CBIZ(US:CBZ)2025-10-29 20:18Financial Performance - For Q3 2025, CBIZ reported revenue of $693.8 million, an increase of $254.9 million or 58.1% compared to Q3 2024[5] - Net income for Q3 2025 was $30.1 million, or $0.48 per diluted share, down 14.1% and 31.4% respectively from the previous year[7] - Adjusted net income for Q3 2025 was $63.5 million, up from $46.9 million in Q3 2024, with adjusted earnings per diluted share increasing by 8.5% to $1.01[6] - For the nine months ended September 30, 2025, total revenue reached $2,215.3 million, a 63.7% increase from $1,353.2 million in the same period of 2024[7] - Adjusted EBITDA for the nine months ended September 30, 2025, was $475.6 million, up 92.9% from $246.5 million in the prior year[10] - Revenue for the three months ended September 30, 2025, was $693.8 million, a 58.0% increase from $438.9 million in 2024[24] - Operating income for the same period was $58.9 million, representing an operating margin of 8.5%, down from 11.3% in 2024[24] - Net income for the nine months ended September 30, 2025, was $194.9 million, an increase of 47.8% from $131.8 million in 2024[29] - Adjusted diluted EPS for the nine months ended September 30, 2025, was $4.27, up from $3.15 in 2024[29] - For the nine months ended September 30, 2025, the consolidated net income was $194.9 million, resulting in an EPS of $3.06, compared to a net income of $131.8 million and an EPS of $2.62 for the same period in 2024, representing a 47.7% increase in net income[47] Guidance and Projections - The company expects total revenue for 2025 to be in the range of $2.8 billion to $2.95 billion[14] - GAAP fully diluted earnings per share for 2025 are projected to be between $1.97 and $2.02[14] - Adjusted fully diluted earnings per share are anticipated to be in the range of $3.60 to $3.65 for 2025[14] - The company expects full-year 2025 GAAP net income guidance to be between $127.9 million and $131.1 million, translating to an EPS range of $1.97 to $2.02[49] - Adjusted net income guidance for full-year 2025 is projected to be between $234.5 million and $237.7 million, with an adjusted EPS range of $3.60 to $3.65[49] Operational Highlights - The company is experiencing strong validation of the Marcum acquisition, with better than expected synergies contributing to growth[5] - CBIZ has over 10,000 team members across more than 160 locations in 22 major markets nationwide[12] - The Financial Services segment generated $578.5 million in revenue for Q3 2025, compared to $322.3 million in 2024, reflecting a 79.5% increase[34] - Operating income for the nine-month period was $319.2 million, with an operating margin of 14.4%, compared to 13.4% in 2024[29] Cash Flow and Balance Sheet - Net cash provided by operating activities decreased to $48,846 from $68,168, a decline of 28.4% year-over-year[37] - Total assets increased to $4,545,144 as of September 30, 2025, up from $4,470,883 at the end of 2024, reflecting a growth of 1.7%[39] - Accounts receivable, net, rose to $719,554, compared to $534,858 at the end of 2024, indicating a significant increase of 34.5%[39] - Total liabilities decreased slightly to $2,673,345 from $2,690,900, a reduction of 0.7%[39] - Cash, cash equivalents, and restricted cash at the end of the period totaled $143,870, up from $115,183 at the end of 2024, an increase of 24.9%[37] - Days sales outstanding (DSO) increased to 94 days as of September 30, 2025, compared to 73 days in the previous year, indicating a slower collection period[39] Costs and Expenses - Integration costs related to acquisitions for the nine months ended September 30, 2025, amounted to $63.5 million, which includes $17.8 million for the current period[47] - The company recorded a litigation gain of $12.5 million during the nine months ended September 30, 2025, which positively impacted other income[48] - Amortization of acquired intangible assets for the nine months ended September 30, 2025, was $56.2 million, contributing to the overall adjusted net income[47] - Interest expense for the nine months ended September 30, 2025, was $81.0 million, reflecting the company's financing costs[47] Strategic Focus - The company is focusing on market expansion and integration of the Marcum business, which includes various consulting and technology costs associated with the acquisition[50]