAP) to non-bonus payroll costs (non-GAAP):

(in millions, except per WSEE per month)Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Per WSEEPer WSEEPer WSEEPer WSEEPayroll cost$9,106 $9,703 $8,730 $9,415 $28,287 $10,161 $27,167 $9,844 Less: Bonus payroll cost729 777 704 759 3,677 1,321 3,411 1,236 Non-bonus payroll cost$8,377 $8,926 $8,026 $8,656 $24,610 $8,840 $23,756 $8,608 Payroll cost % change period over period4%3%3%5%4%3%1%3%Non-bonus payroll cost % change period over period4%3%— 3%4%3%1%3%

Following is a reconciliation of cash, cash equivalents and marketable securities (GAAP) to adjusted cash, cash equivalents and marketable securities (non-GAAP):

(in millions)September 30, 2025December 31, 2024Cash, cash equivalents and marketable securities$440 $1,055 Less: