Recent News
On July 25, 2025 TriNet reported second-quarter 2025 results and reaffirmed full-year 2025 guidance, citing $1.2 billion in revenue, Adjusted EBITDA of $105 million (8.5% margin), and Adjusted net income per diluted share of $1.15; management noted initiatives planned for the fall. Market commentary noted a new 52-week low in early August. A filing in late August showed a reduction in a notable institutional stake.
Technical Analysis
ADX / DI+/DI-: ADX at 25.28 indicates a measurable trend strength. DI+ shows a peak-and-reversal, which by definition represents bearish pressure from directional indicators, while DI- also shows a peak-and-reversal that represents decreasing downside pressure; together these readings imply competing directional forces and a lack of clean directional conviction that supports a near-term range-bound outlook.
MACD: MACD reading at 0.01 with a decreasing trend and a signal line at 0.21 places momentum below the signal, indicating bearish momentum. That momentum profile reduces the probability of a sustained breakout until MACD reasserts an upward crossover above its signal line.
MRO (Momentum/Regression Oscillator): MRO at -7.66 with a peak-and-reversal label implies price sits below the model target and carries a bullish potential toward the model level; this creates a counterforce to the bearish MACD momentum and supports a scenario of corrective appreciation toward short-term averages rather than a trend extension.
RSI: RSI at 47.27 with a dip-and-reversal denotes a bullish reversal from lower momentum readings; this suggests short-term relief rallies remain possible, particularly toward the 20-day average and the lower Bollinger band region.
Price Versus Moving Averages & Bands: Last close $67.94 sits below the 20-day average ($69.03) and well below the 200-day average ($77.94), while the 50-day average ($67.36) lies just under price. Price near the lower Bollinger band (lower 1x SD $67.56) offers short-term support; failure to hold the super-trend lower at $67.60 would expose the 52-week low area as the next reference point. Volume near the 10- and 200-day averages provides no decisive breakout confirmation.
Fundamental Analysis
Profitability: Operating margin (EBIT margin) at 5.33% declined QoQ by 46.61% and YoY by 32.62%, though the absolute margin sits above the industry peer mean of 4.08% and industry peer median of 4.20%. Adjusted EBITDA margin at 8.5% in Q2 shows contraction versus the prior year but remained within the reaffirmed guidance band.
Revenue & Earnings Growth: YoY revenue growth registered at 39.06% while QoQ revenue growth measured 63.03%; reported net income equaled $37 million for the quarter. Diluted EPS came in at $1.15 versus an estimate of $1.03, producing an EPS surprise of 11.65%.
Cash Flow & Liquidity: Cash and short-term investments total $407,000,000 with operating cash flow of $75,000,000 and free cash flow of $57,000,000, yielding a free cash flow yield of 1.67%. The cash conversion ratio of 4.87 and free cash flow to net income above 150% signal meaningful cash generation relative to reported earnings.
Balance Sheet Leverage: Total debt $1,035,000,000 produces a debt-to-equity ratio of 967.29%, a level well above the industry peer mean of 114.05%; net debt stands at $577,000,000. Current ratio at 1.10 sits below the industry peer mean of 1.30, indicating tighter near-term liquidity relative to peers.
Returns: Return on equity at 34.58% contrasts with a return on assets of 0.99%, reflecting high leverage impacts on equity returns. QoQ and YoY return metrics show notable declines.
Valuation: Price-to-earnings near 64.77x and a price-to-book ratio of 31.96x lie substantially above industry peer means (P/B mean ~1.93). Enterprise multiple near 48.77x and a WMDST valuation label of over-valued indicate the present market price implies high expectations relative to company fundamentals and peer medians.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-25 |
| NEXT REPORT DATE: | 2025-10-24 |
| CASH FLOW | Begin Period Cash Flow | $ 1.3 B |
| Operating Cash Flow | $ 75.0 M | |
| Capital Expenditures | $ -18.00 M | |
| Change In Working Capital | $ -9.00 M | |
| Dividends Paid | $ -14.00 M | |
| Cash Flow Delta | $ 142.0 M | |
| End Period Cash Flow | $ 1.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.2 B | |
| Forward Revenue | $ 548.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.0 B | |
| Depreciation | $ 1.0 M | |
| Depreciation and Amortization | $ 17.0 M | |
| Research and Development | $ 17.0 M | |
| Total Operating Expenses | $ 1.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 220.0 M | |
| EBITDA | $ 83.0 M | |
| EBIT | $ 66.0 M | |
| Operating Income | $ 66.0 M | |
| Interest Income | — | |
| Interest Expense | $ 15.0 M | |
| Net Interest Income | $ -15.00 M | |
| Income Before Tax | $ 51.0 M | |
| Tax Provision | $ 14.0 M | |
| Tax Rate | 28.0 % | |
| Net Income | $ 37.0 M | |
| Net Income From Continuing Operations | $ 37.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.03 | |
| EPS Actual | $ 1.15 | |
| EPS Difference | $ 0.12 | |
| EPS Surprise | 11.65 % | |
| Forward EPS | $ 1.35 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.7 B | |
| Intangible Assets | $ 609.0 M | |
| Net Tangible Assets | $ -502.00 M | |
| Total Current Assets | $ 2.8 B | |
| Cash and Short-Term Investments | $ 407.0 M | |
| Cash | $ 407.0 M | |
| Net Receivables | $ 12.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 268.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 85.0 M | |
| Short-Term Debt | $ 90.0 M | |
| Total Current Liabilities | $ 2.5 B | |
| Net Debt | $ 577.0 M | |
| Total Debt | $ 1.0 B | |
| Total Liabilities | $ 3.6 B | |
| EQUITY | ||
| Total Equity | $ 107.0 M | |
| Retained Earnings | $ -988.00 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.20 | |
| Shares Outstanding | 48.588 M | |
| Revenue Per-Share | $ 25.48 | |
| VALUATION | Market Capitalization | $ 3.4 B |
| Enterprise Value | $ 4.0 B | |
| Enterprise Multiple | 48.769 | |
| Enterprise Multiple QoQ | 59.577 % | |
| Enterprise Multiple YoY | 11.489 % | |
| Enterprise Multiple IPRWA | high: 107.536 median: 107.536 mean: 98.003 TNET: 48.769 low: -26.127 |
|
| EV/R | 3.27 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 34.467 | |
| Asset To Liability | 1.03 | |
| Debt To Capital | 0.906 | |
| Debt To Assets | 0.281 | |
| Debt To Assets QoQ | 3.968 % | |
| Debt To Assets YoY | 1137.39 % | |
| Debt To Assets IPRWA | high: 0.705 mean: 0.318 median: 0.303 TNET: 0.281 low: 0.017 |
|
| Debt To Equity | 9.673 | |
| Debt To Equity QoQ | -40.197 % | |
| Debt To Equity YoY | 1051.536 % | |
| Debt To Equity IPRWA | TNET: 9.673 high: 1.371 median: 1.217 mean: 1.141 low: 0.024 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 31.961 | |
| Price To Book QoQ | -47.742 % | |
| Price To Book YoY | -39.502 % | |
| Price To Book IPRWA | TNET: 31.961 high: 5.077 median: 2.107 mean: 1.931 low: 0.361 |
|
| Price To Earnings (P/E) | 64.77 | |
| Price To Earnings QoQ | 61.897 % | |
| Price To Earnings YoY | -6.754 % | |
| Price To Earnings IPRWA | high: 271.012 median: 127.205 mean: 115.813 TNET: 64.77 low: -92.121 |
|
| PE/G Ratio | -1.534 | |
| Price To Sales (P/S) | 2.762 | |
| Price To Sales QoQ | -7.373 % | |
| Price To Sales YoY | -35.895 % | |
| Price To Sales IPRWA | high: 4.437 TNET: 2.762 mean: 2.723 median: 2.282 low: 0.415 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 58.637 | |
| Forward PE/G | -1.389 | |
| Forward P/S | 6.233 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 11.685 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.332 | |
| Asset Turnover Ratio QoQ | 1.353 % | |
| Asset Turnover Ratio YoY | 3.792 % | |
| Asset Turnover Ratio IPRWA | high: 0.654 TNET: 0.332 mean: 0.134 median: 0.103 low: 0.081 |
|
| Receivables Turnover | 75.03 | |
| Receivables Turnover Ratio QoQ | 53.893 % | |
| Receivables Turnover Ratio YoY | -20.441 % | |
| Receivables Turnover Ratio IPRWA | TNET: 75.03 high: 3.038 mean: 1.141 median: 1.108 low: 0.18 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 1.216 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 4.874 | |
| CapEx To Revenue | -0.015 | |
| CapEx To Depreciation | -18.0 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.0 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ -502.00 M | |
| Net Working Capital | $ 254.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.162 | |
| Current Ratio | 1.101 | |
| Current Ratio QoQ | 1.995 % | |
| Current Ratio YoY | 5.707 % | |
| Current Ratio IPRWA | high: 3.037 mean: 1.302 median: 1.282 TNET: 1.101 low: 0.976 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.47 | |
| Cost Of Debt | 1.06 % | |
| Interest Coverage Ratio | 4.4 | |
| Interest Coverage Ratio QoQ | -52.248 % | |
| Interest Coverage Ratio YoY | -27.423 % | |
| Interest Coverage Ratio IPRWA | high: 16.901 median: 7.111 mean: 6.268 TNET: 4.4 low: -5.261 |
|
| Operating Cash Flow Ratio | 0.026 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 7.522 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.643 | |
| Dividend Payout Ratio | 0.378 | |
| Dividend Rate | $ 0.29 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.305 % | |
| Revenue Growth | -4.18 % | |
| Revenue Growth QoQ | 63.027 % | |
| Revenue Growth YoY | 39.055 % | |
| Revenue Growth IPRWA | high: 11.533 % mean: -3.285 % TNET: -4.18 % median: -5.414 % low: -7.466 % |
|
| Earnings Growth | -42.211 % | |
| Earnings Growth QoQ | -111.982 % | |
| Earnings Growth YoY | 44.722 % | |
| Earnings Growth IPRWA | high: 77.273 % mean: -11.033 % median: -20.134 % TNET: -42.211 % low: -126.087 % |
|
| MARGINS | ||
| Gross Margin | 17.771 % | |
| Gross Margin QoQ | -17.704 % | |
| Gross Margin YoY | -7.288 % | |
| Gross Margin IPRWA | high: 52.432 % median: 28.738 % mean: 25.767 % TNET: 17.771 % low: 16.899 % |
|
| EBIT Margin | 5.331 % | |
| EBIT Margin QoQ | -46.61 % | |
| EBIT Margin YoY | -32.621 % | |
| EBIT Margin IPRWA | high: 15.711 % TNET: 5.331 % median: 4.197 % mean: 4.082 % low: -1.647 % |
|
| Return On Sales (ROS) | 5.331 % | |
| Return On Sales QoQ | -46.61 % | |
| Return On Sales YoY | -32.621 % | |
| Return On Sales IPRWA | high: 13.655 % median: 7.487 % mean: 6.919 % TNET: 5.331 % low: -18.825 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 57.0 M | |
| Free Cash Flow Yield | 1.667 % | |
| Free Cash Flow Yield QoQ | -18.683 % | |
| Free Cash Flow Yield YoY | -162.906 % | |
| Free Cash Flow Yield IPRWA | high: 20.408 % TNET: 1.667 % median: 0.519 % mean: 0.409 % low: -10.517 % |
|
| Free Cash Growth | -27.848 % | |
| Free Cash Growth QoQ | -67.349 % | |
| Free Cash Growth YoY | -95.228 % | |
| Free Cash Growth IPRWA | high: 336.449 % TNET: -27.848 % mean: -46.335 % median: -57.545 % low: -151.445 % |
|
| Free Cash To Net Income | 1.541 | |
| Cash Flow Margin | 5.331 % | |
| Cash Flow To Earnings | 1.784 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.992 % | |
| Return On Assets QoQ | -53.946 % | |
| Return On Assets YoY | -36.573 % | |
| Return On Assets IPRWA | high: 2.95 % median: 2.139 % mean: 1.816 % TNET: 0.992 % low: -2.475 % |
|
| Return On Capital Employed (ROCE) | 5.593 % | |
| Return On Equity (ROE) | 0.346 | |
| Return On Equity QoQ | -74.371 % | |
| Return On Equity YoY | -42.368 % | |
| Return On Equity IPRWA | TNET: 0.346 high: 0.1 median: 0.072 mean: 0.06 low: -0.048 |
|
| DuPont ROE | 43.534 % | |
| Return On Invested Capital (ROIC) | 4.389 % | |
| Return On Invested Capital QoQ | -51.849 % | |
| Return On Invested Capital YoY | -110.035 % | |
| Return On Invested Capital IPRWA | high: 8.186 % TNET: 4.389 % median: 3.803 % mean: 3.39 % low: -2.755 % |
|