We delivered year-over-year growth in revenue, profitability, and free cash flow while returning value to shareholders through highly accretive share repurchases. Our organic growth improved throughout the quarter and is up sequentially compared to the fourth quarter. We remain confident that we will exit the year growing at our mid-single-digit organic growth target rate and be in a position to return to our long-term growth algorithm. In the fourth quarter of 2025, organic revenue growth was flat as we completed a year of significant transformation and integration.

Combined with a more favorable market backdrop, organic revenue growth improved as we progressed through the first quarter. We estimate that these temporary factors reduced reported organic revenue growth by approximately 200 basis points in the first quarter. Within financial services, our lateral hiring initiative is identifying and advancing high impact, high producing MDs with several new hires recently completed and a robust pipeline of senior candidates who are drawn to CBIZ. This structure was designed to lead with insights, anticipate client needs, and deliver coordinated, tailored solutions that drive stronger retention, accelerated growth, and reinforce our value-based pricing.

As we continue to strengthen our industry practices, we are seeing increased new client pipeline activity across several key verticals, including consumer and industrial products, capital markets, alternative investments, and construction. With our highly recurring revenue base and strong client retention, our most immediate growth opportunity is expanding relationships with existing clients. We are systematically increasing the number of clients using multiple services, and we expect these efforts to contribute to organic growth over time. Taken together, we believe strong execution against these four priorities positions us to drive attractive levels of growth in 2026 and beyond.

What went well
  • First-quarter 2026 consolidated revenue increased 1.3% year-over-year to $849 million with organic revenue growth of about 1%, improving sequentially from flat organic growth in the fourth quarter of 2025.
  • Adjusted EBITDA rose $3 million year-over-year to $244 million (margin up about 10 basis points) and adjusted diluted EPS increased 7% to $2.50 from $2.33 a year earlier.
  • Free cash flow improved $64 million year-over-year (aided by $53 million from the final purchase-price adjustment), funding roughly $63 million of share repurchases through April, and net leverage fell to about 3.4x from 3.9x a year earlier.
  • The company completed its first busy season as an integrated firm, advanced its agentic-AI rollout (with an AI-based data-extraction workflow producing about 20% efficiency in one test service) and remained on track to lift offshore hours from about 6% in 2025 toward 10% in 2026.
  • Management raised its 2026 adjusted EPS outlook to $4.00-$4.10 (from $3.75-$3.85) on accretive buybacks and a lower share count, while reaffirming revenue, adjusted EBITDA and free cash flow targets, and pointed to strong advisory and capital-markets pipeline momentum.
What went wrong
  • Organic revenue growth was held to about 1% as transitory client attrition tied to prior risk/profitability-driven exits and residual integration-related productivity impacts reduced reported organic growth by roughly 200 basis points, with some tax revenue shifting into the back half of the year.
  • Benefits & Insurance revenue fell about 4% year-over-year to $108 million, hurt by tough comparisons on project work, lower contingent commissions from 2025 client attrition, and the unexpected February departure of a single producer and his team.
  • B&I adjusted EBITDA was pressured by the flow-through of the lower non-recurring revenue and by planned incremental marketing investment.
  • Management cautioned that the first-quarter free cash flow improvement was largely driven by the one-time $53 million purchase-price-adjustment benefit rather than underlying conversion.

More on CBIZ, Inc.

Reported 2026-04-29 · figures from the CBIZ, Inc. Q1 2026 earnings call.

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