TriNet Group, Inc. (NYSE: TNET) is a provider of comprehensive human capital management (HCM) solutions tailored for small and medium-sized businesses (SMBs). The company reported its first-quarter earnings for 2025, revealing a stable condition overall, despite a challenging macroeconomic environment.

For the first quarter ended March 31, 2025, TriNet’s total revenues increased 1% year-over-year to $1.3 billion, compared to $1.282 billion for the same period in 2024. Professional service revenues experienced a decline, decreasing 2% to $209 million. Net income stood at $85 million, equivalent to $1.71 per diluted share, down from $91 million, or $1.78 per diluted share, in Q1 2024. Adjusted net income was reported at $99 million, or $1.99 per diluted share, compared to $111 million, or $2.16 per diluted share, in the prior year.

In terms of adjusted EBITDA, TriNet reported $162 million, representing an adjusted EBITDA margin of 12.6%, a decrease from $180 million and a margin of 14.2% in Q1 2024. The company’s average worksite employees (WSEs) decreased 2% year-over-year to approximately 341,000. The insurance cost ratio for the quarter was 88.4%, in line with expectations, compared to 86% in the same quarter last year.

TriNet executed a significant return of capital to shareholders, totaling $102 million through share repurchases and dividends. The company repurchased approximately 1.2 million shares during the first quarter and announced a 10% increase in its dividend.

Looking forward, TriNet reaffirmed its full-year guidance for 2025, projecting total revenues between $4.95 billion and $5.14 billion, and expects professional service revenues to range from $700 million to $730 million. The anticipated insurance cost ratio for the year is between 92% and 90%, while the adjusted EBITDA margin is expected to be between 7% and 9%. Furthermore, the forecasted diluted net income per share is between $1.90 and $3.40, and for adjusted net income per share, it is projected to be between $3.25 and $4.75.

In conclusion, while the company’s Q1 results show some areas of decline, particularly in new sales, the overall revenue and adjusted EBITDA performance reflect a stable financial footing as TriNet continues to implement its strategic initiatives in a challenging market environment.