I'm pleased to have this opportunity to provide you with an update on our performance, and our outlook on the business moving forward. This Saturday marks the one-year anniversary of the Marcum acquisition, and we couldn't be more pleased with first, the quality of the Marcum organization and the complementary fit between our two great companies. We knew going into the acquisition, that Marcum was an outstanding firm. We were pleased to see that our recurring businesses held steady during the quarter.

Encouragingly, as we look to finish off the year, the combination of our broader service offerings and improving market conditions should lead to increased conversion of our late-stage pipeline opportunities. We have a clear line of sight to achieve our 2025 revenue outlook, and the entire leadership team and all our client-facing leaders are laser-focused on capitalizing on these opportunities and trends. With that, let me hand it over to Brad to cover further details on our quarter and our financial outlook. Revenue and cash flow were in line with our expectations, and earnings exceeded.

The benefits of greater scale, and the resiliency of our business model once again are reflected in our operating and financial performance and leave us well-positioned for sustainable long-term growth. On a consolidated basis, third-quarter revenue was $694 million and year-to-date revenue stands at $2.2 billion, a 58% and 64% increase respectively, driven by the acquisition. For the quarter, adjusted EBITDA increased to $120 million and now stands at $476 million year-to-date. Year-to-date adjusted EBITDA margin increased approximately 325 basis points versus last year, with lower incentive compensation expense representing approximately 250 of the 325 basis point improvement.

What went well
  • Third-quarter revenue rose about 58% year-over-year to $694 million (year-to-date $2.2 billion, up 64%), and earnings exceeded management's expectations while revenue and cash flow were in line.
  • Adjusted EBITDA was $120 million in the quarter and $476 million year-to-date, with year-to-date adjusted EBITDA margin up roughly 325 basis points to 21.5%; adjusted diluted EPS was $1.01 for the quarter and $4.27 year-to-date.
  • Core accounting and tax delivered low single-digit organic growth and the advisory business captured improved market conditions relative to the first half, while the company realized strong mid-single-digit pricing increases.
  • Management raised its Marcum synergy goal to $50 million or more (from prior estimates), with roughly $35 million expected in 2025, reflecting integration that was on or ahead of schedule at the one-year anniversary of the deal.
  • Benefits & Insurance grew year-to-date revenue 2.7% and adjusted EBITDA 6.7%, and the company repurchased about 800,000 shares for $56 million (bringing year-to-date buybacks to $128 million / 1.8 million shares).
What went wrong
  • The SEC-related business remained a headwind on the Financial Services segment, and management reiterated it had line of sight only to the low end of its $2.8-$2.95 billion revenue guidance.
  • The 2025 integration cost estimate was increased by $14 million to $89 million, driven primarily by additional severance from streamlining combined staffing.
  • Third-quarter interest expense was $28 million, about $23 million higher than last year, due to debt incurred to fund the cash portion of the acquisition.
  • Because share repurchases consumed capital in 2025, the timeline to reach the 2.0x-2.5x net leverage target slipped from a 2026 exit to potentially 2027, and leverage was largely unchanged from the second quarter at about $1.6 billion of net debt.

More on CBIZ, Inc.

Reported 2025-10-29 · figures from the CBIZ, Inc. Q3 2025 earnings call.

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