Insperity Inc (NSP) 2025 Q2 法說會逐字稿

Good morning. My name is Tom, and I will be your conference operator today. I would like to welcome everyone to the Insperity second quarter 2025 earnings conference call.

早安.我叫湯姆，今天我將擔任你們的會議主持人。歡迎大家參加 Insperity 2025 年第二季財報電話會議。

(Operator Instructions) At this time, I would like to introduce today's speakers. Joining us are Paul Sarvadi, Chairman of the Board and Chief Executive Officer; and Jim Allison, Executive Vice President of Finance, Chief Financial Officer and Treasurer.

（操作員指示）現在，我想介紹今天的演講者。與我們一同出席的還有董事會主席兼執行長 Paul Sarvadi 和財務執行副總裁、財務長兼財務主管 Jim Allison。

At this time, I'd like to turn the call over to Jim Allison. Mr. Allison, please go ahead.

現在，我想把電話轉給吉姆艾利森。艾利森先生，請繼續。

Thank you. We appreciate you joining us today. Let me begin by outlining our plan for this morning's call. First, I'm going to discuss the details behind our second quarter 2025 financial results. Paul will then comment on our second quarter results, the ongoing implementation of our Workday strategic partnership and our outlook for accelerated growth and improved profitability in 2026.

謝謝。感謝您今天加入我們。首先，我概述一下我們今天上午的電話會議計劃。首先，我將討論我們 2025 年第二季財務表現背後的細節。隨後，保羅將對我們的第二季度業績、Workday 戰略合作夥伴關係的持續實施以及我們對 2026 年加速增長和盈利能力提高的展望發表評論。

I will return to provide our financial guidance for the third quarter and full year 2025. We will then end the call with a question-and-answer session. Before we begin, I would like to remind you that Paul or I may make forward-looking statements during today's call, which are subject to risks, uncertainties and assumptions. In addition, some of our discussion may include non-GAAP financial measures.

我將回來提供 2025 年第三季和全年的財務指導。然後我們將以問答環節結束通話。在我們開始之前，我想提醒您，保羅或我可能會在今天的電話會議中做出前瞻性陳述，這些陳述受風險、不確定性和假設的影響。此外，我們的一些討論可能包括非公認會計準則財務指標。

For a more detailed discussion of the risks and uncertainties that could cause actual results to differ materially from such forward-looking statements and reconciliations of non-GAAP financial measures to their comparable GAAP measures, please see the company's public filings, including the Form 8-K filed today, which are available on our website.

有關可能導致實際結果與此類前瞻性陳述存在重大差異的風險和不確定性的更詳細討論，以及非 GAAP 財務指標與可比較 GAAP 指標的調節，請參閱公司的公開文件，包括今天提交的 8-K 表格，這些文件可在我們的網站上找到。

This morning, we reported second quarter EPS of $0.26 and adjusted EBITDA of $32 million. These results fell slightly under the low end of our forecasted range by $0.03 per share and $1 million, respectively, primarily due to a continuation of higher-than-expected benefits costs. I will provide additional details in just a minute. Our unit growth was within our forecasted range with an average number of paid worksite employees increasing 0.7% over Q2 of 2024 to 309,115.

今天上午，我們報告第二季度每股收益為 0.26 美元，調整後息稅折舊攤提前利潤為 3,200 萬美元。這些結果分別略低於我們預測範圍的低端 0.03 美元/股和 100 萬美元，主要原因是福利成本持續高於預期。我將在稍後提供更多詳細資訊。我們的單位成長在預測範圍內，平均有薪工作現場員工數量比 2024 年第二季增加 0.7%，達到 309,115 人。

Our sales force demonstrated resiliency and solid productivity in a market that continued to face many economic uncertainties. Worksite employees paid from new sales increased by 2% over Q2 of 2024, reflecting an increase in sales efficiency from a team that is smaller and more tenured than it was a year ago. Our client renewals and service teams collaborated well to produce strong client retention, averaging 99% per month and in line with our prior year results.

在持續面臨諸多經濟不確定性的市場中，我們的銷售團隊展現了韌性和穩健的生產力。與 2024 年第二季相比，新銷售支付的現場員工薪資增加了 2%，這反映出與一年前相比，團隊規模更小、任職時間更長，從而提高了銷售效率。我們的客戶續約和服務團隊合作良好，實現了強勁的客戶保留率，平均每月 99%，與我們去年的業績一致。

Net hiring within the client base showed some improvement throughout the quarter, slightly exceeding both our expectations and Q2 2024 levels, but remaining well below historical norms. Gross profit per worksite employee in Q2 2025 was $240 per month, down from $282 in Q2 of 2024. You may recall that Q2 2024 results were positively impacted by favorable development of health care claims, which had totaled $25 million.

整個季度，客戶群內的淨招聘情況有所改善，略微超過我們的預期和 2024 年第二季度的水平，但仍遠低於歷史正常水平。2025 年第二季每位工作現場員工的毛利為每月 240 美元，低於 2024 年第二季的 282 美元。您可能還記得，2024 年第二季的業績受到醫療保健索賠的有利發展的正面影響，總額達到 2,500 萬美元。

In contrast, benefits costs in Q2 2025 continued to trend negatively, exceeding our forecast by $12 million. Of this amount, $8 million related to higher-than-expected pharmacy costs, driven by higher utilization of specialty drugs such as the GLP-1s and a related acceleration in the unit cost of pharmacy on a per script basis due to a change in the mix of prescriptions towards higher-cost drugs.

相較之下，2025 年第二季的福利成本持續呈現負趨勢，超過我們的預測 1,200 萬美元。其中，800 萬美元與高於預期的藥房成本有關，這是由於 GLP-1 等特種藥物的使用率提高，以及由於處方結構向高成本藥物轉變，導致每張處方的藥房單位成本相應增加。

The remaining $4 million was primarily attributable to a modest increase in incurred but not reported claims that we expect to pay in the future based on recent claims payment patterns. We have not seen further deterioration in claim development related to older periods like we did in Q1, and we have seen some indications that the previously discussed acceleration in inpatient and outpatient service utilization has moderated somewhat but remains elevated.

剩餘的 400 萬美元主要歸因於已發生但未報告的索賠略有增加，根據最近的索賠支付模式，我們預計未來將支付這些索賠。我們沒有看到與第一季一樣與較早時期相關的索賠發展進一步惡化，並且我們已經看到一些跡象表明，之前討論的住院和門診服務利用率的加速有所緩和，但仍然很高。

We did see large claim frequency continue at an elevated level with cancer and heart-related conditions showing the largest year-over-year increases. However, we have not seen signs of adverse selection among new clients as that large claim activity remains in a normal historical range. As reported, benefits cost per covered employee increased 9.6% year-over-year in Q2 and by 9% on a year-to-date basis. These results are skewed somewhat higher by the timing of recording favorable claims experience in the 2024 period and unfavorable claims experience in the 2025 period.

我們確實看到索賠頻率持續處於較高水平，其中癌症和心臟相關疾病的索賠頻率同比增長幅度最大。然而，我們並未看到新客戶出現逆向選擇的跡象，因為大額索賠活動仍處於正常的歷史範圍內。據報道，第二季每位受保員工的福利成本年增 9.6%，年初至今成長 9%。由於 2024 年期間記錄了有利的索賠經驗，而 2025 年期間記錄了不利的索賠經驗，因此這些結果的偏差略有增加。

But the fact remains that benefits costs continue to trend at a higher year-over-year rate, even slightly higher than the top end of our prior forecasted range. While this higher benefits cost trend has significantly impacted our earnings in 2025, we are executing plans designed to drive significant profitability improvement in 2026 through a careful combination of pricing increases, plan design changes and the negotiation of the anticipated renewal of our contract with UHC.

但事實是，福利成本繼續以較高的同比速度成長，甚至略高於我們先前預測範圍的最高值。雖然這種福利成本上升的趨勢對我們 2025 年的收益產生了重大影響，但我們正在實施計劃，旨在透過謹慎結合價格上漲、計劃設計變更以及與 UHC 就預期續約合約進行談判，在 2026 年大幅提高盈利能力。

As to pricing, we have and continue to implement higher pricing targets for both new and renewing business in a strategic and methodical way as we discussed in our Q1 call. We have been putting those bids out for a few months now, and our renewal discussions with clients do not appear to have changed in any meaningful way. We expect that the impact of these pricing measures will start to accumulate during the second half of this year and continue into 2026.

至於定價，正如我們在第一季電話會議上所討論的那樣，我們已經並將繼續以策略性和有條不紊的方式為新業務和續約業務實施更高的定價目標。我們已經提出這些投標幾個月了，我們與客戶的續約討論似乎沒有任何實質性的變化。我們預計這些定價措施的影響將在今年下半年開始累積，並持續到2026年。

As expected, we continue to see clients and plan participants migrate to lower cost plan options, which is a normal response to help offset the impact of higher prices. Plan migration has historically helped to mitigate the impact of higher cost trends over time.

正如預期的那樣，我們繼續看到客戶和計劃參與者轉向成本較低的計劃選項，這是幫助抵消價格上漲影響的正常反應。從歷史上看，計劃遷移有助於減輕成本隨時間推移上升趨勢的影響。

In addition, we have determined and are in the process of implementing benefit plan design changes effective January 2026 that are designed to further mitigate future cost trend and maintain our planned competitiveness in the marketplace. Our contract extension discussions with UHC are ongoing and addressing the elevated pharmacy cost trends and the expanding use of specialty drugs is a high priority. As we execute this plan, a key takeaway is that the challenges we are facing are not unique to Insperity, and we believe that the approach we are taking to address them are commonplace to address current market conditions.

此外，我們已確定並正在實施福利計劃設計變更，該變更將於 2026 年 1 月生效，旨在進一步緩解未來的成本趨勢並保持我們在市場上的計劃競爭力。我們與 UHC 的合約延期討論正在進行中，解決藥品成本上升趨勢和擴大特種藥物的使用是當務之急。在執行該計劃時，我們認識到一個關鍵點：我們所面臨的挑戰並非 Insperity 獨有，我們相信，我們採取的應對這些挑戰的方法是應對當前市場狀況的常見方法。

Operating expense management continues to be a keen area of focus, and we have seen a company-wide alignment and execution that continued to successfully manage operating expenses below budget across all expense categories while continuing to invest in our strategic priorities. On a year-over-year basis, operating expenses decreased by 3% with the most significant reductions in travel, professional fees and other G&A costs. During the second quarter, we invested $14 million in our Workday strategic partnership, which was consistent with Q2 of 2024.

營運費用管理仍然是我們關注的重點領域，我們看到全公司範圍內的協調和執行，繼續成功地將所有費用類別的營運費用管理在預算以下，同時繼續投資於我們的策略重點。與去年同期相比，營運費用下降了 3%，其中差旅費、專業費用和其他一般及行政費用的降幅最大。第二季度，我們向 Workday 策略夥伴關係投資了 1,400 萬美元，與 2024 年第二季持平。

Our effective tax rate was impacted by the amount of nondeductible expenses as a proportion of pretax income. During the second quarter, we continued to return capital to our shareholders through a regular dividend program, paying $22 million in cash dividends. On a year-to-date basis, we have paid cash dividends of $45 million and repurchased 224,000 shares of stock at a cost of $19 million. We ended the quarter with $114 million of adjusted cash, and we had $280 million available under our credit facility.

我們的有效稅率受到不可扣除費用佔稅前所得比例的影響。第二季度，我們繼續透過定期股利計畫向股東返還資本，支付了 2,200 萬美元的現金股利。年初至今，我們已支付現金股利 4,500 萬美元，並以 1,900 萬美元的成本回購了 224,000 股股票。本季末，我們的調整後現金為 1.14 億美元，並且我們的信貸額度下有 2.8 億美元可用。

Now at this time, I'd like to turn the call over to Paul.

現在，我想把電話轉給保羅。

Thank you, Jim, and thank you all for joining our call. Despite our reported Q2 results and the lower guidance for this year, we remain confident in our outlook for accelerated growth and improved profitability in 2026. This is due to several reasons I'll cover today, starting with the growth momentum recently achieved and the drivers we expect to continue growth acceleration over the balance of the year and into 2026.

謝謝你，吉姆，也謝謝大家參加我們的電話會議。儘管我們公佈了第二季業績並降低了今年的預期，但我們仍然對 2026 年加速成長和獲利能力提高的前景充滿信心。這是由於我今天要討論的幾個原因，首先是最近實現的成長勢頭，以及我們預計在今年餘下時間和 2026 年繼續加速成長的驅動因素。

I'll also cover our updated HR solution portfolio announced yesterday and our excellent progress on Insperity HRScale, our new joint offering being developed through our strategic partnership with Workday. I'll finish with the robust plan we are executing over the balance of the year and continuing into next year, leading to our positive outlook.

我還將介紹我們昨天宣布的更新後的人力資源解決方案組合，以及我們在 Insperity HRScale 方面取得的出色進展，這是我們透過與 Workday 的策略合作而開發的全新聯合產品。最後，我將介紹我們在今年餘下時間裡正在執行的、並將持續到明年的強有力的計劃，這將為我們帶來積極的前景。

The highlight of the first half of 2025 is the resilience, agility and focus on sales and retention amid a complex and shifting market landscape. We successfully addressed the evolving uncertainty experienced by small- and medium-sized businesses resulting from macroeconomic tariff and policy developments in the first half of the year and challenges from -- stemming from specific insurance carrier publicity issues in Q2.

2025 年上半年的亮點是在複雜多變的市場環境中保持韌性、敏捷性以及對銷售和保留的關注。我們成功應對了上半年宏觀經濟關稅和政策發展對中小企業帶來的不確定性，以及第二季特定保險公司宣傳問題帶來的挑戰。

Even though year-over-year growth in paid worksite employees was 0.7% in each of the first two quarters, an underlying increase of more than 3% occurred from the low point in February through the end of July. All three growth drivers, including sales, client retention and net hiring with the existing client base contributed to this growth acceleration and were stronger than last year.

儘管前兩季帶薪工作員工數量年增 0.7%，但從 2 月的低點到 7 月底，基本成長率超過 3%。銷售額、客戶留任率和現有客戶群的淨招募等三大成長動力都促進了這一成長加速，並且比去年更加強勁。

Booked sales also showed relative strength in the face of some significant headwinds, which we accomplished with 11% fewer trained Business Performance Advisors, selling a slightly greater number of worksite employees than in the same period last year. This sales efficiency improvement of 13% in Q2 validated the sales organization changes put in place early in the year and is encouraging as we approach the fall selling season.

面對一些重大阻力，訂單銷售額也表現出相對強勁的勢頭，儘管我們訓練有素的業務績效顧問減少了 11%，但銷售的現場員工數量卻比去年同期略有增加。第二季銷售效率提高了 13%，驗證了年初實施的銷售組織變革，隨著秋季銷售季節的臨近，這一成績令人鼓舞。

A key driver of these booked sales results in the quarter was our successful marketing programs that achieved our qualified lead goal and converted a solid number of leads into discovery calls and opportunities to bid for our Business Performance Advisors. Our marketing team also completed our new product architecture and updated our HR solutions portfolio to rebrand our flagship PEO service as Insperity HR 360, our traditional employment solution as Insperity HR Core and working with our strategic partner, Workday to name our joint solution appropriately Insperity HRScale.

本季取得這些預定銷售業績的一個關鍵驅動因素是我們成功的行銷計劃，該計劃實現了我們的合格潛在客戶目標，並將大量潛在客戶轉化為發現電話和競標我們業務績效顧問的機會。我們的行銷團隊也完成了新的產品架構，並更新了人力資源解決方案組合，將我們的旗艦 PEO 服務重新命名為 Insperity HR 360，將我們的傳統就業解決方案重新命名為 Insperity HR Core，並與我們的戰略合作夥伴 Workday 合作，將我們的聯合解決方案恰當地命名為 Insperity HRScale。

Each solution is tailored to address specific aspects of human resource management, offering unrivaled comprehensive support for businesses at every stage of growth and development. Together, these three premium HR solutions expand the total addressable market of SMBs and employees that can be served by Insperity. Our portfolio of add-on products is dedicated to solving complex challenges for these companies and improving the lives of business owners and their employees.

每個解決方案都針對人力資源管理的特定方面進行定制，為企業在成長和發展的每個階段提供無與倫比的全面支援。這三種優質人力資源解決方案共同擴大了 Insperity 可以服務的中小企業和員工的整體目標市場。我們的附加產品組合致力於解決這些公司面臨的複雜挑戰，並改善企業主及其員工的生活。

Over time, we believe that offering solutions to these clients such as our recent addition of Insperity Contractor Management powered by Wingspan and to eligible employees such as our Insperity Perks-plus program may add significant revenue streams to the company or increase the stickiness of our solutions. Now I would like to focus on Insperity HRScale and the excellent progress we have made on the way to bringing this unique solution to the marketplace.

隨著時間的推移，我們相信，為這些客戶提供解決方案（例如我們最近添加的由 Wingspan 提供支援的 Insperity Contractor Management）以及為符合條件的員工提供解決方案（例如我們的 Insperity Perks-plus 計劃）可能會為公司增加可觀的收入來源或提高我們解決方案的黏性。現在我想重點介紹 Insperity HRScale 以及我們在將這項獨特解決方案推向市場的過程中所取得的卓越進展。

The four defined pillars of our work in the strategic partnership have included our Insperity corporate tenant, our exclusive PEO client tenant, our deployment and enablement services and our joint go-to-market plan. Our corporate tenant was successfully launched earlier this year and important milestones were achieved in all three of our remaining major initiatives in the second quarter.

我們在策略合作夥伴關係中工作的四大支柱包括我們的 Insperity 企業租戶、我們的獨家 PEO 客戶租戶、我們的部署和支援服務以及我們的共同上市計劃。我們的企業租戶已於今年稍早成功推出，並且我們其餘三個主要計劃均在第二季度取得了重要里程碑。

Our exclusive PEO client tenant is the major project deliverable, embedding Workday Human Capital Management as the client-facing technology into the Insperity 360 comprehensive HR service and technology platform to create Insperity HRScale. We are pleased to announce today that a detailed work and testing plan developed and agreed upon by both Workday and Insperity teams have established a target go-live date for Insperity HRScale beta clients early next year. This is an important step and our enablement and deployment team is ready to work with the selected beta clients for the ramp-up to the anticipated go-live date.

我們的獨家 PEO 客戶租戶是主要的專案可交付成果，將 Workday Human Capital Management 作為面向客戶的技術嵌入到 Insperity 360 綜合人力資源服務和技術平台中，以建立 Insperity HRScale。我們今天很高興地宣布，Workday 和 Insperity 團隊制定並同意的詳細工作和測試計劃已確定了明年年初 Insperity HRScale 測試客戶端的目標上線日期。這是重要的一步，我們的支援和部署團隊已準備好與選定的測試客戶合作，以便在預期的上線日期之前完成工作。

Although this plan is detailed, precise and very well thought out, there are remaining risks that could cause the date to move out a bit further. But in any event, we have a direct line of sight to launch Insperity HRScale. We have agreed on a plan for the beta clients. We are actively working to define a time line for a number of new clients and an additional group of current Insperity clients to become Insperity HRScale clients later in 2026.

儘管該計劃詳細、精確且經過深思熟慮，但仍存在一些風險，可能會導致日期稍微推遲。但無論如何，我們都直接關注 Insperity HRScale 的推出。我們已經就測試版客戶端的計畫達成一致。我們正在積極努力製定時間表，以便一些新客戶和另外一批現有 Insperity 客戶在 2026 年稍後成為 Insperity HRScale 客戶。

I mentioned last quarter the completion of the go-to-market plan for HRScale with Workday. Senior leadership and other key personnel from both companies agreed upon a plan and methodology to take our joint solution to the market together. We are aligned on the target market, the product name, messaging and competitive positioning, the sales motion and most importantly, we formed a new pod or a product-oriented delivery team focused on achieving the objectives set by the leadership of both companies. We achieved our goal of establishing this team in Q2 and began co-selling discovery calls with target prospects in July.

我上個季度提到與 Workday 合作完成 HRScale 的上市計劃。兩家公司的高層領導和其他關鍵人員就共同將我們的聯合解決方案推向市場的計劃和方法達成了一致。我們在目標市場、產品名稱、訊息傳遞和競爭定位、銷售動議方面保持一致，最重要的是，我們組建了一個新的小組或以產品為導向的交付團隊，專注於實現兩家公司領導層設定的目標。我們在第二季實現了建立團隊的目標，並於 7 月開始與目標潛在客戶共同銷售發現電話。

This team is focused on identifying suitable early adopter candidates, refining the appropriate sales motion and selling the first new Insperity HRScale clients. Obviously, this effort has just begun. However, in our view, it's off to a very exciting start. The receptivity by prospects of the investment and commitment of Insperity and Workday to a strategic partnership focused on this underserved target market has been strong and encouraging. Our market research has shown conceptual buy-in by mid-market companies to Insperity HRScale, which is designed to focus on affordability, ease and speed of deployment, reducing complexity and agility as companies scale.

該團隊專注於尋找合適的早期採用者候選人、完善適當的銷售動議並銷售第一批新的 Insperity HRScale 客戶。顯然，這項努力才剛開始。然而，我們認為這是一個非常令人興奮的開始。Insperity 和 Workday 針對這項服務不足的目標市場進行策略合作的投資和承諾得到了廣泛而積極的認可。我們的市場調查顯示，中型市場公司對 Insperity HRScale 的概念認同，該產品的設計重點是可負擔性、部署的簡易性和速度，從而隨著公司規模的擴大而降低複雜性和靈活性。

One of the most exciting milestones achieved recently is the completion of the Insperity HRScale pricing strategy provided by a leading consultancy firm based upon extensive market research. These results affirmed the target market's intense need for both HR services and technology and validating the premium product fit of Insperity HRScale. This research specifically identified how components of Insperity HRScale are valued by the target market and determined their willingness to pay at various levels. The research supports HRScale premium pricing potential compared to historical HR360 pricing for mid-market accounts.

最近取得的最令人興奮的里程碑之一是完成了由領先的顧問公司基於廣泛的市場研究提供的 Insperity HRScale 定價策略。這些結果證實了目標市場對人力資源服務和技術的強烈需求，並驗證了 Insperity HRScale 的高階產品定位。這項研究具體確定了目標市場如何評估 Insperity HRScale 的各個組成部分，並確定了他們在各個層面的支付意願。與中端市場帳戶的歷史 HR360 定價相比，該研究支持 HRScale 溢價定價潛力。

This has provided what we need to establish our initial pricing framework, including upfront deployment and enablement fees, ongoing monthly HR service and technology support fees at the level exceeding our expectation, yet within the value range that we believe the target market is willing and expecting to pay. This also provided valuable information to determine a pricing road map to align with the Insperity HRScale product road map into the future.

這為我們提供了建立初始定價框架所需的一切，包括前期部署和支援費用、持續的每月人力資源服務和技術支援費用，這些費用的水平超出了我們的預期，但在我們認為目標市場願意和期望支付的價值範圍內。這也提供了有價值的信息，以確定與未來 Insperity HRScale 產品路線圖保持一致的定價路線圖。

Now let me provide some context for our growth and profitability outlook for 2026 based upon executing our plans for the balance of the year. This plan has three key elements, including continuing growth acceleration, recovering our gross profit margin and leveraging our operating expense management trend. Every year, the success of our fall sales and retention campaign is pivotal to achieving the desired starting point for the coming year in paid worksite employees, setting the stage for continued growth acceleration. This year, we are starting earlier, offering strong incentives and investing more to increase the likelihood and degree of success in sales and retention.

現在，讓我根據我們今年剩餘時間的計劃執行情況，提供一些有關我們 2026 年增長和盈利前景的背景信息。該計劃有三個關鍵要素，包括繼續加速成長、恢復毛利率和利用我們的營運費用管理趨勢。每年，我們秋季銷售和保留活動的成功對於實現來年有薪工作現場員工的預期起點至關重要，為持續加速成長奠定基礎。今年，我們起步更早，提供強有力的激勵措施並投入更多資金，以增加銷售和保留的成功可能性和程度。

We are officially launching the campaign in just a few weeks, which is approximately one month earlier than previous years. We have strong incentives for employees and prospective clients for sales and retention activity and results. We have also allocated a portion of the year-to-date operating expense savings to invest in marketing opportunities we expect to drive an increase in sales leads and opportunities. We expect to be making announcements and increasing advertising soon that will reveal significant potential return on this added investment.

我們將在幾週後正式啟動這項活動，比往年提早了約一個月。我們對員工和潛在客戶的銷售和留任活動及成果有很強的激勵作用。我們也將年初至今節省的營運費用的一部分用於投資行銷機會，我們預計這將推動銷售線索和機會的增加。我們期望很快發佈公告並增加廣告，這將揭示這筆額外投資的巨大潛在回報。

Another input to growth expectations is the state of the small- to medium-sized business community, which we believe is at an important inflection point compared to the last few years of one macroeconomic speed bump after another from inflation and interest rates to government policy and tariffs. The recent federal legislation signed into law is validating of support for the small business community, especially on the tax and investment outlook. We believe this may play out to be a catalyst for expansion in the SMB community, which could move the hiring trend back to historical levels next year.

影響成長預期的另一個因素是中小企業群體的狀況，我們認為，與過去幾年從通貨膨脹和利率到政府政策和關稅的一次又一次宏觀經濟減速相比，中小企業群體正處於一個重要的轉折點。最近簽署的聯邦立法證實了對小型企業界的支持，特別是在稅收和投資前景方面。我們相信這可能成為中小企業社區擴張的催化劑，並可能使明年的招聘趨勢回到歷史水平。

The second key element in our game plan for the balance of the year is execution of our gross profit margin recovery plans in the health care pricing and cost framework. Jim has described three critical initiatives, including pricing allocations, plan design changes and our contract negotiation with our insurance carrier.

我們今年剩餘時間計畫的第二個關鍵要素是在醫療保健定價和成本框架內執行毛利率恢復計畫。吉姆描述了三個關鍵舉措，包括定價分配、計劃設計變更以及與保險公司的合約談判。

All three have moved forward rapidly in the last quarter and despite the benefits cost trend being slightly worse than expected, our recovery plan is progressing along, and we believe we are in a position to see improvement as we execute the recovery plan this year and heading into 2026. Another aspect of our positive outlook for next year is continuing the recent operating expense management focus to ensure operating leverage can be a part of our three-year plan beginning in 2026.

這三項工作在上個季度都取得了快速進展，儘管福利成本趨勢略低於預期，但我們的復甦計劃正在取得進展，我們相信，隨著我們在今年執行復甦計劃並邁入 2026 年，我們能夠看到改善。我們對明年樂觀的另一個方面是繼續專注於近期的營運費用管理，以確保營運槓桿能夠成為我們從 2026 年開始的三年計劃的一部分。

One key element of this plan is to continue down our AI path, which we believe can be significant in our business model. Development of our AI capabilities, as I've discussed in the past, is well underway and in use by our client-facing HR professionals.

該計劃的關鍵要素是繼續我們的人工智慧之路，我們相信這對我們的商業模式至關重要。正如我過去所討論的，我們的人工智慧能力開發正在順利進行，並且正在被我們面向客戶的人力資源專業人員使用。

Our AI focus is to improve the efficiency, value, productivity and quality of our services to the benefit of our customers and our internal operations. Our strategy is to leverage the combination of our own proprietary tool to optimize Insperity's HR and service delivery expertise with other specific AI capabilities native to platforms that we use across the company.

我們的人工智慧重點是提高我們服務的效率、價值、生產力和質量，從而使我們的客戶和內部營運受益。我們的策略是利用我們自己的專有工具來優化 Insperity 的人力資源和服務交付專業知識，以及我們在整個公司使用的平台原生的其他特定 AI 功能。

So in summary, we have responded well to the challenges we have faced this year-to-date and our plan for the balance of the year is on course toward accelerating growth and improved profitability in 2026 and beyond.

總而言之，我們對今年迄今為止面臨的挑戰做出了良好的反應，我們今年剩餘時間的計劃是朝著在 2026 年及以後加速增長和提高盈利能力的方向發展。

At this point, I'd like to pass the call back to Jim.

現在，我想把電話轉回給吉姆。

Thanks, Paul. Now let me provide an update to our full year 2025 outlook. As Paul discussed, we have started to see some modest worksite employee growth acceleration in recent months. In addition, there are indications that clarity around tax policy has buoyed small business economic sentiment.

謝謝，保羅。現在，讓我更新一下我們對 2025 年全年的展望。正如保羅所討論的，近幾個月來，我們開始看到工作場所員工數量略有成長加速。此外，有跡象表明，稅收政策的明確提振了小型企業的經濟情緒。

At the same time, we remain cautious about the level of net hiring in the existing client base. For the full year, we are now forecasting worksite employee growth of 1% to 2% over 2024. Given the higher benefits cost trends experienced in the first half of the year and more broadly seen in the marketplace at large, we are raising our forecasted range of benefits cost per covered employee by 75 basis points to 100 basis points for the full year.

同時，我們對現有客戶群的淨招募水準仍持謹慎態度。就全年而言，我們預測 2024 年工作場所員工數量將增加 1% 至 2%。鑑於今年上半年福利成本上升的趨勢以及整個市場更廣泛的趨勢，我們將全年每位受保員工的福利成本預測範圍上調了 75 個基點至 100 個基點。

We anticipate that the benefits cost trend will taper down from the 9% we have experienced in the first half of the year for two primary reasons. First, year-over-year comparisons in the first half of 2025 were impacted by last year's favorable claims development, and that impact should subside in the second half of the year. In addition, we continue to see favorable changes in our planned demographics and planned migration that historically have helped to favorably impact benefits cost trends.

我們預計，福利成本趨勢將從今年上半年的 9% 逐漸下降，主要有兩個原因。首先，2025 年上半年的年比數據受到去年有利的索賠發展的影響，而這種影響應該會在下半年消退。此外，我們繼續看到計劃人口統計和計劃移民方面的有利變化，從歷史上看，這些變化有助於對福利​​成本趨勢產生有利影響。

We continue to expect that operating expenses will decline slightly sequentially in each of the remaining quarters. For the full year, we expect that operating expenses will be an overall reduction compared to 2024. This includes planned spending on the implementation of the Workday strategic partnership, which we expect to total approximately $58 million in 2025 versus $57 million in 2024 and additional marketing spend for our fall sales campaign.

我們仍然預計剩餘每季的營運費用將較上季略有下降。就全年而言，我們預計營運費用將與 2024 年相比整體減少。這包括實施 Workday 策略合作夥伴關係的計畫支出，我們預計 2025 年總額約為 5,800 萬美元，而 2024 年為 5,700 萬美元，以及秋季銷售活動的額外行銷支出。

For purposes of adjusted EPS, we are forecasting an effective tax rate of 29% for the full year 2025. The effective tax rate on GAAP EPS is expected to be somewhat higher and could fluctuate based on the level of nondeductible expenses as a proportion of pretax income. Based on all of these factors, we are forecasting full year adjusted EBITDA in a range of $170 million to $205 million. We are forecasting full year adjusted EPS in a range of $1.81 to $2.51.

為了調整每股盈餘，我們預測 2025 年全年的有效稅率為 29%。預計 GAAP EPS 的有效稅率會略高一些，並且可能會根據不可扣除費用佔稅前收入的比例而波動。基於所有這些因素，我們預測全年調整後的 EBITDA 在 1.7 億美元至 2.05 億美元之間。我們預測全年調整後的每股盈餘將在 1.81 美元至 2.51 美元之間。

As for Q3, we are forecasting the average paid worksite employees to be in a range of $312,200 to $315,300, which represents an increase of 1% to 2% over Q3 of 2024. We are forecasting adjusted EBITDA in a range of $24 million to $44 million and adjusted EPS in a range of $0.06 to $0.49. As economic concerns show signs of stabilizing, business owners continue to see employee retention, engagement, benefits and cost of compliance as significant concerns. We believe that these are positive trends as we approach our fall sales and client renewal season.

至於第三季度，我們預測工作場所員工的平均薪資將在 312,200 美元至 315,300 美元之間，比 2024 年第三季度增加 1% 至 2%。我們預測調整後EBITDA將在2,400萬美元至4,400萬美元之間，調整後每股盈餘將在0.06美元至0.49美元之間。隨著經濟情勢趨於穩定，企業主仍將員工留任率、敬業度、福利和合規成本視為重要考量。我們相信，隨著秋季銷售和客戶續約季節的臨近，這些都是正面的趨勢。

We are executing a pricing plan and implementing plan design changes in 2026 that we believe will address the elevated benefits cost trend environment. We remain focused on operating expense management and have initiated a three-year planning process to further sharpen the alignment of our sales, operating and development plans with our updated HR solutions portfolio strategy as we look to drive improved profitability in 2026 and beyond.

我們正在執行定價計劃並在 2026 年實施計劃設計變更，我們相信這將解決福利成本趨勢上升的環境。我們繼續專注於營運費用管理，並已啟動為期三年的規劃流程，以進一步加強我們的銷售、營運和發展計劃與我們更新的人力資源解決方案組合策略的一致性，以期在 2026 年及以後提高盈利能力。

At this time, I'd like to open up the call for questions.

現在，我想開始提問。

(Operators Instructions) Andrew Nicholas, William Blair.

（操作員指示）安德魯·尼古拉斯，威廉·布萊爾。

Great, thank you and good morning. I wanted to first ask about Workday. I appreciate all the updates there and also the new kind of branding of all the solutions. I'm just curious in terms of -- with the beta timing now seemingly locked in, just wondering if you could speak to maybe a line of sight for 2026 financial impact or anything on that front that you could share to give us a sense for how much could benefit profitability and growth next year?

太好了，謝謝你，早安。我想先詢問一下 Workday。我很欣賞那裡的所有更新以及所有解決方案的新品牌。我只是很好奇——現在測試版的時間似乎已經確定，我只是想知道您是否可以談談對 2026 年財務影響的展望，或者您可以分享的任何信息，讓我們了解明年盈利能力和增長會有多大益處？

Yes. Thank you for the question, Andrew. I appreciate that. And we are super excited about our progress in that direction, but it's a little early to lock down and to precisely predict the actual revenue and profitability impact. We are starting with the beta group that I'm really excited to announce today has a target date early in the year.

是的。謝謝你的提問，安德魯。我很感激。我們對在這個方向上取得的進展感到非常興奮，但現在確定並準確預測實際收入和獲利影響還為時過早。我們剛開始測試測試組，今天我很高興地宣布，測試日期定在年初。

We will have -- our next step is to have two, what I'll call, waves of additional client groups being added throughout the year next year, a group of new clients that I'll even call new beta clients because that's kind of the way we need to look at that.

我們的下一步是，明年全年增加兩波我稱之為額外客戶群的客戶，一組新客戶，我甚至會稱之為新的測試客戶，因為這是我們需要看待的方式。

And then another group of current clients that will be identified and will roll in sometime later in the year. But we also have just now received all of the information that we need for the pricing elements. And that is also super important, and it was -- as I mentioned in my remarks, it exceeded our expectations on how different elements are valued. Frankly, the value of the service component was even higher than expected.

然後將確定另一組現有客戶，並將在今年稍後加入。但我們剛剛也收到了定價要素所需的所有資訊。這也非常重要，正如我在演講中提到的，它超出了我們對不同元素價值的預期。坦白說，服務組件的價值甚至高於預期。

And the ability for the clients to look at the different pieces of what we're offering and our ability to price those accordingly, including upfront fees, ongoing service fees, ongoing technology support fees, fees for adding technology elements over time, there's a lot of pieces to it. And now we are in the process and will happen over this next quarter, we will lock down what would be called our -- I guess, I'd call it like a recommended pricing for clients at different sizes, different levels, et cetera.

客戶能夠了解我們提供的不同產品，我們也能據此定價，包括預付費用、持續服務費、持續技術支援費、隨著時間推移添加技術元素的費用，這其中包含許多部分。現在我們正在進行這個過程，並將在下個季度確定所謂的——我想，我會稱之為針對不同規模、不同級別等客戶的推薦價格。

And then we'll be able to more closely determine what we will actually apply in pricing to these groups of clients that are being such an important part of our launch path. And obviously, we won't -- we will give advantages to those clients to come on.

然後，我們將能夠更緊密地確定我們將對這些客戶群實際應用的定價，這些客戶群是我們發布路徑中如此重要的一部分。顯然，我們不會—我們會為這些客戶提供優勢。

But the reality is this is validating our long-term plan for really solving our success penalty of having companies grow out of our business model and having a great new avenue for new clients that are much larger coming into the company. So we'll be working on how this will be modeled in the future because I know that's an issue for you all as well. But we still have to go through some other processes to start to give some direction on that.

但事實是，這驗證了我們的長期計劃，即真正解決公司發展超出我們商業模式的成功懲罰，並為進入公司的更大的新客戶提供一條新的途徑。因此，我們將致力於研究未來如何對此進行建模，因為我知道這也是你們所有人關心的問題。但我們仍需經歷一些其他過程才能開始對此給予一些指引。

Understood. Maybe switching gears a little bit to the WSEE dynamics. It sounds like there is some progress at least from the low point in February. I wanted to ask specifically about the net client hiring piece. Is that something that you've seen improve sequentially over the last couple of months?

明白了。也許可以稍微轉變一下 WSEE 動態。聽起來至少從二月的低點開始已經有了一些進展。我想具體詢問一下有關網路客戶招募的問題。在過去的幾個月裡，您是否看到這種情況有所改善？

Is there anything that you could say about regional or vertical dynamics there? And is there an expectation that, that continues to improve over the course of the next couple of quarters?

您能談談那裡的區域或垂直動態嗎？是否有預期，在接下來的幾個季度裡，這種情況會繼續改善？

Yes. So the good news is that we have seen underlying hiring at a higher level than what has been happening. Now some of what happens this time of year is a natural summer help element and other things. But we can -- in our analysis, we see that underlying there, there is movement in the right direction. It's still well below historical levels.

是的。因此，好消息是，我們看到潛在的招募水準高於實際情況。現在，每年這個時候發生的一些事情是自然的夏季幫助因素和其他因素。但我們可以——在我們的分析中，我們看到，那裡正朝著正確的方向發展。它仍然遠低於歷史水平。

But I also believe the confidence level we're already hearing and seeing even post the legislation I really feel like we're about to see a release there. Now we haven't budgeted a lot of that in to our model going forward the balance of the year. But we do believe that things are already better. Out of that -- this first half of the year, there was only one month that was somewhat of a negative. So that's good. That's moving in the right direction, and we're going to do all we can to help our customers continue to grow.

但我也相信，我們已經聽到和看到的信心水平，甚至在立法之後，我真的覺得我們即將看到它的發布。現在我們還沒有將其中的大部分內容納入到我們今年餘下的預算模型中。但我們確實相信情況已經好轉。其中——今年上半年只有一個月的情況略有下滑。這很好。這是朝著正確的方向發展的，我們將竭盡全力幫助我們的客戶繼續成長。

Tobey Sommer, Truist.

托比·索默 (Tobey Sommer)，Truist。

Thanks. At this juncture, do you think that the original $150 million investment is still the right number -- and do you, at this juncture, have better visibility into how much of that Workday associated expense will go away entirely and fall back to the bottom line?

謝謝。在這個關鍵時刻，您是否認為最初的 1.5 億美元投資仍然是正確的數字？在這個關鍵時刻，您是否更清楚地了解與 Workday 相關的費用有多少將完全消失並回到底線？

So Tobey, thanks for the question. I do think that the $150 million expense, when we put that out there, I think largely our focus was on the cost, not only to get to go live, but to think about kind of the -- what was going to hit the income statement. I do think we're going to get to a point where we do see that there's going to be a product development road map beyond launch, but we also believe that we're going to be at a point where those expenses become capitalizable as we get closer to launch.

托比，謝謝你的提問。我確實認為，當我們提出 1.5 億美元的費用時，我認為我們主要關注的是成本，不僅要考慮上線成本，還要考慮什麼會影響損益表。我確實認為，我們將會到達這樣一個階段，即看到產品發布之後的產品開發路線圖，但我們也相信，隨著產品發布的臨近，這些費用將會變得可資本化。

So I would say over the five-year period, the overall investment in the product is likely to continue to be a little bit over the $150 million, but I also think that the impact on the income statement will reduce pretty significantly. At the same time, I think it's important to recognize that when we move into this launch phase, the beta phase, I would call it, you expect that you're going to have to muscle through some level of kind of working issues with the beta clients.

因此我想說，在五年期間，該產品的整體投資可能會繼續略高於 1.5 億美元，但我認為對損益表的影響也會大幅減少。同時，我認為重要的是要認識到，當我們進入這個發布階段，我稱之為測試階段時，你預計你將不得不努力解決測試客戶端的某種程度的工作問題。

One of the reasons you're going through this process is to make sure that you're building out very smooth processes and stuff. But we're not expecting that those are going to be perfect in that first beta launch. So we do think that from an operating cost standpoint, there's a little muscle and through that will happen in those early phases and then that there will be growing operating efficiency on that front over the first several years of the launch.

您經歷這個過程的原因之一是確保您正在建立非常順暢的流程和內容。但我們並不期望這些功能在第一次測試版發佈時就完美無缺。因此，我們確實認為，從營運成本的角度來看，這方面會有一定的優勢，而且這將在早期階段實現，然後在推出後的頭幾年內，這方面的營運效率將會不斷提高。

Appreciate that. Thank You. On the margin profile of the business, I kind of want to ask a question that allow you to incorporate your -- what you've learned about pricing opportunities without necessarily giving us the numbers. Paul, do you feel like at the end of this exercise, and we can call it two years from now, three years from now, whatever we're like kind of up and humming, that the margin profile on a per worksite employee basis as well as margin profile at the corporate level on the income statement is better than it has been historically, the same or lower?

非常感謝。謝謝。關於業務的利潤狀況，我想問一個問題，讓您能夠結合您所了解的定價機會，而不必向我們提供數字。保羅，你是否覺得在這次練習結束時，我們可以稱之為兩年後，三年後，無論我們多麼興奮和興奮，每個工作地點員工的利潤率狀況以及損益表上公司層面的利潤率狀況都會比歷史上更好，相同還是更低？

I believe this is my opinion based on what I understand in terms of the progress we're making and even this new information we have, but I would expect it to be better. And we are literally seeing validation of the premise of this investment. And what I mean by that is, obviously, retention is your lowest cost new business. And that retention step-up that I see from this effective execution over the next few years is going to be significant in my view.

我相信這是我根據我們所取得的進展以及我們所掌握的新資訊所得出的觀點，但我希望它會更好。我們確實看到了這項投資前提的驗證。我的意思是，顯然，保留是成本最低的新業務。我認為，未來幾年透過這種有效的執行，員工留任率將顯著提高。

Now in addition to that, though, specific to margin, you're looking at bringing on much larger clients at pricing that is even higher than I presumed in just the penciling of the possibilities. Now it will take a little time to ramp up to that as we develop the solution and -- but I see that happening as well. And so like I say, it's the trifecta for our business model. It's growing the company faster in bigger chunks at a time at higher prices.

現在，除此之外，具體到利潤率，你正在考慮以比我預想的更高的價格吸引更大的客戶。現在，隨著我們開發解決方案，需要一點時間來實現這一目標——但我也看到這種情況正在發生。正如我所說的，這是我們商業模式的三重奏。它以更高的價格一次性實現更大幅度的快速增長。

That means our historical operating leverage that we've had because the technology is better, I think that ultimately enhances our business model as well. It's just at an early stage for us to lock some of that stuff down. But I appreciate the question. And I will just say that, that's exactly what I see ahead and what we're working to accomplish.

這意味著，由於科技的進步，我們擁有了歷史性的經營槓桿，我認為這最終也會增強我們的商業模式。現在我們只是處於早期階段，需要鎖定其中的一些內容。但我很感謝你提出這個問題。我只想說，這正是我所看到的，也是我們正在努力實現的目標。

Jeff Martin, ROTH Capital Partners.

傑夫馬丁（Jeff Martin），羅仕證券資本合夥公司。

Thank you. Good morning. I wanted to dive in a little bit to the launch of the joint marketing here. I mean it just -- it seems like you're going to be spending a good portion of your time and resources in 2026 on getting these beta clients launched and things smooth out, bringing on some new clients. But how do you look at the joint marketing go-live versus the ability to sell and turn those clients on in a time frame that makes sense?

謝謝。早安.我想稍微深入了解這裡聯合行銷的啟動情況。我的意思是——看起來你將在 2026 年花費大量時間和資源來推出這些測試客戶端，並使事情順利進行，從而帶來一些新客戶。但是，您如何看待共同行銷的上線與在合理的時間範圍內銷售和吸引這些客戶的能力？

Yes. So if you think about the typical scenario for a company who's having these types of needs, let me just remind you what we have validated is there's a deep need in this target marketplace for both services, HR services, having a better HR function, a strategic HR function that's really working and the technology to help make that happen efficiently and effectively.

是的。因此，如果您考慮具有此類需求的公司的典型情況，請允許我提醒您，我們已經證實，這個目標市場對兩種服務、人力資源服務、更好的人力資源職能、真正有效的戰略人力資源職能以及幫助高效實現這一目標的技術都有著深切的需求。

And so if you are such a client out there today, in order to move that direction, the amount of time that it takes, the amount of investment it takes, the amount of complexity, it's all very difficult, takes a long time. And most companies have a mixed bag or a hodgepodge of components that they're trying to make all this happen. And we're bringing them a rifle to nail this down and have ultimate scalability on both the service and the technology side.

因此，如果您今天是這樣的一位客戶，為了朝著這個方向發展，需要花費大量的時間、大量的投資、大量的複雜性，這一切都非常困難，需要很長時間。大多數公司都採用混合或大雜燴的組件來實現這一切。我們將為他們提供解決方案，並在服務和技術方面實現最終的可擴展性。

Insperity HRScale is the perfect name for this. Now if I'm one of those prospects and I look at -- wait a minute, you're telling me that Insperity and Workday are totally committed investing significantly to having this solved for me long term. Hey, I want on. I want on that ship. And if it takes me even 18 months from now, that's how long it would take me try to do it myself and piecemeal this thing together and it would cost more, and it would be a lot harder.

Insperity HRScale 是一個完美的名字。現在，如果我是這些潛在客戶之一，並且我看一下——等一下，你是說 Insperity 和 Workday 完全致力於投入大量資金來長期為我解決這個問題。嘿，我想繼續。我想上那艘船。如果從現在起我需要 18 個月的時間，那麼我自己嘗試將這件事零碎地拼湊起來就需要這麼長時間，而且成本會更高，難度也會更大。

And I don't really have the people to make that happen myself anyway. I'm telling you this is what we're seeing in the marketplace. And I'm fully -- you can hear me, I'm excited about the fact that we get -- we've been talking to prospects already. They connect immediately conceptually to having these two great companies help them solve this for the long term. And to be a part of it and to get in this queue, I think, is going to be a desirable thing for these prospects.

而我本人也確實沒有人手來實現這一點。我告訴你這就是我們在市場上看到的。而且我完全——你可以聽到我的聲音，我很高興我們得到了——我們已經在與潛在客戶交談了。他們立即從概念上認識到這兩家偉大的公司將幫助他們長期解決這個問題。我認為，成為其中的一部分並進入這個隊列對於這些潛在客戶來說是一件令人嚮往的事情。

Now that we're going to be able to lock down how we can price and offer the right kind of incentives to be a part earlier, maybe be the early adopters. That's great. That's an excellent step in addition to that. But I just believe we see the demand out there and the need. I wouldn't even call it demand because they don't know the solution is out there yet, but the need for what we're bringing to the table is clear and the value of it -- perceived value of it, we believe, is going to be high.

現在我們將能夠確定如何定價並提供適當的激勵措施，以便儘早參與其中，也許成為早期採用者。那太棒了。除此之外，這還是一個非常好的舉措。但我相信我們看到了那裡的需求和需求。我甚至不會稱之為需求，因為他們還不知道解決方案是否存在，但我們提出的方案的需求是明確的，而且我們相信它的價值——感知價值——將會很高。

So that's why being out there now, having our team already out there having these conversations and being able to get this on people's plate to put in their plan for the future is very appropriate, even though we're launching the beta group early next year.

所以這就是為什麼現在就在那裡，讓我們的團隊在那裡進行這些對話，並能夠將其放在人們的盤子裡，納入他們的未來計劃是非常合適的，儘管我們將在明年年初啟動測試組。

Great. And then one other here, if I could. I think you said the sales force BPA count is down 11% year-over-year. Sales efficiency drove a 13% sales efficiency ratio, which is encouraging. How are you thinking about growth in the BPA base over the next 12 to 24 months as this joint solution becomes really more prominent in the sales effort?

偉大的。如果可以的話，我再說一個。我想您說過銷售人員的 BPA 數量比去年同期下降了 11%。銷售效率推動銷售效率率達13%，令人鼓舞。隨著這種聯合解決方案在銷售中變得更加突出，您如何看待未來 12 到 24 個月內 BPA 基礎的成長？

Yes. I believe this is the first time that we're going to have what I would call operating leverage on the sales side of the business. We are going to grow the BPA base, but nominally, not near at the pace we had to in the past. Once we get this in place, we're already having good success in the mid-market space. And this is going to enhance that and allow for us to grow the business, the worksite employee growth, the unit growth more rapidly with fewer BPAs.

是的。我相信這是我們第一次在業務的銷售方面擁有所謂的經營槓桿。我們將擴大 BPA 基礎，但名義上不會接近我們過去的速度。一旦我們實現這一點，我們就已經在中端市場取得了良好的成功。這將增強這一點，並使我們能夠以更少的 BPA 更快地發展業務、工作場所員工成長和單位成長。

So that's the game plan. There will be some growth pretty nominal for the balance of the year and into next year. But the efficiency gain that is evident is another reason why we are really ready to market more heavily and get more opportunities into the hands of these BPAs whose effectiveness is at a high level.

這就是比賽計劃。今年餘下時間以及明年將會出現相當名義上的成長。但顯而易見的效率提升也是我們真正準備好加強行銷並將更多機會交到這些效率高的 BPA 手中的原因之一。

Mark Marcon, Baird.

馬克馬孔，貝爾德。

Good morning. I have a couple of questions. So Paul and Jim, thanks a lot for all the detail with regards to the health care cost. Obviously, everybody is seeing the same thing and facing the same pressures. I'm wondering if you have any preliminary thoughts with regards to -- when you look at a combination of plan design change versus pricing versus getting some more favorable treatment from UnitedHealthcare.

早安.我有幾個問題。所以保羅和吉姆，非常感謝你們提供有關醫療費用的詳細資訊。顯然，每個人都看到了同樣的事情並面臨相同的壓力。我想知道您是否對此有任何初步想法——當您考慮規劃設計變更與定價的組合以及從 UnitedHealthcare 獲得一些更優惠的待遇時。

How do you think of that combination? And how much -- and specifically, how much would come from plan design change and how much would come from pricing? I know it's early days. And perhaps if there's any sort of regional differences, how should we think about those? And then I have a follow-up with regards to Workday.

您覺得這個組合怎麼樣？具體來說，有多少來自計畫設計變更，有多少來自定價？我知道現在還為時過早。如果存在任何地區差異，我們應該如何看待這些差異？然後我會跟進有關 Workday 的事情。

Yes. Thanks, Mark. I appreciate the question. What I would say is when you're -- when the trends are running the way that they're running, the primary way that you're going to keep up and catch up on the trends that are out there is through pricing. What you're looking to do with plan design changes and trying to influence participant and client behavior on what plans they're selecting into and other things that we're working on the contract negotiation with United.

是的。謝謝，馬克。我很感謝你提出這個問題。我想說的是，當趨勢按照現在的方式發展時，你要跟上並趕上趨勢的主要方式是透過定價。您希望透過規劃設計變更來做什麼，並試圖影響參與者和客戶在選擇計劃方面的行為，以及我們正在與 United 進行合約談判的其他事項。

Those are designed to limit the impact of the overall cost trend. But most of it, the majority of it is through the pricing changes. You mentioned regional differences. There's always some local and regional differences. Different carriers are stronger in different parts of the country and people have their eyes set on growth targets that may vary from state to state.

這些旨在限制總體成本趨勢的影響。但大部分，大多數是透過價格變動來實現的。您提到了地區差異。總是會存在一些地方和地區差異。不同的營運商在全國不同地區實力更強，人們關注的成長目標可能因州而異。

So the process that we look at as we're going through things is dynamic from that standpoint. But I would not say that there's a part of the country right now that is not seeing the impact of higher trends.

因此，從這個角度來看，我們所看到的進程是動態的。但我不會說，目前這個國家的某些地區並沒有受到更高趨勢的影響。

Mark, Mark, I would add one more thing to what Jim is saying because it is important that pricing is the appropriate methodology to balance price and cost when the claim cost is what you're addressing. Now the contract discussions, though, are really important because if there's anything structural that needs to be changed to handle how we're affected by these things in the future, that is really important.

馬克，馬克，我想對吉姆所說的再補充一點，因為當你要解決的是索賠成本時，定價是平衡價格和成本的適當方法，這一點很重要。然而，現在合約討論確實非常重要，因為如果需要改變任何結構來處理我們將來如何受到這些事情的影響，那就真的很重要了。

And that's a central element of what we're dealing with and what we're working on with UnitedHealthcare. And now it does have -- once you make such a change, it can have an early term benefit to the picture that you have for -- but what's most important is that you are able to structure things in a way that help to mitigate against this in the future.

這正是我們正在處理的問題以及我們與聯合健康保險合作的核心內容。現在確實如此——一旦你做出這樣的改變，它可以對你所設想的前景產生早期的益處——但最重要的是，你能夠以一種有助於在未來減輕這種影響的方式來建構事物。

Really appreciate that. And then just with regards to Workday, if I'm hearing things correctly or interpreting things correctly, it sounds like we'll have essentially three waves of beta. Do you think -- does that mean that when we really start marketing in a broad scale to new clients or existing clients that, that probably would occur more towards the fall of 2026. I'm just trying to get a sense for that.

真的很感激。然後就 Workday 而言，如果我沒聽錯或解釋正確的話，聽起來我們基本上會有三波測試版。您是否認為——這是否意味著，當我們真正開始向新客戶或現有客戶進行大規模行銷時，這種情況可能會在 2026 年秋季左右發生。我只是想了解這一點。

And then with regards to the expenses associated with Workday, from a cash perspective, would you expect -- it sounds like you're not expecting a big drop-off in terms of the expenses around that because you'd still be at the relatively early stages of onboarding clients, testing things, optimizing, et cetera. So I'm just trying to understand that element as well. I appreciate any comments on those two elements.

然後關於與 Workday 相關的費用，從現金角度來看，您是否預計 - 聽起來您並不認為相關費用會大幅下降，因為您仍然處於客戶入職、測試、優化等相對早期的階段。所以我也只是想了解這個元素。我很感謝對這兩個要素的任何評論。

Sure. Well, first of all, on the waves, I'm not going to get out ahead of the amazing team of people that are going to great lengths to go into great detail to determine the exact times for these other two waves. I have my thoughts about it. I have my feelings about, but I owe it to them to go through the work and to see the plan for this. Now on the other side that you're talking, even though, yes, there's costs that are going to be incurred.

當然。嗯，首先，關於波浪，我不會走在那些不遺餘力地詳細確定另外兩個波浪的確切時間的出色團隊之前。我對此有自己的想法。我有自己的感受，但我有責任讓他們了解這項工作並制定計劃。現在，從您所說的另一面來看，儘管如此，確實會產生成本。

Jim talked a little bit about how we -- when you're doing it this way, you got to muscle through the first one, you want to make sure that the experience of these early new customers is really good. So you're going to definitely invest to make that happen. However, all this investment that I'm not an accountant in my view, a lot of this should never be going through the income statement. It's an investment for the long term of capital, but it's running through the income statement.

吉姆稍微談了一下我們如何——當你以這種方式做事時，你必須努力完成第一個任務，你要確保這些早期新客戶的體驗真的很好。所以你肯定會投資來實現這一目標。然而，所有這些投資，在我看來，並不是會計師，其中許多都不應該計入損益表。這是一項長期資本投資，但它貫穿損益表。

Now there is a time when that gets mitigated through the rules once you have a new product that you know is developed and working. So I don't know when and how that works. Jim can comment about that if he wants. But I think between the combination of revenue that we're going to have coming in, I don't know when it can be recognized either yet. So I'm not the accountant, but between revenue coming in and being able to account for the expense side, I believe, more appropriately, I think we have some nice upside coming hopefully sooner than later.

現在，一旦你有了一款你知道已經開發並運行的新產品，就可以透過規則來緩解這種情況。所以我不知道它何時以及如何運作。如果吉姆願意的話，他可以對此發表評論。但我認為，對於我們將要獲得的收入組合，我還不知道何時才能確認。所以我不是會計，但在收入進來和能夠計算支出方面之間，我相信，更恰當地說，我認為我們希望盡快獲得一些不錯的收益。

Thank you.

謝謝。

If I add on to that just for a second, I would say -- and I've said this before, you've got costs coming from a couple of different categories. There are clearly third-party outside, specifically implementation costs. You also have a pretty significant amount of costs that are related to internal resources that are working on the project. And historically, when they were working on projects, they likely were working on things that were capitalizable and we are not capitalizing them right now.

如果我稍微補充一下，我想說──我之前就說過，你的成本來自幾個不同的類別。顯然有第三方外部，具體是實施成本。您還需要花費相當多與專案內部資源相關的成本。從歷史上看，當他們從事專案時，他們可能正在從事可資本化的事情，而我們現在並沒有將其資本化。

And then there's a third part of the costs that are going on right now, which are kind of the prebuild of operational expenses, onboarding and enablement teams, as an example, that are going to kind of transition over to working on actually setting up new customers. The difference between now and then is that we will have implementation fees that will be associated with that activity once we get to launch. So that helps.

然後，還有目前正在發生的第三部分成本，即預先建立的營運費用、入職和支援團隊，例如，這些費用將過渡到實際建立新客戶的工作。現在和那時的區別在於，一旦我們啟動該活動，我們將收取與該活動相關的實施費用。這很有幫助。

Andrew Polkowitz, JP Morgan.

摩根大通的安德魯波爾科維茨。

Morning Paul, Jim and thanks for all the color. I had two questions. The first one, I just wanted to ask, in terms of the 3Q and 2025 outlook, what's the range of outcomes embedded from a health care cost trend perspective kind of hitting at the low and high ends of your EBITDA and EPS guidance?

早安，保羅、吉姆，感謝你們帶來的所有色彩。我有兩個問題。第一個問題，我只想問，就第三季和 2025 年的展望而言，從醫療保健成本趨勢的角度來看，嵌入的結果範圍是怎樣的，會達到您的 EBITDA 和 EPS 指導的低端和高端嗎？

We have focused obviously more on what we -- where we think we're headed for the year. The year-over-year comparison to last year will have a lot more to do with that trajectory towards that number compared to what happened last year.

顯然，我們更加重視今年的目標。與去年相比，與去年同期相比，這一數字的軌跡將更加相關。

So we think it's going to normalize a little bit from the 9% year-to-date that we've seen in the quarter or in 2025 so far. But I personally don't get too caught up in what the actual specific quarterly trend is, but what are we aiming towards on the annual trend. And compared to our prior forecast, we're looking at 75 basis points to 100 basis points higher than that.

因此，我們認為，今年迄今的成長率將從本季或 2025 年的 9% 稍微正常化。但我個人並不太關注實際具體的季度趨勢是什麼，而是我們在年度趨勢上所追求的目標是什麼。與我們先前的預測相比，我們預計該數字將高出 75 個基點至 100 個基點。

Yes. I think I would just add, if you remember a quarter ago, we kind of we said that the low end of our range related to kind of a continuation of the elements that were driving costs up in that first quarter. Now the stuff related to last year, that all kind of got washed through. But when we looked at the numbers from this quarter, we said, hey, that can't be -- that high end of our range is the way it came in.

是的。我想我只想補充一點，如果你還記得一個季度前，我們說過，我們範圍的低端與導致第一季成本上漲的因素的延續有關。現在，與去年有關的事情全都被沖走了。但當我們查看本季度的數據時，我們說，嘿，這不可能——我們的範圍的高端就是這樣的。

And so you've got to adjust for that for the balance of the year, and that's what we did by adding the 75 to 100 additional basis points.

因此，你必須根據今年的餘額進行調整，我們就是這樣做的，增加了 75 到 100 個基點。

Okay. That's super helpful. And then my follow-up question, I wanted to ask a little bit about renegotiations with UnitedHealth. Just wanted to get some color on kind of what has been the outcomes in the past. Is it really about plan design, visibility or earlier visibility into data trends, price risk sharing? Just wanted to kind of understand what the range of potential outcomes for Insperity can be.

好的。這非常有幫助。然後是我的後續問題，我想問一下與聯合健康集團重新談判的情況。只是想了解過去的結果。這真的是關於計劃設計、可見性或更早了解數據趨勢、價格風險分擔嗎？只是想了解 Insperity 可能產生哪些結果。

Well, if I just look at the big picture of our history, and Jim has been the person in the hot seat on that front for a long time and has done a great job with UnitedHealthcare. But I would say that we've gone from being just an amazing client for them and we've seen our actual administrative expense, et cetera, and our risk charges really at really low levels for what the industry sees. But we've kind of gone past that to being a very solid channel partner for them and have worked toward other aspects to the relationship to where we're more aligned on doing what we can together to grow.

好吧，如果我只看我們的歷史大局，吉姆長期以來一直是該領域的領導人物，並且在聯合健康保險方面做出了巨大貢獻。但我想說的是，我們不再只是他們出色的客戶，而且我們的實際管理費用等等以及風險費用都處於行業所見的非常低的水平。但我們已經超越了這個階段，成為他們非常可靠的通路合作夥伴，並致力於改善雙方關係的其他方面，以便我們更一致地盡我們所能共同成長。

Now that was interrupted with some of these things happening in the marketplace at large. But I think that's what we're looking to make sure that we've got this relationship structured where both of our incentives are aligned around what we do together and that we benefit accordingly as we grow and manage these costs going forward together.

現在，市場上發生的一些事情打斷了這一進程。但我認為，這就是我們所尋求的，以確保我們建立起這種關係，使我們雙方的激勵措施與我們共同做的事情保持一致，並且隨著我們共同成長和管理這些成本，我們將獲得相應的利益。

If I can add on to that, I think one of the real keys in the middle of this is when we have discussions like that around alignment, it is very often around what is the best situation for our plan participants. When we do things that are beneficial and advantageous to plan participants, not only is that a fiduciary responsibility we have, but that sets an environment that is good for us and good for UnitedHealthcare as we approach the market because it's no different than what we talk about from a cultural perspective of having a people-centric approach and a customer-centric approach.

如果我可以補充一點的話，我認為這其中真正的關鍵之一是，當我們圍繞協調進行這樣的討論時，通常是圍繞著什麼對我們的計劃參與者來說是最好的情況。當我們所做的事情對計劃參與者有益且有利時，這不僅是我們的受託責任，而且還為我們和聯合健康保險進入市場創造了一個有利的環境，因為這與我們從文化角度所談論的以人為本和以客戶為中心的方法沒有什麼不同。

In this world, when we have a participant-centric approach, it's good for everybody. It's good for our participants. It's good for us in the long run. It's good for UnitedHealthcare in the long run.

在這個世界上，當我們採取以參與者為中心的方法時，這對每個人都有好處。這對我們的參與者來說是件好事。從長遠來看這對我們有好處。從長遠來看，這對聯合健康保險有利。

This does conclude our question-and-answer session for today. I would now like to hand the call back to Mr. Sarvadi for closing remarks.

今天的問答環節到此結束。現在我想把發言權交還給薩瓦迪先生，請他作結束語。

Once again, we would just like to thank all of you for joining us today, and we appreciate the questions and the detailed questions, and we hope we have provided information for you to see why we are so excited about the future and how we're looking forward to executing an important game plan for the balance of the year and looking forward to growth acceleration and improved profitability in 2026 and beyond.

再次感謝大家今天的參與，我們很感激大家提出的問題和詳細的問題，我們希望我們提供的資訊能夠讓您了解我們為何對未來如此興奮，以及我們如何期待在今年餘下的時間裡執行一項重要的遊戲計劃，並期待在 2026 年及以後加速增長並提高盈利能力。

Thank you very much for participating today.

非常感謝您今天的參與。

Thank you. This does conclude today's conference call. You may disconnect your lines at this time, and have a wonderful day. Thank you once again for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路，享受美好的一天。再次感謝您的參與。