CBIZ (CBZ) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose 58.1% year-over-year to $693.8M, with nine-month revenue up 63.7% to $2.2B, driven by the Marcum acquisition and strong integration progress.

• Net income for Q3 2025 was $30.1M ($0.48 per diluted share), down from $35.1M in Q3 2024, while nine-month net income increased to $194.9M ($3.06 per share).

• Adjusted EBITDA for Q3 was $120M (17.3% margin); nine-month adjusted EBITDA was $475.6M (21.5% margin), with adjusted diluted EPS for Q3 at $1.01 and nine months at $4.27.

• Retention of top talent and key clients remained strong, with investments in AI, technology, and offshoring enhancing operational efficiency.

• Recurring businesses held steady, with core accounting and tax showing consistent organic growth and advisory services improving.

Financial highlights

• Q3 2025 revenue: $693.8M (+58.1% YoY); nine months: $2,215.3M (+63.7% YoY).

• Q3 2025 net income: $30.1M; nine months: $194.9M.

• Q3 2025 diluted EPS: $0.48; nine months: $3.06; adjusted diluted EPS for Q3: $1.01; nine months: $4.27.

• Adjusted EBITDA for nine months ended September 30, 2025, was $475.6M (21.5% margin).

• Q3 interest expense rose to $28M due to higher debt from the acquisition; tax expense decreased by $6M in Q3 due to tax planning.

Outlook and guidance

• 2025 revenue guidance is $2.8B–$2.95B, with GAAP EPS of $1.97–$2.02 and adjusted EPS of $3.60–$3.65.

• Adjusted EBITDA forecast: $450M–$456M; margin expansion expected to continue, driven by synergies and technology investments.

• Pro forma Q4 revenue growth expected at 6–8% year-over-year, adjusted for acquisition-related items.

• Long-term goals include 8–10% annual revenue growth and 1.5x–2x earnings growth.

• Effective tax rate projected at 29%; diluted share count 64.5–65.0M.