CBIZ (CBZ) Q4 2025 earnings summary

Executive summary

• Achieved 52% year-over-year revenue growth in 2025, primarily from the Marcum acquisition and 2% organic growth, with improved profitability and strong cash flow generation despite integration-related productivity losses and soft market conditions.

• Completed most Marcum integration priorities, realizing synergies ahead of schedule and positioning for sustainable long-term growth and further value creation in 2026.

• Strategic focus for 2026 includes talent acquisition, brand elevation, industry specialization, cross-serving, and expanded service offerings to drive growth and margin expansion.

• Investments in AI, automation, and offshoring are expected to further improve efficiency, client experience, and margins, with proprietary tools launched and offshore share targeted above 20% by end of 2026.

• Launched 12 industry verticals and achieved #1 construction accounting firm ranking, enhancing client service and brand awareness.

Financial highlights

• Full-year 2025 revenue reached $2.8B, up 52.1% year-over-year, with Q4 revenue at $543M, and net income rose 181.3% to $115.4M.

• Adjusted EBITDA for 2025 was $447M (16.2% margin), up 530 basis points year-over-year; Adjusted EPS was $3.61, in line with guidance.

• Free cash flow increased to $176M, with 40% conversion from adjusted EBITDA; operating cash flow reached $192.5M.

• Repurchased 2.5M–2.4M shares for $160M–$168M; board authorized up to 5M additional share repurchases.

• Gross margin improved to 12.9% and operating income margin to 8.5% year-over-year.

Outlook and guidance

• 2026 revenue expected between $2.8B–$2.9B, representing 2%–5% growth, with project-based work as the main variable.

• Adjusted EBITDA guidance is $450M–$460M; adjusted EPS expected at $3.75–$3.85.

• Free cash flow projected at $270M–$290M, with ~60% conversion at the midpoint.

• Integration costs in 2026 expected at $70M–$80M, with capital expenditures higher by $20M–$25M due to facility optimization.

• Effective tax rate expected at 28.5%; diluted share count ~62M.