TriNet Group Reports Challenging 2025 for SMBs

Company sees pricing discipline, operating expense reductions, and go-to-market investments as keys to improving sales momentum and retention in 2026.

Published on Feb. 13, 2026

Got story updates? Submit your updates here. ›

TriNet Group (NYSE:TNET) executives said the company closed a 'challenging' 2025 for small and medium-sized businesses (SMBs) with results at the top end of earnings guidance and higher free cash flow, while continuing to grapple with elevated medical cost inflation, muted hiring, and the impact of health fee repricing on retention.

Why it matters

TriNet's performance in 2025 reflects the broader challenges facing SMBs, including high healthcare costs, slow hiring, and retention issues. The company's efforts to improve pricing, reduce expenses, and invest in growth initiatives could provide insights into how PEOs are navigating these headwinds and supporting their small business clients.

The details

TriNet completed a comprehensive health fee renewal across its customer base, improved pricing processes, and strengthened its risk position heading into 2026. The company also made investments in client service, go-to-market execution, and operational efficiency, exiting 2025 with operating expenses down 7% year over year. However, TriNet saw revenue declines, lower worksite employee (WSE) volumes, and a drop in retention due to the health fee increases.

  • TriNet ended 2025 with approximately 323,000 total WSEs, down 10% year over year.
  • TriNet's final outsized repricing was delivered on Jan. 1, 2026.
  • TriNet expects retention to improve as the year progresses.

The players

Mike Simonds

President and CEO of TriNet Group.

Mala Murthy

New Chief Financial Officer of TriNet Group.

TriNet Group

A leading professional employer organization (PEO) that offers integrated human capital management solutions to small and medium-size businesses.

Got photos? Submit your photos here. ›

What they’re saying

“2025 was marked by 'healthcare inflation at levels not seen in more than two decades' and 'the slowest hiring market since 2020,' conditions that pressured client hiring and increased the urgency of repricing benefits to protect margins and risk positioning.”

— Mike Simonds, President and CEO (TriNet Group earnings call)

“Retention fell to roughly 80%, down about five points from the prior year, with pricing 'cited most often as the reason for leaving.'”

— Mala Murthy, Chief Financial Officer (TriNet Group earnings call)

What’s next

TriNet expects elevated attrition in the first quarter due to the Jan. 1 renewal cycle, followed by improvement as health fee increases moderate beginning with April 1 renewals.

The takeaway

TriNet's performance in 2025 highlights the ongoing challenges facing SMBs, including rising healthcare costs and muted hiring. The company's efforts to improve pricing, reduce expenses, and invest in growth initiatives could provide a roadmap for how PEOs can support their small business clients through these headwinds.