10-K · August 4, 2026
CBIZ’s 2025 results show a substantial acquisition-led inflection: revenue rose 52.1% to $2.758 billion, operating income rose to $234.0 million, and operating cash flow reached $192.5 million as the Marcum acquisition…
Earnings analysis · 10-Q
CBZ earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
CBIZ posted essentially flat Q2 revenue of $682.206 million, but profitability deteriorated materially: diluted EPS fell to $0.31 from $0.66 and reported operating margin fell to 5.0% from 8.8%. Financial Services was…
Read full summary
CBIZ posted essentially flat Q2 revenue of $682.206 million, but profitability deteriorated materially: diluted EPS fell to $0.31 from $0.66 and reported operating margin fell to 5.0% from 8.8%. Financial Services was modestly lower and Benefits and Insurance was flat in the quarter, while first-half EPS growth to $2.83 was driven largely by a $57.955 million acquisition-related gain rather than operating improvement. Cash conversion improved sharply, but the company retains $1.474 billion of debt, has identified two material control weaknesses, and faces merger-related execution risk following the $55.00-per-share cash agreement.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.31
What stood out
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Quarterly revenue slipped; first half modestly grew
Q2 revenue was $682.206 million, down $1.290 million, or 0.2%, from $683.496 million. First-half revenue nevertheless increased $9.275 million, or 0.6%, to $1.531 billion.
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Financial Services demand mixed
Financial Services Q2 revenue declined 0.2% to $580.324 million, as an $8.0 million decline in traditional accounting and tax services and a $1.4 million decline in project advisory outweighed $3.5 million growth in government healthcare compliance consulting and $2.4 million in technology services.
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Operating cash flow materially improved
Operating cash flow improved to $122.227 million in the first six months of 2026 from $24.880 million a year earlier. After $11.700 million of capital expenditures, implied free cash flow was $110.527 million, equal to 7.2% of first-half revenue.
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Lower rates reduced interest expense
Interest expense fell $3.532 million, or 12.7%, year over year in Q2 to $24.335 million, reflecting a lower $1.505 billion average debt balance and 6.01% average effective rate, versus $1.542 billion and 6.75%.
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First-half EPS increase was gain-assisted
First-half net income rose to $171.391 million, or $2.83 per diluted share, from $164.715 million, or $2.58. The increase was substantially aided by a $57.955 million acquisition-related gain, including a $57.2 million working-capital adjustment.
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Cash merger agreement sets $55.00 consideration
The company entered a merger agreement on July 28, 2026 under which holders would receive $55.00 per CBIZ share in cash, subject to closing conditions.
What to watch
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Sharp quarterly margin and earnings contraction
Q2 reported operating income declined 43.5% to $34.072 million from $60.272 million, and operating margin contracted to 5.0% from 8.8%. Excluding deferred-compensation effects, adjusted operating margin declined to 7.8% from 10.7%.
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Benefits segment revenue and margin weakened
Benefits and Insurance Services first-half revenue fell $4.774 million, or 2.2%, to $210.131 million; its gross margin fell to 18.4% from 21.2%. Property and casualty services declined $3.4 million, human-capital services $1.2 million, and retirement/other services $1.8 million.
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New merger execution and disruption risks
The new merger risk factors state the July 28, 2026 proposed transaction may not close, could disrupt employee and customer relationships, and may create litigation or transaction-cost exposure. Shareholders would receive $55.00 per share in cash if completed, but the filing provides no closing date or assurance that conditions will be met.
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Leverage and floating-rate exposure remain high
At June 30, 2026, debt under the 2024 Credit Facilities was $1.474 billion. Of this, $973.5 million was exposed to floating rates; a 100-basis-point rate change would change annual interest expense by approximately $9.7 million.
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Material weaknesses and ESPP remediation
Management identified material weaknesses in ESPP administration and goodwill reassignment controls, and disclosure controls were not effective as of June 30, 2026. The ESPP issue involved up to 481,049 excess shares delivered from October 16, 2023 through April 15, 2026.
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Working-capital use and demand visibility pressure
Working capital consumed $136.9 million in the first half, while trailing-12-month DSO increased to 89 days at June 30, 2026 from 71 days at December 31, 2025. Management says macro uncertainty could continue to soften demand for project-based services.
Management's outlook
No explicit fiscal 2026 revenue or EPS guidance was provided in the 10-Q. Management expects economic and geopolitical uncertainty to continue to soften demand for nonrecurring project-based services and limit forecasting visibility for the remainder of 2026; it believes operating cash flow and credit-facility availability will meet cash requirements for the remainder of 2026 and beyond.
Earlier filings 4
10-Q · April 30, 2026
CBIZ, Inc. reported Q1 2026 results with revenue rising to $848.6 million, a 1.3% increase from $838.0 million in Q1 2025. The company achieved an EPS of $2.63, significantly higher than $1.91 reported a year ago,…
10-K · February 26, 2026
CBIZ reports strong multi-year top-line growth to $2,757,991,000 in 2025 (from $1,813,472,000 in 2024 and $1,591,194,000 in 2023), driven primarily by Financial Services which generated $2,301,462,000 (83.4% of revenue)…
10-Q · October 30, 2025
CBIZ reported quarterly revenue of $693,818,000 (Q3 2025), up $254,934,000 (+58.1%) versus Q3 2024, driven by the Marcum acquisition, while diluted EPS fell to $0.48 from $0.70 a year ago. Operating income improved to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.