Economic strength, encouraging service activities and the success of the work-from-home trend enable Zacks Consulting Services industry players to support the demand environment.Driven by these positives, investors interested in the industry would do well to consider including stocks like FTI Consulting, Inc. (FCN) , Exponent, Inc. (EXPO) and CBIZ, Inc. (CBZ) in their portfolios.About the Industry Companies grouped under the Consulting Services category offer professional advice in management, IT, human res ...

Resource offers guidance for employers on managing cost pressures, meeting demands, and responding to employee priorities.Cleveland, Dec. 10, 2025 (GLOBE NEWSWIRE) -- CBIZ, Inc., a leading national professional services advisor, today announced the launch of its 2026 Benefits & Insurance Market Outlook, aimed at helping employers prepare for another year of increasing healthcare costs and rising employee expectations. The report outlines key trends shaping the benefits and insurance sector and offers employ ...

Sikora brings more than 18 years of finance, investor relations, and corporate development experience to CBIZ Christopher Sikora CBIZ appoints Christopher Sikora as Vice President, Investor Relations and Corporate Finance Cleveland, Dec. 08, 2025 (GLOBE NEWSWIRE) -- CBIZ, Inc. (NYSE: CBZ), a leading national professional services advisor, announced the appointment of Christopher Sikora as Vice President, Investor Relations and Corporate Finance, effective Dec. 8, 2025. Sikora is an accomplished investor ...

Core Insights - CBIZ, Inc. has released its 2026 Tax Planning Guide to assist businesses and individuals in navigating the changes brought by the One Big Beautiful Bill Act (OBBBA) [1][2] Group 1: Key Changes and Provisions - The OBBBA introduces significant tax policy changes, including immediate deductibility of domestic research and experimental expenses, restoration of 100% bonus depreciation, permanent expansion of Section 179 expensing, and increases to estate and gift tax exemptions [3] - New tax incentives under the OBBBA affect both C corporations and pass-through entities, prompting businesses to reconsider their entity selection [4] Group 2: Tax Planning Strategies - The guide emphasizes tax planning as a growth driver rather than a year-end checklist, encouraging decision-makers to transform complexity into clarity and strategy into savings [3] - The guide includes a sector-by-sector analysis to help organizations identify opportunities and compliance priorities in light of the new provisions [8] Group 3: Additional Provisions - Manufacturers can now claim a 100% deduction for new qualified production property, with construction starting after January 19, 2025, and before 2029 [8] - Expanded Qualified Opportunity Zones provide new avenues for capital-gain deferral and reinvestment for both business and individual investors [8] - New individual tax-advantaged provisions include higher state and local tax caps, new deductions for tip income and overtime pay, and temporary bonus deductions for seniors [8] Group 4: Upcoming Events - CBIZ is hosting a webinar on November 13, 2025, to discuss insights from the guide and the implications of tax changes for businesses and personal finances [5]

Core Insights - The CBIZ Mid-Market Pulse indicates that mid-market leaders are facing significant challenges from rising costs, particularly in healthcare, tariffs, and financing, as they prepare for 2026 [1][6] - Despite these challenges, businesses are focusing on cost discipline and operational resilience, maintaining investments in compliance, technology, and workforce development [2][3] Cost Pressures - 62% of leaders reported that rising healthcare and employee benefit costs negatively impact their businesses [6] - 59% indicated that tariffs and international trade policies have adverse effects [6] - 36% noted that the cost of capital and access to financing remain major challenges [6] Investment Strategies - Mid-market companies are being deliberate with discretionary spending, prioritizing investments that enhance customer service and productivity [3] - The focus on disciplined investment is seen as a defining characteristic of successful middle-market companies [3] Sector-Specific Insights - Companies in construction, healthcare, and consumer products are experiencing the most strain from labor and supply chain costs [7] - 44% of leaders reported that AI and digital transformation have positively impacted their businesses, while only 7% reported negative effects [7] Policy and Compliance - There is a divided reaction to the One Big Beautiful Bill Act, as companies assess the implications of new tax provisions and compliance changes on their operations [7]

Company Overview - CBIZ, Inc. (CBZ) is an American company that offers a variety of professional services including accounting, tax, advisory, benefits, and insurance [1] Target Market - The company primarily serves middle-market businesses that require integrated and expert services [1]

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Revenue Growth - Revenue for Q3 2025 increased by $254.9 million, or 58.1%, to $693.8 million from $438.9 million in Q3 2024[86] - Revenue for the nine months ended September 30, 2025, rose by $862.1 million, or 63.7%, to $2,215.3 million compared to $1,353.2 million in the same period of 2024[86] - Revenue from newly acquired operations contributed $245.6 million, or 56.0%, of incremental revenue for Q3 2025[86] - Financial Services accounted for 83.4% of total revenue in Q3 2025, with revenue of $578.5 million, an increase of 79.5% from Q3 2024[92] - Total revenue for the nine months ended September 30, 2025, from Financial Services was $1,862.0 million, representing 84.1% of total revenue[92] - Revenue for the Financial Services practice group for the three months ended September 30, 2025, grew by 79.5% to $578.5 million from $322.3 million in the same period of 2024[116] - Revenue for the nine months ended September 30, 2025, increased by 85.4% to $1,862.0 million from $1,004.2 million in the same period of 2024[120] - Revenue for the Benefits and Insurance Services practice group for the three months ended September 30, 2025, decreased slightly by 0.6% to $103.4 million from $104.0 million in the same period of 2024[123] - Revenue for the Benefits and Insurance Services practice group increased by $8.4 million, or 2.7%, to $318.3 million for the nine months ended September 30, 2025, compared to $309.9 million for the same period in 2024[127] - Revenue for the National Practices group decreased by $4.1 million, or 10.6%, to $35.0 million for the nine months ended September 30, 2025[129] Net Income and Expenses - Net income for Q3 2025 was $30.1 million, or $0.48 per diluted share, down from $35.1 million, or $0.70 per diluted share, in Q3 2024[87] - For the nine months ended September 30, 2025, net income increased to $194.9 million, or $3.06 per diluted share, from $131.8 million, or $2.62 per diluted share, in the same period of 2024[87] - Total operating expenses for the three months ended September 30, 2025 increased by $237.7 million, or 65.0%, to $603.7 million compared to $366.0 million in the same period in 2024[96] - For the nine months ended September 30, 2025, total operating expenses increased by $700.4 million, or 63.2%, to $1,809.2 million compared to $1,108.8 million in the same period in 2024[99] - Operating expenses excluding deferred compensation for the three months ended September 30, 2025 were $595.8 million, or 85.9% of revenue, compared to $358.7 million, or 81.7% of revenue, in the same period in 2024[96] - Operating expenses excluding deferred compensation for the nine months ended September 30, 2025 were $1,792.1 million, or 80.9% of revenue, compared to $1,090.7 million, or 80.6% of revenue, in the same period in 2024[99] - Total operating expenses increased by $10.6 million, or 30.4%, during the nine months ended September 30, 2025, primarily driven by higher facility and professional service costs[137] - Total corporate general and administrative expenses increased by $23.0 million, or 35.9%, during the nine months ended September 30, 2025, with significant increases in professional fees and personnel costs[138] Cash Flow and Debt Management - The company repurchased 1.4 million shares for $102.8 million and 0.4 million shares for $25.0 million during the nine months ended September 30, 2025[90] - As of September 30, 2025, the company had $1,586.8 million of outstanding debt under the 2024 Credit Facilities[89] - The company maintains low cash levels and applies available cash to pay down outstanding debt, with cash flows from operations expected to exceed cash use in the first quarter of the fiscal year[140] - Cash provided by operating activities for the nine months ended September 30, 2025, was $48.8 million, down from $68.2 million in the same period of 2024, reflecting a working capital use of $258.0 million offset by net income of $194.9 million[145] - Cash used in financing activities for the nine months ended September 30, 2025, was $75.2 million, including $135.6 million for share repurchases, compared to $85.2 million in 2024[148] - As of September 30, 2025, the company had $1,586.8 million outstanding under the 2024 Credit Facilities, with available funds of approximately $316.0 million[149] - The weighted average interest rate under the 2024 Credit Facilities was 6.64% for the nine months ended September 30, 2025, compared to 5.40% for the same period in 2024[149] - Cash requirements for the remainder of 2025 will include share repurchases, debt repayment, strategic acquisitions, and capital expenditures, with expected sufficiency from operations and available credit[153] - The company is focused on maximizing cash flow to fund working capital and drive organic growth while paying down debt to enhance liquidity for future acquisitions[151] Interest Expense and Financial Risks - Interest expense for the three months ended September 30, 2025 was $(22.99) million, compared to $(27.96) million in the same period in 2024[104] - For the three months ended September 30, 2025, the average debt balance was $1,554.7 million with a weighted average effective interest rate of 6.62%, compared to $350.7 million and 5.37% in the same period of 2024, resulting in an increase in interest expense of $23.0 million[106] - For the nine months ended September 30, 2025, the average debt balance was $1,513.9 million with an interest rate of 6.64%, compared to $362.1 million and 5.40% in the same period of 2024, leading to an increase in interest expense of $65.6 million[107] - Total other expense, net increased by $46.7 million during the nine months ended September 30, 2025, primarily due to a $65.6 million increase in interest expense[139] - A 100 basis point change in market rates would result in an annual interest expense change of approximately $10.9 million[166] - The company has multiple interest rate swaps with notional amounts totaling $400,000, with fixed rates ranging from 1.186% to 4.488%[168] - The interest rate swap expiring on July 14, 2026, has a notional amount of $100,000 and a fixed rate of 4.047%[168] - Forward-looking statements indicate potential risks including economic uncertainties, regulatory changes, and operational challenges that could impact future performance[161] Taxation - Income tax expense for the three months ended September 30, 2025, was $10,260 thousand, a decrease of 35.4% from $15,887 thousand in the same period of 2024[112] - The effective tax rate for the three months ended September 30, 2025, was 25.4%, down from 31.2% in the same period of 2024[112] Integration Costs - Integration costs associated with the Transaction for the three months ended September 30, 2025 were approximately $23.2 million[96] - Integration costs for the nine months ended September 30, 2025 included approximately $43.3 million related to the Transaction[99] - The deferred compensation plan increased operating expenses by $17.1 million for the nine months ended September 30, 2025[137] - Integration costs associated with the Transaction amounted to approximately $20.2 million for the nine months ended September 30, 2025[138] Investments - Investments from client accounts are classified as available-for-sale securities and are adjusted to fair value at each balance sheet date[169] - All investments made by the company carry an investment grade rating at the time of acquisition[169] - If an investment is deemed to be other-than-temporarily impaired, the adjustment is recorded in "Other income, net"[169] - The company does not engage in trading market risk sensitive instruments and uses interest rate swaps to manage exposure[167] - Management will continue to evaluate the use of interest rate swaps under certain operating and market conditions[168] - The company has a policy to invest client funds in short-term investments, such as corporate and municipal bonds[169] Operational Performance - The company expects continued softness in demand for nonrecurring project-based services due to the current economic and geopolitical environment[88] - Days sales outstanding (DSO) improved to 94 days at September 30, 2025, compared to 97 days at the same date in 2024[143] - The company was in compliance with financial covenants under the 2024 Credit Facilities as of September 30, 2025[150]

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Core Insights - CBIZ reported quarterly earnings of $1.01 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and up from $0.84 per share a year ago, representing an earnings surprise of +7.45% [1] - The company posted revenues of $693.82 million for the quarter ended September 2025, which missed the Zacks Consensus Estimate by 2.83%, compared to year-ago revenues of $438.88 million [2] - CBIZ has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once in the same period [2] Earnings Outlook - The sustainability of CBIZ's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.55 on revenues of $565 million, and for the current fiscal year, it is $3.61 on revenues of $2.8 billion [7] Industry Context - The Consulting Services industry, to which CBIZ belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] - The performance of CBIZ's stock may also be influenced by the overall outlook for the industry [8] Estimate Revisions - Prior to the earnings release, the estimate revisions trend for CBIZ was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which investors can track [5]