UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________ to ________ Commission File Number 1-32961 CBIZ, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporati ...

Investor Presentation FIRST QUARTER 2025 April 24, 2025 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 "2025 Outlook," regarding our financial p ...

CBIZ, Inc. (NYSE:CBZ) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Lori Novickis - Director-Corporate Relations Jerry Grisko - President and Chief Executive Officer Brad Lakhia - Chief Financial Officer Conference Call Participants Christopher Moore - CJS Securities Andrew Nicholas - William Blair Marc Riddick - Sidoti Operator Good day, and welcome to the CBIZ First Quarter 2025 Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I ...

Financial Performance - CBIZ reported first-quarter 2025 revenue of $838.0 million, a 69.5% increase from $494.3 million in the same period of 2024[6]. - Net income for the first quarter of 2025 was $122.8 million, or $1.91 per diluted share, compared to $76.9 million, or $1.53 per diluted share, in the prior year, reflecting a 59.7% increase in net income[6][9]. - Adjusted EBITDA for the first quarter of 2025 was $237.6 million, up 100.0% from $118.8 million in the same quarter of 2024[7]. - Adjusted net income for the first quarter of 2025 was $147.2 million, or $2.29 per diluted share, a 79.7% increase compared to $81.9 million, or $1.63 per diluted share, in the same period last year[7]. - CBIZ's operating income for the first quarter of 2025 was $200.0 million, representing 23.9% of revenue, compared to $99.1 million, or 20.0% of revenue, in the same quarter of 2024[22]. - For the three months ended March 31, 2025, total revenue increased to $838,014 thousand, up 69.5% from $494,297 thousand in the same period of 2024[28]. - Net income for the three months ended March 31, 2025, was $122,773 thousand, a 59.8% increase from $76,884 thousand in 2024[30]. - Adjusted EBITDA for the three months ended March 31, 2025, was $237,620 thousand, compared to $118,830 thousand in 2024, reflecting a significant increase[36]. Future Projections - The company expects full-year 2025 revenue to be between $2.8 billion and $2.95 billion, indicating continued growth despite economic uncertainties[8]. - The company anticipates adjusted EBITDA for 2025 to be in the range of $450 million to $456 million[14]. - Diluted earnings per share for 2025 are expected to be between $1.97 and $2.02, with adjusted diluted earnings per share projected between $3.60 and $3.65[14]. - Full Year 2025 GAAP Net Income is projected to be between $127.9 million and $131.1 million, with diluted EPS ranging from $1.97 to $2.02[39]. - Adjusted Net Income for 2025 is expected to be between $234.5 million and $237.7 million, with adjusted diluted EPS between $3.60 and $3.65[39]. - Adjusted EBITDA guidance for 2025 is projected to be between $450.4 million and $456.2 million[39]. Integration and Costs - The integration of Marcum is on schedule, contributing to strong employee and client retention rates[5][9]. - The company incurred integration costs related to acquisitions amounting to $15,692 thousand for the three months ended March 31, 2025[36]. - Integration costs related to acquisitions are expected to total $75.0 million for 2025[39]. - The company is focusing on integration costs related to the Marcum acquisition, which includes consulting, technology, and personnel expenses[40]. - Accelerated depreciation associated with technology assets from the acquisition of Marcum is included in the reported expenses[38]. - Incremental non-recurring lease expenses are incurred due to real estate optimization efforts[38]. Financial Position - Cash and cash equivalents at the end of the period were $149,306 thousand, compared to $135,914 thousand at the end of March 2024[30]. - The company reported a debt to equity ratio of 79.8% as of March 31, 2025, up from 78.6% at the end of 2024[32]. - Days sales outstanding (DSO) increased to 96 days as of March 31, 2025, compared to 73 days in the previous year[32]. - Total assets increased to $4,585,498 thousand as of March 31, 2025, compared to $4,470,883 thousand at the end of 2024[32]. Tax and Expenses - The effective tax rate is projected to be approximately 29% for 2025[14]. - Depreciation expense for 2025 is estimated at $22.1 million[39]. - Amortization of acquired intangible assets is projected to be $75.1 million for 2025[39]. - Interest expense for 2025 is anticipated to be $99.3 million[39].

CBIZ (CBZ) came out with quarterly earnings of $2.29 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.51%. A quarter ago, it was expected that this provider of outsourced business services would post a loss of $0.23 per share when it actually produced a loss of $0.20, delivering a surprise of 13.04%.Over the last four quarte ...

FIRST-QUARTER HIGHLIGHTS: TOTAL REVENUE UP 69.5%  NET INCOME UP 59.7%; GAAP DILUTED EPS UP 24.8%  ADJUSTED EBITDA UP 100.0%; ADJUSTED DILUTED EPS UP 40.5% MARCUM INTEGRATION ON SCHEDULECLEVELAND, April 24, 2025 /PRNewswire/ -- CBIZ, Inc., (NYSE: CBZ) ("CBIZ" or the "Company"), a leading national professional services advisor, today announced results for the first quarter ended March 31, 2025."CBIZ delivered positive first-quarter results. As we have demonstrated throughout our history, our operating model e ...

CLEVELAND, April 16, 2025 /PRNewswire/ -- CBIZ, Inc. (NYSE: CBZ) (the "Company"), a leading national professional services advisor, will announce its financial results for the first quarter ended March 31, 2025, before markets open on Thursday, April 24, 2025.A conference call to discuss the Company's financial results will be hosted by CBIZ President and Chief Executive Officer Jerry Grisko and Chief Financial Officer Brad Lakhia at 11 a.m. (ET) on Wednesday, April 24, 2025. The conference call will be web ...

Core Insights - Investors prioritize companies with consistent profitability, measured effectively by net profit margin, which reflects operational efficiency and management quality [1][2] Group 1: Net Profit Margin - Net profit margin is calculated as Net Profit/Sales * 100, indicating a company's ability to convert sales into profits [2] - A strong net profit margin suggests effective cost control and operational strength, essential for attracting investors and rewarding stakeholders [2] - Companies with higher net profit margins compared to peers gain a competitive advantage [2] Group 2: Industry Variability - Net profit margin varies across industries, complicating direct comparisons, particularly between traditional and technology sectors [3] - Differences in accounting practices, such as treatment of non-cash expenses, further complicate comparisons [4] - Companies with high debt levels may report lower net profits due to interest expenses, limiting the metric's effectiveness [4] Group 3: Investment Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are critical elements for a successful business model [5] - Screening parameters include a net margin of at least 0%, positive EPS growth, and favorable broker ratings [6] Group 4: Company Highlights - Sterling Infrastructure (STRL) operates in E-Infrastructure and has a Zacks Rank of 1 with a VGM Score of A; its 2025 earnings estimate was revised upward by 14% to $7.35 per share [7][8] - Kingstone Companies (KINS) provides property and casualty insurance, also holding a Zacks Rank of 1 and a VGM Score of A; its 2025 earnings estimate increased to $1.80 from $1.55 per share [9] - Meritage Hospitality (MHGU) focuses on restaurant operations, maintaining a Zacks Rank of 1 and a VGM Score of A; its 2025 earnings estimate rose to $1.36 from $1.12 per share [10][11] - CBIZ (CBZ) offers insurance and financial services, with a Zacks Rank of 1 and a VGM Score of B; its 2025 earnings estimate increased by 23% to $3.63 per share [11][12]

When I last analyzed CBIZ, Inc. (NYSE: CBZ ) on August 7, 2024, I gave it a Strong Buy rating based on its historical growth and its decision to purchase Marcum LLP. The acquisition wasRobert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada ...

Revenue and Financial Performance - CBIZ's total revenue for the year ended December 31, 2024, was $1,813.5 million, representing a 13.9% increase from $1,591.2 million in 2023[38] - Revenue for fiscal year 2024 was $1,813.5 million, an increase of $222.3 million, or 14.0%, from $1,591.2 million in 2023[153] - Same-unit revenue increased by $76.9 million, or 4.8%, while acquisitions contributed $145.4 million, or 8.0% to total revenue[153] - Total revenue from Financial Services was $1,362.5 million, representing 75.1% of total revenue, up from $1,160.7 million, or 72.9% in 2023[161] - Total revenue for the Financial Services practice group grew by 17.4% to $1,362.5 million in 2024, with same-unit revenue increasing by 4.8%[175] - Benefits and Insurance Services practice group revenue increased by 4.8% to $401.0 million in 2024, with same-unit revenue up by 4.0%[177] Operating Expenses and Income - Operating expenses increased by $263.0 million to $1,631.0 million in 2024, with operating expenses as a percentage of revenue rising to 89.9%[164] - Operating income for 2024 was $73.7 million, with a gross margin of $182.5 million, reflecting a decrease from the previous year[163] - Personnel costs drove the increase in operating expenses, with a $194.5 million rise attributed to higher personnel costs in 2024[165] - G&A expenses increased by approximately $50.8 million, or 87.6%, in 2024, reaching $108.8 million, which is 6.0% of revenue compared to 3.6% in 2023[166] - Total operating expenses increased by $5.1 million, or 13.1%, in 2024 compared to 2023, primarily due to higher personnel costs[182] Acquisitions and Growth Strategy - The company completed five business acquisitions in 2024, including the acquisition of Marcum LLP, which is the largest transaction in its history[25][40] - The company acquired five businesses during 2024, including Marcum, as part of its growth strategy[97] - The acquisition of Marcum is expected to significantly increase the attest services received and the revenues generated under the existing Administrative Service Agreement with CBIZ CPAs[84] - Following the Attest Purchase, the number of SEC-reporting attest clients of CBIZ CPAs increased from very few or none to well over 100[87] Challenges and Risks - The company may face challenges in managing conflicts of interest and independence restrictions due to the significant increase in SEC-reporting attest clients[87] - The performance and benefits from the acquisition of Marcum may be adversely affected if the anticipated benefits are not realized or if unforeseen liabilities arise[81] - The company has identified certain material weaknesses in Marcum's internal control over financial reporting prior to the acquisition[95] - Changes in U.S. healthcare legislation may adversely affect revenue and margins in the company's healthcare benefit businesses[100] - Higher unemployment rates in the U.S. could lead to a reduction in employer-sponsored healthcare coverage, impacting commissions received[102] - Cybersecurity risks remain a concern, with past breaches highlighting vulnerabilities in the company's systems[105] Human Capital and Employee Engagement - CBIZ has over 10,000 team members nationwide, emphasizing the importance of human capital for delivering multi-disciplinary and technology-enabled solutions[55] - The company received a record 106 workplace awards in 2024, highlighting its commitment to attracting and retaining top talent[26] - The company focuses on a recruitment strategy that includes targeted campus recruiting and a robust internship program to build a strong talent pipeline[56] - CBIZ's centralized recruitment team utilizes best practices and various tools to source top talent, ensuring a consistent and fair hiring process[58] - The company prioritizes continuous learning and development, offering comprehensive training programs to prepare team members for future leadership roles[60] - CBIZ's commitment to human rights and diversity is reflected in its equal opportunity employment practices and the CBIZ Human Rights Policy[59] - The company has a strong focus on employee engagement, utilizing feedback from annual surveys to enhance talent initiatives and recognition programs[61] Financial Position and Capital Structure - As of December 31, 2024, the company has $1.4 billion in principal amount outstanding under its 2024 Credit Facilities, which consist of a $1.4 billion term loan and a $600 million revolving credit facility[117] - The company has approximately 53.3 million shares of common stock outstanding as of January 31, 2025, with 250 million shares authorized[124] - The stock consideration from the recent transaction is expected to constitute approximately 22% of the company's outstanding shares, potentially diluting current stockholders' ownership[126] - The company issued approximately 159,000 shares of common stock during the year ended December 31, 2024, as payment for acquisitions[144] - The company repurchased 1 share at an average price of $77.90 during December 2024, with a remaining capacity of 4,996 shares under the publicly announced repurchase plan[146] - The company's debt to EBITDA ratio has increased significantly following a recent transaction, raising concerns about its ability to service debt and pursue growth opportunities[121] Tax and Interest Expenses - Interest expense increased to $34.4 million in 2024 from $20.1 million in 2023, driven by a higher average debt balance and interest rate[169] - Income tax expense decreased to $16.8 million in 2024, with an effective tax rate of 29.0%, up from 27.3% in 2023[173] - The company's effective tax rate may vary significantly due to share-based compensation linked to stock price fluctuations[113] Cash Flow and Investment Activities - Net cash provided by operating activities was $123.7 million in 2024, down from $153.5 million in 2023, with net income of $41.0 million[189][190] - Net cash used in investing activities in 2024 was $1,129.3 million, primarily for business acquisitions, compared to $79.4 million in 2023[185][192] - Net cash provided by financing activities in 2024 was $1,035.6 million, mainly from the 2024 Credit Facilities, compared to a net cash used of $77.1 million in 2023[185][195] Market and Competitive Landscape - The company competes in a highly fragmented professional services industry, leveraging strong client relationships and data-driven expertise as competitive advantages[53] - The competitive landscape in the business services industry is fragmented, with significant competition from larger firms[112] - Rapid technological changes could impact the company's competitive position and client relationships[114]