Company: NSP
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001000753-25-000023
Chunk: 20

Company: INSPERITY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 20
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154 1 %Stock-based compensation11 10 10 %12 11 9 %Commissions11 12 (8)%12 13 (8)%Advertising7 7 — 8 8 — General and administrative:Amortization of SaaS implementation costs2 3 (33)%2 3 (33)%Workday SaaS licensing and implementation expense6 4 50 %7 4 75 %All other general and administrative52 50 4 %56 55 2 %Total general and administrative60 57 5 %65 62 5 %Depreciation and amortization11 11 — 12 12 — Total operating expenses$242 $237 2 %$264 $260 2 %

Operating expenses for Q1 2025 increased 2% to $242 million compared to $237 million in Q1 2024. Operating expenses per WSEE per month for Q1 2025 increased 2% to $264 compared to $260 in Q1 2024.

Income Tax Expense

Three Months Ended March 31,20252024Effective income tax rate29%29%

For the three months ended March 31, 2025, our provision for income taxes differed from the U.S. statutory rate primarily due to state income taxes, non-deductible expenses and vesting of restricted and long-term incentive stock awards. During the first three months of 2025, we recognized additional income tax of $1 million related to the vesting of long-term incentive and restricted stock awards, primarily due to the vesting date price being below the grant date price.

Insperity | 2025 First Quarter Form 10-Q28

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

Non-GAAP Financial Measures

Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below.

Non-GAAP MeasureDefinitionBenefit of Non-GAAP MeasureNon-bonus payroll costNon-bonus payroll cost is a non-GAAP financial measure