Dublin, California, October 29th / PRNewswire / -- TriNet Group, Inc. (New York Stock Exchange ticker: TNET) Today, the company announced its financial results for the third quarter ending September 30, 2026. The company is a leading provider of comprehensive and flexible human capital management ( HCM ) solutions for small and medium-sized enterprises. The highlights of the third quarter include non- GAAP financial indicators, with the relevant reconciliations listed at the end of this press release.
TriNet, President and CEO, Mike Simonds stated: "We have delivered solid third-quarter results and made further progress in our strategic priorities. The profitability exceeded our expectations, the customer retention rate has improved, and new sales have also resumed year-on-year growth."
Simonds added, "Our growth initiatives are starting to bear fruit. The momentum in our brokerage channels is strengthening, and our investment in sales is driving improved performance during the important autumn sales season. At the same time, we are also enhancing our value proposition to customers through investments in service models and an expanding portfolio of solutions, such as TriNet Leave, powered, by, Cocoon, TriNet Recruit, and TriNet Spend. As these initiatives gradually take effect, we believe that TriNet is increasingly well-positioned to resume sustainable growth."
Highlights of the third quarter include:
- Total revenue decreased by 5% year-on-year to $1.2 billion.
- Professional service revenue decreased by 7% year-on-year to $157 million.
- Net profit was $31 million, which is $0.65 per diluted share; in the same period last year, net profit was $34 million, which is $0.70 per diluted share.
- The adjusted net profit is $44 million, which is $0.94 per diluted share; in the same period last year, the adjusted net profit was $55 million, which is $1.11 per diluted share.
- After adjustment, EBITDA is set at $89 million, and the adjusted profit margin for EBITDA is 7.6%; in the same period last year, after adjustment, EBITDA was $100 million, and the adjusted profit margin for EBITDA was 8.2%.
- The total number of employees in workplace locations ( WSE ) decreased by 11% year-on-year, to approximately 295,000 people.
- Net cash flow from operating activities increased by 11% year-on-year to 80 million US dollars, with free cash flow amounting to 53 million US dollars.
Guidelines for the whole year of 2026
In addition to announcing the third-quarter results for 2026, the company also reaffirmed its full-year guidance for 2026, expecting diluted earnings per share to be at the upper end of the range. The reconciliation of non-GAAP financial indicators will be listed later in this press release.
Quarterly 10-Q Report
The company expects to submit its quarterly report for the nine months ending September 30, 2026 (10-Q), to the U.S. Securities and Exchange Commission (SEC) around October 29, 2026, and it will be available at https :// www.trinet.com. Investors should read this press release in conjunction with this 10-Q and the notes to the consolidated financial statements contained therein, as well as the management's discussion and analysis of the financial condition and operating results.
Performance Teleconference and Audio Webcast
TriNet will hold a teleconference at 5:30 AM Pacific Time today to discuss its third-quarter results for 2026. The company encourages participants to register in advance for the webcast. The live broadcast of the teleconference can be accessed at TriNet on the Investor Relations page at https :// investor.trinet.com. Participants can pre-register for the webcast through https :// events.q4inc.com / attendee /764057723; they can also pre-register for the teleconference through https :// dpregister.com / sreg /10212821/1052113182d. Those who do not register in advance can call +1 (412) 317-5426 and request to be connected to “TriNet Conference Call”. The replay of the webcast will be available on that website for about a year; the replay of the teleconference will be available for listening via +1 (412) 317-0088 within two weeks after the teleconference, with the conference ID being 6487067.
About TriNet
TriNet is a leading provider of human resources solutions for small and medium-sized enterprises, offering the HR services that businesses truly need: professional knowledge, technology, and support to help companies operate and grow more easily. With its advanced technology-driven services and deep expertise in human capital, TriNet provides customers with employee benefits, medical insurance and retirement plans, salary and payroll tax management, risk mitigation, as well as compliance consulting. TriNet helps businesses navigate the complexities of human resources, allowing them to focus on their initial goals at the beginning of their entrepreneurial journey. For more information, please visit TriNet.com, or follow them on Facebook, LinkedIn, and Instagram.
Use of non-GAAP financial indicators
At the end of this press release, after the relevant financial data, a reconciliation between the financial results calculated in accordance with Generally Accepted Accounting Principles in the United States (GAAP) and the non-GAAP financial indicators is listed. For an explanation of these non-GAAP financial indicators and the reasons why management uses them, please refer to the section titled “Non - GAAP Financial Measures”.
Forward-looking Statements
The content contained in this press release, as well as that mentioned during the aforementioned teleconference, includes statements that are not historical facts, are of a predictive nature, or rely on future events or conditions, or other forward-looking statements as defined by Section 21 of the Securities Exchange Act of 1934 (as amended) and the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to: TriNet's expectations for financial guidance for the entire year 2026 and its underlying assumptions; TriNet's mid-term outlook, market positioning, and its underlying assumptions; TriNet's ongoing investments in artificial intelligence, including the development of TriNet Assistant, and its ability to provide a better service experience; TriNet's ability to drive business growth through measures such as expanding the sales team; and TriNet's ability to execute its strategy.Forward-looking statements can typically be identified by phrases such as “ability (capability)”, “anticipate (expected)”, “believe (believe)”, “can (able to)”, “continue (continue)”, “could (possible)”, “enhance (improve)”, “estimate (estimate)”, “expand (expand)”, “expect (predicted)”, “facilitate (promote)”, “grow (grow)”, “guidance (guide)”, “impact (impact)”, “improve (improve)”, “intend (intend)”, “maintain (maintain)”, “may (possible)”, “plan (plan)”, “project (predict)”, “provide (provide)”, “return (return)”, “should (should)”, “strategy (strategy)”, “strengthen (strengthen)”, “support (support)”, “will (will)”, “would (will)”, and their variations. These statements do not guarantee future performance, but are based on management's expectations as of the date of this press release, along with inherent uncertainties, risks, and assumptions of change. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may lead to significant differences between actual results, performance, or achievements and those currently expected or implied by the forward-looking statements. Investors are advised not to rely excessively on any forward-looking statements.
Important factors that could lead to significant differences between actual results and the results explicitly or implicitly stated in the above forward-looking statements include: the company's ability to handle work-related injury compensation and medical insurance claims, as well as unexpected changes in costs, including the impact of WSE; the company's ability to mitigate unique business risks as a co-employer; the impact of fluctuations in the financial and economic environment on the companies within its customer base; the company's inability to achieve or maintain the expected benefits from business reorganization measures, as well as the related increased costs; customer churn due to reasons beyond the company's control, and the company's practice of using short-term customer contracts; the impact of regional or industry-specific economic and health factors on the company's operations; the impact of failures or restrictions on the business systems and centers upon which the company relies; changes in insurance coverage or changes in relationships with major insurance carriers; the company's ability to improve services and technology to meet customer and regulatory expectations, including requirements related to artificial intelligence; the company's ability to effectively integrate acquired or potentially acquired businesses; the company's ability to effectively manage and enhance operational efficiency and resilience; the company's ability to price services at rates that customers still find attractive; the ability to attract and retain qualified employees; the impact of intensified competition and the company's ability to compete effectively; the impact of cyberattacks, data breaches, information disclosures, and other data-related incidents on business; the company's ability to comply with evolving data privacy, artificial intelligence, and security laws; the company's ability to manage changes, uncertainties, or adverse applications of complex laws and regulations applicable to its business; changes in laws and regulations regarding medical insurance and employee benefits; the risk of losses arising from submitting employee retention tax credits (ERC) on behalf of customers; the company's ability to keep up with technological changes or to promptly improve solutions and support, including those related to artificial intelligence; and the risks associated with international business, including potential political or economic risks; the company's ability to operate under numerous complex legal constraints;Changes in federal, state, and local laws and regulations regarding medical insurance and other traditional employee benefits; the company's ability to be recognized as an employer of workplace employees and for its benefit plans to meet federal and state regulatory requirements; changes in laws and regulations defining employers, employees, or independent contractors; the impact of new laws and evolving legislation regarding remote work; the company's ability to comply with licensing requirements that govern its solutions; third-party service providers' failure to fulfill their duties; non-compliance with anti-corruption laws and regulations, economic and trade sanctions, and similar laws; the consequences of existing and future laws and tax procedures; fluctuations in operating results, stock price, and annual performance indicators due to factors beyond the company's control; the company's ability to comply with debt restrictions and fulfill its debt obligations; the need for additional capital or restructuring of existing debt; the ongoing implementation of stock repurchase programs; as well as the concentrated holding of the company's stock by Atairos and other major shareholders, and the impact of anti-takeover provisions in the company's articles of association and Delaware law. Any of the above factors could lead to significant differences between the company's actual results and the expected results.
For more information regarding risks that may affect the performance of TriNet, please refer to the documents submitted by the company to SEC, including those titled “Risk Factors” and “Management's Discussion and Analysis of and Results of Operations”, as well as other content in the company's most recent 10-K annual reports and 10-Q quarterly reports. These documents can be found on the company's investor relations websites http :// investor.trinet.com and SEC www.sec.gov. Copies of these documents can also be obtained by contacting the TriNet Corporation Investor Relations department ([email protected]). Except as required by law, neither the company nor any other party assumes responsibility for the accuracy or completeness of the forward-looking statements contained in this press release, which are valid only as of the date of issuance of this press release. Furthermore, except as required by law, the company has no obligation to update any forward-looking statements and intends not to do so.
Key Financial and Operational Indicators
The company regularly reviews several key financial and operational indicators to assess growth trends, measure performance, and make strategic decisions. These key indicators may change over time. The key financial and operational indicators for the listed period are as follows:
Non-GAAP financial indicators
In addition to the selected financial indicators presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States ( GAAP ), the company also monitors other non-GAAP financial indicators. These indicators are used for business management, planning decisions, resource allocation, and as performance measurement criteria in the executive compensation plan. These key financial indicators provide an additional perspective on the company's long-term operational performance and offer informational support for maintaining and developing the business.
The presentation of these non-GAAP financial indicators is intended to enhance the understanding of certain aspects of the company's financial performance. They should not be viewed in isolation, nor should they be considered superior to or a substitute for the directly comparable financial indicators prepared in accordance with GAAP.
GAAP Reconciliation with Non-GAAP Indicators
The following table shows the reconciliation of net profit with adjusted EBITDA.
The following table shows the reconciliation of net profit with adjusted net profit and diluted adjusted earnings per share:
The following table shows the reconciliation between net cash flow from operating activities and free cash flow:
Reconciliation of GAAP and non-GAAP indicators for the 2026 annual guidance.
The low-end and high-end percentages represent the increase or decrease compared to the same period of the previous year.
The following table shows the reconciliation of net profit with adjusted net profit and diluted adjusted earnings per share:
