Oct 29, 2026 earnings call — Margin recovery and AI strategy
Insperity reported Q3 gross profit of $207 million and adjusted EPS of $0.22, with adjusted EBITDA of $31 million.
Revenue $1.7B (est $1.6B) · EPS $0.22 (est $0.21)
Key quotes
"Our third quarter results mark a key milestone in our margin recovery plan."
"Our fall sales and retention campaign is our opportunity to begin to rebuild growth momentum and activity levels are increasing."
"Our strategy seeks to combine the power of AI with the experience of our HR professionals to help our clients' businesses succeed, further strengthen our offering, and deepen client relationships, which we believe will drive long-term growth and shareholder value."
Analyst Q&A 3
AI tools; health care and workers' comp trends
Q (Mark Marcon · Baird): He asked how much the company uses its own AI tools versus Workday's AI partners. He also asked how health care cost trends and workers' compensation look next year.
A: Management said they welcome Workday's AI work but also have strong in-house AI, lots of client data, and experts to deliver targeted solutions. For health care, they said this year's structural plan and pricing changes are a tailwind and next year should be more neutral. On workers' comp they see some actuarial adjustments and market hardening, so they are monitoring and raising prices as needed.
"So the -- our benefits cost trends are significantly under what I would -- this year, what I would call kind of the market rate." — James Allison (CFO)
Workday joint sales and HRScale impact
Q (Jeff Martin · ROTH Capital): He asked for an update on the joint go-to-market with Workday and the HRScale pipeline. He also asked if HRScale will materially drive EBITDA/adjusted EPS in 2027 and whether this fall's sales campaign differs.
A: Management said they are building the pipeline with good progress and have many clients queued to onboard in the new year. They expect HRScale to be a significant component of mid-market growth and are also pushing sales to smaller accounts; the fall campaign is improving activity and bid opportunity levels.
"We have several thousand in the queue for coming on as we move over into the new year." — Paul Sarvadi (CEO·CHAIR)
HR360 to HRScale timing; AI and compensation
Q (Brendan Biles · JPMorgan): He asked when clients who start with HR360 typically move to HRScale and whether AI needs affect that timing. He also asked how compensation and OpEx will change as the sales pipeline fills and deals implement.
A: Management said AI is driving more HR activity and that they match customers to the right product when their needs warrant it, noting their internal AI tools boost service delivery. On compensation, they said they trimmed headcount earlier, are seeing benefits from that reset, and can reinvest as growth reemerges, but specifics for next year remain flexible.
"it's -- we really think that our customer base, putting them in the right solution for whatever their highest level of needs are at the time is the right way to go" — Paul Sarvadi (CEO·CHAIR)