Shares of Insperity (NSP), a leading human resources and business performance solutions provider, plunged 5.51% in pre-market trading on Friday following the release of disappointing second-quarter results and reduced full-year guidance.

The company reported a significant drop in its Q2 2025 adjusted earnings per share (EPS) to $0.26, down from $0.86 in the same period last year and well below the analyst estimate of $0.41. Revenue for the quarter came in at $1.66 billion, slightly missing the expected $1.662 billion. More alarmingly, Insperity posted a net loss of $5 million for the quarter, with gross profit declining from $260 million in Q2 2024 to $223 million in Q2 2025.

Adding to investor concerns, Insperity lowered its full-year 2025 adjusted EPS guidance to a range of $1.81 to $2.51, down from the previous forecast of $2.23 to $3.28. The company cited higher-than-expected benefits costs, driven by elevated pharmacy trends and large claim activities, as the primary reason for the decrease in gross profit. The outlook for Q3 is also less optimistic, with adjusted EPS projected between $0.06 and $0.49, below the analyst consensus of $0.31. These factors combined have led to the sharp sell-off in Insperity's stock, as investors reassess the company's near-term growth prospects and profitability.