Is CBZ a good stock to buy? We came across a bullish thesis on CBIZ, Inc. on Value Don't Lie’s Substack. In this article, we will summarize the bulls’ thesis on CBZ. CBIZ, Inc.'s share was trading at $26.69 as of March 23rd. CBZ’s trailing and forward P/E were 14.77 and 16.53 respectively according to Yahoo Finance. Is CBZ a good stock to buy? Copyright: kritchanut / 123RF Stock Photo CBIZ, Inc. provides financial, insurance, and advisory services in the United States and Canada. CBZ has seen its stock s ...

Research finds that 9 out of 10 leaders who prioritize innovation reported year-over-year revenue growth, with 51% growing by 10% or moreCleveland, March 18, 2026 (GLOBE NEWSWIRE) -- CBIZ, Inc. (NYSE: CBZ), a leading national professional services advisor, today released a new report, “The Tradeoff Economy: How Decision-Making Mindsets Shape Middle Market Performance,”developed in partnership with the National Center for the Middle Market (NCMM) and The Ohio State University Fisher College of Business. Acco ...

Core Insights - CBIZ, a major business services provider, experienced insider selling as its share price declined sharply over the year [1][11] - Director Benaree Pratt Wiley sold 17,956 shares for approximately $474,000 on March 10, 2026, with the transaction being fully indirect [1][2] Transaction Summary - The shares sold were 17,956, with a transaction value of $474,000, based on a weighted average sale price of $26.39 [2] - Post-transaction, Wiley retains 3,336 shares directly and 18,000 shares indirectly, with a total beneficial ownership of 21,336 shares, approximately 0.04% of shares outstanding [2][6] Company Overview - CBIZ reported a revenue of $2.76 billion and a net income of $115.44 million for the trailing twelve months [4] - As of March 10, 2026, the share price was $26.04, reflecting a 62.90% decline over the past year [4] Company Profile - CBIZ provides a range of services including accounting, tax, financial advisory, and IT managed services, primarily generating revenue through service fees [7] - The company serves small and medium-sized businesses, individuals, governmental entities, and not-for-profit organizations across the U.S. and Canada, employing around 10,000 people [8] Transaction Analysis - The recent sale by Wiley is significant as it exceeds her previous median sell transaction size and represents 45.70% of her total holdings at the time, which is higher than historical medians [6] - The structure of the sale being fully indirect indicates that it is more related to estate planning rather than a negative outlook on the stock [9][11] - The gradual reduction in Wiley's holdings over the years suggests that this transaction reflects limited remaining capacity rather than an accelerating exit from the investment [10]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Revenue and Financial Performance - CBIZ's total revenue for the year ended December 31, 2025, was $2,757.99 million, representing a 52.0% increase from $1,813.47 million in 2024[35]. - Revenue for 2025 was $2,758.0 million, an increase of $944.5 million or 52.1% from $1,813.5 million in 2024[152]. - Net income rose to $115.4 million in 2025, up $74.4 million or 181.3% from $41.0 million in 2024[152]. - Earnings per diluted share increased to $1.83 in 2025 from $0.78 in 2024, with a weighted average share count of 63.2 million shares[152]. - Financial Services revenue was $2,301.5 million, accounting for 83.4% of total revenue in 2025, compared to 75.1% in 2024[157]. - Financial Services revenue surged by 68.9% to $2,301.5 million in 2025, driven by a $796.9 million increase in traditional accounting and tax-related services[169]. - The Benefits and Insurance Services segment generated $409.63 million in revenue, accounting for 14.9% of total revenue, a slight increase from $401.05 million in 2024[35]. - Benefits and Insurance Services revenue grew by 2.1% to $409.6 million in 2025, primarily due to increases in employee benefit services[172]. Client and Market Dynamics - Financial Services accounted for 83.4% of total revenue in 2025, with revenue of $2,301.46 million, up from 75.1% and $1,362.54 million in 2024[35]. - CBIZ's largest client contributed approximately 1.7% of consolidated revenue in 2025, highlighting the diversity of its client base[39]. - Client relationships are crucial for revenue stability, and the ability to retain clients is essential for growth and profitability[112]. - The professional services industry is highly fragmented and competitive, with CBIZ providing multi-disciplinary solutions that give it a competitive advantage over single-service firms[50][51]. Growth Strategy and Acquisitions - CBIZ's revenue growth model includes recurring revenue with high client retention, new client wins, cross-serving additional services, and strategic acquisitions[34][36]. - In 2025, CBIZ completed one immaterial business acquisition in the fourth quarter, continuing its strategy of growth through acquisitions[43]. - The company acquired one business during 2025 as part of its strategic growth strategy, focusing on complementary acquisitions in target markets[94]. - The acquisition of Marcum's attest business assets significantly increased the attest services received and revenues generated under the existing Administrative Service Agreement with CBIZ CPAs[81]. - Revenue from newly acquired operations contributed $914.2 million, or 50.4% of incremental revenue for 2025[152]. Operational Efficiency and Expenses - Operating expenses increased by $771.6 million to $2,402.6 million in 2025, with a percentage of revenue decreasing to 87.1% from 89.9% in 2024[159]. - Operating expenses for Financial Services rose by $751.2 million, mainly due to a $578.3 million increase in personnel costs[171]. - G&A expenses rose by approximately $12.6 million, or 11.6%, to $121.4 million in 2025, decreasing to 4.4% of revenue from 6.0% in 2024[161]. - Operating expenses excluding deferred compensation were $2,382.3 million, or 86.4% of revenue in 2025, compared to $1,612.2 million, or 88.9% in 2024[159]. Debt and Financial Obligations - As of December 31, 2025, the company's debt amounted to $1,472.4 million under the Amended and Restated Credit Agreement, with total senior secured credit facilities of $2,000.0 million[119]. - The company has a debt to EBITDA ratio that has significantly increased following a recent transaction, raising concerns about its ability to service this debt and pursue growth opportunities[122]. - The outstanding balance under the 2024 Credit Facilities was $1,472.4 million as of December 31, 2025, with $972.4 million subject to interest rate risk[221]. - The company aims to maintain a net leverage ratio between 2.0x and 2.5x over time[153]. Human Capital and Talent Management - The company received 120 workplace awards in 2025, reflecting its commitment to attracting and retaining top talent[25]. - CBIZ has over 9,500 team members nationwide, emphasizing the importance of human capital in delivering services and solutions[52]. - The company prioritizes learning and development, offering a comprehensive framework of training and leadership development programs to its team members[57]. - CBIZ actively recruits skilled professionals and engages students through campus recruiting and internship programs to build a strong talent pipeline[53][54]. - The company has implemented policies to maintain independence and avoid conflicts of interest, but challenges remain that could impact revenues[86]. Risks and Challenges - The company faces risks related to accounts receivable, with potential slower payments impacting liquidity, especially in a worsening economy[73]. - Economic and geopolitical uncertainties may lead to declines in demand for the company's services, negatively impacting financial results[97]. - The healthcare environment changes, including new legislation, could adversely affect revenue and margins in the healthcare benefit business[98]. - Cybersecurity risks and potential breaches could materially affect the company's business and reputation[103]. - The company must manage staffing levels effectively to maintain operational efficiencies and avoid adverse consequences related to employee utilization[77]. Cash Flow and Investment Activities - Cash provided by operating activities was $192.5 million in 2025, up from $123.7 million in 2024, reflecting improved net income and operational efficiency[180][184]. - Net cash used in investing activities was $15.9 million in 2025, significantly lower than $1,129.3 million in 2024, which included substantial acquisition costs[180][188]. - Cash requirements for 2026 and beyond will include debt repayment, share repurchases, strategic acquisitions, and capital expenditures[196]. - Cash provided by operations and available funds under the 2024 Credit Facilities are expected to be sufficient to meet cash requirements for 2026 and beyond[197]. Shareholder Considerations - The company repurchased 1.5 million shares for $109.1 million and 0.9 million shares for $50.9 million in 2025[155]. - Approximately 12% of the company's outstanding shares will be issued as stock consideration from the recent transaction, potentially diluting existing shareholders' ownership[126]. - The company has authorized the purchase of up to 5.0 million shares under its Share Repurchase Program[154]. - The company may face increased volatility in its stock price due to fluctuations in revenue and operating performance, which could impact investor confidence[128].

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $543 million, an 18% increase year-over-year, driven by acquisitions [24] - Full-year revenue grew 52% compared to the previous year, with approximately 2% organic growth [25] - Adjusted EBITDA for the full year was $447 million, with a margin increase of approximately 530 basis points year-over-year [26] Business Line Data and Key Metrics Changes - Financial Services revenue for Q4 was $439 million, up 23% year-over-year, with full-year revenue at $2.3 billion, a 70% increase [28] - Benefits and Insurance (BNI) revenue for 2025 was $410 million, representing 2% growth year-over-year, primarily driven by employee benefits and payroll services [30] Market Data and Key Metrics Changes - The company noted a soft market condition in the first half of 2025, impacting revenue growth, but saw improving sentiment in the second half [6][22] - More than 70% of revenue is recurring, providing resilience across economic cycles [22] Company Strategy and Development Direction - The strategic focus for 2026 and beyond includes attracting top talent, enhancing brand visibility, and deepening industry specialization [9][12] - The company aims to leverage AI and automation to improve efficiency and client service, viewing AI as an extension of existing automation initiatives [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions and client sentiment heading into 2026, expecting increased project-based work [21][45] - The company anticipates organic revenue growth of 2%-5% for 2026, with a focus on maintaining strong client relationships and expanding service offerings [32][38] Other Important Information - The company repurchased approximately 2.4 million shares for $160 million in 2025 and plans to continue share repurchases [27] - Free cash flow for the full year increased to $176 million, with a conversion rate of approximately 40% from Adjusted EBITDA [28] Q&A Session Summary Question: Impact of soft market conditions on revenue growth - Management noted that soft market conditions in the first half of 2025 affected revenue, but sentiment improved later in the year, leading to increased advisory work [41][45] Question: Role of AI in the business - Management indicated that AI will augment existing services, making processes more efficient, but the trusted advisor role remains critical [46][51] Question: Pricing expectations for 2026 - Management confirmed that pricing is expected to remain in the mid-single-digit range for 2026, consistent with 2025 [56][60] Question: Performance of SEC capital markets - Management acknowledged that SEC capital markets work was softer in 2025 due to market conditions but expressed optimism for improvement in 2026 [65][67] Question: Growth expectations for different business segments - Management highlighted that core accounting and tax services are more stable, while advisory services are more susceptible to market conditions [75][76]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $543 million, an 18% increase year-over-year, driven by acquisitions [25] - Full-year revenue grew 52% compared to the previous year, with an estimated 2% organic growth [26] - Adjusted EBITDA for the full year was $447 million, with a margin increase of approximately 530 basis points [27] - Full-year free cash flow increased by $65 million to $176 million, with a conversion rate of approximately 40% [30] Business Line Data and Key Metrics Changes - Financial Services revenue for Q4 was $439 million, up 23% year-over-year, with full-year revenue at $2.3 billion, a 70% increase [30] - Benefits and Insurance (BNI) revenue for 2025 was $410 million, representing 2% growth year-over-year, driven by employee benefits and payroll services [32] Market Data and Key Metrics Changes - The company noted that over 70% of its revenue is recurring, providing resilience across economic cycles [22] - The sentiment in the middle market improved towards the end of 2025, leading to increased project-based work [22][48] Company Strategy and Development Direction - The strategic focus for 2026 includes attracting and retaining top talent, elevating brand visibility, and deepening industry specialization [10][12] - The company aims to leverage AI and automation to enhance service delivery and operational efficiency [16][20] - CBIZ is positioned to capitalize on the growing demand for trusted advisory services in a complex business environment [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions and client sentiment heading into 2026 [22][48] - The company anticipates organic revenue growth of 2%-5% for 2026, with expectations for continued margin expansion [34] Other Important Information - The company repurchased approximately 2.4 million shares for $160 million in 2025 and plans to continue its share repurchase program [28][29] - Integration-related expenses are expected to decrease in 2026, contributing to improved profitability [35] Q&A Session Summary Question: Impact of soft market conditions on revenue growth - Management acknowledged that soft market conditions affected revenue growth in 2025 but noted improving sentiment and increased client comfort as the year progressed [43][45] Question: Role of AI in the business - Management emphasized that AI will augment their services, making processes more efficient while maintaining the importance of human judgment in advisory roles [49][50][54] Question: Pricing expectations for 2026 - Management indicated that pricing is expected to remain in the mid-single-digit range for 2026, consistent with 2025 [59][62] Question: Performance of SEC capital markets - Management noted that capital markets work was softer in 2025 due to market conditions but expressed optimism for improvement in 2026 [67][69] Question: Growth expectations for different business segments - Management highlighted that core accounting and tax services are more stable, while advisory services are more susceptible to market conditions, with expectations for growth in 2026 [76][78]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $543 million, an 18% increase year-over-year, primarily driven by acquisitions [23] - Full-year revenue grew 52% compared to the previous year, with an estimated organic growth of approximately 2% [24] - Adjusted EBITDA for the full year was $447 million, with a margin increase of approximately 530 basis points year-over-year [25] - Full-year free cash flow increased by $65 million to $176 million, with a conversion rate of approximately 40% [27] Business Line Data and Key Metrics Changes - Financial Services revenue for Q4 was $439 million, up 23% year-over-year, with full-year revenue at $2.3 billion, a 70% increase [27][28] - Benefits and Insurance (BNI) revenue for 2025 was $410 million, representing a 2% growth year-over-year, driven by employee benefits and payroll services [29] Market Data and Key Metrics Changes - The company noted that over 70% of its revenue is recurring, providing resilience across economic cycles [22] - The sentiment in the middle market has improved, with clients showing increased comfort in the business environment heading into 2026 [20][21] Company Strategy and Development Direction - The strategic focus for 2026 includes attracting and retaining top talent, elevating brand visibility, and deepening industry specialization [9][12] - The company aims to leverage AI and automation to enhance service delivery and operational efficiency [15][19] - CBIZ is positioned to capitalize on the growing demand for professional services in the middle market, driven by increased complexity and a shortage of accounting talent [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market conditions and client sentiment, expecting continued growth in advisory work [41][44] - The company anticipates organic revenue growth of 2%-5% for 2026, with a focus on project-based work and macroeconomic conditions influencing performance [31][32] Other Important Information - The company completed significant integration work following the acquisition of Marcum, which is expected to drive long-term growth [6][8] - CBIZ plans to increase offshore hours from approximately 6% in 2025 to 10% in 2026, aiming for over 20% in the coming years [20][19] Q&A Session Summary Question: Impact of soft market conditions on revenue growth - Management noted that soft market conditions in the first half of 2025 affected revenue growth, but sentiment improved as the year progressed, leading to increased advisory work [40][41] Question: Role of AI in the business - Management emphasized that while AI will augment efficiency, the role of trusted advisors remains critical, as clients seek deep industry knowledge and holistic guidance [45][50] Question: Pricing expectations for 2026 - Management confirmed that pricing is expected to remain in the mid-single-digit range for 2026, consistent with 2025 [54][58] Question: Performance of SEC capital markets business - Management indicated that the capital markets work was softer in 2025 due to market conditions, but expressed optimism for improvement in 2026 [63][65] Question: Growth expectations across different business segments - Management highlighted that core accounting and tax services are more predictable, while advisory services are more susceptible to market conditions, with expectations for growth in 2026 [73][75]

Earnings Presentation Fourth Quarter and Full Year 2025 February 25, 2026 CBIZ.COM | NYSE: CBZ Forward-Looking Statements This presentation 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 presentation, including, without limitation our "2026 Outlook," regardin ...

Financial Performance - Total revenue for 2025 reached $2.8 billion, representing a 52.1% increase year-over-year[5] - Net income increased to $115.4 million, up 181.3%, with GAAP EPS at $1.83, up 134.6%[5] - Adjusted EBITDA for 2025 was $446.9 million, a 125.5% increase, and adjusted diluted EPS was $3.61, up 79.6%[5] - Revenue for the three months ended December 31, 2025, was $542,663,000, a 17.8% increase from $460,279,000 in the same period of 2024[25] - For the twelve months ended December 31, 2025, total revenue reached $2,757,991,000, a significant increase of 52.0% from $1,813,472,000 in 2024[29] - The operating income for the twelve months ended December 31, 2025, was $234,010,000, up from $73,716,000 in 2024, reflecting an increase in operating margin from 4.1% to 8.5%[29] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $446,898,000, compared to $198,198,000 in 2024, indicating a substantial growth in operational efficiency[29] - Net income for the twelve months ended December 31, 2025, was $115,444,000, a significant increase from $41,038,000 in 2024, representing a growth of 181%[36] - Adjusted net income for 2025 was $433.6 million, up from $175.7 million in 2024, indicating a 147% growth year-over-year[49] Cash Flow and Assets - Operating cash flow rose to $192.5 million, up 55.6%, while free cash flow increased to $175.5 million, up 58.4%[5] - Free cash flow for 2026 is expected to be between $270 million and $290 million, significantly higher than the previous year's $176 million[7] - Net cash provided by operating activities increased to $192,485,000 in 2025 from $123,692,000 in 2024, reflecting a growth of 55.6%[38] - Free Cash Flow for 2025 was $175,526,000, up from $110,778,000 in 2024, indicating a 58.4% increase[38] - Total assets decreased slightly to $4,409,528,000 in 2025 from $4,470,883,000 in 2024, a decline of 1.4%[40] - Cash, cash equivalents, and restricted cash at the end of the period increased to $218,090,000 in 2025 from $187,170,000 in 2024, a rise of 16.5%[36] Shareholder Actions - The company repurchased 2.5 million shares for $168 million, with an additional 5 million shares authorized for repurchase[5] Operational Efficiency - The integration of Marcum is nearly complete, with synergies tracking ahead of plan[3][10] - The company is focusing on offshoring, AI, and innovation to transform its cost structure and enhance service offerings[3] - Days Sales Outstanding (DSO) improved to 71 days in 2025 from 73 days in 2024, suggesting better efficiency in collecting receivables[40] - The company plans to continue optimizing its facilities and integrating acquisitions to enhance operational efficiency moving forward[52] Expenses and Costs - Operating expenses for the same period were $593,410,000, representing 109.4% of revenue, compared to $522,179,000 or 113.4% of revenue in 2024[25] - The company incurred integration costs related to Marcum amounting to $25,595,000 in the fourth quarter of 2025[45] - Integration costs related to Marcum amounted to $89.1 million in 2025, contributing to the overall adjustments in net income[49] - The company recorded litigation costs of $8.8 million in 2025, which negatively impacted net income[49] - Interest expense for the twelve months ended December 31, 2025, was $107.2 million, compared to $34.4 million in 2024, indicating higher borrowing costs[49] Profitability Metrics - The gross margin for the twelve months ended December 31, 2025, was $355,393,000, representing 12.9% of revenue, compared to 10.1% in 2024[29] - The diluted income per share for the twelve months ended December 31, 2025, was $1.83, compared to $0.78 in 2024, reflecting improved profitability[29] - Other income, net for the twelve months ended December 31, 2025, was $33,329,000, an increase from $13,538,000 in 2024, contributing positively to overall financial performance[29] - The effective tax rate related to adjustments was $44.4 million in 2025, impacting the adjusted net income[49] Future Outlook - The 2026 outlook anticipates total revenue growth of approximately 2% to 5%, with adjusted EPS projected between $3.75 and $3.85[7][11]