Earnings release
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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 /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, 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." 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 2026 and the underlying assumptions; TriNet's mid-term outlook, market positioning, and the underlying assumptions; TriNet's on-going AI investments, including the development of TriNet Assistant, and its ability to deliver improved service experiences; TriNet's ability to build momentum in its business, including through sales force growth; and TriNet's ability to execute on our strategy. 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," "goal," "guidance," "impact," "intend," "may," "objective," "plan," "project," "should," "strategy," "support," "will," "would" and similar expressions or variations intended to identify forward-looking statements. 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
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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 expressed or implied by the forward-looking statements. 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, including by WSEs; our ability to mitigate the distinct 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, and any associated increases in costs as a result of these 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; 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, including with respect to artificial intelligence; 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 price our services at rates that our clients continue to find attractive; 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, artificial intelligence 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; the incurrence of losses related to employee retention tax credit claims filed on behalf of our clients; our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support, including with respect to artificial intelligence; risks associated with our international operations, including potential political or economic risks; 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, stock price and maintenance of performance measures year over year 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; and 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 Investorrelations@TriNet.com. 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. Contacts: Investors: Media: Alex Bauer Renee Brotherton / Josh Gross TriNet TriNet Investorrelations@TriNet.com Renee.Brotherton@TriNet.com Josh.Gross@TriNet.com 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 : 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) 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 (1) (1)
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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
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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 , - 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 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. 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 View original content to download multimedia:https://www.prnewswire.com/news-releases/trinet-announces-second-quarter-2026-results--raises-fy26-earnings- guidance-302838514.html SOURCE TriNet Group, Inc. (1) (1) (1)