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CBIZ: CBIZ Delivers Strong Profitability and Cash Flow Despite Tempered Top-Line Growth

CBIZ reported revenue of $543 million for the fourth quarter, up 18% year-over-year, driven by the acquisition. For the full year, revenue grew 52% to $2.3 billion, with approximately 2% organic growth. Adjusted EBITDA margin expanded 530 basis points, driven by synergies, lower incentive compensation expense, and scale benefits. The company reported an adjusted EBITDA loss of $29 million for the fourth quarter and $447 million for the full year. Actual EPS came out at '-0.7' relative to estimates at '-0.66'.

CBZ

USD 31.8

16.57%

A-Score: 3.8/10

Publication date: February 26, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • 2025 Organic Revenue Growth: Delivered 2% organic revenue growth amid soft market conditions and productivity losses.
  • Full-Year Adjusted EBITDA: $447 million loss for 2025, but EBITDA margin expanded by 530 bps due to synergies and lower incentive costs.
  • 2026 Revenue Guidance: Projected $2.8B–$2.9B (2–5% growth) with mid-single-digit pricing increases and $450M–$460M adjusted EBITDA target.
  • AI and Automation Investment: Positioned AI as a key growth driver, enhancing workflows while maintaining the "trusted adviser" client relationship model.
  • Share Repurchase Program: $160 million spent in 2025 repurchasing 2.4 million shares, with $5 million remaining in authorization for future buybacks.

Financial Performance and Guidance

The company's financial performance was characterized by strong recurring essential revenue and high client retention. Operating expense declined as a percentage of revenue, reflecting lower incentive compensation tied to top-line performance and the acceleration of synergies. For 2026, CBIZ expects year-over-year growth in revenue, profitability, and free cash flow, with revenue expected to be between $2.8 billion to $2.9 billion, representing 2% to 5% year-over-year growth. Analysts estimate next year's revenue growth at 4.1%.

Valuation and Growth Prospects

CBIZ's current valuation metrics indicate a P/S Ratio of 0.63 and an EV/EBITDA of 3.57. With a ROE of 6.21% and ROIC of 4.88%, the company demonstrates a reasonable return on equity and invested capital. As the company focuses on reigniting its growth engine and leveraging its scale, the expected mid-single-digit rate increases for 2026 and the potential for expanding client relationships and new logos could drive future growth.

Operational Highlights and Strategic Priorities

CBIZ is focused on attracting and retaining top talent, elevating its national brand, utilizing industry specialization, and delivering value through its enhanced breadth and depth of service offerings. The company is also investing in automation, including artificial intelligence, to drive efficiency and growth. As Jerry Grisko noted, "the core role of the trusted adviser remains indispensable, and AI will increasingly automate routine manual tasks and reshape workflows across our service offerings."

Outlook and Conclusion

With a strong foundation in place, CBIZ is poised for growth in 2026. The company's guidance suggests a return to mid-single-digit rate increases, and its focus on expanding client relationships and new logos could drive future growth. As the company continues to leverage its scale and invest in talent and technology, it is well-positioned to deliver long-term value to shareholders.

CBIZ's A-Score