TriNet Group, Inc.

Total revenues were $1.2 billion, declining 5% year over year. GAAP earnings per diluted share were $1.15 and adjusted net income per diluted share was $1.55. Adjusted EBITDA was $128 million, with an adjusted EBITDA margin of 10.9%; free cash flow was $67 million, up 18%, and net cash from operating activities was $88 million. WSEs were approximately 300,000, down 12% year over year and flat sequentially; co-employed WSEs were approximately 274,000, down 11% year over year. Professional services revenue was $159 million, down 8%, and insurance service revenue declined 4% while insurance costs declined 8%. For 2026, revenue guidance remains $4.75 billion to $4.9 billion; professional services revenue is raised to $647 million to $663 million; adjusted EBITDA margin is raised to 8.5% to 9%; GAAP EPS is now $2.85 to $3.35; and adjusted EPS is now $4.50 to $5.10. Management said it expects second-half retention to improve year over year and sales to ramp in the second half.

Mike Simonds said the quarter showed progress on the company’s priorities: better retention, improving sales momentum, disciplined expense management, and stronger earnings, which allowed TriNet to raise its full-year earnings outlook. He emphasized that pricing actions have brought the insurance cost ratio back into the target range and that the company is shifting from stabilization toward realizing returns from growth investments. He also highlighted AI initiatives, the Cocoon acquisition, a stronger broker channel, and the ASCEND sales program as key pieces of the path to sustainable growth.

Mala Murthy said Q2 results reflected disciplined pricing, better-than-expected insurance performance, improved retention, and prudent cost control. She cited $1.2 billion of revenue, 86% insurance cost ratio, $128 million of adjusted EBITDA, 10.9% adjusted EBITDA margin, $88 million of operating cash flow, and $67 million of free cash flow, while noting $31 million returned to shareholders through repurchases and dividends. She said the full-year outlook was updated because first-half performance was better than expected, with the ICR range improved to 89.5% to 88.5%, adjusted EBITDA margin raised to 8.5% to 9%, and adjusted EPS raised to $4.50 to $5.10; she also noted the company plans to keep pricing toward the high end of its long-term ICR range because medical trend remains persistently high.

Analysts pressed on why sales were flat in Q2 despite better rep productivity and retention, and management said decisioning delays persisted early in the quarter but improved sequentially, with confidence coming from a recovering broker channel, a growing sales force, and the first ASCEND cohort entering production in Q3. On insurance cost ratio guidance, Mala Murthy explained that the stronger-than-expected first half included favorable prior-period development and a one-time recovery item, while second-half seasonality, high single-digit medical trend, and some expected lumpiness drove the cautious guidance. Questions also focused on broker traction, retention, and AI; management said brokers are responding to stronger local expertise, better service, and inclusion in renewal discussions, while AI is already helping TriNet Assistant handle about 50% of customer-initiated chats and is being used to improve client scoring, sales prospecting, and service efficiency.