Insperity, Inc.

Insperity, Inc. operates in the professional employer organization (PEO) industry, providing human resources and administrative services to small and medium-sized businesses. The company generates revenue primarily through co-employment agreements, where it acts as the employer of record, handling payroll, benefits, and compliance. Its competitive position relies on delivering integrated HR solutions that allow clients to focus on their core operations, distinguishing itself through service breadth and technological platforms.

Over the past five years, Insperity has shown consistent revenue growth, expanding from 5.0B in 2021 to 6.8B in 2025. However, net income has been volatile, peaking at 179.3M in 2022 before declining to a net loss of 7.0M in 2025. Free cash flow has also fluctuated significantly, from 227.2M in 2021 to 482.0M in 2024, before turning negative at -309.0M in 2025. The company maintains a strong cash position, with 642.0M in cash as of 2025, and reports no total debt.

Key strengths include its recurring revenue model and the high demand for outsourced HR services. However, a key risk is the sensitivity of its business model to economic downturns and rising benefit costs, which can compress margins. The recent negative free cash flow and net income in 2025 warrant close attention, as does the company's ability to navigate fluctuating labor markets and maintain pricing power in a competitive PEO landscape.