TriNet Announces Second Quarter 2025 Results & Reaffirms Full Year 2025 Guidance

, /PRNewswire/ -- TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced financial results for the second quarter ended June 30, 2025. The second quarter highlights below include non-GAAP financial measures which are reconciled later in this release. "Our second quarter financial performance was in-line with our forecast and keeps us on track to achieve our full-year guidance," said Mike Simonds, TriNet President and CEO. "We continued to execute our strategy while supporting our SMB customers through the volatile business environment." Simonds continued, "During the quarter, we prudently repriced our benefits offering, while maintaining customer retention above our historical average. With several growth initiatives on track for the fall, we are excited to drive new sales with an expanded go-to-market approach coupled with improvements to our offering." Second quarter highlights include: Total revenues were $1.2 billion, flat compared to the same period last year. Professional service revenues decreased 8% to $172 million compared to the same period last year. Net income was $37 million, or $0.77 per diluted share, compared to net income of $60 million, or $1.20 per diluted share, in the same period last year. Adjusted Net Income was $55 million, or $1.15 per diluted share, compared to Adjusted Net Income of $78 million, or $1.53 per diluted share, in the same period last year. Adjusted EBITDA was $105 million, representing an Adjusted EBITDA Margin of 8.5%, compared to Adjusted EBITDA of $136 million, representing an Adjusted EBITDA Margin of 10.9%, in the same period last year. Average WSEs decreased 4% compared to the same period last year, to approximately 336,000. Returned $117 million to shareholders through share repurchases and dividends during the first half of 2025. Full-Year 2025 Guidance In addition to announcing our second quarter 2025 results, we are reiterating our full-year 2025 guidance. Non-GAAP financial measures are reconciled later in this release. Full Year 2025 (dollars in millions, except for per share amounts) Low High Total Revenues $4,950 $5,140 Professional Service Revenues $700 $730 Insurance Cost Ratio 92 % 90 % Adjusted EBITDA Margin 7 % 9 % Diluted net income per share of common stock $1.90 $3.40 Adjusted Net Income per share - diluted $3.25 $4.75 Quarterly Report on Form 10-Q We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the first half of 2025 with the U.S. Securities and Exchange Commission (SEC) and making it available at https://www.trinet.com today, July 25, 2025. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q. Earnings Conference Call and Audio Webcast TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) today to discuss its second quarter results for 2025 and reaffirm its full-year financial guidance for 2025. TriNet encourages participants to pre-register for the webcast and conference call. The live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at https://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/650432206. Callers can pre-register by going to: https://dpregister.com/sreg/10201467/ff917b6f7a. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the "TriNet Conference Call." A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 7260452. About TriNet TriNet is a leading provider of Human Resources solutions for small and medium size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram. Use of Non-GAAP Financial Measures Reconciliations of non-GAAP financial measures to TriNet's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "Non-GAAP Financial Measures." Forward-Looking Statements This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet's expectations and assumptions regarding: TriNet's financial guidance for the full-year 2025 and the underlying assumptions; TriNet's ability to achieve improvements in its results in 2026; the timing of TriNet's growth initiatives, TriNet's ability to drive new sales and maintain disciplined pricing and TriNet's ability to further benefit its customers with its product investments and service delivery model. Forward-looking statements are often identified by the use of words such as, but not limited to, "ability," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "guidance," "impact," "intend," "may," "plan," "predict," "project," "seek," "should," "strategy," "target," "value," "will," "would" and similar expressions or variations. These statements are not guarantees of future performance but are based on management's expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements. Investors are cautioned not to place undue reliance upon any forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers' compensation and health insurance claims and costs by WSEs; our ability to mitigate the unique business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; our inability to realize or sustain the expected benefits from our business realignment initiatives; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to comply with evolving data privacy, AI and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support; risks associated with our international operations; our ability to operate a business subject to numerous complex laws; changing laws and regulations governing health insurance and other traditional employee benefits at the federal, state, and local levels; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the failure of third-party service providers performing their functions; the failure to comply with anti-corruption laws and regulations, economic and trade sanctions, and similar laws; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations and stock price due to factors outside of our control; our ability to comply with the restrictions of our indebtedness and meet our debt obligations; the need for additional capital or to restructure our existing debt; the continuation of our stock repurchase program; the impact of concentrated ownership in our stock by Atairos and other large stockholders; and the anti-takeover provisions in our charter documents and under Delaware law. Any of these factors could cause our actual results to differ materially from our anticipated results. Further information on risks that could affect TriNet's results is included in our filings with the SEC, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation's Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law. Key Financial and Operating Metrics We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share and Operating Metrics data) 2025 2024 % Change 2025 2024 %Change Income Statement Data: Total revenues $ 1,238 $ 1,243 — % $ 2,530 $ 2,525 — % Income before tax 51 81 (37) 166 205 (19) Net income 37 60 (38) 122 152 (20) Diluted net income per share of common stock 0.77 1.20 (36) 2.48 2.98 (17) Non-GAAP measures (1): Adjusted EBITDA 105 136 (23) 268 316 (15) Adjusted Net income 55 78 (29) 154 189 (19) Free Cash Flow 137 95 44 Operating Metrics: Insurance Cost Ratio 90 % 88 % 2 % 89 % 87 % 2 Average WSEs 336,010 351,455 (4) 338,377 349,810 (3) % Total WSEs 338,900 354,028 (4) 338,900 354,028 (4) (1) Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures" (in millions) June 30, 2025 December 31, 2024 % Change Balance Sheet Data: Cash and cash equivalents $ 407 $ 360 13 % Working capital 254 199 28 Total assets 3,688 4,119 (10) Debt 984 983 — Total stockholders' equity 107 69 55 Six Months Ended June 30, (in millions) 2025 2024 % Change Cash Flow Data: Net cash provided by operating activities $ 170 $ 130 31 % Net cash used in investing activities (7) (47) (85) Net cash used in financing activities (428) (555) (23) TRINET GROUP, INC.CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions except per share data) 2025 2024 2025 2024 Professional service revenues $ 172 $ 186 $ 381 $ 400 Insurance service revenues 1,048 1,040 2,113 2,090 Interest income 18 17 36 35 Total revenues 1,238 1,243 2,530 2,525 Insurance costs 947 916 1,889 1,823 Cost of providing services 71 75 142 154 Sales and marketing 68 72 135 144 General and administrative 52 47 98 95 Systems development and programming 17 17 37 35 Depreciation and amortization of intangible assets 17 19 34 37 Interest expense, bank fees and other 15 16 29 32 Total costs and operating expenses 1,187 1,162 2,364 2,320 Income before tax 51 81 166 205 Income taxes 14 21 44 53 Net income $ 37 $ 60 $ 122 $ 152 Other comprehensive income (loss), net of income taxes 1 — 3 (3) Comprehensive income $ 38 $ 60 $ 125 $ 149 Net income per share: Basic $ 0.77 $ 1.21 $ 2.49 $ 3.01 Diluted $ 0.77 $ 1.20 $ 2.48 $ 2.98 Weighted average shares: Basic 48 50 49 50 Diluted 49 51 49 51 TRINET GROUP, INC.CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, (in millions, except share and per share data) 2025 2024 Assets Current assets: Cash and cash equivalents $ 407 $ 360 Restricted cash, cash equivalents and investments 1,101 1,413 Accounts receivable, net 12 32 Payroll funds receivable 487 349 Prepaid expenses, net 50 64 Other payroll assets 660 916 Other current assets 45 46 Total current assets 2,762 3,180 Restricted cash, cash equivalents and investments, noncurrent 124 145 Property and equipment, net 10 10 Operating lease right-of-use asset 39 24 Goodwill 461 461 Software and other intangible assets, net 148 156 Other assets 144 143 Total assets $ 3,688 $ 4,119 Liabilities and stockholders' equity Current liabilities: Accounts payable and other current liabilities $ 85 $ 89 Revolving credit agreement borrowings 90 75 Client deposits and other client liabilities 41 76 Accrued wages 562 580 Accrued health insurance costs, net 191 189 Accrued workers' compensation costs, net 46 44 Payroll tax liabilities and other payroll withholdings 1,484 1,906 Operating lease liabilities 3 13 Insurance premiums and other payables 6 9 Total current liabilities 2,508 2,981 Long-term debt, noncurrent 894 908 Accrued workers' compensation costs, noncurrent, net 109 110 Deferred taxes 10 11 Operating lease liabilities, noncurrent 48 26 Other non-current liabilities 12 14 Total liabilities 3,581 4,050 Total stockholders' equity 107 69 Total liabilities & stockholders' equity $ 3,688 $ 4,119 TRINET GROUP, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (in millions) 2025 2024 Operating activities Net income $ 122 $ 152 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization of intangible assets 33 37 Amortization of deferred costs 23 21 Amortization of ROU asset, lease modification, impairment, and abandonment 3 3 Deferred income taxes (1) — Stock based compensation 31 38 Loss from disposition of assets 1 — Other 3 1 Changes in operating assets and liabilities: Accounts receivable, net 1 (4) Prepaid expenses, net 9 (18) Other assets (18) (35) Other payroll assets — 2 Accounts payable and other liabilities (5) (8) Client deposits and other client liabilities (1) (9) Accrued wages (10) (20) Accrued health insurance costs, net 1 (1) Accrued workers' compensation costs, net (1) (14) Payroll taxes liabilities and other payroll withholdings (14) (8) Operating lease liabilities (7) (7) Net cash provided by operating activities 170 130 Investing activities Purchases of marketable securities (41) (137) Proceeds from sale and maturity of marketable securities 66 125 Acquisitions of property and equipment and software (33) (35) Sale of property and equipment and software — — Proceeds from sale of business 1 — Net cash used in investing activities (7) (47) Financing activities Change in WSE and TriNet Trust related assets and liabilities, net (310) (382) Repurchase of common stock (91) (135) Proceeds from issuance of common stock 7 7 Awards effectively repurchased for required employee withholding taxes (8) (12) Repayment of revolving credit agreement borrowings — (25) Dividends paid (26) (13) Net cash used in financing activities (428) (560) Net change in cash and cash equivalents, unrestricted and restricted (265) (477) Cash and cash equivalents, unrestricted and restricted: Beginning of period 1,691 1,466 End of period $ 1,426 $ 989 Supplemental disclosures of cash flow information Interest paid $ 27 $ 30 Income taxes paid, net $ 26 $ 62 Supplemental schedule of noncash investing and financing activities Cash dividend declared, but not yet paid $ 13 $ 12 Payable for purchase of property and equipment $ 3 $ 2 Receivable from sale of business $ 6 $ — Non-GAAP Financial Measures In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Non-GAAP Measure Definition How We Use The Measure Adjusted EBITDA • Net income, excluding the effects of: - income tax provision, - interest expense, bank fees and other, - depreciation, - amortization of intangible assets, - stock based compensation expense, - amortization of cloud computing arrangements, and - restructuring costs • Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates theeffectiveness of our business strategies by excluding certain non-recurring costs, which include restructuring costs, as well as certainnon-cash charges such as depreciation and amortization, and stock-based compensationand certain impairment charges recognizedbased on the estimated fair values. We believe these charges are either not directly resulting from our core operations or not indicative of our ongoing operations • Enhances comparisons to the prior periodand, accordingly, facilitates the developmentof future projections and earnings growthprospects • Provides a measure, among others, used inthe determination of incentive compensationfor management • We also sometimes refer to Adjusted EBITDA margin, which is the ratio of Adjusted EBITDA to total revenues Adjusted Net Income • Net income, excluding the effects of: - effective income tax rate (1), - stock based compensation expense, - amortization of intangible assets, net, - non-cash interest expense, - restructuring costs, and - the income tax effect (at our effective taxrate (1) of these pre-tax adjustments.) • Provides information to our stockholdersand board of directors to understand how ourmanagement evaluates our business, to monitor and evaluate our operating results,and analyze profitability of our ongoingoperations and trends on a consistent basis by excluding certain non-cash charges Free Cash Flow • Net cash provided by operating activitiesreduced by capital expenditures • Provides information on the strength of our liquidity and available cash • Provides management with a measure to assist in making planning decisions, evaluateour performance and allocate resources • We also sometimes refer to Free Cash FlowConversion ratio, which is the ratio of free cash flow to Adjusted EBITDA (1) Non-GAAP effective tax rate is 25.0% and 25.6% for the second quarters and full years of 2025 and 2024, which excludes the income tax impactfrom stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes. Reconciliation of GAAP to Non-GAAP Measures The table below presents a reconciliation of Net (loss) income to Adjusted EBITDA: Three Months EndedJune 30, Six Months EndedJune 30, (in millions) 2025 2024 2025 2024 Net income $ 37 $ 60 $ 122 $ 152 Provision for income taxes 14 21 44 53 Stock based compensation 18 18 31 38 Interest expense, bank fees and other 15 16 29 32 Depreciation and amortization of intangible assets 17 19 34 37 Amortization of cloud computing arrangements 2 2 5 4 Restructuring costs 2 — 3 — Adjusted EBITDA $ 105 $ 136 $ 268 $ 316 Adjusted EBITDA Margin 8.5 % 10.9 % 10.6 % 12.5 % The table below presents a reconciliation of Net (loss) income to Adjusted Net Income and Adjusted Net Income per share - diluted: Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2025 2024 2025 2024 Net income $ 37 $ 60 $ 122 $ 152 Effective income tax rate adjustment 1 — 2 1 Stock based compensation 18 18 31 38 Amortization of intangible assets 3 5 5 10 Non-cash interest expense — 1 1 1 Restructuring costs 2 — 3 — Income tax impact of pre-tax adjustments (6) (6) (10) (13) Adjusted Net Income $ 55 $ 78 $ 154 $ 189 GAAP weighted average shares of common stock - diluted 49 51 49 51 Adjusted Net Income per share - diluted $ 1.15 $ 1.53 $ 3.15 $ 3.70 The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow: Six Months Ended June 30, (in millions) 2025 2024 Net cash provided by operating activities $ 170 $ 130 Acquisitions of property and equipment and projects in process (33) (35) Free Cash Flow (a) $ 137 $ 95 Adjusted EBITDA (b) $ 268 $ 316 Free Cash Flow Conversion Ratio (a)/(b) 51 % 30 % Reconciliation of GAAP to Non-GAAP Measures for the full-year 2025 guidance. Low and high percentages represent increases (decreases) from the same period in the previous year. The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share - diluted: FY 2024 Year 2025 Guidance (in millions, except per share data) Actual Low High Net income $173 (46) % (3) % Effective income tax rate adjustment (5) (83) (105) Stock based compensation 65 11 11 Amortization of intangible assets 19 (49) (49) Non-cash interest expense 3 (100) (100) Restructuring costs 49 (80) (80) Income tax impact of pre-tax adjustments (35) (32) (32) Adjusted Net Income $269 (40) % (12) % GAAP weighted average shares of common stock - diluted 50 Adjusted Net Income per share - diluted $5.32 $3.25 $4.75 SOURCE TriNet Group, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

TriNet Announces Second Quarter 2025 Results & Reaffirms Full Year 2025 Guidance

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