Average paid worksite employees increased 0.7% over Q2 2024 to 309,115, with new sales increasing worksite employees by 2%.
Benefits cost per covered employee increased 9.6% year-over-year in Q2 and 9% year-to-date, slightly above prior forecast range.
Benefits costs exceeded forecast by $12 million, driven by $8 million higher pharmacy costs due to specialty drug utilization and $4 million from increased incurred but not reported claims.
Client retention remained strong at 99% monthly, consistent with prior year results.
Ended quarter with $114 million adjusted cash and $280 million available credit facility.
Gross profit per worksite employee was $240 per month, down from $282 in Q2 2024, impacted by unfavorable benefits cost trends.
Operating expenses decreased 3% year-over-year, with reductions in travel, professional fees, and G&A costs, while investing $14 million in the Workday partnership.
Reported second quarter EPS of $0.26 and adjusted EBITDA of $32 million, slightly below the low end of forecast by $0.03 per share and $1 million respectively, mainly due to higher-than-expected benefits costs.
Returned $22 million in cash dividends in Q2 and repurchased 224,000 shares for $19 million year-to-date.
Dafinchi