CBIZ Reports Second-Quarter 2025 Results
SECOND-QUARTER HIGHLIGHTS:
- TOTAL REVENUE OF
$683.5M , UP 62.7% - NET INCOME OF
$41.9M , UP 111.9%; GAAP EPS OF$0.66 , UP 69.2%; - ADJUSTED EBITDA OF
$117.2M , UP 127.9%; ADJUSTED DILUTED EPS OF$0.95 , UP 63.8%
SIX-MONTH HIGHLIGHTS:
- TOTAL REVENUE OF
$1.5B , UP 66.4% - NET INCOME OF
$164.7M , UP 70.4%; GAAP EPS OF$2.58 , UP 34.4%; - ADJUSTED EBITDA OF
$355.6M , UP 108.9%; ADJUSTED DILUTED EPS OF$3.26 , UP 46.8%
“We’re pleased to deliver strong earnings in the second quarter and year-to-date demonstrating the strength and resilience of our business model amidst challenging market conditions,” said
“This has been a monumental time for our business, our clients, our industry and especially our team members with the Marcum acquisition being among the most important and value-creating strategic decisions in our history. With a high proportion of essential, recurring services, strong client retention, robust free cash flow, and disciplined cost management, we’re well-positioned for future growth.”
For the second quarter of 2025, CBIZ recorded revenue of
Excluding acquisition-related integration expenses, amortization of intangible assets, and other non-recurring gains and losses, Adjusted net income was
For the six months ended
For the six months ended
2025 Outlook
The Company expects:
- Total revenue within a range of
$2.8 billion to$2.95 billion - Effective tax rate of approximately 29%
- Weighted average fully diluted share count within a range of 64.5 to 65.0 million shares
- GAAP fully diluted earnings per share to be within a range of
$1.97 to$2.02 - Adjusted fully diluted earnings per share within a range of
$3.60 to$3.65 - Adjusted EBITDA within a range of
$450 million to$456 million
Conference Call
CBIZ will host a conference call today at
About CBIZ
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact included in this release, including, without limitation, our “2025 Outlook,” regarding our financial position, business strategy and plans and objectives for future performance are forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are commonly identified by the use of such terms and phrases as “will,” “could,” “can,” “may,” “strive,” “hope,” “intend,” “believe,” “estimate,” “continue,” “plan,” “expect,” “project,” “anticipate,” “outlook,” “foreseeable future,” “seek” and words or phrases of similar import in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated services, sales efforts, expenses, and financial results.
From time to time, we may also provide oral or written forward-looking statements in other materials we release to the public. Any or all of our forward-looking statements in this release and in any other public statements that we make, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to: payments on accounts receivable may be slower than expected, or amounts due on receivables or notes may not be fully collectible; our business could be adversely affected if Marcum does not perform to our expectations or we underestimate the liabilities we have assumed; we are dependent on the services of our executive officers, and other key employees, the loss of whom may have a material adverse effect on our business, financial condition and results of operations; restrictions imposed by independence requirements and conflict of interest rules, as well as the nature and terms of our current administrative service agreements, limit our ability to provide services to clients of the attest firms with which we have contractual relationships and the ability of such attest firms to provide attestation services to our clients; our goodwill and other intangible assets could become impaired, which could lead to material non-cash charges against earnings and a material impact on our results of operations and financial condition; certain liabilities resulting from acquisitions are estimated and could lead to a material impact on our results of operations; we may fail to realize the anticipated benefits of acquisitions, or they may prove disruptive and could result in the combined business failing to meet our expectations; recent
Such forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Should one or more of these risks materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or implied.
Consequently, no forward-looking statement can be guaranteed. A more detailed description of risk factors may be found in our periodic filings with the
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we also present Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (“EPS”), and Adjusted EBITDA, which are non-GAAP measures. These non-GAAP measures are adjusted to exclude the impact of the Transaction, integration costs, amortization of acquired intangible assets, and other significant non-operating related gains and losses management does not consider ongoing in nature.
The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making, and to evaluate results relative to employee compensation targets. We believe that these non-GAAP financial measures provide meaningful supplemental information to stockholders, debt holders, and other interested parties in assessing our performance. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance by excluding significant acquisition expenses, certain one-time non-recurring items, and gains and losses that management does not consider ongoing in nature. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key measures used by management in its financial and operational decision-making and (2) they are used by our stockholders and analyst community to determine the health of our business.
Management provides specific information regarding the GAAP amounts excluded from or included in these non-GAAP financial measures. Additionally, management provides reconciliations of these non-GAAP financial measures to their most comparable financial measures in accordance with GAAP. Please see the sections captioned “GAAP Reconciliation” within the Appendix for the reconciliations.
FINANCIAL HIGHLIGHTS (UNAUDITED) THREE MONTHS ENDED (In thousands, except percentages and per share data) |
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| Three Months Ended |
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| 2025 | % | 2024 | % | |||||||||||
| Revenue | $ | 683,496 | 100.0 | % | $ | 420,012 | 100.0 | % | ||||||
| Operating expenses(1) | 595,587 | 87.1 | 366,368 | 87.2 | ||||||||||
| Gross margin | 87,909 | 12.9 | 53,644 | 12.8 | ||||||||||
| Corporate general and administrative expenses(1) | 27,637 | 4.0 | 22,050 | 5.2 | ||||||||||
| Operating income | 60,272 | 8.9 | 31,594 | 7.6 | ||||||||||
| Other (expense) income: | ||||||||||||||
| Interest expense | (27,867 | ) | (4.1 | ) | (5,884 | ) | (1.4 | ) | ||||||
| Other income, net(1) (2) | 25,374 | 3.7 | 2,483 | 0.6 | ||||||||||
| Total other expense, net | (2,493 | ) | (0.4 | ) | (3,401 | ) | (0.8 | ) | ||||||
| Income before income tax expense | 57,779 | 8.5 | 28,193 | 6.8 | ||||||||||
| Income tax expense | 15,837 | 8,400 | ||||||||||||
| Net income | $ | 41,942 | 6.1 | % | $ | 19,793 | 4.7 | % | ||||||
| Diluted earnings per share | $ | 0.66 | $ | 0.39 | ||||||||||
| Diluted weighted average common shares outstanding | 63,784 | 50,276 | ||||||||||||
| Other data: | ||||||||||||||
| Adjusted EBITDA(3) | $ | 117,153 | 17.1 | % | $ | 51,406 | 12.2 | % | ||||||
| Adjusted Diluted EPS(3) | $ | 0.95 | $ | 0.58 | ||||||||||
| (1) | CBIZ sponsors a deferred compensation plan, under which a CBIZ employee's compensation deferral is held in a rabbi trust and invested as directed by the employee. Income and expenses related to the deferred compensation plan are included in "Operating expenses" and "Corporate general and administrative expenses," and are directly offset by deferred compensation gains or losses in "Other income (expense), net." The deferred compensation plan has no impact on "Income before income tax expense." | |
| Income and expenses related to the deferred compensation plan for the three months ended |
| Three Months Ended |
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| 2025 |
% of Revenue | 2024 |
% of Revenue | ||||||||||||
| Operating expenses | $ | 11,717 | 1.7 | % | $ | 2,283 | 0.5 | % | |||||||
| Corporate general & administrative expenses | 1,458 | 0.2 | % | 323 | 0.1 | % | |||||||||
| Other income, net | 13,175 | 1.9 | % | 2,606 | 0.6 | % | |||||||||
| Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended |
| Three Months Ended |
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| 2025 | 2024 | ||||||||||||||||||||||||||
| As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | ||||||||||||||||||||
| Gross margin | $ | 87,909 | $ | 11,717 | $ | 99,626 | 14.6 | % | $ | 53,644 | $ | 2,283 | $ | 55,927 | 13.3 | % | |||||||||||
| Operating income | 60,272 | 13,175 | 73,447 | 10.7 | % | 31,594 | 2,606 | 34,200 | 8.1 | % | |||||||||||||||||
| Other income, net | 25,374 | (13,175 | ) | 12,199 | 1.8 | % | 2,483 | (2,606 | ) | (123 | ) | — | % | ||||||||||||||
| Income before income tax expense | 57,779 | — | 57,779 | 8.5 | % | 28,193 | — | 28,193 | 6.8 | % | |||||||||||||||||
| (2) | Included in "Other income, net" for the three months ended |
|
| (3) | Refer to the schedules reconciling Adjusted Diluted EPS and Adjusted EBITDA to the most directly comparable GAAP financial measures at the end of this release, and for additional information as to the usefulness of the non-GAAP financial measures to stockholders and investors. | |
FINANCIAL HIGHLIGHTS (UNAUDITED) SIX MONTHS ENDED (In thousands, except percentages and per share data) |
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| Six Months Ended |
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| 2025 | % | 2024 | % | |||||||||||
| Revenue | $ | 1,521,510 | 100.0 | % | $ | 914,309 | 100.0 | % | ||||||
| Operating expenses(1) | 1,205,499 | 79.2 | 742,853 | 81.2 | ||||||||||
| Gross margin | 316,011 | 20.8 | 171,456 | 18.8 | ||||||||||
| Corporate general and administrative expenses(1) | 55,707 | 3.7 | 40,761 | 4.5 | ||||||||||
| Operating income | 260,304 | 17.1 | 130,695 | 14.3 | ||||||||||
| Other (expense) income: | ||||||||||||||
| Interest expense | (53,023 | ) | (3.5 | ) | (10,395 | ) | (1.1 | ) | ||||||
| Other income, net(1) (2) | 23,408 | 1.5 | 11,907 | 1.3 | ||||||||||
| Total other (expense) income, net | (29,615 | ) | (2.0 | ) | 1,512 | 0.2 | ||||||||
| Income before income tax expense | 230,689 | 15.1 | 132,207 | 14.5 | ||||||||||
| Income tax expense | 65,974 | 35,530 | ||||||||||||
| Net income | $ | 164,715 | 10.8 | % | $ | 96,677 | 10.6 | % | ||||||
| Diluted earnings per share | $ | 2.58 | $ | 1.92 | ||||||||||
| Diluted weighted average common shares outstanding | 63,960 | 50,248 | ||||||||||||
| Other data: | ||||||||||||||
| Adjusted EBITDA(3) | $ | 355,569 | 23.4 | % | $ | 170,236 | 18.6 | % | ||||||
| Adjusted EPS(3) | $ | 3.26 | $ | 2.22 | ||||||||||
| (1) | CBIZ sponsors a deferred compensation plan, under which a CBIZ employee's compensation deferral is held in a rabbi trust and invested as directed by the employee. Income and expenses related to the deferred compensation plan are included in "Operating expenses" and "Corporate general and administrative expenses," and are directly offset by deferred compensation gains or losses in "Other income (expense), net." The deferred compensation plan has no impact on "Income before income tax expense." | |
| Income and expenses related to the deferred compensation plan for the six months ended |
| Six Months Ended |
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| 2025 |
% of Revenue | 2024 |
% of Revenue | ||||||||||||
| Operating expenses | $ | 9,285 | 0.6 | % | $ | 10,859 | 1.2 | % | |||||||
| Corporate general and administrative expenses | 1,339 | 0.1 | % | 1,380 | 0.2 | % | |||||||||
| Other income, net | 10,624 | 0.7 | % | 12,239 | 1.3 | % | |||||||||
| Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the six months ended |
| Six Months Ended |
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| 2025 | 2024 | ||||||||||||||||||||||||||
| As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | As Reported | Deferred Compensation Plan | Adjusted | % of Revenue | ||||||||||||||||||||
| Gross margin | $ | 316,011 | $ | 9,285 | $ | 325,296 | 21.4 | % | $ | 171,456 | $ | 10,859 | $ | 182,315 | 19.9 | % | |||||||||||
| Operating income | 260,304 | 10,624 | 270,928 | 17.8 | % | 130,695 | 12,239 | 142,934 | 15.6 | % | |||||||||||||||||
| Other income, net | 23,408 | (10,624 | ) | 12,784 | 0.8 | % | 11,907 | (12,239 | ) | (332 | ) | — | % | ||||||||||||||
| Income before income tax expense | 230,689 | — | 230,689 | 15.2 | % | 132,207 | — | 132,207 | 14.5 | % | |||||||||||||||||
| (2) | Included in "Other income, net" for the six months ended |
|
| (3) | Refer to the schedules reconciling Adjusted earnings per share and Adjusted EBITDA to the most directly comparable GAAP financial measures at the end of this release and for additional information as to the usefulness of the non-GAAP financial measures to stockholders and investors. | |
FINANCIAL HIGHLIGHTS (UNAUDITED) SELECT SEGMENT DATA (In thousands) |
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| Three Months Ended |
Six Months Ended |
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| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Financial Services | $ | 569,819 | $ | 309,233 | $ | 1,283,480 | $ | 681,863 | ||||||||
| Benefits and Insurance Services | 101,929 | 97,419 | 214,905 | 205,827 | ||||||||||||
| National Practices | 11,748 | 13,360 | 23,125 | 26,619 | ||||||||||||
| Total Revenue | $ | 683,496 | $ | 420,012 | $ | 1,521,510 | $ | 914,309 | ||||||||
| Gross Margin | ||||||||||||||||
| Financial Services | $ | 85,361 | $ | 46,424 | $ | 288,529 | $ | 153,493 | ||||||||
| Benefits and Insurance Services | 17,922 | 14,176 | 45,540 | 38,947 | ||||||||||||
| National Practices | 1,267 | 1,332 | 2,379 | 2,658 | ||||||||||||
| Operating expenses - unallocated(1): | ||||||||||||||||
| Other expense | (4,924 | ) | (6,005 | ) | (11,152 | ) | (12,783 | ) | ||||||||
| Deferred compensation | (11,717 | ) | (2,283 | ) | (9,285 | ) | (10,859 | ) | ||||||||
| Total Gross Margin | $ | 87,909 | $ | 53,644 | $ | 316,011 | $ | 171,456 | ||||||||
| As a % of Revenue | 12.9 | % | 12.8 | % | 20.8 | % | 18.8 | % | ||||||||
| (1) | Represents operating expenses not directly allocated to individual businesses, including stock-based compensation, consolidation and integration charges, and certain advertising expenses. "Operating expenses - unallocated" also includes gains or losses attributable to the assets held in a rabbi trust associated with the Company's deferred compensation plan. These gains or losses do not impact "Income before income tax expense" as they are directly offset by the same adjustment to "Other income (expense), net" in the Consolidated Statements of Comprehensive Income. Net gains or losses recognized from adjustments to the fair value of the assets held in the rabbi trust are recorded as compensation expense (income) in "Operating expenses" and “Corporate, general and administrative expenses,” and offset in "Other income (expense), net." | |
SELECT CASH FLOW DATA (UNAUDITED) (In thousands) |
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| Six Months Ended |
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| 2025 | 2024 | |||||||
| Net income | $ | 164,715 | $ | 96,677 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 49,858 | 19,008 | ||||||
| Bad debt expense, net of recoveries | 1,862 | 1,244 | ||||||
| Adjustments to contingent earnout liability, net | 1,487 | 638 | ||||||
| Stock-based compensation expense | 12,239 | 5,016 | ||||||
| Other noncash adjustments | 19,831 | 3,401 | ||||||
| Net income, after adjustments to reconcile net income to net cash provided by operating activities | 249,992 | 125,984 | ||||||
| Changes in assets and liabilities, net of acquisitions and divestitures | (225,112 | ) | (101,545 | ) | ||||
| Net cash provided by operating activities | 24,880 | 24,439 | ||||||
| Net cash used in investing activities | (12,299 | ) | (33,247 | ) | ||||
| Net cash used in financing activities | (33,249 | ) | (11,920 | ) | ||||
| Net decrease in cash, cash equivalents and restricted cash | (20,668 | ) | (20,728 | ) | ||||
| Cash, cash equivalents and restricted cash at beginning of year | $ | 187,170 | $ | 157,148 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 166,502 | $ | 136,420 | ||||
| Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet: | ||||||||
| Cash and cash equivalents | $ | 39,817 | $ | 1,128 | ||||
| Restricted cash | 49,145 | 44,947 | ||||||
| Cash equivalents included in funds held for clients | 77,540 | 90,345 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 166,502 | $ | 136,420 | ||||
SELECT FINANCIAL DATA AND RATIOS (UNAUDITED) (In thousands, except percentages, DSO, and per share data) |
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| Cash and cash equivalents | $ | 39,817 | $ | 13,826 | ||||
| Restricted cash | 49,145 | 38,661 | ||||||
| Accounts receivable, net | 676,054 | 534,858 | ||||||
| Other current assets | 82,142 | 72,528 | ||||||
| Current assets before funds held for clients | 847,158 | 659,873 | ||||||
| Funds held for clients | 118,877 | 175,853 | ||||||
| 2,899,958 | 2,945,470 | |||||||
| Total assets | 4,537,973 | 4,470,883 | ||||||
| Current liabilities before client fund obligations, excluding short-term debt | 417,342 | 463,697 | ||||||
| Client fund obligations | 118,705 | 175,928 | ||||||
| Total short-term debt, net | 66,274 | 66,177 | ||||||
| Total long-term debt, net | 1,488,215 | 1,333,755 | ||||||
| Total liabilities | 2,646,130 | 2,690,900 | ||||||
| (989,680 | ) | (910,601 | ) | |||||
| Total stockholders' equity | 1,891,843 | 1,779,983 | ||||||
| Debt to equity | 82.2 | % | 78.6 | % | ||||
| Days sales outstanding (DSO)(1) | 87 | 73 | ||||||
| Shares outstanding | 54,024 | 50,198 | ||||||
| Basic weighted average common shares outstanding | 63,542 | 52,375 | ||||||
| Diluted weighted average common shares outstanding | 63,784 | 52,661 | ||||||
| (1) | DSO is provided for continuing operations and represents accounts receivable, net, at the end of the period, divided by trailing twelve-months daily revenue. The Company has included DSO data because such data is commonly used as a performance measure by analysts and investors and as a measure of the Company's ability to collect on receivables in a timely manner. DSO should not be regarded as an alternative or replacement to any measurement of performance under GAAP. DSO on |
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GAAP RECONCILIATION Net Income (Loss) and Diluted Earnings Per Share (“EPS”) to Adjusted Net Income (Loss), Adjusted Diluted EPS and Adjusted EBITDA(1) (Unaudited. Amounts in thousands, except per share data) |
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| Three Months Ended |
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| Financial Services | Benefits and Insurance Services | National Practices | Corporate & Other | Consolidated | EPS | ||||||||||||||||||
| Net income (loss) | $ | 85,335 | $ | 17,968 | $ | 1,267 | $ | (62,628 | ) | $ | 41,942 | $ | 0.66 | ||||||||||
| Adjustments: | |||||||||||||||||||||||
| Integration costs related to acquisitions(2) | 4,987 | 226 | — | 13,950 | 19,163 | 0.31 | |||||||||||||||||
| Amortization of acquired intangible assets | 17,091 | 1,699 | — | — | 18,790 | 0.29 | |||||||||||||||||
| Litigation gain, net(3) | — | — | — | (11,859 | ) | (11,859 | ) | (0.19 | ) | ||||||||||||||
| Income tax effect related to adjustments | — | — | — | (7,552 | ) | (7,552 | ) | (0.12 | ) | ||||||||||||||
| Adjusted net income (loss) | $ | 107,413 | $ | 19,893 | $ | 1,267 | $ | (68,089 | ) | $ | 60,484 | $ | 0.95 | ||||||||||
| Interest expense | — | — | — | 27,867 | 27,867 | ||||||||||||||||||
| Income tax expense | — | — | — | 15,837 | 15,837 | ||||||||||||||||||
| Tax effect related to the adjustments above | — | — | — | 7,552 | 7,552 | ||||||||||||||||||
| Depreciation(4) | 3,789 | 534 | 2 | 1,088 | 5,413 | ||||||||||||||||||
| Adjusted EBITDA | $ | 111,202 | $ | 20,427 | $ | 1,269 | $ | (15,745 | ) | $ | 117,153 | ||||||||||||
| As a % of Revenue | 19.5 | % | 20.0 | % | 10.8 | % | N/A | 17.1 | % | ||||||||||||||
| Three Months Ended |
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| Financial Services | Benefits and Insurance Services | National Practices | Corporate & Other | Consolidated | EPS | ||||||||||||||||||
| Net income (loss) | $ | 46,552 | $ | 14,219 | $ | 1,328 | $ | (42,306 | ) | $ | 19,793 | $ | 0.39 | ||||||||||
| Adjustments: | |||||||||||||||||||||||
| Integration costs related to acquisitions(2) | 162 | 169 | — | 6,650 | 6,981 | 0.14 | |||||||||||||||||
| Amortization of acquired intangible assets | 4,021 | 1,999 | — | — | 6,020 | 0.12 | |||||||||||||||||
| Facility optimization costs(5) | — | — | — | 85 | 85 | — | |||||||||||||||||
| Litigation cost(3) | — | — | — | 723 | 723 | 0.01 | |||||||||||||||||
| Income tax effect related to adjustments | — | — | — | (4,114 | ) | (4,114 | ) | (0.08 | ) | ||||||||||||||
| Adjusted net income (loss) | $ | 50,735 | $ | 16,387 | $ | 1,328 | $ | (38,962 | ) | $ | 29,488 | $ | 0.58 | ||||||||||
| Interest expense | — | — | — | 5,884 | 5,884 | ||||||||||||||||||
| Income tax expense | — | — | — | 8,400 | 8,400 | ||||||||||||||||||
| Tax effect related to the adjustments above | — | — | — | 4,114 | 4,114 | ||||||||||||||||||
| Depreciation | 1,784 | 558 | 9 | 1,169 | 3,520 | ||||||||||||||||||
| Adjusted EBITDA | $ | 52,519 | $ | 16,945 | $ | 1,337 | $ | (19,395 | ) | $ | 51,406 | ||||||||||||
| As a % of Revenue | 17.0 | % | 17.4 | % | 10.0 | % | N/A | 12.2 | % | ||||||||||||||
| (1) | This table reconciles Adjusted net income (loss), Adjusted diluted EPS, and Adjusted EBITDA to the most directly comparable GAAP financial measures. Adjusted net income (loss), Adjusted diluted EPS, and Adjusted EBITDA exclude the impact of Marcum acquisition and other significant non-operating related gains and losses that management does not consider on-going in nature. Please refer to the 'Non-GAAP Financial Measures' section for further management discussion. | |
| (2) | These costs include, but are not limited to, certain consulting, technology, personnel, as well as other integration costs related to acquisitions. Amounts reported for 2025 relate to the costs associated with the acquisition of Marcum, and amounts reported in 2024 relate to the costs associated with the acquisitions of |
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| (3) | During the three months ended |
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| (4) | Depreciation expense reported for 2025 excluded |
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| (5) | These costs related to incremental non-recurring lease expenses incurred as a result of CBIZ's real estate optimization efforts. | |
| Six months ended |
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| Financial Services | Benefits and Insurance Services | National Practices | Corporate & Other | Consolidated | EPS | ||||||||||||||||||
| Net income (loss) | $ | 288,688 | $ | 45,913 | $ | 2,379 | $ | (172,265 | ) | $ | 164,715 | $ | 2.58 | ||||||||||
| Adjustments: | |||||||||||||||||||||||
| Integration costs related to acquisitions(2) | 7,500 | 381 | — | 26,974 | 34,855 | 0.54 | |||||||||||||||||
| Amortization of acquired intangible assets | 33,981 | 3,475 | — | — | 37,456 | 0.59 | |||||||||||||||||
| Litigation gain, net(3) | — | — | — | (11,063 | ) | (11,063 | ) | (0.17 | ) | ||||||||||||||
| Income tax effect related to adjustments | — | — | — | (17,516 | ) | (17,516 | ) | (0.28 | ) | ||||||||||||||
| Adjusted net income (loss) | $ | 330,169 | $ | 49,769 | $ | 2,379 | $ | (173,870 | ) | $ | 208,447 | $ | 3.26 | ||||||||||
| Interest expense | — | — | — | 53,023 | 53,023 | ||||||||||||||||||
| Income tax expense | — | — | — | 65,974 | 65,974 | ||||||||||||||||||
| Tax effect related to the adjustments above | — | — | — | 17,516 | 17,516 | ||||||||||||||||||
| Depreciation(4) | 7,346 | 1,083 | 3 | 2,177 | 10,609 | ||||||||||||||||||
| Adjusted EBITDA | $ | 337,515 | $ | 50,852 | $ | 2,382 | $ | (35,180 | ) | $ | 355,569 | ||||||||||||
| As a % of Revenue | 26.3 | % | 23.7 | % | 10.3 | % | N/A | 23.4 | % | ||||||||||||||
| Six months ended |
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| Financial Services | Benefits and Insurance Services | National Practices | Corporate & Other | Consolidated | EPS | ||||||||||||||||||
| Net income (loss) | $ | 153,707 | $ | 39,034 | $ | 2,654 | $ | (98,718 | ) | $ | 96,677 | $ | 1.92 | ||||||||||
| Adjustments: | |||||||||||||||||||||||
| Integration costs related to acquisitions(2) | 257 | 169 | — | 7,137 | 7,563 | 0.15 | |||||||||||||||||
| Amortization of acquired intangible assets | 7,916 | 4,048 | — | 1 | 11,965 | 0.24 | |||||||||||||||||
| Facility optimization costs(5) | — | — | — | 340 | 340 | 0.01 | |||||||||||||||||
| Litigation cost(3) | — | — | — | 723 | 723 | 0.01 | |||||||||||||||||
| Income tax effect related to adjustments | — | — | — | (5,534 | ) | (5,534 | ) | (0.11 | ) | ||||||||||||||
| Adjusted net income (loss) | $ | 161,880 | $ | 43,251 | $ | 2,654 | $ | (96,051 | ) | $ | 111,734 | $ | 2.22 | ||||||||||
| Interest expense | — | — | — | 10,395 | 10,395 | ||||||||||||||||||
| Income tax expense | — | — | — | 35,530 | 35,530 | ||||||||||||||||||
| Tax effect related to the adjustments above | — | — | — | 5,534 | 5,534 | ||||||||||||||||||
| Depreciation | 3,581 | 1,148 | 18 | 2,296 | 7,043 | ||||||||||||||||||
| Adjusted EBITDA | $ | 165,461 | $ | 44,399 | $ | 2,672 | $ | (42,296 | ) | 170,236 | |||||||||||||
| As a % of Revenue | 24.3 | % | 21.6 | % | 10.0 | % | N/A | 18.6 | % | ||||||||||||||
| (1) | This table reconciles Adjusted net income (loss), Adjusted diluted EPS, and Adjusted EBITDA to the most directly comparable GAAP financial measures. Adjusted net income (loss), Adjusted diluted EPS, and Adjusted EBITDA exclude the impact of Marcum acquisition and other significant non-operating related gains and losses that management does not consider on-going in nature. Please refer to the 'Non-GAAP Financial Measures' section for further management discussion. | |
| (2) | These costs include, but are not limited to, certain consulting, technology, personnel, as well as other integration costs related to acquisitions. Amounts reported for 2025 relate to the costs associated with the acquisition of Marcum, and amounts reported in 2024 relate to the costs associated with the acquisitions of |
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| (3) | During the six months ended |
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| (4) | Depreciation expense reported for 2025 excluded |
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| (5) | These costs related to incremental non-recurring lease expenses incurred as a result of CBIZ's real estate optimization efforts. | |
GAAP RECONCILIATION Full Year 2025 Net Income and Diluted Earnings Per Share (“EPS”) to Adjusted Net Income, Adjusted Diluted EPS, and Adjusted EBITDA Guidance |
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| Full Year 2025 Guidance | |||||||||||||||
| (Amounts in millions except per share data) | |||||||||||||||
| Low | High | ||||||||||||||
| Amounts | EPS | Amounts | EPS | ||||||||||||
| GAAP Net Income | $ | 127.9 | $ | 1.97 | $ | 131.1 | $ | 2.02 | |||||||
| Amortization of acquired intangible assets(1) | 75.1 | 1.15 | 75.1 | 1.15 | |||||||||||
| Integration costs related to acquisitions(2) | 75.0 | 1.15 | 75.0 | 1.15 | |||||||||||
| Income tax effect related to adjustments | (43.5 | ) | (0.67 | ) | (43.5 | ) | (0.67 | ) | |||||||
| Adjusted Net Income | $ | 234.5 | $ | 3.60 | $ | 237.7 | $ | 3.65 | |||||||
| Depreciation | 22.1 | 22.1 | |||||||||||||
| Interest expense | 99.3 | 99.3 | |||||||||||||
| Income tax expense included the tax effect related to the adjustments above | 94.5 | 97.1 | |||||||||||||
| Adjusted EBITDA | $ | 450.4 | $ | 456.2 | |||||||||||
| (1) | These costs represent the amortization of the intangible assets, such as client lists, recognized as a result of applying Accounting Standards Codification Topic 850, Business Combinations. The amount of amortization expense recorded in each period is significantly affected by the size and timing of our acquisitions. | |
| (2) | These costs include, but are not limited to, certain consulting, technology, personnel, as well as other operating and general administrative costs associated with the integration of the Marcum business. | |
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Source: CBIZ, Inc