Company: NSP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001000753-25-000107
Chunk: 23

Company: INSPERITY, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 23
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 non-cash compensation expense over the requisite service period of time-based and performance-based awards.

•Commissions — Commissions expense consists primarily of amounts paid to sales managers and other sales personnel, including business performance advisors (“BPAs”), as well as channel referral fees. Commissions are based on new accounts sold and a percentage of revenue generated by such personnel.

•Advertising — Advertising expense primarily consists of media advertising and other business promotions in our current and anticipated sales markets.

•General and administrative expenses — Our general and administrative expenses primarily include:  

◦rent expenses related to our service centers and sales offices

◦outside professional service fees related to legal, consulting and accounting services

◦administrative costs, such as postage, printing and supplies

◦employee travel and training expenses

◦facility costs, including repairs and maintenance

◦technology costs, including software-as-a-service (“SaaS”) subscription costs, amortization of SaaS implementation costs and third-party costs related to our strategic partnership with Workday, Inc.

•Depreciation and amortization — Depreciation and amortization expense is primarily a function of our capital investments in corporate facilities, service centers, sales offices, software development, and technology infrastructure.

Insperity | 2025 Third Quarter Form 10-Q30

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

Third Quarter 2025 Compared to Third Quarter 2024

The following table presents certain information related to our operating expenses:

Three Months Ended September 30,per WSEE(in millions, except per WSEE)20252024% Change20252024% ChangeSalaries$125 $127 (2)%$133 $137 (3)%Stock-based compensation16 17 (6)%17 18 (6)%Commissions13 11 18 %14 12 17 %Advertising10 9 11 %11 10 10 %General and administrative:Amortization of SaaS implementation costs1 1 — 1 1 — Workday SaaS licensing and implementation expense4 9 (56)%4 10 (60)%All other general and administrative40 43 (7)%43 46 (7)%Total general and administrative45 53 (15)%48 57 (16)%Depreciation and amortization11 11 — 12 12 — Total operating expenses