Insperity lifts adjusted operating profit 210% to $31 million in third quarter
Key Facts
Insperity said adjusted earnings before interest, taxes, depreciation and amortization rose 210% to $31 million in the third quarter of 2026, while its net loss narrowed 95% to $1 million. Adjusted earnings per share were $0.22, according to the results statement the company issued on October 29. The improvement came as gross profit rose 6% to $207 million, despite a decline in average paid worksite employees. The company scheduled a discussion of its results and updated full-year outlook for October 29 at 7:30 a.m. Central time. Atomera, meanwhile, reported a net loss of $6 million for the quarter on the same day, giving the two companies’ results a contrasting picture of their profitability trajectories.
Insperity’s quarterly revenue rose 2% to $1.7 billion, supported by a 4% increase in revenue per worksite employee as a result of higher pricing, which partially offset a 2% decline in average paid worksite employees to 307,265. Gross profit per worksite employee rose 8% to $225 per month compared with the third quarter of 2025. The chief financial officer said this marked an improvement from a 1% year-over-year decline in the second quarter, and linked it to the company’s pricing and client-retention strategy. Operating expenses also fell 5% to $209 million, which the company attributed mainly to lower compensation costs after reducing its workforce. The figures combine improved returns per employee with a smaller base of paid employees, alongside support from lower expenses.
Insperity Chief Executive Paul Sarvadi said artificial intelligence "could boost demand for the comprehensive human resources solutions the company provides." The company provides human resources services to small and midsize businesses, according to its statement. For the fourth quarter of 2026, Insperity forecast adjusted earnings per share of $0.07 to $0.42 and adjusted earnings before interest, taxes, depreciation and amortization of $24 million to $44 million. For fiscal 2026, it expects adjusted earnings per share of $1.93 to $2.28 and adjusted earnings before interest, taxes, depreciation and amortization of $194 million to $214 million. These ranges set out the company’s measure for the coming period after the improvement in adjusted profitability it recorded in the third quarter.
Atomera, by contrast, reported a net loss of $6 million, or $0.15 per share, compared with a loss of $5.6 million, or $0.17 per share, in the third quarter of 2025. Its adjusted earnings before interest, taxes, depreciation and amortization loss was $4.6 million, versus $4.4 million a year earlier. The comparison shows a lower loss per share, but wider net and adjusted earnings losses on a year-over-year basis. In the second quarter, the company reported a net loss of $6.3 million and an adjusted earnings before interest, taxes, depreciation and amortization loss of $5 million. Atomera held a webcast on October 29 at 5 p.m. Eastern time to discuss the results and its progress.
Atomera reported that cash and cash equivalents and short-term investments totaled $34.8 million on September 30, 2026, compared with $19.2 million on December 31, 2025. In the second quarter, the balance was $38.4 million on June 30, meaning it fell between the end of June and the end of September while remaining above its level at the end of the previous year. On commercial development, the company increased its number of customer engagements in gate-all-around technology to three and signed a joint development agreement with IQE to develop RF GaN-on-silicon solutions. Its chief executive said the company expanded its engagements in the advanced logic and memory sectors, where "artificial intelligence is increasing the need for higher transistor performance." The company links this expansion of its technology opportunities to demand for higher performance in semiconductors.
Against the backdrop of the results, U.S. real gross domestic product grew at an annual rate of 3.4% in the third quarter of 2026, after growth of 2.2% in the second quarter, according to the U.S. Bureau of Economic Analysis’ advance estimate. Increases in investment and consumer and government spending contributed to growth, while a decline in exports partly offset them. Atomera shares closed at $3.31 and Insperity shares at $46.29 on October 29. Pre-market data that day had shown Insperity shares falling 13.07% to $44.90, compared with a previous close of $51.65, despite earnings and revenue beating expectations. The bureau set November 25, 2026, as the date for its next GDP estimate.