TriNet Announces First Quarter 2025 Results
TriNet (NYSE: TNET) reported Q1 2025 financial results with total revenues increasing 1% to $1.3 billion. The company experienced a slight decline in key metrics, with net income at $85 million ($1.71 per diluted share) compared to $91 million ($1.78) last year.
Professional service revenues decreased 2% to $209 million, while Average WSEs dropped 2% to 341,000. Adjusted EBITDA was $162 million with a 12.6% margin, down from $180 million and 14.2% margin in the previous year. The company returned $102 million to shareholders through share repurchases and dividends, including 1.2 million repurchased shares.
TriNet reiterated its full-year 2025 guidance, projecting total revenues between $4.95-5.14 billion, with an expected Adjusted EBITDA margin of 7-9% and diluted EPS ranging from $1.90 to $3.40.
TriNet (NYSE: TNET) ha comunicato i risultati finanziari del primo trimestre 2025, con ricavi totali in crescita dell'1% a 1,3 miliardi di dollari. L'azienda ha registrato un leggero calo nei principali indicatori, con un utile netto di 85 milioni di dollari (1,71 dollari per azione diluita) rispetto ai 91 milioni (1,78 dollari) dell'anno precedente.
I ricavi dai servizi professionali sono diminuiti del 2%, attestandosi a 209 milioni di dollari, mentre il numero medio di WSE è sceso del 2% a 341.000. L'EBITDA rettificato è stato di 162 milioni di dollari con un margine del 12,6%, in calo rispetto ai 180 milioni e al 14,2% dell'anno precedente. La società ha restituito 102 milioni di dollari agli azionisti tramite riacquisti di azioni e dividendi, inclusi 1,2 milioni di azioni riacquistate.
TriNet ha confermato le previsioni per l'intero 2025, prevedendo ricavi totali tra 4,95 e 5,14 miliardi di dollari, con un margine EBITDA rettificato atteso tra il 7% e il 9% e un utile per azione diluito compreso tra 1,90 e 3,40 dollari.
TriNet (NYSE: TNET) informó los resultados financieros del primer trimestre de 2025, con ingresos totales que aumentaron un 1% hasta 1.300 millones de dólares. La compañía experimentó una ligera disminución en métricas clave, con un ingreso neto de 85 millones de dólares (1,71 dólares por acción diluida) en comparación con 91 millones (1,78 dólares) del año anterior.
Los ingresos por servicios profesionales disminuyeron un 2%, situándose en 209 millones de dólares, mientras que el promedio de WSE bajó un 2% a 341,000. El EBITDA ajustado fue de 162 millones de dólares con un margen del 12,6%, frente a 180 millones y un margen del 14,2% del año previo. La empresa devolvió 102 millones de dólares a los accionistas mediante recompras de acciones y dividendos, incluyendo 1,2 millones de acciones recompradas.
TriNet reiteró su guía para todo el año 2025, proyectando ingresos totales entre 4,95 y 5,14 mil millones de dólares, con un margen EBITDA ajustado esperado entre el 7% y el 9% y una utilidad por acción diluida que oscila entre 1,90 y 3,40 dólares.
TriNet (NYSE: TNET)는 2025년 1분기 재무 실적을 발표했으며, 총 수익은 1% 증가한 13억 달러를 기록했습니다. 회사는 주요 지표에서 다소 하락을 겪었으며, 순이익은 8,500만 달러 (희석 주당 1.71달러)로 지난해 9,100만 달러(희석 주당 1.78달러) 대비 감소했습니다.
전문 서비스 수익은 2% 감소한 2억 900만 달러였으며, 평균 WSE는 2% 하락한 341,000명이었습니다. 조정 EBITDA는 1억 6,200만 달러, 마진은 12.6%로 전년도의 1억 8,000만 달러 및 14.2% 마진에서 감소했습니다. 회사는 주식 환매 및 배당을 통해 주주들에게 1억 200만 달러를 환원했으며, 이 중 120만 주를 환매했습니다.
TriNet은 2025년 전체 가이던스를 재확인하며, 총 수익을 49억 5천만~51억 4천만 달러로 예상하고 있으며, 조정 EBITDA 마진은 7~9%, 희석 주당순이익은 1.90~3.40달러 범위로 전망하고 있습니다.
TriNet (NYSE : TNET) a publié ses résultats financiers du premier trimestre 2025, avec un chiffre d'affaires total en hausse de 1 % à 1,3 milliard de dollars. L'entreprise a connu une légère baisse de ses indicateurs clés, avec un bénéfice net de 85 millions de dollars (1,71 dollar par action diluée) contre 91 millions (1,78 dollar) l'année précédente.
Les revenus des services professionnels ont diminué de 2 % pour atteindre 209 millions de dollars, tandis que le nombre moyen de WSE a baissé de 2 % à 341 000. L'EBITDA ajusté s'est élevé à 162 millions de dollars avec une marge de 12,6 %, en baisse par rapport à 180 millions et une marge de 14,2 % l'année précédente. La société a reversé 102 millions de dollars aux actionnaires via des rachats d'actions et des dividendes, incluant 1,2 million d'actions rachetées.
TriNet a réitéré ses prévisions pour l'année 2025, prévoyant un chiffre d'affaires total compris entre 4,95 et 5,14 milliards de dollars, avec une marge d'EBITDA ajustée attendue entre 7 % et 9 % et un BPA dilué allant de 1,90 à 3,40 dollars.
TriNet (NYSE: TNET) meldete die Finanzergebnisse für das erste Quartal 2025 mit einem Umsatzanstieg von 1 % auf 1,3 Milliarden US-Dollar. Das Unternehmen verzeichnete einen leichten Rückgang wichtiger Kennzahlen, wobei der Nettogewinn bei 85 Millionen US-Dollar (1,71 US-Dollar je verwässerter Aktie) lag, verglichen mit 91 Millionen US-Dollar (1,78 US-Dollar) im Vorjahr.
Die Erlöse aus professionellen Dienstleistungen sanken um 2 % auf 209 Millionen US-Dollar, während die durchschnittliche Anzahl der WSEs um 2 % auf 341.000 zurückging. Das bereinigte EBITDA betrug 162 Millionen US-Dollar bei einer Marge von 12,6 %, gegenüber 180 Millionen US-Dollar und einer Marge von 14,2 % im Vorjahr. Das Unternehmen gab 102 Millionen US-Dollar an die Aktionäre durch Aktienrückkäufe und Dividenden zurück, darunter 1,2 Millionen zurückgekaufte Aktien.
TriNet bestätigte seine Prognose für das Gesamtjahr 2025 und erwartet einen Gesamtumsatz zwischen 4,95 und 5,14 Milliarden US-Dollar, mit einer erwarteten bereinigten EBITDA-Marge von 7–9 % und einem verwässerten Ergebnis je Aktie zwischen 1,90 und 3,40 US-Dollar.
- Maintained 1% revenue growth to $1.3B despite challenging economic environment
- Returned $102M to shareholders via buybacks and dividends
- Reaffirmed full-year 2025 guidance showing confidence in business outlook
- Net income declined to $85M from $91M YoY
- Professional service revenues decreased 2% to $209M
- Average WSEs decreased 2% to 341,000
- Adjusted EBITDA margin contracted to 12.6% from 14.2% YoY
Insights
TriNet delivered modest revenue growth despite WSE decline, with compressed margins but stable outlook, maintaining full-year guidance.
TriNet's Q1 2025 results show a company maintaining revenue stability amid operational challenges. Total revenues increased
Profitability metrics reveal more pronounced pressure points. Net income decreased to
Management's strategic approach centers on three pillars: customer care, benefits offering repricing, and growth/efficiency investments. The benefits repricing initiative is particularly noteworthy as it directly addresses the Insurance Cost Ratio, which management guides to
Despite Q1's compressed margins, TriNet maintained its full-year guidance, suggesting management anticipates improved performance in subsequent quarters. The company's robust capital return program returned
CEO Mike Simonds' assertion of confidence in their "large market opportunity" and ability to "grow share over the medium term" signals a belief that current challenges are navigable rather than structural. The reiteration of full-year guidance provides stability and suggests Q1 results, while showing some softness, remain aligned with management's annual expectations.
Repurchased 1.2 Million Shares in the First Quarter 2025
"We had a strong start to 2025 delivering financial performance consistent with our full-year guidance," said Mike Simonds, TriNet President and CEO. "The strength of our business model was evident as we helped customers navigate a challenging economic environment."
Simonds continued, "We have a clear plan in place, caring for our customers, repricing our benefits offering, and investing in multiple initiatives to drive growth and a more efficient delivery model. We remain confident in our large market opportunity and our ability to grow share over the medium term."
First quarter highlights include:
- Total revenues increased
1% to$1.3 billion - Professional service revenues decreased
2% to$209 million - Net income was
$85 million $1.71 $91 million $1.78 - Adjusted Net Income was
$99 million $1.99 $111 million $2.16 - Adjusted EBITDA was
$162 million 12.6% , compared to Adjusted EBITDA of$180 million 14.2% , in the same period last year. - Average WSEs decreased
2% compared to the same period last year, to approximately 341,000. - Returned
$102 million
Full-Year 2025 Guidance
In addition to announcing our first quarter 2025 results, we are reiterating our full-year 2025 guidance. Non-GAAP financial measures are reconciled later in this release.
Full Year 2025 | |||||
(dollars in millions, except for per share amounts) | Low | High | |||
Total Revenues | |||||
Professional Service Revenues | |||||
Insurance Cost Ratio | 92 % | 90 % | |||
Adjusted EBITDA Margin | 7 % | 9 % | |||
Diluted net income per share of common stock | |||||
Adjusted Net Income per share - diluted | |||||
Quarterly Report on Form 10-Q
We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the three months ended March 31, 2025 with the
Earnings Conference Call and Audio Webcast
TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) today to discuss its first quarter results for 2025 and provide full-year financial guidance for 2025. TriNet encourages participants to pre-register for the webcast and conference call. 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/796608745. Callers can pre-register by going to: https://dpregister.com/sreg/10198705/fee38a6e3d. 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: 7301000.
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, 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 2025 and the underlying assumptions; TriNet's market opportunity and TriNet's ability to capture market share over the medium term. 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," "guidance," "impact," "intend," "may," "plan," "predict," "project," "seek," "should," "strategy," "target," "value," "will," "would" and similar expressions or variations. Examples of forward-looking statements include, among others, ability to manage our expenses diligently; the impact of, and our ability to continue to execute, our business strategy; our ability to continue meeting customer satisfaction; and the extent to which we are able to capture our share of the available market. 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 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. 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 by WSEs; our ability to mitigate the unique 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; 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; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; 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; 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 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, AI 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; our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support; risks associated with our international operations; 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 and stock price 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; 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
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 https://investor.trinet.com/ and on the SEC website at https://www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation's Investor Relations Department at (510) 875-7201. 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 |
TriNet | TriNet |
(510) 875-7201 | (925) 965-8441 |
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 March 31, | ||||||
(in millions, except per share and Operating Metrics data) | 2025 | 2024 | % | |||
Income Statement Data: | ||||||
Total revenues | $ 1,292 | $ 1,282 | 1 | % | ||
Income before tax | 115 | 124 | (7) | |||
Net income | 85 | 91 | (7) | |||
Diluted net income per share of common stock | 1.71 | 1.78 | (4) | |||
Non-GAAP measures (1): | ||||||
Adjusted EBITDA | 162 | 180 | (10) | |||
Adjusted Net income | 99 | 111 | (11) | |||
Free Cash Flow | 79 | 73 | 8 | |||
Operating Metrics: | ||||||
Insurance Cost Ratio | 88 % | 86 % | 2 | |||
Average WSEs | 340,744 | 348,164 | (2) | % | ||
Total WSEs | 339,625 | 351,919 | (3) | |||
(1) | Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures" |
(in millions) | March 31, | December 31, | % | |||
Balance Sheet Data: | ||||||
Cash and cash equivalents | $ 349 | $ 360 | (3) | % | ||
Working capital | 211 | 199 | 6 | |||
Total assets | 3,775 | 4,119 | (8) | |||
Debt | 983 | 983 | — | |||
Total stockholders' equity | 63 | 69 | (9) |
Three Months Ended March 31, | ||||||
(in millions) | 2025 | 2024 | % | |||
Cash Flow Data: | ||||||
Net cash provided by operating activities | $ 95 | $ 91 | 4 | % | ||
Net cash used in investing activities | (8) | (47) | (83) | |||
Net cash used in financing activities | (494) | (243) | 103 | |||
TRINET GROUP, INC. | ||
Three Months Ended March 31, | ||
(in millions except per share data) | 2025 | 2024 |
Professional service revenues | $ 209 | $ 214 |
Insurance service revenues | 1,065 | 1,050 |
Interest income | 18 | 18 |
Total revenues | 1,292 | 1,282 |
Insurance costs | 942 | 907 |
Cost of providing services | 71 | 79 |
Sales and marketing | 67 | 72 |
General and administrative | 46 | 48 |
Systems development and programming | 20 | 18 |
Depreciation and amortization of intangible assets | 17 | 18 |
Interest expense, bank fees and other | 14 | 16 |
Total costs and operating expenses | 1,177 | 1,158 |
Income before tax | 115 | 124 |
Income taxes | 30 | 33 |
Net income | $ 85 | $ 91 |
Other comprehensive income (loss), net of income taxes | 2 | (3) |
Comprehensive income | $ 87 | $ 88 |
Net income per share: | ||
Basic | $ 1.72 | $ 1.80 |
Diluted | $ 1.71 | $ 1.78 |
Weighted average shares: | ||
Basic | 49 | 51 |
Diluted | 49 | 51 |
TRINET GROUP, INC. | ||||
March 31, | December 31, | |||
(in millions, except share and per share data) | 2025 | 2024 | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 349 | $ 360 | ||
Restricted cash, cash equivalents and investments | 1,024 | 1,413 | ||
Accounts receivable, net | 21 | 32 | ||
Payroll funds receivable | 478 | 349 | ||
Prepaid expenses, net | 60 | 64 | ||
Other payroll assets | 881 | 916 | ||
Other current assets | 44 | 46 | ||
Total current assets | 2,857 | 3,180 | ||
Restricted cash, cash equivalents and investments, noncurrent | 134 | 145 | ||
Property and equipment, net | 9 | 10 | ||
Operating lease right-of-use asset | 22 | 24 | ||
Goodwill | 461 | 461 | ||
Software and other intangible assets, net | 146 | 156 | ||
Other assets | 146 | 143 | ||
Total assets | $ 3,775 | $ 4,119 | ||
Liabilities and stockholders' equity | ||||
Current liabilities: | ||||
Accounts payable and other current liabilities | $ 82 | $ 89 | ||
Revolving credit agreement borrowings | 74 | 75 | ||
Client deposits and other client liabilities | 49 | 76 | ||
Accrued wages | 544 | 580 | ||
Accrued health insurance costs, net | 189 | 189 | ||
Accrued workers' compensation costs, net | 45 | 44 | ||
Payroll tax liabilities and other payroll withholdings | 1,645 | 1,906 | ||
Operating lease liabilities | 12 | 13 | ||
Insurance premiums and other payables | 6 | 9 | ||
Total current liabilities | 2,646 | 2,981 | ||
Long-term debt, noncurrent | 909 | 908 | ||
Accrued workers' compensation costs, noncurrent, net | 111 | 110 | ||
Deferred taxes | 10 | 11 | ||
Operating lease liabilities, noncurrent | 24 | 26 | ||
Other non-current liabilities | 12 | 14 | ||
Total liabilities | 3,712 | 4,050 | ||
Total stockholders' equity | 63 | 69 | ||
Total liabilities & stockholders' equity | $ 3,775 | $ 4,119 | ||
TRINET GROUP, INC. | ||
Three Months Ended March 31, | ||
(in millions) | 2025 | 2024 |
Operating activities | ||
Net income | $ 85 | $ 91 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization of intangible assets | 17 | 18 |
Amortization of deferred costs | 12 | 11 |
Amortization of ROU asset, lease modification, impairment, and abandonment | 2 | 2 |
Deferred income taxes | (1) | — |
Stock based compensation | 13 | 20 |
Losses on investments | 1 | — |
Loss from disposition of assets | 1 | — |
Other | 1 | 1 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1 | (1) |
Prepaid expenses, net | 7 | (14) |
Other assets | (6) | (21) |
Other payroll assets | — | 3 |
Accounts payable and other liabilities | (11) | 24 |
Client deposits and other client liabilities | — | (4) |
Accrued wages | (17) | (28) |
Accrued health insurance costs, net | 1 | — |
Accrued workers' compensation costs, net | 2 | — |
Payroll taxes liabilities and other payroll withholdings | (10) | (7) |
Operating lease liabilities | (3) | (4) |
Net cash provided by operating activities | 95 | 91 |
Investing activities | ||
Purchases of marketable securities | (27) | (95) |
Proceeds from sale and maturity of marketable securities | 34 | 66 |
Acquisitions of property and equipment and software | (16) | (18) |
Proceeds from sale of business | 1 | — |
Net cash used in investing activities | (8) | (47) |
Financing activities | ||
Change in WSE and TriNet Trust related assets and liabilities, net | (388) | (213) |
Repurchase of common stock | (90) | (23) |
Awards effectively repurchased for required employee withholding taxes | (4) | (7) |
Dividends paid | (12) | — |
Net cash used in financing activities | (494) | (243) |
Net change in cash and cash equivalents, unrestricted and restricted | (407) | (199) |
Cash and cash equivalents, unrestricted and restricted: | ||
Beginning of period | 1,691 | 1,466 |
End of period | $ 1,284 | $ 1,267 |
Supplemental disclosures of cash flow information | ||
Interest paid | $ 25 | $ 26 |
Income taxes paid, net | $ — | $ 7 |
Supplemental schedule of noncash investing and financing activities | ||
Cash dividend declared, but not yet paid | $ 13 | $ 13 |
Payable for purchase of property and equipment | $ 1 | $ 3 |
Receivable from sale of business | $ 6 | $ — |
Non-GAAP Financial Measures
In addition to the selected financial measures presented in accordance with
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, - interest expense, bank fees and other, - depreciation, - amortization of intangible assets, - stock based compensation expense, - amortization of cloud computing arrangements, and - restructuring costs
| • Provides period-to-period comparisons on a • Enhances comparisons to the prior period • Provides a measure, among others, used in • We also sometimes refer to Adjusted |
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, and - the income tax effect (at our effective tax | • Provides information to our stockholders |
Free Cash Flow | • Net cash provided by operating activities | • Provides information on the strength of our • Provides management with a measure to |
(1) | Non-GAAP effective tax rate is |
Reconciliation of GAAP to Non-GAAP Measures
The table below presents a reconciliation of Net (loss) income to Adjusted EBITDA:
Three Months Ended March 31, | ||
(in millions) | 2025 | 2024 |
Net income | $ 85 | $ 91 |
Provision for income taxes | 30 | 33 |
Stock based compensation | 13 | 20 |
Interest expense, bank fees and other | 14 | 16 |
Depreciation and amortization of intangible assets | 17 | 18 |
Amortization of cloud computing arrangements | 2 | 2 |
Restructuring costs | 1 | — |
Adjusted EBITDA | $ 162 | $ 180 |
Adjusted EBITDA Margin | 12.6 % | 14.2 % |
The table below presents a reconciliation of Net (loss) income to Adjusted Net Income and Adjusted Net Income per share - diluted:
Three Months Ended March 31, | ||
(in millions, except per share data) | 2025 | 2024 |
Net income | $ 85 | $ 91 |
Effective income tax rate adjustment | 1 | 1 |
Stock based compensation | 13 | 20 |
Amortization of intangible assets | 2 | 5 |
Non-cash interest expense | 1 | — |
Restructuring costs | 1 | — |
Income tax impact of pre-tax adjustments | (4) | (6) |
Adjusted Net Income | $ 99 | $ 111 |
GAAP weighted average shares of common stock - diluted | 49 | 51 |
Adjusted Net Income per share - diluted | $ 1.99 | $ 2.16 |
The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:
Year Ended December 31, | ||
(in millions) | 2025 | 2024 |
Net cash provided by operating activities | $ 95 | $ 91 |
Acquisitions of property and equipment and projects in process | (16) | (18) |
Free Cash Flow | $ 79 | $ 73 |
Reconciliation of GAAP to Non-GAAP Measures for the full-year 2025 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 2024 | Year 2025 Guidance | |||
(in millions, except per share data) | Actual | Low | High | |
Net income | (46) % | (3) % | ||
Effective income tax rate adjustment | (5) | (83) | (105) | |
Stock based compensation | 65 | 11 | 11 | |
Amortization of intangible assets | 19 | (49) | (49) | |
Non-cash interest expense | 3 | (100) | (100) | |
Restructuring costs | 49 | (80) | (80) | |
Income tax impact of pre-tax adjustments | (35) | (32) | (32) | |
Adjusted Net Income | (40) % | (12) % | ||
GAAP weighted average shares of common stock - diluted | 50 | |||
Adjusted Net Income per share - diluted | ||||
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SOURCE TriNet Group, Inc.
FAQ
What were TriNet's (TNET) Q1 2025 revenue and earnings per share?
How much did TriNet (TNET) return to shareholders in Q1 2025?
What is TriNet's (TNET) full-year revenue guidance for 2025?
How did TriNet's (TNET) Q1 2025 EBITDA margin compare to last year?
