CBIZ (CBZ) Q4 2025 earnings summary

Executive summary

• Achieved full-year revenue growth of 52% to $2.8B, driven by the Marcum acquisition, successful integration, and enhanced service offerings, with profitability and cash flow in line with guidance.

• Integration of Marcum nearly complete, with synergies double initial expectations and ahead of schedule, positioning for further value creation in 2026.

• Advanced investments in AI, automation, and offshoring to improve efficiency, margin expansion, and service delivery.

• Strategic priorities for 2026 include talent attraction, brand elevation, industry specialization, and cross-service delivery.

• Launched 12 industry verticals and expanded branding, generating over 200M impressions and 50,000+ net new leads.

Financial highlights

• Full-year revenue grew to $2.8B, up 52%, with approximately 2% organic growth, driven by acquisition.

• Adjusted EBITDA reached $447M (16.2% margin), up 530 basis points year-over-year.

• Adjusted EPS for 2025 was $3.61, up from $2.01, in line with guidance.

• Free cash flow increased to $176M, with conversion impacted by integration spend; operating cash flow reached $192.5M.

• Repurchased 2.5M–2.4M shares for $160M–$168M; board authorized an additional 5M share repurchase.

Outlook and guidance

• 2026 revenue expected between $2.8B–$2.9B, representing 2–5% year-over-year growth.

• Adjusted EBITDA guidance: $450M–$460M; adjusted EPS: $3.75–$3.85; free cash flow: $270M–$290M (~60% conversion).

• Integration costs in 2026 projected 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.

• Targeting net leverage below 2.5x by 2027, with priorities on debt reduction, strategic M&A, and share repurchases.