Insperity, Inc. (NSP): Business Model Canvas [Dec-2025 Updated]

Look, you're digging into Insperity, Inc.'s engine right now, probably worried about those 2025 healthcare cost pressures that hit their gross margin. The core of their $6.76 billion Trailing Twelve Month revenue stream is the co-employment PEO model, which gives small and midsize businesses access to big-group benefits. It's a tightrope walk, balancing high-touch service with tech scale. They are defintely managing risk by leveraging their 99% monthly client retention. This Business Model Canvas breaks down exactly how they manage that pressure and keep their operations running. Dive in below to see the nine building blocks driving their strategy.

Insperity, Inc. (NSP) - Canvas Business Model: Key Partnerships

You're looking to understand the external relationships that power Insperity, Inc.'s service delivery, especially as they push into the mid-market with new technology. These alliances are critical because they allow Insperity, Inc. to scale specialized services without owning all the underlying technology or insurance risk.

Strategic alliance with Workday for the Insperity HRScale mid-market solution

The collaboration with Workday is a major strategic move to capture the mid-market. Insperity HRScale is designed to blend Insperity's PEO (Professional Employer Organization) service expertise with Workday Human Capital Management (HCM) technology. This joint solution is positioned for agility and speed of deployment. The market has shown strong receptivity to this investment, which is a key part of the company's 2026 outlook for accelerated growth.

Here are the financial commitments tied to this partnership:

Metric	Amount/Value	Year/Period
Planned Spending on Workday Partnership Implementation	$58 million	2025 Fiscal Year Estimate
Planned Spending on Workday Partnership Implementation	$57 million	2024 Fiscal Year Actual
Target Customer Availability for HRScale	2026	Launch Year

The formal rollout of Insperity HRScale is a catalyst for future growth, aiming to boost revenue and client size by targeting the mid-market segment. If execution delays occur, it could overshadow near-term earnings recovery.

Major health and workers' compensation insurance carriers (e.g., UnitedHealthcare)

Managing benefits, especially health insurance and workers' compensation, is a core function where carrier partnerships are essential. Insperity, Inc. partners with carriers like UnitedHealthcare to provide nationwide medical coverage for its clients' employees. The cost of these benefits is a significant variable in the business model, directly impacting gross profit.

Consider the cost dynamics reported in the second quarter of 2025:

• Benefits cost per covered employee increased by 9.6% year-over-year in Q2 2025.
• Benefits cost per covered employee increased by 9% on a Year-to-Date basis in Q2 2025.
• Favorable development of health care claims in Q2 2024 totaled $25 million, skewing the year-over-year comparison for Q2 2025.

The ability to secure competitive replacement contracts for health insurance and workers' compensation insurance at expiration remains a key operational risk factor.

Third-party providers for specialized services like 401(k) retirement plans

Insperity Retirement Services acts as a major provider for 401(k) plans, often utilizing third-party recordkeepers and investment managers under an open-architecture platform. This allows Insperity, Inc. to offer competitive fees and broad investment choice without owning all the infrastructure.

The scale of their retirement services is substantial:

• Assets under administration exceed $7 billion.
• Recordkeeping and administration are provided to more than 6,000 businesses.
• More than 100,000 employees participate in Insperity-serviced 401(k) plans.
• Employees have saved over $4 billion for retirement through these plans.
• The Insperity 401(k) Plan undercuts average industry fees by 40%-70%.

The company assumes the responsibilities and fiduciary obligations of plan sponsorship for the standard Insperity 401(k) Plan, which simplifies things for the client company.

Nonprofit organizations for recruiting and diversity initiatives

Insperity, Inc. employs a high-touch approach in advisory areas like recruiting and employee training to ensure clients receive personal attention. While the outline specifies nonprofit partnerships, concrete, quantifiable data for this specific category as of late 2025 is not available in the current data set.

Inc. Magazine recognition as a 2025 Power Partner, reinforcing B2B credibility

External validation from B2B-focused publications is important for credibility, especially when targeting larger mid-market clients. Insperity, Inc. received the Inc. Power Partner Award for 2025. This marks the fourth consecutive recognition on this prestigious list, which honors B2B organizations that successfully empower entrepreneurs and accelerate company growth.

The company's reported Q2 2025 revenue was $1.62 billion, compared to analyst estimates of $1.63 billion. Finance: draft 13-week cash view by Friday.

Insperity, Inc. (NSP) - Canvas Business Model: Key Activities

Managing and administering payroll and benefits for worksite employees (WSEEs) is central to Insperity, Inc.'s operations.

Metric	Q3 2025	Q2 2025	YTD (Through Q3 2025)	Prior Period Comparison
Average Paid WSEEs (Monthly)	312,842	309,115	309,327	Q1 2025: 306,023
Gross Profit per WSEE (Monthly)	$208	$240	N/A	Q3 2024: $247; Q2 2024: $282
Revenue (Quarterly)	$1.6 billion	$1.7 billion	$5.1 billion (YTD Q3)	LTM Revenue (as of Sep 30, 2025): $6.76B

Benefits cost management is a critical, yet challenging, activity.

• Benefits cost per covered employee increased 9.6% year-over-year in Q2 2025.
• Benefits cost per covered employee increased 9% year-to-date as of Q2 2025.
• Q3 2025 benefits costs were higher than expected by $20 million.
• Q2 2025 benefits costs exceeded forecast by $12 million.
• The Q2 2025 overrun included $8 million in pharmacy costs and $4 million in incurred but not reported claims.

Insperity, Inc. maintains its Certified Professional Employer Organization (CPEO) status, which is a key differentiator for assuming liability and compliance.

• The CPEO designation grants successor employer status for federal payroll taxes, eliminating potential double taxation of FICA and FUTA.
• The certification is based on meeting requirements set by the Internal Revenue Service (IRS) under the Small Business Efficiency Act (SBEA).
• The IRS updates its list of certified CPEOs by the 15th day of the first month of every calendar quarter.

Developing and implementing proprietary HR technology and AI capabilities is a significant area of investment, particularly through the Workday strategic partnership.

Technology Initiative	Investment/Metric	Status/Result
Workday Strategic Partnership Investment (FY 2025 Forecast)	Approximately $58 million	Compared to $57 million in 2024.
Workday Strategic Partnership Investment (Q2 2025)	$14 million	Consistent with Q2 2024.
Workday Strategic Partnership Investment (YTD Q3 2025)	$38 million	Operating expenses included this amount.
Insperity HRScale Launch	N/A	Beta client trials targeted for early 2026.
Forrester TEI Study (HR360)	77% Return on Investment over three years	Quantified benefits achieved.

The Forrester study on Insperity HR360 showed specific efficiency gains:

• 50% reduction in executive time spent on HR workflows.
• 75% reduction in manager time spent on performance reviews.
• 80% reduction in onboarding time for new hires.
• 90% reduction in HR-related noncompliance risk.

Direct sales and high-touch client service delivery are measured by growth and retention rates.

• Worksite employees paid from new sales increased by 2% over Q2 2024.
• Client retention averaged 99% per month in Q2 2025.
• As of December 31, 2024, Insperity had 83 physical office locations in 48 markets.
• The company has over 100 sales offices across the U.S..

Executing the gross profit margin recovery plan involves pricing adjustments and benefit plan changes, with financial targets set for the remainder of 2025.

Financial Outlook	Q3 2025 Forecast	Full Year 2025 Forecast
Average Paid WSEEs	312,200 to 315,300	Growth of 1% to 2% over 2024.
Adjusted EBITDA	$24 million to $44 million	$170 million to $205 million.
Adjusted EPS	$0.06 to $0.49	$1.81 to $2.51.

The recovery plan includes specific contractual and operational changes.

• The company announced a multi-year contract extension with UnitedHealthcare, reducing the large claims pooling level to $500,000 beginning January 1, 2026.
• The impact of pricing measures is expected to start accumulating during the second half of 2025 and continue into 2026.
• Full year 2025 operating expenses are expected to be below 2024 levels by approximately 3%.
• Insperity returned $68 million in cash dividends and repurchased 225,000 shares for $19 million year-to-date through Q3 2025.

Finance: draft 13-week cash view by Friday.

Insperity, Inc. (NSP) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets that make Insperity, Inc. (NSP) run, especially as they navigate the current cost environment. These are the foundational elements supporting their co-employment model.

Proprietary HR technology platform, Insperity Premier

The platform is a cloud-based human capital management system, Insperity Premier, which maximizes the power of their industry-leading co-employment solution, Insperity HR360. This technology helps streamline HR functions, offering data-driven insights into people analytics. As of August 2025, there are 613 verified companies using Insperity's solutions, which include this platform.

The platform manages key functions for clients and their worksite employees (WSEEs), including:

• Employee administration
• Payroll and payroll tax processing
• Benefits management
• Retirement solutions

Certified Professional Employer Organization (CPEO) status from the IRS

Insperity maintains its status as a Certified Professional Employer Organization (CPEO) as recognized by the IRS. This certification is a key trust indicator in the PEO space.

Network of over 90 sales offices and a dedicated HR service team

Insperity supports its coast-to-coast service model with a significant physical footprint. As of late 2024, the company reported 83 physical office locations across 48 markets. By October 2025, this network had grown to 100+ sales offices across the U.S.. This physical presence is complemented by dedicated HR service personnel and four regional service centers as of early 2025.

The scale of their physical presence and service teams supports their client base, which saw average paid WSEEs increase by 1% year-over-year in Q3 2025, reaching 312,842 employees per month.

Pooled purchasing power for health insurance and other employee benefits

A core value driver is the ability to secure cost-effective, comprehensive health coverage through Insperity's plan designs and long-term relationships with national insurance carriers. This resource is currently being optimized following an extension of their contract with UnitedHealthcare through 2028, which is expected to provide cost savings and lower risk starting in 2026.

Key metrics related to benefits cost management include:

Metric	Value/Status	Date/Period
Gross Profit per WSEE	$208 per month	Q3 2025
Gross Profit per WSEE	$247 per month	Q3 2024
Benefits Cost Headwind	Elevated utilization, specialty drugs, large claims	2025
Risk Pooling Level	Reduced to $500K for 2026	Projected

Cash and cash equivalents of $422 million as of Q3 2025

The balance sheet provides liquidity for operations and capital returns. As of September 30, 2025, Insperity reported $120 million in adjusted cash. This was supplemented by $280 million available under their credit facility as of Q3 2025.

The company returned capital to shareholders in the first nine months of 2025:

• Cash dividends paid: $68 million
• Stock repurchases cost: $19 million (for 225,000 shares)

Finance: draft 13-week cash view by Friday.

Insperity, Inc. (NSP) - Canvas Business Model: Value Propositions

You're looking at how Insperity, Inc. (NSP) delivers concrete value to its clients, especially when managing the sheer volume of HR tasks that can derail a growing business. The core value is offloading complexity and accessing scale you can't achieve alone.

Comprehensive administrative relief for complex HR functions

The administrative burden Insperity, Inc. (NSP) absorbs translates directly into time savings for your executive team. Consider the baseline: employer overhead, excluding direct compensation, typically costs between 1.25% and 1.4% of an employee's salary, according to the U.S. Small Business Administration. Insperity, Inc. (NSP) consolidates payroll taxes (FICA, FUTA, SUTA), leave administration, and compliance reporting under its structure.

For context on scale, Insperity, Inc. (NSP)'s Year-to-Date (YTD) average paid Worksite Employees (WSEEs) through Q3 2025 was 309,327. The third quarter alone served 312,842 WSEEs. This volume allows for efficiency in handling tasks like unemployment claims administration and W-2 generation.

Reduced employer liabilities through the co-employment PEO model

The co-employment structure means Insperity, Inc. (NSP) shares responsibility for certain employment-related claims, which is a direct mitigation of risk. This includes support for workers' compensation plan coverage and claims resolution, as well as employment practices liability insurance (EPLI) resources. The company is recognized, licensed, registered, or pursuing registration in all states with PEO regulations, which helps screen for fiscal responsibility.

The financial scale of the operation is significant, with Q3 2025 revenues reported at $1,623 million. The total revenue for the last twelve months ending September 30, 2025, reached $6.76B. This scale underpins the shared liability assumption.

Access to premium, large-group health and retirement benefits

The primary draw here is leveraging Insperity, Inc. (NSP)'s large employee base to secure better benefit terms than a small or mid-sized business could negotiate alone. While specific premium savings aren't published, the cost pressure is evident internally: Gross profit per WSEE in Q2 2025 was $240 per month, down from $282 per month in Q2 2024, largely due to benefits cost increases. Benefits cost per covered employee saw an 8.4% year-over-year increase in Q1 2025, and management expected this trend to continue between 6.5%-7.5% for the full year 2025.

The value proposition is reinforced by strategic partnerships, such as the UnitedHealthcare (UHC) contract extension through 2028, which management noted provides significant cost savings and lower risk.

• Retirement plans offer 401(k) access.
• Online benefit plan content and enrollment tools are provided.
• COBRA administration is handled as the plan sponsor.
• The company returned $87 million to shareholders via dividends and repurchases in the first nine months of 2025.

Strategic HR expertise and consulting to drive business performance

You gain immediate access to subject matter specialists for guidance on performance appraisals, compensation trends, and employee relations. This expertise is backed by technology investments. For instance, operating expenses in YTD 2025 included $38 million for the Workday strategic partnership implementation.

This investment supports the development of tools for performance management, job descriptions, and supervisor coaching, moving HR from purely tactical to strategic.

Scalable solutions: HR360 (PEO) and HRCore (HCM) for different needs

Insperity, Inc. (NSP) offers distinct paths based on a client's readiness for full co-employment. The PEO offering, often associated with the HR360 suite, is the comprehensive co-employment solution. For clients not ready for that, the traditional payroll solution, Workforce Acceleration, is offered to leverage the same sales force and reduce barriers to entry.

The evolution of this scalability is seen in the rollout of HRScale, the joint development offering with Workday, which is designed to uniquely position Insperity, Inc. (NSP) in the marketplace for future growth.

Metric	Value (Latest Reported Period)
Q3 2025 Revenue	$1,623 million
TTM Revenue (as of Sept 30, 2025)	$6.76B
Average Paid WSEEs (Q3 2025)	312,842
YTD Average Paid WSEEs (2025)	309,327
Q1 2025 Gross Profit per WSEE	$338 per month
Workday Partnership Spend YTD 2025	$38 million
Expected 2025 Benefits Cost Trend Increase	6.5%-7.5%

Finance: draft 13-week cash view by Friday.

Insperity, Inc. (NSP) - Canvas Business Model: Customer Relationships

You're looking at how Insperity, Inc. (NSP) keeps its clients close, which is central to its Professional Employer Organization (PEO) model. The relationship is built on a premium, people-centric approach, which they see as a strong competitive differentiator.

The service delivery is intentionally high-touch. The role of the Human Resource Specialist is to align resources and services to deliver customized solutions, which directly impacts client performance management. This specialist proactively engages with client management to continually understand evolving organizational strategy and goals.

Here's a look at the blend of human service and technology driving these relationships:

Relationship Element	Key Metric/Focus Area	Latest Data Point
Client Retention Rate	Average Monthly Retention (Q3 2025)	99%
Service Model Quality	Competitive Differentiator Status	Strong Competitive Differentiator
Technology Integration	HRScale Beta Client Target Go-Live	Early 2026
Consulting Depth	Performance Guidance Scope	Conflict resolution, coaching, career development

The focus on keeping clients is evident in the retention numbers. For the third quarter of 2025, client retention averaged 99% per month, which management noted was consistent with the prior year's results. This level of stickiness is a key indicator of the perceived value of the dedicated service.

Technology is evolving to support, not replace, this high-touch service. The company is rolling out Insperity HRScale, a strategic joint solution with Workday, designed to embed Workday Human Capital Management as the client-facing technology into the Insperity HR360 platform. This integration aims to improve response time, enabling specialists to focus even more on the high-touch nature of customer relationships.

The proactive consulting aspect is formalized through the specialist role, which is tasked with specific actions to enhance client operations:

• Delivers performance management guidance to client management.
• Conducts effective, thorough, and objective employee relations investigations.
• Collaborates with client management to build morale and enhance teamwork.
• Analyzes trends to develop solutions and policies to mitigate risk.

Ultimately, Insperity, Inc. (NSP) is focused on elevating what a strategic HR partnership means to its clients. The goal is to help businesses strengthen operations and adapt with agility, moving beyond just transactional service delivery.

Insperity, Inc. (NSP) - Canvas Business Model: Channels

You're looking at how Insperity, Inc. gets its services into the hands of its clients, which is a mix of boots-on-the-ground presence and modern digital delivery. Here's the breakdown of those channels, grounded in the latest figures we have through late 2025.

Direct Sales Force and Physical Presence

Insperity, Inc. maintains a significant physical footprint to support its direct sales efforts. The company has historically reported having over 100 sales offices across the U.S. to provide localized service. To be fair, the most recent 10-K filing noted 83 physical office locations across 48 markets as of December 31, 2024, but the current operational count is cited as over 100. This physical presence supports the sales force responsible for driving new business. For context on the scale of the business being serviced, the average number of paid worksite employees (WSEEs) for the second quarter of 2025 was 309,115.

The direct sales channel is measured by new client acquisition, which showed some positive momentum: WSEEs paid from new sales increased by 2% over the second quarter of 2024.

Online and Mobile Access via Insperity Premier

The Insperity Premier technology platform is the digital backbone for service delivery. This platform is where clients and WSEEs manage core functions like payroll, benefits administration, and HR information. While I don't have a specific 2025 user count for the platform itself, the platform supports the entire client base, which, as of Q2 2025, averaged 309,115 paid WSEEs. The company is also continuing its AI path, aiming to improve service efficiency and quality using proprietary tools integrated with native platform capabilities.

Strategic Go-to-Market Plan with Workday

The partnership with Workday is a key channel strategy, specifically focused on expanding Insperity, Inc.'s reach into the mid-market. This segment was already meaningful, representing approximately 26% of the total average paid WSEEs in 2024. The company finalized the go-to-market plan targeting these mid-market businesses in the first quarter of 2025. This investment is material; Q1 2025 operating expenses included $13 million in costs associated with the Workday strategic partnership. The goal is to launch the Insperity HRScale solution to beta clients early next year (2026).

Digital Marketing and Thought Leadership

Insperity, Inc. uses digital marketing and thought leadership content to generate awareness and drive inbound interest. The company's advertising expense primarily covers media advertising and other business promotions in its sales markets. While the channel is active, I don't have specific 2025 metrics on content engagement or lead generation volume from publications like Forbes or HRO Today.

Referrals from Existing Clients and Professional Advisors

Referrals act as a critical, low-cost acquisition channel. The company explicitly ties this to its compensation structure, as commissions expense includes amounts paid for channel referral fees. This indicates that incentivizing existing clients and professional advisors to refer new business is a formalized part of the sales compensation plan.

Channel Metric	Data Point	Period/Context
Average Paid WSEEs	309,115	Q2 2025 Average
Sales Offices Count	Over 100	General 2025 Context
Physical Office Locations	83	As of December 31, 2024
New Sales WSEE Growth	2%	Year-over-Year, Q2 2025
Mid-Market WSEE Percentage	26%	2024 Average
Workday Partnership Investment (OpEx)	$13 million	Q1 2025
Client Retention Rate	99%	Per Month, Q2 2025

Client retention remains a strong indicator of channel success, holding steady at 99% per month in Q2 2025.

Finance: finalize the Q3 2025 sales pipeline conversion rate by next Tuesday.

Insperity, Inc. (NSP) - Canvas Business Model: Customer Segments

You're looking at Insperity, Inc.'s core customer base as of late 2025. The company's strategy centers squarely on the B2B market, specifically targeting small and medium-sized businesses (SMBs) in the United States. These are companies that often lack the internal resources or expertise to manage complex human resources administration, compliance, and benefits effectively. The ideal client profile generally includes businesses ranging from 5 to 5,000 employees, businesses experiencing growth, or those facing increasing regulatory pressures.

Insperity, Inc. has nearly 40 years of experience serving this market, aiming to help these businesses succeed so their communities prosper. The scale of their current service commitment is substantial, as reflected in their recent employee metrics. As of the third quarter of 2025, the company supported a significant workforce base.

Metric	Value (as of Q3 2025)
Average Paid Worksite Employees (Q3 2025)	312,842
Year-to-Date Average Paid Worksite Employees (through Q3 2025)	309,327
Verified Companies Using Insperity (as of 2025)	613
Business Leaders Served (Reported)	Over 20,000

The customer base is segmented based on the depth of HR outsourcing and technology needs the client requires. Insperity, Inc. tailors its offerings to meet these distinct points of need, moving prospects along a spectrum of HR maturity. This segmentation is clearly mapped to their rebranded product suite.

Here's how the customer segments align with the specific Insperity, Inc. solutions:

• Businesses seeking a comprehensive people strategy and full HR expertise, including payroll, compliance, and liability management, are targeted by the flagship PEO solution, Insperity HR360.
• Companies ready to upgrade their foundational HR capabilities, needing straightforward yet reliable HR technology and support, are directed toward the Insperity HRCore solution.
• Mid-market companies looking to combine Insperity's PEO services with advanced Human Capital Management (HCM) capabilities are the target for the new joint solution, Insperity HRScale, which is powered by Workday.

Client retention remains a key indicator of segment satisfaction; for instance, retention averaged 99% per month in Q3 2025. You need to watch the adoption rate of HRScale, as it is currently in development with early adopter availability planned for 2026. Finance: draft 13-week cash view by Friday.

Insperity, Inc. (NSP) - Canvas Business Model: Cost Structure

You're managing a business where the largest, most unpredictable costs are tied directly to your clients' health and safety-that's the reality of Insperity, Inc. (NSP)'s cost structure right now. The Professional Employer Organization (PEO) model means a significant portion of revenue is immediately consumed by worksite employee (WSEE) wages and, critically, their benefits.

Benefits costs, covering health and workers' compensation, are the largest and most volatile component. This volatility has been a major theme throughout 2025, forcing management to adjust expectations mid-year. For instance, in the second quarter of 2025, benefits costs overshot the forecast by approximately $12 million, driven heavily by higher specialty pharmacy utilization, like GLP-1 drugs, and increased large claim frequency.

Here's a look at how benefits cost pressure has impacted the key metric of gross profit per WSEE:

Metric	Q2 2024 Value	Q2 2025 Value	Year-over-Year Change
Gross Profit per WSEE (per month)	$282	$240	Down 14%
Benefits Cost per Covered Employee (YoY Increase)	N/A	9.6%	Up 9.6% (Q2)
Full-Year 2025 Benefits Cost Trend Projection	5%-6.5% (Initial)	6.5%-7.5% (Revised)	Upward Revision

The company is actively fighting this trend by implementing higher pricing targets and encouraging clients to migrate to lower-cost plans, but the pressure remains high, with Q3 2025 showing a year-over-year spike in healthcare costs around 9.1%.

Operating expenses are under scrutiny, especially given the strategic technology investments. Insperity, Inc. (NSP) planned for a total investment of approximately $58 million in its strategic partnership with Workday for the full year 2025, up slightly from the $57 million spent in 2024. This investment is for integrating Workday's Human Capital Management (HCM) platform into their service delivery. Interestingly, despite this planned spending, total operating expenses actually decreased by 3% year-over-year in the second quarter of 2025, indicating good control over non-benefits operating costs.

The cost structure also includes significant outlays for human capital and physical infrastructure:

• Payroll and Compensation: This covers the large, dedicated HR service and sales staff necessary to deliver the full-service PEO offering.
• Technology Costs: Beyond the Workday investment, there are ongoing costs for developing and maintaining proprietary platforms and integrating third-party systems.
• General and Administrative (G&A) Expenses: These expenses are tied to maintaining a national footprint, which, as of 2024, included more than 90 sales offices throughout the U.S.. Management did report significant reductions in G&A costs, travel, and professional fees in Q2 2025, suggesting operational discipline outside of benefits.

For the full year 2025, management projected that operating expenses would show an overall reduction compared to 2024, even with the planned spending on the Workday implementation. Finance: draft 13-week cash view by Friday.

Insperity, Inc. (NSP) - Canvas Business Model: Revenue Streams

You're looking to understand exactly where Insperity, Inc. makes its money, which is critical when assessing the stability of their service model, especially given the recent cost pressures they've faced. The revenue streams are heavily concentrated in their core Professional Employer Organization (PEO) services, but other components contribute to the top line.

The sheer scale of Insperity, Inc.'s operations is evident in its top-line figures. The Total Trailing Twelve Month (TTM) revenue is approximately $6.76 billion as of late 2025. To give you a snapshot of recent performance, the revenue for the third quarter of 2025 was reported at $1.7 billion.

The primary driver of this revenue is the PEO service fees, which are generated through a co-employment relationship. Insperity, Inc. utilizes two main calculation models for the administrative service fees charged on top of the client's direct employee costs:

• PEO service fees, typically calculated as a percentage of Worksite Employee (WSEE) gross payroll.
• PEO service fees, calculated as a fixed charge per employee, often quoted as a monthly rate.

For their premium, comprehensive PEO offering, Insperity, Inc. typically charges a premium rate, reportedly falling between $150 and $210 per employee per month (PEPM). Another data point suggests a range of $125-$200 per employee per month, which includes strategic services and benefit purchasing power.

Beyond the core PEO offering (rebranded as Insperity HR360), revenue also comes from non-PEO solutions. The company has rebranded its non-PEO offering as Insperity HRCore, which provides foundational HR technology and support for businesses that do not require the full co-employment model. While the majority of revenue is tied to the PEO structure, these non-PEO Human Capital Management (HCM) services represent a separate, though smaller, revenue stream.

A third, less visible component of revenue is the interest income on client funds. Insperity, Inc. temporarily holds funds related to federal and state income tax withholdings, employment taxes, and other payroll deductions. Historically, expectations for higher interest income have factored into prior-year guidance, indicating this is a recognized, albeit variable, source of revenue.

To put the profitability context around these revenue streams, the Full-year 2025 Adjusted EBITDA is projected between $119 million and $153 million, following a downward revision due to benefits cost headwinds.

Here is a summary of the key financial figures related to the revenue and profitability outlook for the period:

Metric	Value/Range (Late 2025)	Source Context
Total Trailing Twelve Month (TTM) Revenue	$6.76 billion	As of late 2025.
Full-Year 2025 Adjusted EBITDA Projection	$119 million to $153 million	Updated guidance as of early November 2025.
Q3 2025 Reported Revenue	$1.7 billion	Reported for the quarter ended September 30, 2025.
PEO Administrative Fee Range (Premium)	$150-$210 per employee per month (PEPM)	Typical premium pricing for comprehensive service.

If you're modeling out the impact of payroll changes, remember that a percentage-based fee structure means higher employee wages directly increase the administrative fee revenue, even if the service level doesn't change. Finance: draft 13-week cash view by Friday.