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TriNet Announces First Quarter 2026 Results

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TriNet (NYSE: TNET) reported first quarter 2026 results for the period ended March 31, 2026. GAAP EPS was $1.90 (up 11%) and Adjusted Net Income per diluted share was $2.48 (up 25%). Total revenues were $1.2B (down 5%). Adjusted EBITDA was $186M (15.2% margin). Average worksite employees were ~300,000 (down 12%). TriNet returned approximately $71M to shareholders and reiterated full-year 2026 guidance: total revenues $4.75B–$4.90B; Adjusted Net Income per share $3.70–$4.70.

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Positive

  • Adjusted Net Income per share +25% to $2.48
  • GAAP EPS +11% to $1.90
  • Adjusted EBITDA of $186M (15.2% margin)
  • Returned approximately $71M to shareholders
  • Generated $149M operating cash flow; $123M free cash flow

Negative

  • Average Worksite Employees down 12% to ~300,000
  • Total revenues declined to $1.2B (down 5%)

News Market Reaction – TNET

+6.84%
3 alerts
+6.84% News Effect
-3.7% Trough Tracked
+$130M Valuation Impact
$2.03B Market Cap
0.2x Rel. Volume

On the day this news was published, TNET gained 6.84%, reflecting a notable positive market reaction. Argus tracked a trough of -3.7% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $130M to the company's valuation, bringing the market cap to $2.03B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

GAAP EPS: $1.90 per diluted share Adjusted EPS: $2.48 per diluted share Capital returned: $71 million +5 more
8 metrics
GAAP EPS $1.90 per diluted share Q1 2026 GAAP earnings per diluted share, up 11% year over year
Adjusted EPS $2.48 per diluted share Q1 2026 Adjusted Net Income per diluted share, up 25% year over year
Capital returned $71 million Returned to shareholders via repurchases and dividends in Q1 2026
Total revenue $1.2 billion Q1 2026 total revenues, down 5% versus the same period last year
Professional service revenue $189 million Q1 2026 professional service revenues, down 10% year over year
Net income $89 million Q1 2026 net income vs. $85 million in the prior-year quarter
Adjusted EBITDA margin 15.2% Q1 2026 Adjusted EBITDA margin vs. 12.6% in the prior-year period
2026 revenue guide (low) $4,750 million Full-year 2026 total revenue guidance low end, reiterated

Market Reality Check

Price: $44.47 Vol: Volume 461,546 is about 1...
normal vol
$44.47 Last Close
Volume Volume 461,546 is about 14% above the 20-day average of 403,247, indicating moderately elevated interest into the print. normal
Technical Shares at $42.85 are trading below the 200-day MA at $55.96, reflecting a longer-term downtrend despite the positive EPS growth.

Peers on Argus

TNET is up 2.39% with mixed peer action: NSP up 4.2% and BBSI up 0.25%, while RH...

TNET is up 2.39% with mixed peer action: NSP up 4.2% and BBSI up 0.25%, while RHI, KFY, and MAN are down between about 1–2%, suggesting only a partial sector tailwind and a meaningful company-specific component.

Previous Earnings Reports

5 past events · Latest: Feb 12 (Positive)
Same Type Pattern 5 events
Date Event Sentiment Move Catalyst
Feb 12 Q4/FY 2025 earnings Positive -10.8% Reported Q4 and FY 2025 results with 2026 guidance and strong cash returns.
Oct 29 Q3 2025 earnings Negative -6.6% Q3 2025 revenue and net income declined year over year despite reaffirmed guidance.
Jul 25 Q2 2025 earnings Negative +4.7% Flat revenue but lower net income and WSEs, while guidance was maintained.
Apr 25 Q1 2025 earnings Neutral -0.4% Slight revenue growth with softer margins and continued capital returns to shareholders.
Feb 13 Q4/FY 2024 earnings Negative -14.8% Q4 2024 net loss contrasted with modest revenue growth and medium‑term targets.
Pattern Detected

Earnings releases have often seen negative or volatile reactions, even when guidance is reiterated or capital returns are highlighted.

Recent Company History

Over the last five earnings cycles, TriNet’s results have featured stable $1.2B-level quarterly revenues, shifting from a Q4 2024 net loss to positive net income in 2025. Guidance for 2025–2026 has generally targeted mid‑single‑digit revenue trends and mid‑ to high‑single‑digit adjusted EBITDA margins, with consistent capital returns. Market reactions have skewed negative (notably -14.81% and -10.85% moves), indicating that earnings updates have often been received cautiously, even when guidance was reaffirmed.

Historical Comparison

-5.6% avg move · Across the last five earnings releases, TNET’s average 24-hour move was -5.58%, showing that earning...
earnings
-5.6%
Average Historical Move earnings

Across the last five earnings releases, TNET’s average 24-hour move was -5.58%, showing that earnings updates have often been met with cautious to negative trading responses.

Recent earnings have described a shift from Q4 2024 losses to positive 2025 profitability, with recurring guidance ranges around mid‑single‑digit revenue growth and mid‑ to high‑single‑digit adjusted EBITDA margins, alongside consistent shareholder returns.

Regulatory & Risk Context

Active S-3 Shelf
Shelf Active
Active S-3 Shelf Registration 2026-04-27

On Apr 27, 2026, TriNet filed an automatically effective Form S-3ASR shelf registration covering unspecified amounts of equity, debt, and related securities for general corporate purposes. The shelf has seen 0 takedowns so far and is scheduled to expire on Apr 27, 2029.

Market Pulse Summary

The stock moved +6.8% in the session following this news. A strong positive reaction aligns with the...
Analysis

The stock moved +6.8% in the session following this news. A strong positive reaction aligns with the improvement in profitability metrics, including GAAP EPS of $1.90 and a higher 15.2% adjusted EBITDA margin, even as revenue declined. Historically, earnings updates produced an average move of -5.58%, so a sharp gain would stand out versus that pattern. Investors might also weigh the new effective S-3ASR shelf filed on Apr 27, 2026, which allows future securities issuance for general corporate purposes.

Key Terms

adjusted net income, adjusted ebitda, adjusted ebitda margin, free cash flow, +3 more
7 terms
adjusted net income financial
"Adjusted Net Income was $116 million, or $2.48 per diluted share..."
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
adjusted ebitda financial
"Adjusted EBITDA was $186 million, representing an Adjusted EBITDA Margin of 15.2%..."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
adjusted ebitda margin financial
"Adjusted EBITDA was $186 million, representing an Adjusted EBITDA Margin of 15.2%..."
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
free cash flow financial
"Generated $149 million in Net cash provided by operating activities, and $123 million in Free Cash Flow."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
form 10-q regulatory
"We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the three months ended March 31, 2026..."
A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.
diluted net income per share financial
"Diluted net income per share of common stock | | $ 2.15 | | $ 3.05"
Diluted net income per share measures a company's profit attributable to each share of stock after accounting for all possible additional shares that could be created from options, convertible debt or other rights. Investors use it to see how earnings would be spread if every claim on the company converted to stock — like checking how big each slice of pie would be if more people showed up — which reveals true per-share profitability and dilution risk.
adjusted net income per share - diluted financial
"Adjusted Net Income per share - diluted | | $ 3.70 | | $ 4.70"
Adjusted net income per share — diluted measures the profit attributable to each share after removing one-time or unusual items and dividing by the total number of shares including those that could be created from options or convertibles. It gives investors a clearer picture of the company’s ongoing earnings power per share by smoothing out temporary gains or losses and showing how potential new shares would dilute each existing owner’s claim, like slicing a cake while accounting for extra guests who might join.

AI-generated analysis. Not financial advice.

11% Growth in GAAP Earnings per Diluted Share to $1.90 for the First Quarter 2026

25% Growth in Adjusted Net Income per Diluted Share to $2.48 for the First Quarter 2026

Returned Approximately $71 million to Shareholders Through Stock Repurchases and Dividends

DUBLIN, Calif., April 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 first quarter ended March 31, 2026. The first quarter highlights below include non-GAAP financial measures which are reconciled later in this release.

"TriNet is off to a strong start in 2026," said Mike Simonds, President and CEO. "The largest of our repricing efforts is behind us, expenses are prudently managed, and investments in our products and services are being made through internal development, acquisition, and partnerships."

Simonds continued, "We are seeing building momentum in our go-to-market efforts, supported by stronger pipeline, a more tenured sales team, and accelerating channel activity. With the early success of TriNet Assistant, we believe our investments in AI position us to improve service, scale efficiently, and support a return to growth. 2026 stands to be an exciting year for TriNet."

First quarter highlights include:

  • Total revenues decreased 5% to $1.2 billion compared to the same period last year.
  • Professional service revenues decreased 10% to $189 million compared to the same period last year.
  • Net income was $89 million, or $1.90 per share, compared to net income of $85 million, or $1.71 per share, in the same period last year.
  • Adjusted Net Income was $116 million, or $2.48 per diluted share, compared to Adjusted Net Income of $99 million, or $1.99 per diluted share, in the same period last year.
  • Adjusted EBITDA was $186 million, representing an Adjusted EBITDA Margin of 15.2%, compared to Adjusted EBITDA of $162 million, representing an Adjusted EBITDA Margin of 12.6% in the same period last year.
  • Average Worksite Employees (WSEs) decreased 12% as compared to the same period last year as compared to the previous quarter, to approximately 300,000.
  • Generated $149 million in Net cash provided by operating activities, and $123 million in Free Cash Flow.

Full-Year 2026 Guidance

In addition to announcing our first quarter 2026 results, we are reiterating 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



$        625


$        645

Insurance Cost Ratio



90.75 %


89.25 %

Adjusted EBITDA Margin



7.5 %


8.7 %

Diluted net income per share of common stock



$       2.15


$       3.05

Adjusted Net Income per share - diluted



$       3.70


$       4.70

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, 2026 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com on or about April 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 first 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/214291011. Callers can pre-register for the conference call by going to: https://dpregister.com/sreg/10208266/103c777f574. 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: 4129824.

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 and the underlying assumptions; TriNet's development, launch and on-going support of initiatives including AI-powered TriNet Assistant; expansion of our broker channel and new partnerships; TriNet's ability to build momentum in its business; 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," "target," "value," "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 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; 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 (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 / Josh Gross

TriNet

TriNet

Investorrelations@TriNet.com

Renee.Brotherton@TriNet.com


Josh.Gross@TriNet.com


(408) 646-5103

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)

2026


2025


% Change

Income Statement Data:







Total revenues

$    1,226


$ 1,292


(5)

%

Income before tax

123


115


7


Net income

89


85


5


Diluted net income per share of common stock

1.90


1.71


11


Non-GAAP measures (1):







Adjusted EBITDA

186


162


15


Adjusted Net income

116


99


17


Free Cash Flow

123


79


56


Operating Metrics:







Insurance Cost Ratio

84 %


88 %


(4)

%

Average WSEs

300,215


340,744


(12)


Total WSEs

299,434


339,625


(12)


(1)

Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures"

 

(in millions)

March 31, 2026


December 31, 2025


% Change


Balance Sheet Data:







Cash and cash equivalents

$          340


$          287


18

%

Working capital

258


231


12


Total assets

3,420


3,797


(10)


Debt

896


895



Total stockholders' equity

83


54


54


 


Three Months Ended March 31,

(in millions)

2026


2025


% Change

Cash Flow Data:







Net cash provided by operating activities

$        149


$           95


57

%

Net cash used in investing activities

(13)


(8)


63


Net cash used in financing activities

(645)


(494)


31


 

TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)



Three Months Ended March 31,

(in millions except per share data)

2026

2025

Professional service revenues

$            189

$            209

Insurance service revenues

1,023

1,065

Interest income

14

18

Total revenues

1,226

1,292

Insurance costs

856

942

Cost of providing services

70

71

Sales and marketing

69

67

General and administrative

59

46

Systems development and programming

19

20

Depreciation and amortization of intangible assets

17

17

Interest expense, bank fees and other

13

14

Total costs and operating expenses

1,103

1,177

Income before tax

123

115

Income taxes

34

30

Net income

$              89

$              85

Other comprehensive income, net of income taxes

(2)

2

Comprehensive income

$              87

$              87

Net income per share:



Basic

$            1.90

$            1.72

Diluted

$            1.90

$            1.71

Weighted average shares:



Basic

47

49

Diluted

47

49

 

TRINET GROUP, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)




March 31,


December 31,

(in millions, except share and per share data)


2026


2025

Assets





Current assets:





Cash and cash equivalents


$             340


$             287

Restricted cash, cash equivalents and investments


1,122


1,694

Accounts receivable, net


7


20

Payroll funds receivable


451


264

Prepaid expenses, net


64


82

Other payroll assets


449


474

Other current assets


51


47

Total current assets


2,484


2,868

Restricted cash, cash equivalents and investments, noncurrent


122


128

Property and equipment, net


22


11

Operating lease right-of-use asset


38


36

Goodwill


461


461

Software and other intangible assets, net


155


153

Other assets


138


140

Total assets


$           3,420


$           3,797

Liabilities and stockholders' equity





Current liabilities:





Accounts payable and other current liabilities


$              89


$              86

Client deposits and other client liabilities


49


57

Accrued wages


542


555

Accrued health insurance costs, net


193


207

Accrued workers' compensation costs, net


44


42

Payroll tax liabilities and other payroll withholdings


1,289


1,671

Operating lease liabilities


11


10

Insurance premiums and other payables


9


9

Total current liabilities


2,226


2,637

Long-term debt, noncurrent


896


895

Accrued workers' compensation costs, noncurrent, net


109


106

Deferred taxes


54


55

Operating lease liabilities, noncurrent


39


37

Other non-current liabilities


13


13

Total liabilities


3,337


3,743

Total stockholders' equity


83


54

Total liabilities & stockholders' equity


$           3,420


$           3,797

 

TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)



Three Months Ended March 31,

(in millions)

2026

2025

Operating activities



Net income

$                  89

$                  85

Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization of intangible assets

17

17

Amortization of deferred costs

13

12

Amortization of ROU asset, lease modification, impairment, and abandonment

2

2

Deferred income taxes

(1)

Stock based compensation

16

13

Other

1

3

Changes in operating assets and liabilities:



Accounts receivable, net

1

Prepaid expenses, net

22

7

Other assets

(11)

(6)

Accounts payable and other liabilities

(11)

Accrued wages

(17)

Accrued health insurance costs, net

1

Accrued workers' compensation costs, net

2

2

Payroll taxes liabilities and other payroll withholdings

(10)

Operating lease liabilities

(2)

(3)

Net cash provided by operating activities

149

95

Investing activities



Purchases of marketable securities

(25)

(27)

Proceeds from sale and maturity of marketable securities

38

34

Acquisitions of property and equipment and software

(26)

(16)

Proceeds from sale of business

1

Net cash used in investing activities

(13)

(8)

Financing activities



Change in WSE and TriNet Trust related assets and liabilities, net

(571)

(388)

Repurchase of common stock

(58)

(90)

Awards effectively repurchased for required employee withholding taxes

(3)

(4)

Dividends paid

(13)

(12)

Net cash used in financing activities

(645)

(494)

Effect of exchange rate changes on cash and cash equivalents

(1)

Net change in cash and cash equivalents, unrestricted and restricted

(510)

(407)

Cash and cash equivalents, unrestricted and restricted:



Beginning of period

1,902

1,691

End of period

$              1,392

$              1,284




Supplemental disclosures of cash flow information



Interest paid

$                  24

$                  25

Supplemental schedule of noncash investing and financing activities



Cash dividend declared, but not yet paid

$                  13

$                  13

Payable for purchase of property and equipment

$                   6

$                   1

Receivable from sale of business

$                  —

$                   6

Non-GAAP Financial Measures

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,

- 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 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, 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 (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 rate (1) 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.



(1)

Non-GAAP effective tax rate is 25.5%  and 25% for 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 March 31,

(in millions)

2026

2025

Net income

$        89

$        85

Provision for income taxes

34

30

Stock based compensation

16

13

Interest expense, bank fees and other

13

14

Depreciation and amortization of intangible assets

17

17

Amortization of cloud computing arrangements

3

2

Restructuring costs

14

1

Adjusted EBITDA

$      186

$      162

Adjusted EBITDA Margin

15.2 %

12.6 %

The table below presents a reconciliation of Net income to Adjusted Net Income and Adjusted Net Income per share - diluted:


Three Months Ended March 31,

(in millions, except per share data)

2026

2025

Net income

$          89

$          85

Effective income tax rate adjustment

3

1

Stock based compensation

16

13

Amortization of intangible assets

2

2

Non-cash interest expense

1

Restructuring costs

14

1

Income tax impact of pre-tax adjustments

(8)

(4)

Adjusted Net Income

$        116

$          99

GAAP weighted average shares of common stock - diluted

47

49

Adjusted Net Income per share - diluted

$       2.48

$       1.99

The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:


Three Months Ended

March 31,

(in millions)

2026

2025

Net cash provided by operating activities

$      149

$        95

Acquisitions of property and equipment and software

(26)

(16)

Free Cash Flow (a)

$      123

$        79

Adjusted EBITDA (b)

$      186

$      162

Free Cash Flow Conversion Ratio (a)/(b)

66 %

49 %

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


(34) %

(6) %

Effective income tax rate adjustment

8


(30)

28

Stock based compensation

65


3

3

Amortization of intangible assets

10


Non-cash interest expense

3


(100)

(100)

Restructuring costs

11


33

33

Income tax impact of pre-tax adjustments

(22)


6

6

Adjusted Net Income

$230


(23) %

(3) %

GAAP weighted average shares of common stock - diluted

49




Adjusted Net Income per share - diluted

$4.73


$3.70

$4.70

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/trinet-announces-first-quarter-2026-results-302758367.html

SOURCE TriNet Group, Inc.

FAQ

What were TriNet's reported GAAP EPS and adjusted EPS for Q1 2026 (TNET)?

TriNet reported GAAP EPS of $1.90 and Adjusted Net Income per diluted share of $2.48 for Q1 2026. According to the company, GAAP EPS rose 11% while adjusted EPS rose 25% year-over-year, reflecting higher adjusted profitability.

What full-year 2026 guidance did TriNet (TNET) provide on April 30, 2026?

TriNet reiterated full-year 2026 guidance of $4.75B–$4.90B in total revenues and $3.70–$4.70 adjusted net income per share. According to the company, guidance also includes Adjusted EBITDA margin of 7.5%–8.7%.

How much cash did TriNet (TNET) return to shareholders in Q1 2026 and how was it delivered?

TriNet returned approximately $71 million to shareholders through stock repurchases and dividends in Q1 2026. According to the company, this reflects ongoing capital return alongside investments in product and go-to-market activities.

What drove the decline in average worksite employees and how large was it for TriNet (TNET)?

Average worksite employees decreased by about 12% to ~300,000 in Q1 2026. According to the company, headcount trends reflect customer composition and market conditions that affected worksite employee levels year-over-year.

Where can investors access TriNet's Q1 2026 earnings webcast and Form 10-Q filing (TNET)?

Investors can access the live webcast and replay on TriNet's investor relations site and the company expects to file the Q1 2026 Form 10-Q on or about April 30, 2026. According to the company, the webcast will be archived for about one year.