INSPERITY Business Summary

Insperity, Inc. (NSP) operates as a premier Professional Employer Organization (PEO), generating revenue through a co-employment model where it collects service fees and markups on "Worksite Employees" (WSEEs) in exchange for managing payroll, benefits, and risk compliance. The company’s primary business segments are Workforce Optimization, its flagship full-service PEO offering, and Workforce Acceleration, a traditional human capital management (HCM) solution. As of March 2026, Insperity is aggressively scaling "HRScale," a strategic joint venture with Workday designed to capture the mid-market segment by integrating enterprise-grade software with high-touch HR consultancy. Positioned as a premium provider, Insperity competes directly with ADP TotalSource, Paychex, TriNet, and Justworks, distinguishing itself through a "category of one" service model that prioritizes deep administrative relief and long-term client performance over low-cost, tech-only platforms. The leadership team is anchored by Co-founder Paul J. Sarvadi, who has served as Chairman and CEO since 1989 and was a pioneer in the regulatory development of the PEO industry. The executive suite includes President and COO A. Steve Arizpe, a veteran who has overseen operational strategy since 1989, and EVP of Finance and CFO James D. Allison, who was promoted to the role in late 2023 to lead the company’s 2026 margin recovery and capital allocation initiatives. Technology and product innovation are directed by Samuel G. Larson, SVP of Innovative Technology Solutions. The company’s strategic direction is further influenced by a board that includes representation from activist investor Starboard Value LP, which secured seats in 2024 to drive operational efficiencies and enhance shareholder value following a period of healthcare-related margin volatility.