Company: NSP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001000753-25-000069
Chunk: 39

Company: INSPERITY, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 39
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63% in Q2 2025 compared to 64% in Q2 2024.

•Reported results include changes in estimated claims run-off related to prior periods, which did not impact costs in Q2 2025 compared to a decrease in costs of $25 million, or $27 per WSEE per month, in Q2 2024.

Please read Note 2 to the Consolidated Financial Statements, “Accounting Policies – Health Insurance Costs,” for a discussion of our accounting for health insurance costs.

Workers’ compensation costs

•Workers’ compensation costs increased 4%, or $1 per WSEE per month, in Q2 2025 compared to Q2 2024.

•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.23% in both Q2 2025 and Q2 2024.

•Our continued discipline around our client selection, workplace safely and claims management has allowed for claims to be closed out at amounts below our original cost estimates, resulting in a reduction in workers’ 

Insperity | 2025 Second Quarter Form 10-Q28

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

compensation costs of $8 million, or 0.09% of non-bonus payroll costs in Q2 2025, compared to a reduction of $7 million, or 0.09% of non-bonus payroll costs in Q2 2024.

Please read Note 2 to the Consolidated Financial Statements, “Accounting Policies – Workers’ Compensation Costs,” for a discussion of our accounting for workers’ compensation costs.

Payroll tax costs

•Payroll taxes increased 4% on a 2% increase in payroll costs, or $21 per WSEE per month.

•Payroll taxes as a percentage of payroll costs were 7% in both Q2 2025 and Q2 2024.

First Six Months 2025 Compared to First Six Months 2024

Gross profit for YTD 2025 decreased 12% to $533 million compared to $605 million in YTD 2024. Gross profit per WSEE per month for YTD 2025 decreased $41 to $289 compared to $330 in YTD 2024 due primarily to higher direct costs, offset in part by higher average pricing, as discussed below.

Our pricing objectives attempt to achieve a level of revenue per WSEE that matches or exceeds changes