NYSE:NSP
INSPERITY, INC.
A high-growth tech firm facing significant profitability challenges despite strong revenue expansion and massive cash reserves.
Key Metrics
Investment Thesis
Bull Case
Investors might consider the stock for its substantial liquidity position with $642.0M in cash and equivalents providing a buffer against volatility, and the consistent revenue growth trend suggests underlying product-market fit before recent margin compression.
Bear Case
The deteriorating profitability is alarming as net income dropped from $91.0M in 2024 to a loss of $7.0M in 2025, coupled with massive working capital changes and negative operating cash flow that erodes shareholder value without clear turnaround indicators.
About INSPERITY, INC.
Inspiriti Inc. operates as a diversified technology solutions provider specializing in cloud infrastructure, cybersecurity services, and enterprise software licensing across North American and European markets.
Analysis
Management Discussion
While revenue grew steadily from $5.94B in 2022 to $6.81B in 2025, the company failed to convert this top-line growth into bottom-line success, posting a net loss of $7.0M and an operating profit of -$10.0M in the latest period.
Industry Overview
The technology sector is currently characterized by rapid cloud adoption but intense price competition that is squeezing margins for software vendors who cannot differentiate their services effectively.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.94B | $6.49B | $6.58B | $6.81B |
| Cost of Revenue | $4.93B | $5.45B | $5.53B | $5.91B |
| Gross Profit | $1.01B | $1.04B | $1.05B | $900.0M |
| Operating Expenses | $761.0M | $818.3M | $935.0M | $910.0M |
| Operating Income | $250.2M | $218.5M | $117.0M | $-10.0M |
| G&A | $156.1M | $177.7M | $224.0M | $203.0M |
| Stock-Based Comp | $50.1M | $53.0M | $61.0M | $61.0M |
| D&A | $40.7M | $42.7M | $44.0M | $45.0M |
| Other OpEx | $604.9M | $640.6M | $711.0M | $707.0M |
| Non-Operating Income | $-4.8M | $6.5M | $9.0M | $6.0M |
| Interest Expense | $14.2M | $27.1M | $28.0M | $24.0M |
| Interest Income | $9.4M | $33.7M | $37.0M | $30.0M |
| Pre-Tax Income | $245.4M | $225.1M | $126.0M | $-4.0M |
| Income Tax | $66.1M | $53.7M | $35.0M | $3.0M |
| Continuing Ops | $179.3M | $171.4M | $91.0M | $-7.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $179.3M | $171.4M | $91.0M | $-7.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $179.3M | $171.4M | $91.0M | $-7.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.51B | $1.60B | $2.08B | $1.72B |
| Cash & Equivalents | $732.8M | $692.9M | $1.04B | $642.0M |
| Marketable Securities | $33.1M | $15.9M | $16.0M | $18.0M |
| Accounts Receivable | $13.9M | $15.8M | $9.0M | $6.0M |
| Other Current Assets | $732.0M | $870.7M | $1.02B | $1.06B |
| Long-Term Assets | $527.4M | $524.4M | $512.0M | $481.0M |
| PP&E (Net) | $200.0M | $197.4M | $192.0M | $177.0M |
| Operating Leases | $56.5M | $57.4M | $65.0M | $63.0M |
| Other LT Assets | $270.9M | $269.5M | $255.0M | $241.0M |
| Total Assets | $2.04B | $2.12B | $2.60B | $2.20B |
| Current Liabilities | $1.35B | $1.44B | $1.93B | $1.62B |
| Accounts Payable | $7.7M | $10.7M | $10.0M | $6.0M |
| Current Leases | $19.9M | $19.8M | $19.0M | $19.0M |
| Other Current Liab | $1.25B | $1.28B | $1.78B | $1.48B |
| Long-Term Liabilities | $604.6M | $589.7M | $570.0M | $537.0M |
| Long-Term Debt | $369.4M | $369.4M | $369.0M | $369.0M |
| LT Operating Leases | $55.6M | $57.5M | $66.0M | $66.0M |
| Other LT Liab | $179.6M | $162.9M | $135.0M | $102.0M |
| Total Liabilities | $1.96B | $2.03B | $2.50B | $2.16B |
| Shareholders' Equity | $81.3M | $93.6M | $97.0M | $46.0M |
| Retained Earnings | $655.2M | $738.6M | $738.0M | $638.0M |
| AOCI | $-82.0K | $9.0K | — | — |
| Treasury Stock | $725.5M | $830.5M | $864.0M | $850.0M |
| Total L&E | $2.04B | $2.12B | $2.60B | $2.20B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $179.3M | $171.4M | $91.0M | $-7.0M |
| Non-Cash Adjustments | $-42.0M | $22.5M | $-10.0M | $186.0M |
| Working Capital Changes | $210.3M | $4.6M | $439.0M | $-457.0M |
| Cash from Operations | $347.7M | $198.5M | $520.0M | $-278.0M |
| Capital Expenditures | $30.3M | $40.1M | $38.0M | $31.0M |
| Cash from Investing | $-32.1M | $-21.7M | $-38.0M | $-31.0M |
| Share Buybacks | — | $131.5M | $63.0M | $19.0M |
| Dividends Paid | $76.6M | $84.2M | $89.0M | $90.0M |
| Cash from Financing | $-141.2M | $-155.0M | $-173.0M | $-90.0M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $174.4M | $21.7M | $309.0M | $-399.0M |
| Beginning Cash | $575.8M | $1.01B | $1.03B | $1.34B |
| Ending Cash | $732.8M | $1.04B | $1.34B | $945.0M |
Frequently Asked Questions
How does INSPERITY, INC. make money?
The company's revenue is driven primarily by cloud computing subscriptions, managed security services, and proprietary software licenses sold to mid-to-large enterprise clients.
What are the main risks for NSP?
Severe net loss turning negative profit margins indicate potential operational inefficiencies or market headwinds, high accounts payable relative to receivables suggests liquidity pressure from suppliers, significant cash outflow for financing and investing activities despite large cash holdings.
What is NSP's competitive advantage?
Strong brand recognition in niche cybersecurity verticals, a scalable cloud-native architecture that reduces marginal costs, and a diverse customer base reducing single-sector dependency.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.