Company: NSP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001000753-25-000069
Chunk: 37

Company: INSPERITY, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 37
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 DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Revenues

Our PEO HR Solutions revenues are primarily derived from our gross billings, which are based on (1) the payroll cost of our WSEEs and (2) a monthly markup component.

Our revenues are primarily dependent on the number of clients enrolled, the resulting number of WSEEs paid each period and the number of WSEEs enrolled in our benefit plans. Because our monthly markup is computed in part as a percentage of payroll cost, certain revenues are also affected by the payroll cost of WSEEs, which may fluctuate based on the composition of the WSEE base, inflationary effects on wage levels and differences in the local economies of our markets.

Revenue and

Year-over-Year Growth Percentage

(in millions)

Second Quarter 2025 Compared to Second Quarter 2024

Our revenues for Q2 2025 were $1.7 billion, an increase of 3%, primarily due to the following:

•Average WSEEs paid increased 1%.

•Revenues per WSEE per month increased 3%, or $45.

First Six Months 2025 Compared to First Six Months 2024

Our revenues for YTD 2025 were $3.5 billion, an increase of 3%, primarily due to the following:

•Average WSEEs paid increased 1%.

•Revenues per WSEE per month increased 3%, or $49.

We provide our PEO HR Solutions to small and medium-sized businesses throughout the United States. Our PEO HR Solutions revenue distribution by region follows:

PEO HR Solutions Revenue by Region

Insperity | 2025 Second Quarter Form 10-Q25

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

(in millions)

________________________________________________________   

(1)The Southwest region includes Texas.

The percentage of total PEO HR Solutions revenue in our significant markets includes the following:

Significant Markets

We generally define the middle market sector as those companies with approximately 150 to 5,000 WSEEs. Currently, we have a dedicated sales management, service personnel, and consulting staff who concentrate solely on the middle market sector. Our average number of WSEEs per month in our middle market sector increased 3% during YTD 2025 compared to YTD 2024, representing approximately 26% and 25% of our total average paid WSEEs in YTD 2025 and Y