CBIZ, Inc.

What they do

CBIZ delivers accounting, tax, financial advisory, technology, government health care consulting, employee benefits, payroll/HCM, property and casualty insurance, and retirement/investment services. It operates through two practice groups: Financial Services and Benefits and Insurance Services. The company serves small and medium-sized businesses, individuals, governmental entities, and not-for-profits across the U.S. and parts of Canada. CBIZ maintains joint-referral relationships with independent CPA firms, including CBIZ CPAs, P.C., for audit and attest services it cannot provide.

Revenue drivers

• Financial Services — Largest segment, 85.1% of 2025 revenue ($2.35B). Includes accounting and tax, financial advisory, national technology, government health care consulting, and IT managed services. Growth heavily driven by acquisitions, notably Marcum.
• Benefits and Insurance Services — 14.9% of 2025 revenue ($409.6M). Offers employee benefits consulting, payroll/HCM, property and casualty insurance, and retirement/investment services. Revenue roughly flat year-over-year.
• Acquisitions — Newly acquired operations, net of divestitures, contributed $914.2M (50.4% incremental) to 2025 revenue growth. The Marcum acquisition was the primary driver, and the company completed the BINDZ acquisition in 2026.

Recent performance

For 2025, revenue grew 52.1% to $2,758.0M and net income grew 181.3% to $115.4M (diluted EPS $1.83). For Q2 2026, total revenue declined 0.2% to $682.2M; same-unit revenue declined 0.5%, but net income fell 55.6% to $18.6M (GAAP EPS $0.31). For H1 2026, revenue was $1,530.8M (up 0.6%), net income was $171.4M (up 4.1%, EPS $2.83). Adjusted EBITDA for Q2 2026 was $103M, down 14.3%.

Strategy

CBIZ’s strategy emphasizes organic growth acceleration, strategic acquisitions, and debt reduction to a net leverage ratio of 2.0x-2.5x. In 2025-2026, the company invested in integrating Marcum, expanding AI capabilities (100% employee certification, 1,500+ custom Copilot agents), and building a business transformation team (60+ professionals). It also completed the BINDZ acquisition to add a global delivery platform. The company is now pursuing a merger with Grant Thornton, backed by New Mountain Capital, which will take it private.

Risks

• Material weaknesses in internal controls — Management identified material weaknesses in internal control over financial reporting and concluded disclosure controls were ineffective as of December 31, 2025, which could lead to misstatements and loss of investor confidence.
• Economic and geopolitical softness — Management expects softness in demand for nonrecurring project-based services due to the uncertain economic and geopolitical environment, which may continue and limit forecasting accuracy.
• Acquisition integration and leverage — The Marcum acquisition added significant debt; as of December 31, 2025, CBIZ had $1,472.4M outstanding under credit facilities, and integration and leverage could strain operations.
• Merger completion risk — The Grant Thornton merger requires shareholder approval, regulatory approvals, and other conditions; if not completed by Q4 2026, CBIZ faces uncertainty and has already withdrawn guidance.

Outlook

Due to the pending merger with Grant Thornton, CBIZ has withdrawn fiscal 2026 guidance and suspended updates. Management expects the transaction to close in Q4 2026, subject to shareholder and regulatory approvals. For the near term, they anticipate continued softness in project-based service demand due to economic and geopolitical conditions. No further earnings calls or webcasts are planned.