TriNet Reverses Second-Quarter Earnings Gain

The Tip Desk · October 31, 2026 · 3 min read

Adjusted net income was $44 million, or $0.94 a share, as the company now expects full-year earnings at the top of its $4.50 to $5.10 range.

TriNet Group, Inc. (TNET), a provider of human capital management solutions for small and medium-size businesses, reported third-quarter net income of $31 million, or $0.65 a share, down from $34 million, or $0.70 a share, a year earlier, reversing the 50% year-over-year GAAP earnings-per-share increase recorded in the second quarter.

Adjusted net income was $44 million, or $0.94 a share, compared with $55 million, or $1.11 a share, a year earlier, after a 35% year-over-year adjusted earnings-per-share increase to $1.55 in the second quarter.

Total revenues were $1.175 billion, down 5% from $1.232 billion a year earlier, matching the 5% year-over-year decline reported in the second quarter. Professional service revenues fell to $157 million, down 7% from $169 million a year earlier, a slower decline than the 8% year-over-year drop to $159 million in the second quarter. Insurance service revenues were $1.005 billion.

Adjusted EBITDA was $89 million, a 7.6% margin, versus $100 million and an 8.2% margin a year earlier, after the second quarter’s Adjusted EBITDA of $128 million and 10.9% margin. Insurance costs were $894 million. Cost of providing services was $68 million, sales and marketing $72 million, and general and administrative expense $53 million.

Total worksite employees were approximately 295,000, down 11% from a year earlier. Average WSEs were 296,372, down 12%, after the second quarter’s 11% average-WSE decline to about 298,000.

Net cash provided by operating activities was $80 million, up 11% from a year earlier, generating $53 million of free cash flow, after the second quarter’s $88 million of operating cash and $67 million of free cash flow. Cash and cash equivalents were $328 million at September 30, 2026. Debt was $896 million.

President and CEO Mike Simonds said earnings performance exceeded the company’s forecast, customer retention improved, and new sales returned to year-over-year growth. He said momentum within the broker channel is building, investments in sales are driving improved performance in the fall selling season, and the company is strengthening its customer value proposition through service-model investments and products including TriNet Leave powered by Cocoon, TriNet Recruit, and TriNet Spend.

TriNet reaffirmed full-year 2026 guidance of $4.75 billion to $4.90 billion in total revenues and $4.50 to $5.10 in adjusted net income per share, unchanged from the ranges issued after the second quarter, and said it now expects earnings at the top end of the earnings-per-share range. Diluted net income per share guidance remains $2.85 to $3.35. Professional service revenue guidance is $647 million to $663 million. The insurance cost ratio is guided at 89.5% to 88.5%, and Adjusted EBITDA margin at 8.5% to 9.0%.

The company said it anticipates filing its Form 10-Q for the nine months ended September 30, 2026 on or about October 29, 2026.