Trinet Stock: Earnings Beat Despite Mixed Signals

California-based HR solutions provider TriNet reported second-quarter 2025 results that significantly exceeded analyst expectations, driving shares up 3.85% to $68.25 in pre-market trading. The company posted earnings per share of $1.15, well above the forecasted $1.02, while generating revenue of $1.2 billion against expectations of $279 million. Despite these positive figures, TriNet faces challenges as the average number of worksite employees decreased by 4% to approximately 336,000, with Professional Services revenue declining 8% to $172 million year-over-year.

Strategic Pricing Boosts Profitability

The company's strategic health insurance pricing adjustments have proven effective, with per-member fees increasing 9% compared to the previous year. TriNet achieved an adjusted EBITDA of $105 million with an 8.5% margin for the quarter, while generating $170 million in net cash flow and $136 million in free cash flow for the first half of 2025. Management remains committed to shareholder returns, distributing $117 million through dividends and share repurchases in the first half—representing 87% of free cash flow. Despite operational headwinds, TriNet maintained its full-year guidance, projecting revenue between $4.95-5.14 billion and an adjusted EBITDA margin of 7-8.5%.

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Source StockWorld