CBIZ (CBZ) Q4 2025 earnings summary

Executive summary

• Achieved 52% year-over-year revenue growth in 2025, primarily driven by the Marcum acquisition and successful integration, with approximately 2% organic growth amid soft market conditions and post-merger productivity losses.

• Adjusted Diluted EPS for 2025 was $3.61, in line with guidance, and net income rose 181.3% to $115.4M.

• Integration of Marcum largely completed, unlocking synergies double initial expectations and positioning for sustainable long-term growth.

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

• Investments in AI, automation, and offshoring are expected to enhance efficiency, client experience, and profitability.

Financial highlights

• Full-year revenue reached $2.8B in 2025, up from $1.81B in 2024, with fourth quarter revenue at $543M.

• Adjusted EBITDA for 2025 was $447M (16.2% margin), up 125.5% year-over-year, with a margin increase of 530 basis points.

• Adjusted EPS for 2025 was $3.61, up 79.6% year-over-year.

• Free cash flow rose to $176M, with conversion at 40% due to integration costs.

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

Outlook and guidance

• 2026 revenue expected between $2.8B and $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 elevated due to facility optimization.

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