New this quarter, we've posted an earnings presentation that tracks to our prepared remarks. We expect these investments to further strengthen our value proposition to clients, differentiate CBIZ in the market, and accelerate our growth. These steps were necessary to unlock the opportunities associated with the acquisition and position CBIZ for sustainable long-term growth. In 2025, we delivered approximately 2% organic revenue growth, with solid year-over-year improvement in bottom-line profitability.

We continue to generate healthy cash flow from operations to support our business and to invest in attractive opportunities. In 2026, we plan to return to full incentive program funding tied to delivering on our top line growth objectives. We will also increase our producer count within our benefits and insurance group by approximately 15% this year. We have a pipeline of senior professionals who want to join the unique platform that we have now built.

Our history tells us we have a strong track record of high returns on our investments in talent. We have scaled our brand and marketing approach, and our second growth priority is to continue to raise our brand visibility and to ramp up targeted marketing initiatives. We've organized into 12 industry verticals, which allows us to lead with insights, anticipate client needs, and deliver coordinated, tailored solutions, supporting stronger retention and more consistent growth. With our highly recurring, essential revenue base and strong client retention, our most immediate growth opportunity is expanding relationships with our existing clients.

What went well
  • Full-year 2025 adjusted EPS of $3.61 came in line with the company's original guidance, delivering the year-one accretion committed to when the Marcum transaction was announced.
  • Full-year adjusted EBITDA was $447 million with adjusted EBITDA margin up approximately 530 basis points year-over-year (about 270 basis points from lower incentive compensation), and gross margin expanded 250 basis points on roughly $35 million of realized synergies - double initial expectations.
  • Full-year free cash flow increased $65 million to $176 million, and the company repurchased about 2.4 million shares for $160 million during 2025 while the Board reauthorized a repurchase program of up to 5 million shares.
  • Financial Services full-year revenue reached $2.3 billion (up about 70%) with adjusted EBITDA margin up 600 basis points, and the Marcum integration was described as largely complete with client and managing-director retention in line with expectations.
  • The company delivered approximately 2% organic revenue growth for the year despite soft market conditions and set 2026 guidance for revenue of $2.8-$2.9 billion, adjusted EBITDA of $450-$460 million, adjusted EPS of $3.75-$3.85 and free cash flow of $270-$290 million.
What went wrong
  • Fourth-quarter results fell short on utilization: management's assumption that clients would start the busy season early did not materialize, as clients preferred to pursue the work in 2026.
  • Reflecting Q4 seasonality and the utilization shortfall, the fourth quarter posted an adjusted EBITDA loss of $29 million and an adjusted diluted EPS loss of $0.70.
  • Full-year organic growth of about 2% was below the company's initial expectations, hurt by less favorable market conditions in the first half and lower demand in the SEC capital markets practice.
  • Free cash flow conversion from adjusted EBITDA was tempered at roughly 40% due to elevated integration-related spending, and 2026 will still carry an estimated $70-$80 million of integration costs.

More on CBIZ, Inc.

Reported 2026-02-25 · figures from the CBIZ, Inc. Q4 2025 earnings call.

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