Company: NSP
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001000753-25-000023
Chunk: 36

Company: INSPERITY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 7
Chunk 36
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 expectations, against prior periods, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance 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 First Quarter Form 10-Q29

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 March 31,20252024Per WSEEPer WSEEPayroll cost$10,281 $11,199 $9,681 $10,618 Less: Bonus payroll cost2,243 2,444 1,862 2,042 Non-bonus payroll cost$8,038 $8,755 $7,819 $8,576 Payroll Cost % change period over period6 %5 %— 1 %Non-bonus payroll cost % change period over period3 %2 %2 %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)March 31, 2025December 31, 2024Cash, cash equivalents and marketable securities$568 $1,055 Less:Amounts payable for withheld federal and state income taxes, employment taxes and other payroll deductions 404 830 Client prepayments40 91 Adjusted cash, cash equivalents and marketable securities$