third quarter 2026
Filed Oct 29, 2026Third-quarter revenue, WSEs, GAAP earnings and non-GAAP earnings declined year over year; TriNet reaffirmed full-year 2026 guidance and expects to be at the high end of its earnings per diluted share range.
Third-quarter total revenues declined 5%, Total WSEs declined (11)%, and adjusted EBITDA declined 11%, while the company reported improved customer retention, new sales returning to year-over-year growth, and reaffirmed full-year guidance with an expectation for earnings at the high end of the per-share range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $1.18B | – | (5) % |
| Professional service revenues, three months ended September 30GAAP | $157M | – | (7) % |
| Insurance service revenues, three months ended September 30GAAP | $1.00B | – | – |
| Interest income, three months ended September 30GAAP | $13M | – | – |
| Insurance costs, three months ended September 30GAAP | $894M | – | – |
| Cost of providing services, three months ended September 30GAAP | $68M | – | – |
| Sales and marketing, three months ended September 30GAAP | $72M | – | – |
| General and administrative, three months ended September 30GAAP | $53M | – | – |
| Systems development and programming, three months ended September 30GAAP | $20M | – | – |
| Depreciation and amortization of intangible assets, three months ended September 30GAAP | $17M | – | – |
| Interest expense, bank fees and other, three months ended September 30GAAP | $12M | – | – |
| Total costs and operating expenses, three months ended September 30GAAP | $1.14B | – | – |
| Income before tax, three months ended September 30GAAP | $39M | – | (22) |
| Income taxes, three months ended September 30GAAP | $8M | – | – |
| Net income, three months ended September 30GAAP | $31M | – | (9) |
| Diluted net income per share of common stock, three months ended September 30GAAP | $ 0.65 | – | (8) |
| Basic net income per share, three months ended September 30GAAP | $ 0.66 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $89M | – | (11) |
| Adjusted EBITDA Margin, three months ended September 30non-GAAP | 7.6 % | – | – |
| Adjusted Net Income, three months ended September 30non-GAAP | $44M | – | (20) |
| Adjusted Net Income per share - diluted, three months ended September 30non-GAAP | $ 0.94 | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $80M | – | 11% |
| Free Cash Flow, three months ended September 30non-GAAP | $ 53 | – | – |
| Free Cash Flow Conversion Ratio, three months ended September 30non-GAAP | 60 % | – | – |
| Insurance Cost Ratio, three months ended September 30other | 89 % | – | (1) % |
| Average WSEs, three months ended September 30other | 296,372 | – | (12) % |
| Total WSEs, three months ended September 30other | 295,494 | – | (11) |
| Total revenues, nine months ended September 30GAAP | $3.58B | – | (5) % |
| Professional service revenues, nine months ended September 30GAAP | $505M | – | – |
| Insurance service revenues, nine months ended September 30GAAP | $3.04B | – | – |
| Income before tax, nine months ended September 30GAAP | $236M | – | 9 |
| Net income, nine months ended September 30GAAP | $173M | – | 11 |
| Diluted net income per share of common stock, nine months ended September 30GAAP | $ 3.70 | – | 16 |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $403M | – | 10 |
| Adjusted EBITDA Margin, nine months ended September 30non-GAAP | 11.3 % | – | – |
| Adjusted Net Income, nine months ended September 30non-GAAP | $232M | – | 11 |
| Adjusted Net Income per share - diluted, nine months ended September 30non-GAAP | $ 4.97 | – | – |
| Free Cash Flow, nine months ended September 30non-GAAP | $243M | – | 27 |
| Net cash provided by operating activities, nine months ended September 30GAAP | $317M | – | 31 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Professional service revenues, three months ended September 30No segment-specific driver was reported. | $157M | – | (7) % |
| Insurance service revenues, three months ended September 30No segment-specific driver was reported. | $1.00B | – | – |
| Professional service revenues, nine months ended September 30No segment-specific driver was reported. | $505M | – | – |
| Insurance service revenues, nine months ended September 30No segment-specific driver was reported. | $3.04B | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenue$ 4,750 to $ 4,900
- NoteProfessional Service Revenues: $ 647 to $ 663
- NoteInsurance Cost Ratio: 89.5 % to 88.5 %
- NoteAdjusted EBITDA Margin: 8.5 % to 9.0 %
- NoteDiluted net income per share of common stock: $ 2.85 to $ 3.35
- NoteAdjusted Net Income per share - diluted: $ 4.50 to $ 5.10
- NoteTriNet expects to be at the high end of its earnings per diluted share range.
Capital returns
- Repurchase of common stock: $ 94 for the nine months ended September 30, 2026.
- Dividends paid: $ 40 for the nine months ended September 30, 2026.
- Cash dividend declared, but not yet paid: $ 13 as of September 30, 2026.
What drove it
- Customer retention improved.
- New sales returned to year-over-year growth.
- Momentum within the broker channel is building.
- Investments in sales are driving improved performance in the fall selling season.
- TriNet cited investments in its service model and an expanding set of solutions, including TriNet Leave powered by Cocoon, TriNet Recruit, and TriNet Spend.
Concerns
- Total revenues decreased 5% in the third quarter.
- Professional service revenues decreased 7% in the third quarter.
- Total WSEs decreased (11)% to approximately 295,000.
- Adjusted EBITDA decreased 11% and Adjusted EBITDA Margin was 7.6 %, compared with 8.2 % in the same period last year.
- Adjusted Net Income decreased 20% in the third quarter.
What to watch
- Whether customer retention improvement and year-over-year new-sales growth translate into a return to sustainable growth.
- Full-year performance against Total Revenues guidance of $ 4,750 to $ 4,900 and Professional Service Revenues guidance of $ 647 to $ 663.
- Insurance Cost Ratio performance against guidance of 89.5 % to 88.5 %.
- Adjusted EBITDA Margin performance against guidance of 8.5 % to 9.0 %.
- Whether diluted net income per share and Adjusted Net Income per share - diluted finish at the high end of the guidance ranges.
Balance sheet and cash flow
- Cash and cash equivalents: $ 328 at September 30, 2026, compared with $ 287 at December 31, 2025.
- Debt: $ 896 at September 30, 2026, compared with $ 895 at December 31, 2025.
- Working capital: 295 at September 30, 2026, compared with 231 at December 31, 2025.
- Total assets: 3,393 at September 30, 2026, compared with 3,797 at December 31, 2025.
- Total stockholders’ equity: 133 at September 30, 2026, compared with 54 at December 31, 2025.
- Net cash used in investing activities: (169) for the nine months ended September 30, 2026, compared with (27) in the same period of 2025.
- Net cash used in financing activities: (668) for the nine months ended September 30, 2026, compared with (560) in the same period of 2025.
- Net change in cash and cash equivalents, unrestricted and restricted: (520) for the nine months ended September 30, 2026, compared with (345) in the same period of 2025.
Analysis
TriNet reported a weaker third-quarter top line. Total revenues were $ 1,175, down (5) % from $ 1,232, while professional service revenues were $ 157, down (7) % from $ 169. Insurance service revenues were $ 1,005 versus $ 1,046. Operating activity remained under pressure, with Average WSEs of 296,372, down (12) %, and Total WSEs of 295,494, down (11). Management nevertheless said customer retention improved and new sales returned to year-over-year growth.
Profitability declined in the quarter. Net income was $ 31, compared with $ 34, and diluted net income per share was $ 0.65, compared with $ 0.70. Adjusted EBITDA was $ 89, down (11) from $ 100, and Adjusted EBITDA Margin was 7.6 %, compared with 8.2 %. Adjusted Net Income was $ 44, down (20) from $ 55, while Adjusted Net Income per share - diluted was $ 0.94, compared with $ 1.11. The Insurance Cost Ratio was 89 %, compared with 90 %.
The nine-month figures show a different earnings and cash-flow profile despite a (5) % revenue decline. Net income was $ 173, up 11 from $ 156, diluted net income per share was $ 3.70, up 16 from $ 3.19, and Adjusted EBITDA was $ 403, up 10 from $ 368. Net cash provided by operating activities was $ 317, compared with $ 242, and Free Cash Flow was $ 243, compared with $ 191. Nine-month financing activity included $ 94 of common-stock repurchases and $ 40 of dividends paid.
At September 30, 2026, cash and cash equivalents were $ 328 and debt was $ 896. TriNet also had restricted cash, cash equivalents and investments of $ 1,164 current and $ 116 noncurrent. The company reaffirmed its Full Year 2026 guidance, including Total Revenues of $ 4,750 to $ 4,900, Adjusted EBITDA Margin of 8.5 % to 9.0 %, diluted net income per share of common stock of $ 2.85 to $ 3.35, and Adjusted Net Income per share - diluted of $ 4.50 to $ 5.10. Management said it expects to be at the high end of its earnings per diluted share range.
Management, verbatim
We delivered solid third quarter results and made further progress against our strategic priorities.
Mike Simonds, TriNet’s President and CEO
Earnings performance exceeded our forecast, customer retention improved, and new sales returned to year-over-year growth.
Mike Simonds, TriNet’s President and CEO
Our growth initiatives are gaining traction.
Mike Simonds, TriNet’s President and CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported.
- A quarterly or nine-month effective GAAP tax rate was not reported.
- Prior-quarter comparisons were not reported.
- Prior-period guidance was not provided, so no comparison of actual results with prior guidance can be made.
- Segment-specific revenue drivers were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.