- TriNet (TNET, Financial) achieved a 1% increase in total revenues to $1.3 billion for Q1 2025, despite operational challenges.
- The company returned $102 million to shareholders through share repurchases and dividends.
- TriNet reaffirmed its full-year 2025 guidance, projecting revenues between $4.95 billion and $5.14 billion.
TriNet Group, Inc. (TNET), a leading provider of human capital management solutions for SMBs, reported a 1% increase in total revenues for the first quarter of 2025, reaching $1.3 billion. Despite a 2% decrease in Average Worksite Employees (WSEs) to 341,000, revenue stability was maintained, indicating improved revenue per employee.
TriNet's profitability metrics faced some pressure, with net income declining to $85 million ($1.71 per diluted share) from $91 million ($1.78 per diluted share) the previous year. Adjusted EBITDA also fell to $162 million with a margin contraction to 12.6%, compared to 14.2% a year ago.
The company strategically focused on customer care, repricing benefits, and growth investments. The notable benefits repricing initiative is designed to target the Insurance Cost Ratio, with expectations set at 90-92% for the year.
Despite the Q1 margin contraction, TriNet maintained its full-year outlook, projecting total revenues between $4.95 billion and $5.14 billion, with an expected Adjusted EBITDA margin of 7-9%. The company demonstrated confidence in its ongoing strategy by returning $102 million to shareholders through the repurchase of 1.2 million shares and dividends.
Mike Simonds, TriNet's CEO, reaffirmed the company's market opportunity and growth potential, citing a robust plan to enhance customer satisfaction and efficiency. TriNet's reiterated guidance underscores its resilience and consistency with annual expectations, even amid first-quarter challenges.
