As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the professional staffing & hr solutions industry, including Insperity (NYSE: NSP) and its peers.

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 7 professional staffing & hr solutions stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.3% since the latest earnings results.

Weakest Q2: Insperity (NYSE: NSP)

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Insperity reported revenues of $1.66 billion, up 3.3% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS guidance for next quarter estimates and a significant miss of analysts’ EPS estimates.

“Despite our reported Q2 results and the associated lower guidance for this year, we have experienced recent growth momentum and are executing a plan over the balance of the year that we believe lays the foundation for accelerated growth and improved profitability in 2026,” said Paul J. Sarvadi, Insperity chairman and chief executive officer.

Insperity delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 7.1% since reporting and currently trades at $55.37.

Read our full report on Insperity here, it’s free.

Best Q2: First Advantage (NASDAQ: FA)

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

First Advantage reported revenues of $390.6 million, up 112% year on year, outperforming analysts’ expectations by 2.7%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a decent beat of analysts’ full-year EPS guidance estimates.

First Advantage delivered the fastest revenue growth and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.6% since reporting. It currently trades at $15.96.

Is now the time to buy First Advantage? Access our full analysis of the earnings results here, it’s free.

Kforce (NYSE: KFRC)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $334.3 million, down 6.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS guidance for next quarter estimates and EPS in line with analysts’ estimates.

As expected, the stock is down 32% since the results and currently trades at $31.87.

Read our full analysis of Kforce’s results here.

Alight (NYSE: ALIT)

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE: ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Alight reported revenues of $528 million, down 1.9% year on year. This number topped analysts’ expectations by 0.6%. Zooming out, it was a slower quarter as it logged EPS in line with analysts’ estimates and full-year revenue guidance missing analysts’ expectations.

Alight had the weakest full-year guidance update among its peers. The stock is down 25.6% since reporting and currently trades at $3.83.

Read our full, actionable report on Alight here, it’s free.

Robert Half (NYSE: RHI)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Robert Half reported revenues of $1.37 billion, down 7% year on year. This print surpassed analysts’ expectations by 1.1%. Overall, it was a satisfactory quarter as it also put up EPS in line with analysts’ estimates.

Robert Half had the slowest revenue growth among its peers. The stock is down 12% since reporting and currently trades at $37.35.

Read our full, actionable report on Robert Half here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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