Insperity, Inc. and Workday, Inc. announced the general availability of their joint solution, HRScale, on February 26 2026. The platform blends Insperity’s professional employer organization (PEO) model with Workday’s enterprise‑grade Human Capital Management (HCM) suite, delivering integrated payroll, benefits, compliance, and workforce analytics to small and midsized businesses.
HRScale is aimed at companies with 150 to 5,000 employees, a segment that has historically been underserved by traditional PEOs. The beta program, which began in early 2026, tested the solution with a select group of early‑adopter customers before the full launch. The partnership leverages Workday’s core HCM, U.S. Payroll, Absence Management, and Time Tracking modules, while Insperity provides hands‑on HR services to streamline day‑to‑day administration.
Insperity’s Q4 2025 results underscored the urgency of the launch. Revenue fell to $1.67 billion, a 0.6% decline from the prior quarter, and adjusted earnings per share were –$0.60, missing consensus expectations of –$0.47. The company posted a net loss of $7 million and a 14% contraction in gross profit, driven by elevated benefits costs and macroeconomic headwinds that dampened small‑business hiring. These figures illustrate the margin pressure Insperity faces as it seeks to return to profitability.
Workday, by contrast, reported a strong Q4 2025 performance. Revenue rose to $2.53 billion, beating the $2.52 billion consensus, and adjusted EPS reached $2.47, a 6.4% beat over the $2.32 estimate. The company’s non‑GAAP operating margin expanded to 30.6%, reflecting pricing power and operational leverage. Workday’s guidance for 2026 projects subscription revenue growth of 12–13% and a modest deceleration in FY 2027, signaling confidence in its mid‑market expansion while acknowledging near‑term market softness.
Insperity’s chairman and CEO Paul Sarvadi said the HRScale rollout is “one of the most significant transformations that has occurred at Insperity,” emphasizing the blend of technology and personalized service. Workday’s president and chief commercial officer Rob Enslin noted that the solution “takes the complexity off growing businesses’ plates, allowing them to focus on growth rather than HR administration.”
Strategically, HRScale positions Insperity to capture a $200 billion total addressable market in HR and finance that Workday has identified as under‑penetrated. By offering a premium, technology‑enabled platform, Insperity aims to deepen client relationships, drive higher‑margin sales, and accelerate growth in a segment that represents more than 40,000 U.S. companies and 25 million workers. The launch is a core component of Insperity’s three‑year plan to recover margins, reduce operating expenses by $20 million, and realign 4% of non‑sales staff.
Investors have reacted cautiously to Insperity’s recent earnings miss and guidance, but the market recognizes the potential upside of HRScale. The partnership signals a shift toward higher‑margin, technology‑enabled services, and the company’s forward guidance for 2026 EPS of $1.69–$2.72 and adjusted EBITDA of $170–$230 million suggests a path to profitability if the new solution gains traction.
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