CBZ

CBIZ just wrapped Q3 2026 with a clean headline. The advisory group reported US$702.24 million in revenue and US$0.79 in basic earnings per share, yet the stock barely flinched, ticking up only 0.2% to US$54.89 on the first full trading day after the report. That muted move comes after a powerful 90 day run and sits at the edge of a sentiment shift. Short term traders appear reluctant to chase further, while the earnings release emphasizes one clear story: profit momentum. Long term holders are likely to study that point far more closely than today's small price reaction. Impressed by CBIZ's profit momentum but wary that the recent 90 day run may have stretched the risk reward too far for your taste? Compare this setup against a broader basket of resilient companies in our 31 resilient stocks with low risk scores - Revenue (Q3 2026 vs. Q3 2025): US$702.24 million vs. US$693.82 million (steady top line with modest year on year uplift) - Net Income, Excl. Extra Items (Q3 2026 vs. Q3 2025): US$47.24 million vs. US$30.15 million (solid year on year profit improvement) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.79 vs. US$0.48 (earnings per share higher compared with the prior comparable quarter) - Trailing Net Profit Margin (Last 12 Months vs. Prior 12 Months): 5.0% vs. 3.9% (profitability ratio higher on a trailing basis) Skip the rosy earnings growth. Ask Charlie what CBIZ's debt risk really looks like. The bullish view argues that CBIZ can steadily tilt toward richer, advice heavy work. The firm has laid out that ambition clearly. "Focus on higher growth, higher margin advisory services, including AI supported data and decision support work, alongside mostly fixed fee and commission based revenue, is expected to shift the mix toward higher contribution businesses and can support net margin and earnings per share." Q3 results show profit moving faster than sales, with net income and EPS growing more quickly than revenue and the trailing net margin at 5.0% versus 3.9%. That pattern supports the view that mix and efficiency work are starting to matter, even if the journey to much higher margins remains lengthy. That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for. Bearish investors worry that CBIZ's expansion might bring more friction than benefit. "Although the Marcum acquisition has created a much larger platform with year to date revenue of US$2.2b and a broader mid market client base, the integration plan still carries US$89 million of 2025 integration costs and additional 2026 costs that could limit the flow through of revenue into earnings if execution slips." Q3 shows profits outpacing revenue and a higher trailing net margin, which runs counter to fears of immediate earnings drag. However, there is no concrete update here on actual integration spending, realized synergy dollars or reduced real estate expense. As a result, the concern about heavy 2025 to 2026 costs and the timing of savings remains largely untested by this release. CBIZ just showed how a strong profit story can coincide with a modest share price reaction. The real opportunity is spotting stocks that could be undervalued before the market corrects them. - Company 1 - 33% below our estimate - use record demand for power systems to support expanded high horsepower capacity for data center projects. - Company 2 - 22% below our estimate - tie an AI-focused software ecosystem to a cloud backbone so enterprise workflows and developer tools become more deeply embedded. - Company 3 - 30% below our estimate - sell integrated data center building blocks that large AI customers prefer over piecing together separate servers, storage, software and services. Those are three of them. See all 34 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CBZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

CBIZ, Inc. (NYSE:CBZ) reported third-quarter 2026 revenue of $702 million, representing a 1.2% increase from the previous year but falling below analysts' expectations of $727.72 million. The US professional services company posted adjusted earnings per share of $1.21, compared with the consensus estimate of $1.28. Despite the shortfall against forecasts, CBIZ reported higher net income and adjusted EBITDA for the quarter. The company's shares were unchanged in after-hours trading following the announcement. CBIZ generated revenue of $702 million during the third quarter, compared with $693.8 million in the corresponding period of 2025. Revenue from the Financial Services division increased 1.2% year on year to $597.8 million. The Benefits and Insurance Services division recorded revenue of $104.4 million, an increase of 1.0% from the previous year. Both divisions contributed to the overall increase in quarterly revenue, although the company's consolidated performance remained below market expectations. CBIZ reported third-quarter net income of $47 million, representing an increase of 56.7% from the corresponding period last year. Earnings per share calculated under generally accepted accounting principles (GAAP) increased to $0.79 from $0.48 a year earlier. Adjusted earnings per share reached $1.21, below the $1.28 expected by analysts. Adjusted EBITDA increased 6.3% year on year to $132 million. The results indicate that CBIZ recorded higher reported profitability despite relatively limited revenue growth during the quarter. The difference between GAAP and adjusted earnings reflects the use of separate accounting measures, with adjusted figures excluding certain items under the company's reporting methodology. For the nine months ended 30 September 2026, CBIZ reported total revenue of $2.23 billion, an increase of 0.8% compared with the same period in 2025. Financial Services revenue increased 1.1% to $1.92 billion during the period. Net income rose 12.2% to $219 million, while adjusted diluted earnings per share increased 5.9% to $4.64. The nine-month results reflected higher earnings alongside a more moderate increase in consolidated revenue. CBIZ also reported improvements in cash generation. Operating cash flow increased by $98 million compared with the corresponding nine-month period last year, while free cash flow rose by $91 million. These changes indicate higher cash generation during the period, although the company did not provide additional details in the supplied results regarding the factors contributing to the increases. CBIZ did not issue financial guidance for the full year 2026 or hold an earnings conference call following its third-quarter results. The decision was linked to the company's pending acquisition by Grant Thornton, which is backed by private equity firm New Mountain Capital. The proposed all-cash transaction was announced on 29 July 2026 and values CBIZ at approximately $5.0 billion. Under the agreement, CBIZ shareholders are expected to receive $55.00 in cash for each share they hold. The acquisition would result in CBIZ becoming a privately held company following completion. The proposed acquisition remains subject to shareholder approval, regulatory clearances and other customary closing conditions. The companies expect the transaction to be completed during the fourth quarter of 2026. If the acquisition proceeds as planned, CBIZ common shares will be delisted from the New York Stock Exchange. The company will subsequently operate as a private business under the ownership arrangements established by the transaction. Until the deal closes, CBIZ remains a publicly traded company, and completion is dependent on the outstanding approvals and conditions being satisfied. CBIZ's third-quarter announcement showed revenue and adjusted earnings per share below analysts' forecasts, alongside increases in net income, GAAP earnings per share and adjusted EBITDA. For the first nine months of 2026, the company also reported higher profitability and improvements in operating and free cash flow. However, the pending $5.0 billion acquisition by Grant Thornton remains a significant consideration for shareholders. With no updated full-year guidance or earnings conference call accompanying the results, attention is expected to remain on the transaction's approval process and anticipated completion during the fourth quarter. The proposed acquisition would end CBIZ's listing on the New York Stock Exchange, subject to the transaction closing under the agreed terms. CBIZ stock price

Financial services provider CBIZ (NYSE:CBZ) fell short of the market's revenue expectations in Q3 2026 as sales only rose 1.2% year on year to $702.2 million. Its non-GAAP profit of $1.21 per share was 4% below analysts' consensus estimates. Is now the time to buy CBIZ? Find out in our full research report. - Revenue: $702.2 million vs analyst estimates of $722 million (1.2% year-on-year growth, 2.7% miss) - Adjusted EPS: $1.21 vs analyst expectations of $1.26 (4% miss) - Adjusted EBITDA: $131.9 million vs analyst estimates of $138.8 million (18.8% margin, 5% miss) - Operating Margin: 12.8%, up from 11.3% in the same quarter last year - Market Capitalization: $2.89 billion With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE:CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $2.78 billion in revenue over the past 12 months, CBIZ is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it's working from a smaller revenue base. As you can see below, CBIZ's sales grew at an incredible 20.9% compounded annual growth rate over the last five years. This is a great starting point for our analysis because it shows CBIZ's demand was higher than many business services companies. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. CBIZ's annualized revenue growth of 28.5% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. This quarter, CBIZ's revenue grew by 1.2% year on year to $702.2 million, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and implies the market sees some success for its newer products and services. WHILE YOU'RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You've probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. CBIZ has managed its cost base well over the last five years. It demonstrated solid profitability for a business services business, producing an average adjusted operating margin of 12.1%. Looking at the trend in its profitability, CBIZ's adjusted operating margin decreased by 2.2 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q3, CBIZ generated an adjusted operating margin profit margin of 12.8%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. CBIZ's EPS grew at an astounding 16.5% compounded annual growth rate over the last five years. However, this performance was lower than its 20.9% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of CBIZ's earnings can give us a better understanding of its performance. As we mentioned earlier, CBIZ's adjusted operating margin was flat this quarter but declined by 2.2 percentage points over the last five years. Its share count also grew by 12.7%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For CBIZ, its two-year annual EPS growth of 22.3% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q3, CBIZ reported adjusted EPS of $1.21, up from $1.01 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects CBIZ's full-year EPS to grow 8.8% from $3.92 to $4.27. We struggled to find many positives in these results. Its revenue missed and its EPS fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock remained flat at $54.85 immediately following the results. Is CBIZ an attractive investment opportunity at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.

CBIZ (CBZ) came out with quarterly earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.28 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.47%. A quarter ago, it was expected that this provider of outsourced business services would post earnings of $0.73 per share when it actually produced earnings of $0.91, delivering a surprise of +24.66%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. CBIZ, which belongs to the Zacks Consulting Services industry, posted revenues of $702.24 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 3.5%. This compares to year-ago revenues of $693.82 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CBIZ shares have added about 8.6% since the beginning of the year versus the S&P 500's gain of 11.9%. While CBIZ has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CBIZ was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.49 on $569.39 million in revenues for the coming quarter and $4.17 on $2.84 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consulting Services is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Hackett Group (HCKT), has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3. This consulting company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +2.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Hackett Group's revenues are expected to be $68.75 million, down 4.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CBIZ, Inc. (CBZ) : Free Stock Analysis Report The Hackett Group, Inc. (HCKT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Third-Quarter Financial Highlights: - Total revenue of $702M, up 1.2%; Financial Services revenue up 1.2% - Net income of $47M, up 56.7%; GAAP EPS of $0.79, up 64.6% - Adjusted EBITDA of $132M, up 6.3%; Adjusted diluted EPS of $1.21, up 14.2% Nine Months Ended September 30, 2026 Financial Highlights: - Total revenue of $2,233M, up 0.8%; Financial Services revenue up 1.1% - Net income of $219M, up 12.2%; GAAP EPS of $3.62, up 18.3% - Adjusted EBITDA of $479M, down 1.2%; Adjusted diluted EPS of $4.64, up 5.9% - Operating cash flow up $98M; Free cash flow up $91M CLEVELAND, Oct. 19, 2026 (GLOBE NEWSWIRE) -- CBIZ, Inc., (NYSE: CBZ) ("CBIZ" or the "Company"), a leading national professional services advisor, today announced results for the third quarter and nine months ended September 30, 2026. Proposed Transaction with Grant Thornton and New Mountain As previously disclosed, CBIZ and an affiliate of Grant Thornton in the U.S. ("Grant Thornton"), backed by New Mountain Capital, announced on July 29, 2026 that they entered into a definitive merger agreement pursuant to which Grant Thornton will acquire CBIZ in an all-cash transaction with an enterprise value of $5.0 billion, or $55.00 per share (the "proposed transaction"). The proposed transaction is expected to close in the fourth quarter of 2026, subject to approval by CBIZ shareholders, receipt of required regulatory approvals, and satisfaction of other customary closing conditions. Following the completion of the proposed transaction, CBIZ's common stock will no longer be listed on the New York Stock Exchange, and CBIZ will become a private company. Full Year Financial Outlook and Conference Call Information Due to the proposed transaction and as previously disclosed, the Company will not be providing financial guidance for the full year 2026 or hosting a conference call to discuss third quarter results. About CBIZ CBIZ, Inc. (NYSE: CBZ) is a leading professional services advisor to middle market businesses nationwide. With industry knowledge and expertise in accounting, tax, advisory, benefits, insurance, and technology, CBIZ delivers actionable insights to help clients anticipate what is next and discover new ways to accelerate growth. CBIZ has more than 9,500 team members across 23 major markets coast to coast. For more information, visit www.cbiz.com. Forward-Looking Statements This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact included in this release, including, without limitation, statements about the proposed transaction, our financial position, business strategy, plans and objectives for future performance, are forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are commonly identified by the use of such terms and phrases as "will," "could," "can," "may," "strive," "hope," "intend," "believe," "estimate," "continue," "plan," "expect," "project," "anticipate," "outlook," "foreseeable future," "seek" and words or phrases of similar import in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated services, sales efforts, expenses, and financial results. From time to time, we may also provide oral or written forward-looking statements in other materials we release to the public. Any or all of our forward-looking statements in this release and in any other public statements that we make are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to: that one or more closing conditions to the proposed transaction, including certain regulatory approvals, may not be satisfied or waived, on a timely basis or otherwise, or that the required approval by the shareholders of CBIZ may not be obtained; the risk that the proposed transaction may not be completed on the terms or in the time frame expected by CBIZ and Grant Thornton, or at all; unexpected costs, charges or expenses resulting from the proposed transaction; uncertainty of the expected financial performance and results of operations of the combined company following completion of the proposed transaction; failure to realize the anticipated benefits of the proposed transaction, including as a result of delay in completing the proposed transaction or integrating the businesses of CBIZ and Grant Thornton, on the expected timeframe or at all; the ability of the combined company to implement its business strategy; difficulties and delays in the combined company achieving revenue and cost synergies; inability of the combined company to retain and hire key personnel; the occurrence of any event that could give rise to termination of the proposed transaction; the risk that shareholder litigation in connection with the proposed transaction or other litigation, settlements or investigations may affect the timing or completion of the proposed transaction or result in significant costs of defense, indemnification and liability; evolving legal, regulatory and tax regimes; changes in general economic, competitive, technological and/or industry-specific conditions affecting the businesses and industries in which CBIZ and Grant Thornton operate; actions by third parties, including government agencies and ratings agencies, relating to the proposed transaction; risks that any debt financing anticipated in connection with the proposed transaction is not obtained or that such financing cannot be obtained on the anticipated timing or terms or unexpected costs or expenses in connection therewith; risks related to the disruption of management time from ongoing business operations due to the pendency of the proposed transaction, or other effects of the pendency of the proposed transaction on the relationship of any of the parties to the transaction with their employees, customers, partners, or other counterparties; risks that any announcements relating to the proposed transaction could have adverse effects on the market price of CBIZ's common stock, credit ratings, or operating results, and may have an adverse effect on the ability of CBIZ to retain and hire key personnel, retain customers, and maintain relationships with business partners, suppliers and customers; the risk that the market price of CBIZ's common stock may decline if the proposed transaction is not completed; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures, including ability to remediate our material weaknesses in our internal control over financial reporting; payments on accounts receivable may be slower than expected, or amounts due on receivables or notes may not be fully collectible; our business could be adversely affected if the non-attest business assets we acquired, or the attest assets CBIZ CPAs P.C. acquired, from Marcum LLP ("Marcum") do not perform to our expectations or we underestimate the liabilities we have assumed; we are dependent on the services of our executive officers, and other key employees, the loss of any of whom may have a material adverse effect on our business, financial condition and results of operations; our profitability could suffer if we are not able to effectively utilize our employees, maintain operational efficiencies or manage our cost structure; restrictions imposed by independence requirements and conflict of interest rules, as well as the nature and terms of our current administrative service agreements, limit our ability to provide services to clients of the attest firms with which we have contractual relationships and the ability of such attest firms to provide attestation services to our clients; our goodwill and other intangible assets could become impaired, which could lead to material non-cash charges against earnings and a material impact on our results of operations and financial condition; certain liabilities resulting from acquisitions are estimated and could lead to a material impact on our results of operations; we may fail to realize the anticipated benefits of acquisitions, or they may prove disruptive and could result in the combined business failing to meet our expectations; claims or adverse publicity could harm our brand, reputation and ability to compete and attract and retain clients, talent and future acquisition targets; we may not be able to acquire and finance additional businesses, which could limit our ability to pursue our business strategy; we will incur transaction, integration, and restructuring costs in connection with our acquisition program; governmental regulations and interpretations are subject to changes, which could have a material adverse effect on our financial condition; uncertainty in the current economic and geopolitical environment could lead to declines in demand for certain of our services; changes in the United States healthcare environment, including new healthcare legislation, may adversely affect the revenue and margins in our healthcare benefit business; we are subject to risks relating to processing customer transactions for our payroll and other transaction processing businesses; cyberattacks or other security breaches involving our computer systems or the systems of one or more of our vendors could materially and adversely affect our business; we are subject to risk as it relates to software that we license from third parties; we are reliant on information processing systems and any failure or disruptions of these systems could have a material adverse effect on our business, financial condition and results of operations; we could be held liable for errors and omissions; the business services industry is competitive and fragmented, if we are unable to compete effectively, our business, financial condition and results of operations could be negatively impacted; failure to maintain our reputation and brand could impact our ability to attract and retain clients, employees and future acquisition targets, and may have a material adverse effect on our business, financial condition and results of operations; we are dependent on our existing client base and our ability to retain and expand our relationships with those clients; our clients may terminate our engagements with little or no notice and without penalty, which may result in unexpected declines in our revenue or unexpected costs; given our levels of share-based compensation, our tax rate may vary significantly depending on our stock price; we may be subject to the actions of activist stockholders; rapid technological changes could significantly impact our competitive position, client relationships and operating results and our ability to realize the anticipated benefits of our acquisition of the non-attest business assets and liabilities of Marcum and CBIZ CPAs P.C.'s purchase of substantially all of Marcum's attest business assets (the "Marcum Transaction"); the widespread outbreak of a communicable illness or any other public health crisis could adversely affect our business, financial condition and results of operations; we require a significant amount of cash for interest payments on our debt and to expand our business as planned; terms of our amended and restated credit agreement providing for $2.0 billion in senior secured credit facilities, consisting of a $1.4 billion term loan and $600 million revolving credit facility, could adversely affect our ability to run our business and/or reduce stockholder returns; our failure to satisfy covenants in our debt instruments could cause a default under those instruments; our increased leverage following the Marcum Transaction may adversely impact our business; we may be more sensitive to revenue fluctuations than other companies, which could result in fluctuations in the market price of our common stock; the significant number of shares issuable as the stock consideration in the Marcum Transaction may adversely impact our stock price; the future issuance of additional shares could adversely affect the price of our common stock; and there is volatility in our stock price. Such forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties. Should one or more of these risks materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, projected or implied. Consequently, no forward-looking statement can be guaranteed. Our actual future results may vary materially. All forward looking statements made in this release are made only as of the date hereof, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You are advised, however, to consult any further disclosures we make on related subjects in the current, quarterly, periodic and annual reports we file with the Securities and Exchange Commission. Also note that we provide a cautionary discussion of the risks, uncertainties and possibly inaccurate assumptions relevant to our businesses in "Item 1. Business" and "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, as amended. These are factors that we think could cause our actual results to differ materially from expected and historical results. Other factors besides those described here could also adversely affect our operating or financial performance. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), we also present Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share ("EPS"), Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow, which are non-GAAP measures. These non-GAAP measures are adjusted to exclude the impact of the Marcum Transaction, integration costs, amortization of acquired intangible assets, and other significant non-operating related gains and losses management does not consider ongoing in nature. The presentation of non-GAAP financial information is designed to supplement the Company's financial information presented in accordance with GAAP, is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision-making, and to evaluate results relative to employee compensation targets. We believe that these non-GAAP financial measures provide meaningful supplemental information to stockholders, debt holders, and other interested parties in assessing our performance. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance by excluding significant acquisition expenses, certain one-time non-recurring items, and gains and losses that management does not consider ongoing in nature. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key measures used by management in its financial and operational decision-making and (2) they are used by our stockholders and analyst community to determine the health of our business. These non-GAAP measures may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such non-GAAP measures, which may include exclusions of non-recurring items, should not be construed as an inference that the Company's future results will be unaffected by other non-recurring items. Management provides specific information regarding the GAAP amounts excluded from or included in these non-GAAP financial measures. Additionally, management provides reconciliations of these non-GAAP financial measures to their most comparable financial measures presented in accordance with GAAP. Please see the schedules captioned "GAAP Reconciliation" at the end of this release for additional information and the applicable reconciliations. Contact: Investor Relations: Chris Sikora, VP, Investor Relations & Corporate Finance, [email protected] Media: Amy McGahan, Director of Corporate & Strategic Communications, [email protected] CBIZ, Inc., Cleveland, Ohio, (216) 447-9000 CBIZ, INC. FINANCIAL HIGHLIGHTS (UNAUDITED) THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (In thousands, except percentages and per share data) | | Three Months Ended September 30, | | | 2026 | | | % | | | 2025 | | | % Revenue | | $ | 702,240 | | | 100.0 | % | | $ | 693,818 | | | 100.0 | % Operating expenses(1) | | | 588,186 | | | 83.8 | | | | 603,689 | | | 87.0 | Gross margin | | | 114,054 | | | 16.2 | | | | 90,129 | | | 13.0 | Corporate general and administrative expenses(1) | | | 23,877 | | | 3.4 | | | | 31,265 | | | 4.5 | Operating income | | | 90,177 | | | 12.8 | | | | 58,864 | | | 8.5 | Other (expense) income: | | | | | | | | Interest expense | | | (23,986 | ) | | (3.4 | ) | | | (27,960 | ) | | (4.0 | ) Gain from acquisition related adjustments, net | | | — | | | — | | | | 1,124 | | | 0.2 | Other income, net(1) (2) | | | 1,449 | | | 0.2 | | | | 8,378 | | | 1.2 | Total other expense, net | | | (22,537 | ) | | (3.2 | ) | | | (18,458 | ) | | (2.6 | ) Income before income tax expense | | | 67,640 | | | 9.6 | | | | 40,406 | | | 5.9 | Income tax expense | | | 20,404 | | | | | | 10,260 | | | Net income | | $ | 47,236 | | | 6.7 | % | | $ | 30,146 | | | 4.3 | % | | | | | | | | Diluted income per share: | | | | | | | | Diluted earnings per share | | $ | 0.79 | | | | | $ | 0.48 | | | | | | | | | | | Diluted weighted average common shares outstanding | | | 59,986 | | | | | | 62,699 | | | Other data: | | | | | | | | Adjusted EBITDA(3) | | $ | 131,852 | | | 18.8 | % | | $ | 124,005 | | | 17.9 | % Adjusted Diluted EPS(3) | | $ | 1.21 | | | | | $ | 1.06 | | | (1) | | We sponsor a Non-qualified Deferred Compensation Plan (the "deferred compensation plan"), under which a CBIZ employee's compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. The activities related to the deferred compensation plan are recorded in "Corporate and Other" for segment reporting purposes. Gains and losses resulting from the adjustments to the fair value of the invested assets in the deferred compensation plan are recorded as an increase or decrease to the "Other income (expense), net", directly offset by the same adjustments as an increase or decrease to compensation expense (recorded as "Operating expense" or "Corporate general and administrative expense") in the accompanying Unaudited Condensed Consolidated Statements of Comprehensive Income. The deferred compensation plan has no impact on "Income before income tax expense" or diluted earnings per share. | | | | Income and expenses related to the deferred compensation plan for the three months ended September 30, 2026, and 2025, are as follows (in thousands, except percentages): | | Three Months Ended September 30, Income statement line items: | | | 2026 | | | % of Revenue | | | 2025 | | % of Revenue Operating expenses | | $ | (566 | ) | | (0.1)% | | $ | 7,847 | | 1.1 | % Corporate general & administrative expenses | | | (191 | ) | | — | | | 1,076 | | 0.2 | % Other income, net | | | (757 | ) | | (0.1)% | | | 8,923 | | 1.3 | % | | | | | | | | | | | | Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended September 30, 2026, and 2025, are as follows (in thousands, except percentages): | Three Months Ended September 30, | | 2026 | | | | 2025 | | | As Reported | | | Deferred Compensation Plan | | | | Adjusted | | % of Revenue | | | As Reported | | | Deferred Compensation Plan | | | | Adjusted | | | % of Revenue Gross margin | $ | 114,054 | | $ | (566 | ) | | $ | 113,488 | | 16.2 | % | | $ | 90,129 | | $ | 7,847 | | | $ | 97,976 | | | 14.1 | % Operating income | | 90,177 | | | (757 | ) | | | 89,420 | | 12.7 | % | | | 58,864 | | | 8,923 | | | | 67,787 | | | 9.8 | % Other income (expense), net | | 1,449 | | | 757 | | | | 2,206 | | 0.3 | % | | | 8,378 | | | (8,923 | ) | | | (545 | ) | | (0.1) | % Income before income tax expense | | 67,640 | | | — | | | | 67,640 | | 9.6 | % | | | 40,406 | | | — | | | | 40,406 | | | 5.8 | % (2) | | Included in "Other income, net" for the three months ended September 30, 2026, and 2025, is income of $1.1 million and expense of $0.5 million, respectively, related to net changes in the fair value of contingent consideration related to CBIZ's prior acquisitions. | | (3) | | Refer to the schedules reconciling Adjusted Diluted EPS and Adjusted EBITDA to the most directly comparable GAAP financial measures at the end of this release, and for additional information as to the usefulness of the non-GAAP financial measures to stockholders and investors, see "Non-GAAP Financial Measures". CBIZ, INC. FINANCIAL HIGHLIGHTS (UNAUDITED) NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (In thousands, except percentages and per share data) | | Nine Months Ended September 30, | | | 2026 | | | % | | | 2025 | | | % Revenue | | $ | 2,233,025 | | | 100.0 | % | | $ | 2,215,328 | | | 100.0 | % Operating expenses(1) | | | 1,820,516 | | | 81.5 | | | | 1,809,188 | | | 81.7 | Gross margin | | | 412,509 | | | 18.5 | | | | 406,140 | | | 18.3 | Corporate general and administrative expenses(1) | | | 103,754 | | | 4.6 | | | | 86,972 | | | 3.9 | Operating income | | | 308,755 | | | 13.9 | | | | 319,168 | | | 14.4 | Other (expense) income: | | | | | | | | Interest expense | | | (72,237 | ) | | (3.2 | ) | | | (80,983 | ) | | (3.7 | ) Gain from acquisition related adjustment, net | | | 57,955 | | | 2.6 | | | | 1,124 | | | 0.1 | Other income, net(1) (2) | | | 11,382 | | | 0.5 | | | | 31,786 | | | 1.4 | Total other income (expense), net | | | (2,900 | ) | | (0.1 | ) | | | (48,073 | ) | | (2.2 | ) Income before income tax expense | | | 305,855 | | | 13.7 | | | | 271,095 | | | 12.2 | Income tax expense | | | 87,228 | | | | | | 76,234 | | | Net income | | | 218,627 | | | 9.8 | % | | | 194,861 | | | 8.8 | % | | | | | | | | Diluted earnings per share | | $ | 3.62 | | | | | $ | 3.06 | | | | | | | | | | | Diluted weighted average common shares outstanding | | | 60,333 | | | | | | 63,609 | | | Other data: | | | | | | | | Adjusted EBITDA(3) | | $ | 479,345 | | | 21.5 | % | | $ | 485,127 | | | 21.9 | % Adjusted Diluted EPS(3) | | $ | 4.64 | | | | | $ | 4.38 | | | (1) | | We sponsor a Non-qualified Deferred Compensation Plan (the "deferred compensation plan"), under which a CBIZ employee's compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. The activities related to the deferred compensation plan are recorded in "Corporate and Other" for segment reporting purposes. Gains and losses resulting from the adjustments to the fair value of the invested assets in the deferred compensation plan are recorded as an increase or decrease to the "Other income (expense), net", directly offset by the same adjustments as an increase or decrease to compensation expense (recorded as "Operating expense" or "Corporate general and administrative expense") in the accompanying Unaudited Condensed Consolidated Statements of Comprehensive Income. The deferred compensation plan has no impact on "Income before income tax expense" or diluted earnings per share. | | | | Income and expenses related to the deferred compensation plan for the nine months ended September 30, 2026, and 2025, are as follows (in thousands, except percentages): | | Nine Months Ended September 30, Income statement line items: | | | 2026 | | % of Revenue | | | 2025 | | % of Revenue Operating expense | | $ | 13,478 | | 0.6 | % | | $ | 17,132 | | 0.8 | % Corporate general and administrative expenses | | | 1,788 | | 0.1 | % | | | 2,415 | | 0.1 | % Other income, net | | | 15,266 | | 0.7 | % | | | 19,547 | | 0.9 | % | | | | | | | | | | | | Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the nine months ended September 30, 2026, and 2025, are as follows (in thousands, except percentages): | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | As Reported | | Deferred Compensation Plan | | | Adjusted | | | % of Revenue | | | As Reported | | | Deferred Compensation Plan | | | | Adjusted | | % of Revenue Gross margin | $ | 412,509 | | $ | 13,478 | | | $ | 425,987 | | | 19.1 | % | | $ | 406,140 | | $ | 17,132 | | | $ | 423,272 | | 19.1 | % Operating income | | 308,755 | | | 15,266 | | | | 324,021 | | | 14.5 | % | | | 319,168 | | | 19,547 | | | | 338,715 | | 15.3 | % Other income, net | | 11,382 | | | (15,266 | ) | | | (3,884 | ) | | (0.2) | % | | | 31,786 | | | (19,547 | ) | | | 12,239 | | 0.6 | % Income before income tax expense | | 305,855 | | | — | | | | 305,855 | | | 13.7 | % | | | 271,095 | | | — | | | | 271,095 | | 12.2 | % (2) | | Included in "Other income, net" for the nine months ended September 30, 2026, and 2025, is income of $2.6 million and expense of $2.0 million, respectively, related to net changes in the fair value of contingent consideration related to CBIZ's prior acquisitions. | | (3) | | Refer to the schedules reconciling Adjusted Diluted EPS and Adjusted EBITDA to the most directly comparable GAAP financial measures at the end of this release and for additional information as to the usefulness of the non-GAAP financial measures to stockholders and investors see "Non-GAAP Financial Measures". CBIZ, INC. FINANCIAL HIGHLIGHTS (UNAUDITED) SELECT SEGMENT DATA (In thousands) | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Revenue | | | | | | | | Financial Services(1) | | $ | 597,791 | | | $ | 590,431 | | | $ | 1,918,445 | | | $ | 1,897,036 | Benefits and Insurance Services | | | 104,449 | | | | 103,387 | | | | 314,580 | | | | 318,292 | Total Revenue | | $ | 702,240 | | | $ | 693,818 | | | $ | 2,233,025 | | | $ | 2,215,328 | | | | | | | | | Gross Margin | | | | | | | | Financial Services(1) | | $ | 109,931 | | | $ | 95,905 | | | $ | 400,003 | | | $ | 386,813 | Benefits and Insurance Services | | | 18,299 | | | | 19,305 | | | | 56,901 | | | | 64,845 | Operating expenses - unallocated(2): | | | | | | | | Other expense | | $ | (14,742) | | $ | (17,234) | | $ | (30,917) | | $ | (28,386) Deferred compensation | | | 566 | | | (7,847) | | | (13,478) | | | (17,132) Total Gross Margin | | $ | 114,054 | | | $ | 90,129 | | | $ | 412,509 | | | $ | 406,140 | As a % of Revenue | | | 16.2 | % | | | 13.0 | % | | | 18.5 | % | | | 18.3 | % (1) | | During the nine months ended September 30, 2026, the National Practice group was combined with the Financial Service practice group to better align with internal management and reporting structure. As a result, the Financial Services revenue and gross margin for the three and nine months ended September 30, 2025 was adjusted to reflect this change. | | (2) | | Represents operating expenses not directly allocated to individual businesses, including stock-based compensation, consolidation and integration charges, and certain advertising expenses. "Operating expenses - unallocated" also includes gains or losses attributable to the assets held in a rabbi trust associated with the Company's deferred compensation plan. These gains or losses do not impact "Income before income tax expense" as they are directly offset by the same adjustment to "Other income (expense), net" in the Consolidated Statements of Comprehensive Income. Net gains or losses recognized from adjustments to the fair value of the assets held in the rabbi trust are recorded as compensation expense (income) in "Operating expenses" and "Corporate, general and administrative expenses," and offset in "Other income (expense), net." CBIZ, INC. SELECT CASH FLOW DATA (UNAUDITED) (In thousands) | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | Net income | | $ | 218,627 | | | $ | 194,861 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Gain on sale of operations, net of tax | | | — | | | | (1,124 | ) Depreciation and amortization expense | | | 70,411 | | | | 74,313 | Bad debt expense, net of recoveries | | | 5,072 | | | | 3,216 | Adjustment to contingent purchase price liabilities | | | (2,638 | ) | | | 1,984 | Stock-based compensation expense | | | 22,158 | | | | 19,572 | Deferred income taxes | | | 22,939 | | | | 8,815 | Other, net | | | 5,477 | | | | 5,256 | Changes in assets and liabilities, net of acquisitions and divestitures: | | | | Accounts receivable, net | | | (231,285 | ) | | | (186,884 | ) Other assets | | | (8,771 | ) | | | (31,071 | ) Accounts payable | | | (8,835 | ) | | | 9,162 | Income taxes payable | | | 45,465 | | | | 46,364 | Accrued personnel costs | | | (14,389 | ) | | | (33,962 | ) Other liabilities | | | 22,824 | | | | (61,656 | ) Net cash provided by operating activities | | | 147,055 | | | | 48,846 | Net cash used in investing activities | | | (29,303 | ) | | | (16,913 | ) Net cash used in financing activities | | | (185,915 | ) | | | (75,233 | ) Net decrease in cash, cash equivalents and restricted cash | | | (68,163 | ) | | | (43,300 | ) Cash, cash equivalents and restricted cash at beginning of year | | | 218,090 | | | | 187,170 | Cash, cash equivalents and restricted cash at end of period | | $ | 149,927 | | | $ | 143,870 | | | | | Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet: Cash and cash equivalents | | $ | 17,551 | | | $ | 16,969 | Restricted cash | | | 40,853 | | | | 44,455 | Cash equivalents included in funds held for clients | | | 91,523 | | | | 82,446 | Total cash, cash equivalents and restricted cash | | $ | 149,927 | | | $ | 143,870 | CBIZ, INC. GAAP RECONCILIATION Operating Cash Flow to Free Cash Flow(1) (Unaudited. Amounts in thousands, except per share data) | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | Net cash provided by operating activities | | $ | 147,055 | | | $ | 48,846 | Less: | | | | Additions to property and equipment | | | (21,820 | ) | | | (15,035 | ) Free Cash Flow | | $ | 125,235 | | | $ | 33,811 | (1) | | This table reconciles Free Cash Flow to the most directly comparable GAAP financial measure of net cash provided by operating activities. Free Cash Flow is a non-GAAP measure that management believes provides a more complete understanding of the factors and trends affecting our cash flows. This information is useful to investors, as it offers a measure of cash generated from our business that can be used for our strategic business objectives. CBIZ, INC. SELECT FINANCIAL DATA AND RATIOS (UNAUDITED) (In thousands, except percentages, DSO, and per share data) | | September 30, 2026 | | December 31, 2025 Cash and cash equivalents | | $ | 17,551 | | | $ | 18,290 | Restricted cash | | | 40,853 | | | | 38,234 | Accounts receivable, net | | | 782,392 | | | | 555,995 | Other current assets | | | 88,389 | | | | 79,693 | Current assets before funds held for clients | | $ | 929,185 | | | $ | 692,212 | Funds held for clients | | | 134,454 | | | | 207,037 | Goodwill and other intangible assets, net | | | 2,828,643 | | | | 2,869,790 | | | | | Total assets | | $ | 4,610,429 | | | $ | 4,409,528 | | | | | Current liabilities before client fund obligations, excluding short-term debt | | $ | 468,227 | | | $ | 462,484 | Client fund obligations | | | 135,305 | | | | 206,738 | Current portion, Term Loan(1) | | $ | 96,250 | | | $ | 70,000 | Revolver Facility(1) | | | 176,500 | | | | 142,400 | Long-term portion, Term Loan(1) | | | 1,181,250 | | | | 1,260,000 | | | | | Total liabilities | | $ | 2,697,705 | | | $ | 2,647,461 | | | | | Treasury stock | | | (1,156,495 | ) | | | (1,078,521 | ) | | | | Total stockholders' equity | | $ | 1,912,724 | | | $ | 1,762,067 | | | | | Debt to equity | | | 66.8% | | | | 75.5% | | | | | Shares outstanding | | | 54,761 | | | | 54,380 | Basic weighted average common shares outstanding | | | 60,057 | | | | 62,909 | Diluted weighted average common shares outstanding | | | 60,333 | | | | 63,240 | (1) | | Reflects the gross debt for the Term Loan and Revolving Credit Facility excluding the associated unamortized deferred debt issuance costs totaling $13.8 million and $16.5 million, respectively, as of September 30, 2026 and December 31, 2025. CBIZ, INC. GAAP RECONCILIATION Net Income (Loss) and Diluted Earnings Per Share ("EPS") to Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin(1) (Unaudited. Amounts in thousands, except per share data) | Three Months Ended September 30, 2026 | Financial Services | | Benefits and Insurance Services | | Corporate & Other | | Consolidated | | EPS Net income (loss) | $ | 110,323 | | | $ | 18,495 | | | $ | (81,582 | ) | | $ | 47,236 | | | $ | 0.79 | Adjustments: | | | | | | | | | Amortization of acquired intangible assets | | 17,138 | | | | 1,085 | | | | — | | | | 18,223 | | | | 0.30 | Integration costs related to acquisitions(2) | | 1,008 | | | | 1 | | | | 16,312 | | | | 17,321 | | | | 0.29 | Corporate projects related costs(3) | | 110 | | | | 190 | | | | 1,836 | | | | 2,136 | | | | 0.04 | Stock-based compensation(4) | | 944 | | | | — | | | | 2,498 | | | | 3,442 | | | | 0.06 | ESPP correction income(6) | | — | | | | — | | | | (5,933 | ) | | | (5,933 | ) | | | (0.10 | ) Income tax effect related to adjustments | | — | | | | — | | | | (10,222 | ) | | | (10,222 | ) | | | (0.17 | ) Adjusted net income (loss) | $ | 129,523 | | | $ | 19,771 | | | $ | (77,091 | ) | | $ | 72,203 | | | $ | 1.21 | Interest expense | | — | | | | — | | | | 23,986 | | | | 23,986 | | | Income tax expense | | — | | | | — | | | | 20,404 | | | | 20,404 | | | Tax effect related to the adjustments above | | — | | | | — | | | | 10,222 | | | | 10,222 | | | Depreciation(7) | | 3,159 | | | | 491 | | | | 1,387 | | | | 5,037 | | | Adjusted EBITDA | $ | 132,682 | | | $ | 20,262 | | | $ | (21,092 | ) | | $ | 131,852 | | | As a % of Revenue | | 22.2% | | | | 19.4% | | | N/A | | | 18.8% | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2025 | Financial Services | | Benefits and Insurance Services | | Corporate & Other | | Consolidated | | EPS Net income (loss) | $ | 96,410 | | | $ | 19,347 | | | $ | (85,611 | ) | | $ | 30,146 | | | $ | 0.48 | Adjustments: | | | | | | | | | Amortization of acquired intangible assets | | 17,090 | | | | 1,658 | | | | — | | | | 18,748 | | | | 0.30 | Integration costs related to acquisitions(2) | | 10,340 | | | | 228 | | | | 18,071 | | | | 28,639 | | | | 0.46 | Legal settlement and related costs(5) | | — | | | | — | | | | (293 | ) | | | (293 | ) | | | — | Stock-based compensation(4) | | — | | | | — | | | | 3,977 | | | | 3,977 | | | | 0.06 | Gain on sale of operations, net | | (1,124 | ) | | | — | | | | — | | | | (1,124 | ) | | | (0.02 | ) Income tax effect related to adjustments | | — | | | | — | | | | (12,635 | ) | | | (12,635 | ) | | | (0.22 | ) Adjusted net income (loss) | $ | 122,716 | | | $ | 21,233 | | | $ | (76,491 | ) | | $ | 67,458 | | | $ | 1.06 | Interest expense | | — | | | | — | | | | 27,960 | | | | 27,960 | | | Income tax expense | | — | | | | — | | | | 10,260 | | | | 10,260 | | | Tax effect related to the adjustments above | | — | | | | — | | | | 12,635 | | | | 12,635 | | | Depreciation(7) | | 4,015 | | | | 525 | | | | 1,152 | | | | 5,692 | | | Adjusted EBITDA | $ | 126,731 | | | $ | 21,758 | | | $ | (24,484 | ) | | $ | 124,005 | | | As a % of Revenue | | 21.5% | | | | 21.0% | | | N/A | | | 17.9% | | | (1) | | This table reconciles Adjusted net income (loss), Adjusted diluted EPS, Adjusted EBITDA, and Adjusted EBITDA margin to the most directly comparable GAAP financial measures. Adjusted net income (loss), Adjusted diluted EPS, Adjusted EBITDA, and Adjusted EBITDA margin exclude the impact of the Marcum Transaction and other significant non-operating related gains and losses that management does not consider on-going in nature. Please refer to the 'Non-GAAP Financial Measures' section for further management discussion. | | (2) | | These costs include, but are not limited to, certain consulting, technology, personnel, as well as other integration costs related to the Marcum Transaction. | | (3) | | These costs included unusual and one-time legal and professional services costs associated with the Company's pending transaction. | | (4) | | Stock-based compensation expense reported for the three months ended September 30, 2026 and 2025 excluded $3.1 million and $3.4 million, respectively, of stock-based compensation expense reported as "Integration costs related to acquisitions" above. | | (5) | | During the three months ended September 30, 2025, the Company recorded a $0.3 million adjustment to the accrued legal costs associated with the $12.5 million legal settlement when payments were made. | | (6) | | Represents amounts relating to the impact of the previously disclosed ESPP correction. | | (7) | | Depreciation expense reported for the three months ended September 30, 2026 and 2025 excluded $16 thousand and $0.2 million, respectively, of depreciation expense reported as "Integration costs related to acquisitions" above. The accelerated depreciation was associated with certain technology assets from the Marcum Transaction. CBIZ, INC. GAAP RECONCILIATION Net Income (Loss) and Diluted Earnings Per Share ("EPS") to Adjusted Net Income (Loss), Adjusted Diluted EPS and Adjusted EBITDA(1) (Unaudited. Amounts in thousands, except per share data) | Nine months ended September 30, 2026 | Financial Services | | Benefits and Insurance Services | | Corporate & Other | | Consolidated | | EPS Net income (loss) | $ | 399,407 | | | $ | 57,533 | | | $ | (238,313 | ) | | $ | 218,627 | | | $ | 3.62 | Adjustments: | | | | | | | | | Integration costs related to acquisitions(2) | | 21,395 | | | | 24 | | | | 34,572 | | | | 55,991 | | | | 0.93 | Amortization of acquired intangible assets | | 51,396 | | | | 3,844 | | | | — | | | | 55,240 | | | | 0.92 | Gain from acquisition related adjustment, net(3) | | — | | | | — | | | | (57,955 | ) | | | (57,955 | ) | | | (0.96 | ) Corporate projects related costs(4) | | 110 | | | | 190 | | | | 5,193 | | | | 5,493 | | | | 0.09 | Legal settlement and related costs(5) | | | | | | 7,200 | | | | 7,200 | | | | 0.12 | Stock-based compensation(6) | | 2,605 | | | | — | | | | 10,152 | | | | 12,757 | | | | 0.21 | ESPP correction expense(7) | | — | | | | — | | | | 7,404 | | | | 7,404 | | | | 0.12 | Income tax effect related to adjustments | | — | | | | — | | | | (24,564 | ) | | | (24,564 | ) | | | (0.41 | ) Adjusted net income (loss) | $ | 474,913 | | | $ | 61,591 | | | $ | (256,311 | ) | | $ | 280,193 | | | $ | 4.64 | Interest expense | | — | | | | — | | | | 72,237 | | | | 72,237 | | | Income tax expense | | — | | | | — | | | | 87,228 | | | | 87,228 | | | Tax effect related to the adjustments above | | — | | | | — | | | | 24,564 | | | | 24,564 | | | Depreciation(8) | | 9,424 | | | | 1,475 | | | | 4,224 | | | | 15,123 | | | Adjusted EBITDA | $ | 484,337 | | | $ | 63,066 | | | $ | (68,058 | ) | | $ | 479,345 | | | As a % of Revenue | | 25.2% | | | | 20.0% | | | N/A | | | 21.5% | | | | | | | | | | | | | Nine months ended September 30, 2025 | Financial Services | | Benefits and Insurance Services | | Corporate & Other | | Consolidated | | EPS Net income (loss) | $ | 387,477 | | | $ | 65,260 | | | $ | (257,876 | ) | | $ | 194,861 | | | $ | 3.06 | Adjustments: | | | | | | | | | Integration costs related to acquisitions(2) | | 17,840 | | | | 609 | | | | 45,045 | | | | 63,494 | | | | 1.00 | Amortization of acquired intangible assets | | 51,071 | | | | 5,133 | | | | — | | | | 56,204 | | | | 0.88 | Legal settlement and related costs(5) | | — | | | | — | | | | (11,356 | ) | | | (11,356 | ) | | | (0.18 | ) Stock-based compensation(6) | | — | | | | — | | | | 9,530 | | | | 9,530 | | | | 0.15 | Gain on sale of operations, net | | (1,124 | ) | | | — | | | | — | | | | (1,124 | ) | | | (0.02 | ) Income tax effect related to adjustments | | — | | | | — | | | | (32,830 | ) | | | (32,830 | ) | | | (0.51 | ) Adjusted net income (loss) | $ | 455,264 | | | $ | 71,002 | | | $ | (247,487 | ) | | $ | 278,779 | | | $ | 4.38 | Interest expense | | — | | | | — | | | | 80,983 | | | | 80,983 | | | Income tax expense | | — | | | | — | | | | 76,234 | | | | 76,234 | | | Tax effect related to the adjustments above | | — | | | | — | | | | 32,830 | | | | 32,830 | | | Depreciation(8) | | 11,364 | | | | 1,608 | | | | 3,329 | | | | 16,301 | | | Adjusted EBITDA | $ | 466,628 | | | $ | 72,610 | | | $ | (54,111 | ) | | $ | 485,127 | | | As a % of Revenue | | 24.6% | | | | 22.8% | | | N/A | | | 21.9% | | | (1) | | This table reconciles Adjusted net income (loss), Adjusted diluted EPS, Adjusted EBITDA, and Adjusted EBITDA margin to the most directly comparable GAAP financial measures. Adjusted net income (loss), Adjusted diluted EPS, Adjusted EBITDA, and Adjusted EBITDA margin exclude the impact of the Marcum Transaction and other significant non-operating related gains and losses that management does not consider on-going in nature. Please refer to the 'Non-GAAP Financial Measures' section for further management discussion. | | (2) | | These costs include, but are not limited to, certain consulting, technology, personnel, as well as other integration costs related to the Marcum Transaction. | | (3) | | Gain related to the finalization of working capital and related purchase price adjustments associated with the Marcum Transaction. | | (4) | | These costs included unusual and one-time legal and professional services costs associated with the Company's pending transaction. | | (5) | | During the nine months ended September 30, 2026, the Company recorded an estimated loss of $7.2 million associated with a legal matter which the Company plans to settle. During the nine months ended September 30, 2025, the Company recorded a gain of $12.5 million related to a legal settlement payment from a small group of former employees. The settlement loss and gain were recorded in "other income (expense), net" on the consolidated statement of comprehensive income. The costs associated with this litigation were $1.1 million for the nine months ended September 30, 2025 and were recorded in "Corporate general and administrative expenses" on the consolidated statement of comprehensive income. | | (6) | | Stock-based compensation expense reported for the nine months ended September 30, 2026 and 2025 excluded $9.4 million and $6.7 million, respectively, of stock-based compensation expense reported as "Integration costs related to acquisitions" above. | | (7) | | Represents amounts relating to the impact of the previously disclosed ESPP correction. | | (8) | | Depreciation expense reported for the nine months ended September 30, 2026 and 2025 excluded $48 thousand and $1.8 million, respectively, of depreciation expense reported as "Integration costs related to acquisitions" above. The accelerated depreciation was associated with certain technology assets from the Marcum Transaction.

CBIZ has delivered steady gains over time, which puts a spotlight on whether the current share price lines up with what its earnings can support. With the stock recently closing at US$54.68, the real question for investors is how much of the company's profit power is already reflected in that number. - Over the past 5 years, CBIZ shares have returned 65.4%, which puts real weight on whether the business's earnings justify that kind of compounding. - The firm's mix of recurring advisory and service revenue can influence how consistently earnings convert into cash, which matters for how much investors may be willing to pay for each dollar of profit. - There is a second opinion on CBIZ worth weighing. See what analysts think CBIZ's shares could be worth. The issue now is whether CBIZ's current price is appropriately aligned with the earnings it generates today and what those profits may look like over time. If you are weighing whether CBIZ's 65.4% five year return is fully tied to its earnings, it can help to compare that picture with a focused list of 32 high quality undervalued stocks The P/E ratio fits CBIZ well because earnings are a central reference point for a professional services group that leans on recurring work. At a current P/E of 23.6x, the stock trades at a premium to both the Professional Services industry average of 20.9x and the peer group on 21.3x. That tells you investors are already paying extra for each dollar of CBIZ's profit compared with much of the sector. The Fair Ratio model, which blends CBIZ's growth profile, margins, risk and size into a tailored benchmark, points to a higher multiple than where the shares currently change hands. On that yardstick, the stock screens as undervalued rather than stretched, even though it is not cheap against simple industry or peer averages. For anyone weighing the 23.6x P/E, the key question is whether the quality and visibility of CBIZ's earnings stream justify the gap between basic comparisons and the more company specific Fair Ratio framework. Explore the numbers behind CBIZ's P/E valuation. CBIZ investors looking for more than a single P/E snapshot can use Simply Wall St Narratives as the link between today's valuation puzzle and the specific earnings, margin and growth paths that would need to play out for the stock to be worth meaningfully more or less than its current price. Each scenario lays out the assumptions behind its fair value in a way you can track against future financial results on the Community page. Community views on CBIZ split between seeing limited upside at today's terms and spotting a bit more potential in the current setup. Bull case: roughly fairly valued "Despite management highlighting stronger project based advisory demand and improved market conditions in the second half, these nonrecurring revenue streams remain sensitive to deal and project cycles..." Discover why this Narrative puts CBIZ at roughly fairly valued. Bear case: 6% overvalued "Persistent pricing pressures, heavy acquisition reliance, technological disruption, and elevated leverage collectively threaten revenue growth, margin stability, and long-term earnings resilience..." Explore why this Narrative puts CBIZ at 6% overvalued. Everything so far has focused on what CBIZ looks like today, but broker research also sketches out where they think earnings and cash flows might land a few years from now. This gives you a separate benchmark to compare with the current valuation. Explore where analysts expect CBIZ to be in a few years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CBZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Recent analyst commentary on CBIZ (CBZ) has focused on its Zacks Rank of #2, a 0.7% upward shift in full year earnings estimates in the past 3 months, and value focused valuation metrics. At a share price of $54.91, CBIZ has seen a strong 90 day share price return of 61.83%, while the year to date share price return of 8.09% and the 1 year total shareholder return, which is down 8.44%, point to momentum that has picked up more recently as investors reassess its value focused profile and analyst sentiment. Compare CBIZ with a curated list of other value focused stocks showing similar earnings momentum by scanning the 52 high quality undervalued stocks before you make your next move. CBIZ now trades above the average analyst price target, yet still screens as discounted on some intrinsic value metrics after a sharp 90 day move. Where does fair value fall within that range between the current price and analyst estimates? CBIZ is trading at $54.91 compared with a widely followed fair value narrative of $51.67, which frames the share price as slightly ahead of that intrinsic estimate while still anchored by a detailed long term earnings and margin story. Read the complete narrative. Want to see what kind of revenue and margin path would justify that fair value gap? The narrative emphasizes compounding profit growth and a lower future earnings multiple. The key question is how those elements interact over time. Result: Fair Value of $51.67 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, CBIZ still faces pressure from slower pricing on rate increases, as well as ongoing integration and leverage risks tied to the Marcum acquisition that could weigh on the story. Find out about the key risks to this CBIZ narrative. The narrative based fair value for CBIZ points to a modest 6.3% overvaluation at $54.91 versus $51.67. Yet the SWS DCF model presents a very different picture. It values CBIZ at $194.23 per share, which frames the stock as trading far below that long term cash flow estimate. This raises a key question for investors: Is the market more likely to move toward the tighter analyst price target range, or closer to the higher cash flow based value that assumes strong execution on growth and margins over time? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CBIZ for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With mixed signals around CBIZ and its valuation, it makes sense to move quickly, review the underlying data, and weigh both the upside and the downside. To see both sides set out clearly, start with the 3 key rewards and 2 important warning signs. If CBIZ has sharpened your focus on valuation, do not stop here. Use the Simply Wall Street Screener to spot other opportunities before the crowd catches on. Target potential mispricings by scanning a hand picked group of value focused stocks through the 52 high quality undervalued stocks. Strengthen your defence in tougher markets by reviewing a 79 resilient stocks with low risk scores that concentrates on companies with more resilient profiles. Review a 21 high quality undiscovered gems that highlights lesser known businesses with stronger fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CBZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. CBIZ stock has delivered a 65.8% gain over the past 5 years, yet the current valuation checks give a mixed signal on whether the recent pricing still offers clear value. Over 5 years, a 65.8% return suggests CBIZ has rewarded patient shareholders. This raises the question of how much of that progress is already reflected in today's share price. Future revenue growth and margin execution can support the current valuation for CBIZ, while any pressure on profitability or cash flow reliability may limit how much investors are willing to pay for the stock. CBIZ screens as undervalued on market multiples, but the broader checks form a mixed picture, with the company passing 3 of 6 valuation tests here. The issue now is whether CBIZ's current share price still leaves enough valuation upside after a solid multi year return profile. Find out why CBIZ's -14.3% return over the last year is lagging behind its peers. The P/E ratio suits CBIZ because it is a mature services business that is already earnings focused rather than in a heavy investment phase. CBIZ currently trades on a P/E of 23.7x, which is slightly above the Professional Services industry average of 21.5x and also a touch higher than the peer group average of 23.0x. On those simple comparisons, the stock does not screen as obviously cheap. However, the model that blends CBIZ's growth profile, profitability, size and risk suggests a fair P/E closer to 26.6x. That leaves the current 23.7x multiple below this tailored fair level, which points to some valuation support on earnings even after the long run-up in the share price. The gap is not extreme, but it indicates that the market is not pricing CBIZ at a premium to what this framework would imply. On the P/E multiple, CBIZ stock currently appears undervalued relative to the fair ratio implied by its fundamentals. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives take the valuation puzzle around CBIZ's P/E and turn it into clear, testable stories about what would need to happen to revenue growth, margins and earnings for the stock to be worth materially more or less than it is today on the market. Each narrative ties its number to a specific view of where CBIZ's growth, profitability and risks could go next. You can revisit these views as new information comes through on the Community page. One of the top community narratives on CBIZ: 6% overvalued Read one of the top narratives on CBIZ Do you think there's more to the story for CBIZ? Head over to our Community to see what others are saying! CBIZ looks modestly undervalued on its tailored P/E view, although the broader set of valuation checks is only mixed. That leaves the stock in a zone where it is not obviously stretched, yet also not a straightforward bargain. The key swing factor from here is whether CBIZ can sustain the earnings profile that underpins its current multiple without slipping on margins or cash flow quality. The main question for investors is whether the current discount on earnings reflects a genuine opportunity or fairly prices the execution risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CBZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance in the first quarter was driven by the successful completion of the first busy season as a fully integrated company, validating the scaled operating model. Organic revenue growth improved sequentially throughout the quarter, supported by a favorable market backdrop for advisory and project-based work. Financial Services growth was tempered by approximately 200 basis points due to intentional client exits based on risk standards and residual integration-related productivity impacts. The company is transitioning from AI-assisted workflows to agentic-based AI solutions to drive internal efficiencies and enhance client insights. Strategic convergence under a unified technology leadership road map is intended to differentiate CBIZ from smaller competitors who lack the capital to build proprietary AI governance. Management attributes the defendable moat in the middle market to the high bar for substitution in regulated environments where professional judgment and licensed accountability are required. Management expects organic revenue growth to accelerate in the second half of 2026 as integration-related headwinds and client attrition impacts abate. The company plans to expand offshore hours from 6% in 2025 to 10% in 2026, with a long-term target exceeding 20% to drive margin expansion. Guidance for the top end of the revenue range assumes continued favorable market conditions for non-recurring advisory services, which currently have 60-90 days of visibility. Strategic hiring targets include a 15% increase in validated producers within the Benefits and Insurance segment to bolster the new business pipeline. Capital allocation will prioritize deleveraging to a net ratio of less than 2.5x by 2027 while remaining opportunistic with share repurchases at current valuations. Benefits and Insurance revenue declined 4% year-over-year, impacted by the unexpected departure of a single producer and their team in February. Free cash flow improvement of $64 million was primarily driven by a one-time $53 million proceed from a final purchase price adjustment. The company intends to enforce restrictive covenants regarding a recent producer departure and has successfully enforced such measures in the past to protect its business. A presentation update moved the former National Practices segment into the Technology Services business within the Financial Services segment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management does not view client-side AI as a pressing concern because the regulated environment requires professional expertise and licensed accountability that AI cannot replicate. The company utilizes value-based pricing, which allows them to retain the benefits of AI-driven efficiencies rather than passing all savings to the client. Management expressed high confidence in achieving mid-single-digit price increases for 2026, noting that current conversations show little pushback from clients. Favorable market conditions in the advisory segment support strong pricing power for non-recurring project work. CBIZ believes its size allows for investments in AI and talent upskilling that smaller competitors cannot match, creating opportunities to take market share. The technology road map is designed to allow the firm to move both upmarket and downmarket by offering differentiated, tech-enabled solutions. Management views the current stock valuation as 'quite undervalued' and considers repurchases highly accretive compared to other capital uses. Future repurchase activity will be balanced against the goal of lowering integration spend and improving DSO to accelerate deleveraging.

CBIZ (CBZ) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +24.66%. A quarter ago, it was expected that this provider of outsourced business services would post earnings of $2.28 per share when it actually produced earnings of $2.5, delivering a surprise of +9.65%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. CBIZ, which belongs to the Zacks Consulting Services industry, posted revenues of $682.21 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.46%. This compares to year-ago revenues of $683.5 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CBIZ shares have lost about 7.4% since the beginning of the year versus the S&P 500's gain of 8.5%. While CBIZ has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CBIZ was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.29 on $724.48 million in revenues for the coming quarter and $4.07 on $2.84 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consulting Services is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. CRA International (CRAI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This consulting firm is expected to post quarterly earnings of $2.12 per share in its upcoming report, which represents a year-over-year change of +12.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CRA International's revenues are expected to be $198.35 million, up 6.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CBIZ, Inc. (CBZ) : Free Stock Analysis Report Charles River Associates (CRAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research