TNET
TriNet Group, Inc.60.69
+0.58+0.97%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Pricing catch-up complete, sales momentum builds.
Q&A confirmed the pricing catch-up cycle wrapped with January's final major true-up, setting up normalized April renewals and improving retention as price complaints fade in surveys. Brokers fueled outsized January sales and pipeline strength, pairing with tenured rep growth and Ascend hires for capacity expansion. ASO growth pivots to new sales post-HRIS conversions, targeting double digits. Management positioned health pricing competitively versus peers, with ICR range tightened 50bps on actuarial gains. Catch-up pricing is done. Analysts' retention and WSE worries drew direct responses highlighting service gains and record NPS. Investors will eye sales durability amid muted CIE.
Key Stats
Market Cap
2.95BP/E (TTM)
22.07Basic EPS (TTM)
2.75Dividend Yield
0.02%Recent Filings
8-K
8-K
Q4 results, 2026 guidance
TriNet reported Q4 2025 revenues down 2% to $1.2B, with full-year total at $5.0B versus prior year, amid 5% drop in average WSEs to 334,000. Yet free cash flow surged 16% to $234M, fueling over $200M returned to shareholders. Board boosted repurchase authorization to $400M. 2026 guidance eyes $4.75B-$4.9B revenues, Adjusted EBITDA margin 7.5%-8.7%.
10-K
FY2025 results
TriNet's FY2025 revenues dipped 1% to $5.0B amid 10% WSE decline to 323k, driven by repricing attrition in tech and professional services, yet rate hikes lifted monthly revenue per WSE 8%. Insurance cost ratio edged to 91% as health claims outpaced ISR growth, fueled by specialty drugs and outpatient hikes, trimming net income 10% to $155M ($3.20 diluted EPS). Q4 buybacks tallied $61M from $182M annual total, with $68M authorized remaining; revolver cleared to $0. WSEs fell sequentially, but expense discipline cut OE 7%. SMB hiring stayed tepid. Unexpected workers' comp and health claims spikes threaten ICR momentum.
10-Q
Q3 FY2025 results
TriNet's Q3 revenues dipped 2% y/y to $1.2B, driven by a 6% drop in average WSEs to 335,235 amid declines in technology and professional services verticals, yet insurance cost ratio held steady at 90%. Net income fell 24% y/y to $34M with diluted EPS at $0.70, reflecting lower volumes but offset by 2% cheaper operating expenses from headcount cuts. Year-to-date, revenues stayed flat at $3.8B while net income slid 20% to $156M, pressured by a 2% ICR rise from higher pharmacy costs for diabetes and obesity drugs. Cash from operations climbed 13% to $242M, bolstering $321M in unrestricted cash after paying off the $700M revolver; total debt sits at $895M via fixed-rate notes maturing 2029 and 2031. Restructuring costs hit $5M YTD as the firm sharpens focus on core PEO by winding down HRIS software. Still, client attrition outpaces additions.
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