What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-05-01 · 88 added, 69 removed, 329 unchanged (32% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

(in millions)

March 31, 2026 December 31, 2025

(in millions) June 30, 2026 December 31, 2025

Cash and cash equivalents $ 619 $ 642

37 unchanged sentences

See accompanying notes.

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

Three Months Ended

June 30, Six Months Ended

(in millions, except per share amounts)

2026 2025 2026 2025

$ 1,686 $ 1,658 $ 3,581 $ 3,521

Payroll taxes, benefits and workers’ compensation costs

1,469 1,435 3,062 2,988

Gross profit 217 223 519 533

6 unchanged sentences

Total operating expenses 211 230 451 472

Operating income 62 68

Operating income (loss) 6 ( 7 ) 68 61

Other income (expense):

1 unchanged sentence

Interest expense ( 6 ) ( 6 ) ( 12 ) ( 12 )

Income before income tax expense 63 72

Income tax expense 30 21

Net income $ 33 $ 51

Net income per share of common stock

Income (loss) before income tax (benefit) expense 5 ( 6 ) 68 66

Income tax (benefit) expense 1 ( 1 ) 31 20

Net income (loss) $ 4 $ ( 5 ) $ 37 $ 46

Net income (loss) per share of common stock

Basic $ 0.10 $ ( 0.14 ) $ 0.98 $ 1.22

1 unchanged sentence

See accompanying notes.

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the Three Months Ended March 31, 2026 and 2025

For the Six Months Ended June 30, 2026 and 2025

Common Stock Issued Additional Paid-In Capital Treasury Stock Retained Earnings and AOCI Total

(in millions)

Shares Amount

(in millions) Shares Amount

Balance at December 31, 2025 55 $ 1 $ 257 $ ( 850 ) $ 638 $ 46

5 unchanged sentences

Net income — — — — 37 37

Balance at March 31, 2026 55 $ 1 $ 244 $ ( 826 ) $ 648 $ 67

Balance at June 30, 2026 55 $ 1 $ 255 $ ( 824 ) $ 629 $ 61

Balance at December 31, 2024 55 $ 1 $ 222 $ ( 864 ) $ 738 $ 97

5 unchanged sentences

Net income — — — — 46 46

Balance at June 30, 2025 55 $ 1 $ 228 $ ( 853 ) $ 736 $ 112

2026 Second Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Continued)

For the Three Months Ended June 30, 2026 and 2025

Common Stock Issued Additional Paid-In Capital Treasury Stock Retained Earnings and AOCI Total

(in millions) Shares Amount

Balance at March 31, 2026 55 $ 1 $ 244 $ ( 826 ) $ 648 $ 67

Stock-based compensation expense — — 13 — — 13

Other — — ( 2 ) 2 — —

Dividends paid — — — — ( 23 ) ( 23 )

Net income — — — — 4 4

Balance at June 30, 2026 55 $ 1 $ 255 $ ( 824 ) $ 629 $ 61

Balance at March 31, 2025 55 $ 1 $ 209 $ ( 855 ) $ 764 $ 119

Issuance of equity-based incentive awards and dividend equivalents — — — 1 ( 1 ) —

Stock-based compensation expense — — 19 1 — 20

Dividends paid — — — — ( 22 ) ( 22 )

Net loss — — — — ( 5 ) ( 5 )

Balance at June 30, 2025 55 $ 1 $ 228 $ ( 853 ) $ 736 $ 112

See accompanying notes.

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2026 2025

25 unchanged sentences

Property and equipment purchases ( 13 ) ( 13 )

Net cash used in investing activities ( 6 ) ( 6 )

Net cash provided by (used in) investing activities 5 ( 11 )

Cash flows from financing activities

1 unchanged sentence

Dividends paid ( 46 ) ( 45 )

Borrowings under revolving line of credit 50 —

Client funds liability and other

( 21 ) ( 14 )

Net cash used in financing activities ( 21 ) ( 78 )

5 unchanged sentences

See accompanying notes.

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13 unchanged sentences

Our Consolidated Balance Sheet at December 31, 2025 has been derived from the audited financial statements at that date, but does not include all of the information or footnotes required by GAAP for complete financial statements.

Our Consolidated Balance Sheet at March 31, 2026 and our Consolidated Statements of Operations for the three month periods ended March 31, 2026 and 2025, our Consolidated Statements of Cash Flows for the three month periods ended March 31, 2026 and 2025 and our Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2026 and 2025, have been prepared by us without audit.

Our Consolidated Balance Sheet at June 30, 2026 and our Consolidated Statements of Operations for the three and six month periods ended June 30, 2026 and 2025, our Consolidated Statements of Cash Flows for the six month periods ended June 30, 2026 and 2025 and our Consolidated Statements of Stockholders' Equity for each of the three and six month periods ended June 30, 2026 and 2025, have been prepared by us without audit.

In the opinion of management, all adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows have been made, and all such adjustments are of a normal recurring nature.

7 unchanged sentences

Beginning January 1, 2026, we have the option to annually elect to limit our responsibility for each participant’s claim costs to $500,000, $750,000, or $1,000,000 per year, which we elect based on the cost of the limit (“Selected Claims Limit”) and

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

12 unchanged sentences

The terms of the arrangement require us to maintain an accumulated cash surplus in the plan of $ 9 million, which is reported as long-term prepaid health insurance on our Consolidated Balance Sheets.

In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $ 7 million at March 31, 2026, and is included in deposits - health insurance as a long-term asset on our Consolidated Balance Sheets.

As of March 31, 2026, Program Costs were less than the net premiums paid and owed to United by $ 41 million, which is included in prepaid insurance, a current asset, on our Consolidated Balance Sheets at March 31, 2026.

In addition, the premiums owed to United at March 31, 2026, were $ 62 million, which is included in accrued health insurance costs, a current liability, on our Consolidated Balance Sheets.

Our benefits costs incurred in the first three months of 2026 included a decrease of $ 2 million for changes in estimated run-off related to prior periods.

Our benefits costs incurred in the first three months of 2025 included an increase of $ 12 million for changes in estimated run-off related to prior periods, net of Individual Claims Limit.

In addition, United requires a deposit equal to approximately one day of claims funding activity, which was $ 7 million at June 30, 2026, and is included in deposits - health insurance as a long-term asset on our Consolidated Balance Sheets.

As of June 30, 2026, Program Costs were less than the net premiums paid and owed to United by $ 40 million, which is included in prepaid insurance, a current asset, on our Consolidated Balance Sheets at June 30, 2026.

In addition, the premiums owed to United at June 30, 2026, were $ 55 million, which is included in accrued health insurance costs, a current liability, on our Consolidated Balance Sheets.

Our benefits costs incurred in the first six months of 2026 included a decrease of $ 4 million for changes in estimated run-off related to prior periods.

Our benefits costs incurred in the first six months of 2025 included an increase of $ 11 million for changes in estimated run-off related to prior periods, net of Individual Claims Limit.

Workers’ Compensation Costs

9 unchanged sentences

Each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates.

During the three months ended March 31, 2026 and 2025, we reduced accrued workers’ compensation costs by $ 5 million and $ 7 million, respectively, for changes in estimated losses related to prior periods.

During the six months ended June 30, 2026 and 2025, we reduced accrued workers’ compensation costs by $ 7 million and $ 14 million, respectively, for changes in estimated losses related to prior periods.

Workers’ compensation cost estimates are discounted to present value at a rate based upon the U.S.

Treasury rates that correspond with the weighted average estimated claim payout period (the average discount rate utilized was 3.8 % in the 2026 period and 4.0 % in the 2025 period) and are accreted over the estimated claim payment period and included as a component of direct costs in our Consolidated Statements of Operations.

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides the activity and balances related to incurred but not paid workers’ compensation claims:

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2026 2025

7 unchanged sentences

Total accrued claims $ 184 $ 189

The current portion of accrued workers’ compensation costs on our Consolidated Balance Sheets at both March 31, 2026 and 2025 includes $ 2 million of workers’ compensation administrative fees.

The undiscounted accrued workers’ compensation costs were $ 227 million as of March 31, 2026 and $ 234 million as of March 31, 2025.

The current portion of accrued workers’ compensation costs on our Consolidated Balance Sheets at June 30, 2026 and 2025 includes $ 2 million and $ 3 million, respectively, of workers’ compensation administrative fees.

The undiscounted accrued workers’ compensation costs were $ 228 million as of June 30, 2026 and 2025.

At the beginning of each policy period, the workers’ compensation insurance carrier establishes monthly funding requirements comprised of premium costs and funds to be set aside for payment of future claims (“claim funds”).

1 unchanged sentence

Monies funded into the program for incurred claims expected to be paid within one year are primarily held as cash and money market funds (cash equivalents) and are recorded as restricted cash, a short-term asset, while the remainder of claim funds are included in deposits – workers’ compensation, a long-term asset in our Consolidated Balance Sheets.

At March 31, 2026, we had restricted cash of $ 80 million and deposits – workers’ compensation of $ 156 million, of which $ 231 million was held in trust bank accounts.

At June 30, 2026, we had restricted cash of $ 81 million and deposits – workers’ compensation of $ 160 million, of which $ 236 million was held in trust bank accounts.

Our estimate of incurred claim costs expected to be paid within one year is included in short-term liabilities, while our estimate of incurred claim costs expected to be paid beyond one year is included in long-term liabilities on our Consolidated Balance Sheets.

8 unchanged sentences

Customers are invoiced concurrently with each periodic payroll of its WSEEs.

Revenues that have been recognized but not invoiced represent unbilled accounts receivable of $ 867 million at March 31, 2026 and $ 810 million at December 31, 2025, and are included in accounts receivable, net on our Consolidated Balance Sheets.

Revenues that have been recognized but not invoiced represent unbilled accounts receivable of $ 867 million at June 30, 2026 and $ 810 million at December 31, 2025, and are included in accounts receivable, net on our Consolidated Balance Sheets.

Pursuant to the “practical expedients” provided under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , we expense sales commissions when incurred because the terms of our contracts are cancellable by either party with a 30-day notice.

These costs are recorded in commissions in our Consolidated Statements of Operations.

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our revenue for our PEO HR Solutions by geographic region and for our other products and services offerings are as follows:

Three Months Ended March 31,

(in millions)

2026 2025 % Change

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 % Change 2026 2025 % Change

Northeast $ 446 $ 452 (1) % $ 973 $ 978 (1) %

13 unchanged sentences

Revenues are comprised of gross billings less WSEE payroll costs as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2026 2025 2026 2025

3 unchanged sentences

Consistent with our revenue recognition policy, our direct costs do not include the payroll cost of our WSEEs.

Our direct costs associated with our revenue generating activities are primarily comprised of all other costs related to our WSEEs, such as the employer portion of payroll-related taxes, employee benefit plan costs and workers’ compensation insurance costs.

Segment Reporting

4 unchanged sentences

The CODM reviews revenues and expenses at the consolidated level as disclosed in our Consolidated Statements of Operations and uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into our HR Solutions segment or into other areas of the entity, such as for acquisitions or to

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

12 unchanged sentences

The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments:

March 31, 2026 December 31, 2025

(in millions)

Cash & Cash Equivalents Marketable Securities Total Cash & Cash Equivalents Marketable Securities Total

June 30, 2026 December 31, 2025

(in millions) Cash & Cash Equivalents Marketable Securities Total Cash & Cash Equivalents Marketable Securities Total

Overnight holdings $ 591 $ — $ 591 $ 638 $ — $ 638

5 unchanged sentences

Our cash and overnight holdings fluctuate based on the timing of clients’ payroll processing cycles.

Our cash, cash equivalents and marketable securities at March 31, 2026 and December 31, 2025 included $ 415 million and $ 468 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $ 104 million and $ 135 million, respectively, in client prepayments.

Insperity | 2026 First Quarter Form 10-Q

Our cash, cash equivalents and marketable securities at June 30, 2026 and December 31, 2025 included $ 481 million and $ 468 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $ 43 million and $ 135 million, respectively, in client prepayments.

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

The following table summarizes our cash, cash equivalents, restricted cash, funds held for clients, and deposits - workers’ compensation as reported in our Consolidated Statements of Cash Flows:

Three Months Ended March 31,

Six Months Ended June 30,

(in millions) 2026 2025

21 unchanged sentences

• Level 3 - significant unobservable inputs

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

The following table summarizes the levels of fair value measurements of our financial assets:

March 31, 2026 December 31, 2025

(in millions)

Total Level 1 Total Level 1

June 30, 2026 December 31, 2025

(in millions) Total Level 1 Total Level 1

Money market funds $ 627 $ 627 $ 660 $ 660

8 unchanged sentences

The following is a summary of our available-for-sale marketable securities:

(in millions)

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

March 31, 2026

(in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

June 30, 2026

Treasury bills $ — $ — $ — $ —

1 unchanged sentence

Treasury bills $ 18 $ — $ — $ 18

As of March 31, 2026, the contractual maturities of all marketable securities in our portfolio were less than one year.

Fair Value of Other Financial Instruments

The carrying amounts of cash, cash equivalents, restricted cash, accounts receivable, deposits and accounts payable approximate their fair values due to the short-term maturities of these instruments.

As of March 31, 2026, the carrying value of borrowings under our revolving credit facility approximates fair value and was classified as Level 2 in the fair value hierarchy.

As of June 30, 2026, the carrying value of borrowings under our revolving credit facility approximates fair value and was classified as Level 2 in the fair value hierarchy.

Please read Note 5, “ Long-Term Debt ,” for additional information.

4 unchanged sentences

Our obligations under the Facility are secured by 100 % of the stock of our captive insurance subsidiary and are guaranteed by all of our subsidiaries other than our captive insurance subsidiary and certain other excluded subsidiaries.

At March 31, 2026, our outstanding balance on the Facility was $ 369 million, and we had an outstanding $ 1 million letter of credit issued under the Facility, resulting in unused commitment of $ 380 million.

Insperity | 2026 First Quarter Form 10-Q

At June 30, 2026, our outstanding balance on the Facility was $ 419 million, and we had an outstanding $ 1 million letter of credit issued under the Facility, resulting in unused commitment of $ 330 million.

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3 unchanged sentences

During 2025, we amended the Facility to exclude dividends from the interest coverage ratio financial covenant and increase the maximum leverage ratio.

We were in compliance with all financial covenants under the Credit Agreement at March 31, 2026.

We were in compliance with all financial covenants under the Credit Agreement at June 30, 2026.

The Facility matures on December 15, 2028 .

5 unchanged sentences

We also pay an unused commitment fee on the average daily unused portion of the Facility at a rate of 0.25 % per year.

The average interest rate for the three month period ended March 31, 2026 was 5.7 %.

The average interest rate for the six month period ended June 30, 2026 was 5.7 %.

Interest expense and unused commitment fees are recorded in other income (expense).

Stockholders' Equity

During the three months ended March 31, 2026, we repurchased or withheld an aggregate of 170,915 shares of our common stock, as described below.

During the six months ended June 30, 2026, we repurchased or withheld an aggregate of 171,548 shares of our common stock, as described below.

Repurchase Program

1 unchanged sentence

The purchases may be made from time to time in the open market or directly from stockholders at prevailing market prices based on market conditions and other factors.

During the three months ended March 31, 2026, no shares were repurchased under the Repurchase Program.

As of March 31, 2026, we were authorized to repurchase an additional 1,407,764 shares under the Repurchase Program.

During the six months ended June 30, 2026, no shares were repurchased under the Repurchase Program.

As of June 30, 2026, we were authorized to repurchase an additional 1,407,764 shares under the Repurchase Program.

Withheld Shares

During the three months ended March 31, 2026, we withheld 170,915 shares to satisfy tax withholding obligations for the vesting of long-term incentive and restricted stock unit awards.

During the six months ended June 30, 2026, we withheld 171,548 shares to satisfy tax withholding obligations for the vesting of long-term incentive and restricted stock unit awards.

The Board declared and paid quarterly dividends as follows:

1 unchanged sentence

First quarter $ 0.60 $ 0.60

During the three months ended March 31, 2026 and 2025, we declared and paid dividends totaling $ 23 million in both periods.

Second quarter 0.60 0.60

During the six months ended June 30, 2026 and 2025, we declared and paid dividends totaling $ 46 million and $ 45 million, respectively.

Earnings Per Share

1 unchanged sentence

Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period, plus the dilutive effect of time-based and performance-based restricted stock units (“RSUs”).

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the net income and the basic and diluted shares used in the earnings per share computations:

Three Months Ended March 31,

The following table summarizes net income and basic and diluted shares used in the earnings per share computations:

Three Months Ended

June 30, Six Months Ended

(in millions) 2026 2025 2026 2025

Net income $ 33 $ 51

Net income (loss) $ 4 $ ( 5 ) $ 37 $ 46

Weighted average common shares outstanding 38 38 38 38

Incremental shares from assumed time-based and performance-based RSU awards 1 — — —

Adjusted weighted average common shares outstanding 39 38 38 38

Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect 1 —

Potentially dilutive securities not included in weighted average shares calculation due to anti-dilutive effect

Commitments and Contingencies

2 unchanged sentences

While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on our financial position or results of operations.

Insperity | 2026 First Quarter Form 10-Q

2026 Second Quarter Form 10-Q

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements