5h ago
TriNet Announces Second Quarter 2026 Results & Raises FY26 Earnings Guidance
TriNet Announces Second Quarter 2026 Results & Raises FY26 Earnings Guidance
50% Growth in GAAP Earnings per Diluted Share to $1.15 for the Second Quarter 2026
35% Growth in Adjusted Net Income per Diluted Share to $1.55 for the Second Quarter 2026
DUBLIN, Calif., July 30, 2026 — 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, 2026. The second quarter highlights below include non-GAAP financial measures which are reconciled later in this release.
"Our second quarter results reflect the progress we are making in delivering on our plan," said Mike Simonds, TriNet's President and CEO. "We increased our retention, managed costs, improved our bottom-line performance, and raised our full year earnings guidance."
Simonds continued, "We are gaining traction across several initiatives. We expect further sales-force growth, channel activity is increasing, and our AI investments are driving an improved service experience. As we look to the second half, we are well positioned for the fall selling season."
Second quarter highlights include:
- Total revenues decreased 5% to $1.2 billion compared to the same period last year.
- Professional service revenues decreased 8% to $159 million compared to the same period last year.
- Net income was $53 million, or $1.15 per diluted share, compared to net income of $37 million, or $0.77 per diluted share, in the same period last year.
- Adjusted Net Income was $72 million, or $1.55 per diluted share, compared to Adjusted Net Income of $55 million, or $1.15 per diluted share, in the same period last year.
- Adjusted EBITDA was $128 million, representing an Adjusted EBITDA Margin of 10.9%, compared to Adjusted EBITDA of $105 million, representing an Adjusted EBITDA Margin of 8.5% in the same period last year.
- Average Worksite Employees (WSEs) decreased 11% as compared to the same period last year, to approximately 298,000.
- Generated $88 million in Net cash provided by operating activities, and $67 million in Free Cash Flow.
Full-Year 2026 Guidance
In addition to announcing our second quarter 2026 results, we are revising our full-year 2026 guidance. Non-GAAP financial measures are reconciled later in this release.
Full Year 2026
(dollars in millions, except for per share amounts)
Low
High
Total Revenues
$ 4,750
$ 4,900
Professional Service Revenues
$ 647
$ 663
Insurance Cost Ratio
89.50 %
88.50 %
Adjusted EBITDA Margin
8.5 %
9.0 %
Diluted net income per share of common stock
$ 2.85
$ 3.35
Adjusted Net Income per share - diluted
$ 4.50
$ 5.10
Quarterly Report on Form 10-Q
We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the first half of 2026 with the U.S. Securities and Exchange Commission (SEC) and making it available at https://www.trinet.com on or about July 30, 2026. 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 today to discuss its second quarter results for 2026. TriNet encourages participants to pre-register for the webcast. 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/927481617. Callers can pre-register for the conference call by going to: https://dpregister.com/sreg/10210705/1048397dc5d. 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: 5964638.
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, please 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."
Contacts
Investors:
Media:
Alex Bauer
Renee Brotherton / Josh Gross
TriNet
TriNet
[email protected]
[email protected]
[email protected]
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)
2026
2025
% Change
2026
2025
% Change
Income Statement Data:
Total revenues
$ 1,178
$ 1,238
(5)
%
$ 2,404
$ 2,530
(5)
%
Income before tax
74
51
45
197
166
19
Net income
53
37
43
142
122
16
Diluted net income per share of common stock
1.15
0.77
50
3.05
2.48
23
Non-GAAP measures (1)****:
Adjusted EBITDA
128
105
22
314
268
17
Adjusted Net income
72
55
31
188
154
22
Free Cash Flow
190
136
40
Operating Metrics:
Insurance Cost Ratio
86 %
90 %
(4)
%
85 %
89 %
(4)
Average WSEs
297,615
336,010
(11)
298,916
338,377
(12)
%
Total WSEs
299,655
338,900
(12)
299,655
338,900
(12)
(1) Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures"
(in millions)
June 30, 2026
December 31, 2025
% Change
Balance Sheet Data:
Cash and cash equivalents
$ 358
$ 287
25
%
Working capital
275
231
19
Total assets
3,346
3,797
(12)
Debt
896
895
—
Total stockholders' equity
125
54
131
Six Months Ended June 30,
(in millions)
2026
2025
% Change
Cash Flow Data:
Net cash provided by operating activities
$ 237
$ 170
39
%
Net cash used in investing activities
(84)
(7)
1,100
Net cash used in financing activities
(757)
(428)
77
TRINET GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in millions except per share data)
2026
2025
2026
2025
Professional service revenues
$ 159
$ 172
$ 348
$ 381
Insurance service revenues
1,007
1,048
2,030
2,113
Interest income
12
18
26
36
Total revenues
1,178
1,238
2,404
2,530
Insurance costs
867
947
1,723
1,889
Cost of providing services
65
71
135
142
Sales and marketing
66
68
135
135
General and administrative
56
52
115
98
Systems development and programming
17
17
36
37
Depreciation and amortization of intangible assets
19
17
36
34
Interest expense, bank fees and other
14
15
27
29
Total costs and operating expenses
1,104
1,187
2,207
2,364
Income before tax
74
51
197
166
Income taxes
21
14
55
44
Net income
$ 53
$ 37
$ 142
$ 122
Other comprehensive income, net of income taxes
(1)
1
(3)
3
Comprehensive income
$ 52
$ 38
$ 139
$ 125
Net income per share:
Basic
$ 1.16
$ 0.77
$ 3.07
$ 2.49
Diluted
$ 1.15
$ 0.77
$ 3.05
$ 2.48
Weighted average shares:
Basic
46
48
46
49
Diluted
46
49
47
49
TRINET GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30,
December 31,
(in millions, except share and per share data)
2026
2025
Assets
Current assets:
Cash and cash equivalents
$ 358
$ 287
Restricted cash, cash equivalents and investments
1,039
1,694
Accounts receivable, net
3
20
Payroll funds receivable
428
264
Prepaid expenses, net
53
82
Other payroll assets
427
474
Other current assets
76
47
Total current assets
2,384
2,868
Restricted cash, cash equivalents and investments, noncurrent
122
128
Property and equipment, net
27
11
Operating lease right-of-use asset
40
36
Goodwill
465
461
Software and other intangible assets, net
173
153
Other assets
135
140
Total assets
$ 3,346
$ 3,797
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and other current liabilities
$ 103
$ 86
Client deposits and other client liabilities
76
57
Accrued wages
547
555
Accrued health insurance costs, net
189
207
Accrued workers' compensation costs, net
42
42
Payroll tax liabilities and other payroll withholdings
1,134
1,671
Operating lease liabilities
10
10
Insurance premiums and other payables
8
9
Total current liabilities
2,109
2,637
Long-term debt, noncurrent
896
895
Accrued workers' compensation costs, noncurrent, net
104
106
Deferred taxes
54
55
Operating lease liabilities, noncurrent
44
37
Other non-current liabilities
14
13
Total liabilities
3,221
3,743
Total stockholders' equity
125
54
Total liabilities & stockholders' equity
$ 3,346
$ 3,797
TRINET GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30,
(in millions)
2026
2025
Operating activities
Net income
$ 142
$ 122
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets
36
33
Amortization of deferred costs
26
23
Amortization of ROU asset, lease modification, impairment, and abandonment
4
3
Deferred income taxes
—
(1)
Stock based compensation
33
31
Loss from disposition of assets
—
1
Other
2
3
Changes in operating assets and liabilities:
Accounts receivable, net
1
1
Prepaid expenses, net
25
9
Other assets
(29)
(18)
Accounts payable and other liabilities
11
(5)
Client deposits and other client liabilities
(2)
(1)
Accrued wages
(6)
(10)
Accrued health insurance costs, net
—
1
Accrued workers' compensation costs, net
(2)
(1)
Payroll taxes liabilities and other payroll withholdings
(2)
(14)
Operating lease liabilities
(2)
(7)
Net cash provided by operating activities
237
170
Investing activities
Purchases of marketable securities
(76)
(41)
Proceeds from sale and maturity of marketable securities
61
67
Acquisitions of property and equipment and software
(47)
(34)
Proceeds from sale of business
—
1
Acquisition of subsidiary, net of cash acquired
(22)
—
Net cash used in investing activities
(84)
(7)
Financing activities
Change in WSE and TriNet Trust related assets and liabilities, net
(655)
(310)
Repurchase of common stock
(76)
(91)
Proceeds from issuance of common stock
5
7
Awards effectively repurchased for required employee withholding taxes
(5)
(8)
Dividends paid
(26)
(26)
Net cash used in financing activities
(757)
(428)
Effect of exchange rate changes on cash and cash equivalents
(1)
—
Net change in cash and cash equivalents, unrestricted and restricted
(605)
(265)
Cash and cash equivalents, unrestricted and restricted:
Beginning of period
1,902
1,691
End of period
$ 1,297
$ 1,426
Supplemental disclosures of cash flow information
Interest paid
$ 25
$ 27
Income taxes paid, net
$ 8
$ 26
Supplemental schedule of noncash investing and financing activities
Cash dividend declared, but not yet paid
$ 13
$ 13
Payable for purchase of property and equipment
$ 9
$ 3
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,
- stock based compensation expense
- interest expense, bank fees and other,
- depreciation,
- amortization of intangible assets,
- amortization of cloud computing arrangements,
- restructuring costs, and
- transaction and integration costs.
• Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates the effectiveness of our business strategies by excluding certain non-recurring costs, which include restructuring costs and transaction and integration costs, as well as certain non-cash charges such as depreciation and amortization, and stock-based compensation and certain impairment charges recognized based 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 period and, accordingly, facilitates the development of future projections and earnings growth prospects. • Provides a measure, among others, used in the determination of incentive compensation for 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
- transaction and integration costs, and
- the income tax effect (at our effective tax rate (1) of these pre-tax adjustments.)
• Provides information to our stockholders and board of directors to understand how our management evaluates our business, to monitor and evaluate our operating results, and analyze profitability of our ongoing operations and trends on a consistent basis by excluding certain non-cash charges.
Free Cash Flow
• Net cash provided by operating activities reduced 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, evaluate our performance and allocate resources. • We also sometimes refer to Free Cash Flow Conversion ratio, which is the ratio of free cash flow to Adjusted EBITDA.
(1) Non-GAAP effective tax rate is 25.5% and 25% for second quarters and full years of 2026 and 2025, respectively, which excludes the income tax impact from 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 income to Adjusted EBITDA:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2026
2025
2026
2025
Net income
$ 53
$ 37
$ 142
$ 122
Provision for income taxes
21
14
55
44
Stock based compensation
17
18
33
31
Interest expense, bank fees and other
14
15
27
29
Depreciation and amortization of intangible assets
19
17
36
34
Amortization of cloud computing arrangements
3
2
6
5
Restructuring costs
(1)
2
13
3
Acquisition and integration costs
2
—
2
—
Adjusted EBITDA
$ 128
$ 105
$ 314
$ 268
Adjusted EBITDA Margin
10.9 %
8.5 %
13.1 %
10.6 %
The table below presents a reconciliation of Net 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)
2026
2025
2026
2025
Net income
$ 53
$ 37
$ 142
$ 122
Effective income tax rate adjustment
2
1
5
2
Stock based compensation
17
18
33
31
Amortization of intangible assets
3
3
5
5
Non-cash interest expense
1
—
1
1
Restructuring costs
(1)
2
13
3
Acquisition and integration costs
2
—
2
—
Income tax impact of pre-tax adjustments
(5)
(6)
(13)
(10)
Adjusted Net Income
$ 72
$ 55
$ 188
$ 154
GAAP weighted average shares of common stock - diluted
46
49
47
49
Adjusted Net Income per share - diluted
$ 1.55
$ 1.15
$ 4.04
$ 3.15
The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2026
2025
2026
2025
Net cash provided by operating activities
$ 88
$ 75
$ 237
$ 170
Acquisitions of property and equipment and software
(21)
(18)
(47)
(34)
Free Cash Flow (a)
$ 67
$ 57
$ 190
$ 136
Adjusted EBITDA (b)
$ 128
$ 105
$ 314
$ 268
Free Cash Flow Conversion Ratio (a)/(b)
52 %
54 %
61 %
51 %
Reconciliation of GAAP to Non-GAAP Measures for the full-year 2026 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 2025
Year 2026 Guidance
(in millions, except per share data)
Actual
Low
High
Net income
$155
(15) %
— %
Effective income tax rate adjustment
8
(66)
(67)
Stock based compensation
65
4
4
Amortization of intangible assets
10
16
16
Non-cash interest expense
3
(62)
(62)
Restructuring costs
11
71
133
Income tax impact of pre-tax adjustments
(22)
14
22
Adjusted Net Income
$230
(10) %
3 %
GAAP weighted average shares of common stock - diluted
49
Adjusted Net Income per share - diluted
$4.73
$4.50
$5.10
Summary
50% Growth in GAAP Earnings per Diluted Share to 1.15fortheSecondQuarter2026351.55 for the Second Quarter 2026 DUBLIN, Calif., July 30, 2026 /PRNewswire/ -- TriNet Group,Inc.(NYSE: TNET),a leading provider of comprehensive and...