Insperity's second quarter revenue and EPS beat estimates despite a 1% decline in paid worksite employees.

Insperity reported second quarter revenue of $1.69 billion, a 2% year-over-year increase, with diluted EPS of $0.10, improving from a loss of $0.14 in the prior-year period. Both figures exceeded analyst expectations. The growth was driven by a 3% increase in revenue per worksite employee, which offset a slight decline in the total number of employees paid.

Key Highlights

• Diluted EPS of $0.10 significantly beat analyst estimates of a $0.03 loss per share, driven by successful margin recovery initiatives.
• The average number of paid worksite employees (WSEEs) declined 1% year-over-year to 305,764, missing the consensus estimate of 314,500.
• Operating expenses decreased 8% to $211 million, contributing to the profit beat as the company focused on cost management.