CBIZ Reports Third-Quarter and Nine Months Ended September 30, 2026 Financial Results

Nine-month operating income fell despite higher net income, while operating cash flow increased $98 million.

Rhea-AI Summary

CBIZ (NYSE: CBZ) reported third-quarter net income of $47 million, up 56.7% from the same period in 2025. Revenue rose 1.2% to $702 million, and diluted earnings per share increased 64.6% to $0.79. Adjusted EBITDA, an adjusted earnings measure before interest, taxes, depreciation and amortization, rose 6.3% to $132 million; adjusted diluted EPS increased 14.2% to $1.21.

For the nine months ended September 30, 2026, revenue increased 0.8% to $2,233 million and net income rose 12.2% to $219 million, while adjusted EBITDA fell 1.2% to $479 million. Operating cash flow increased $98 million. An affiliate of Grant Thornton in the U.S., backed by New Mountain Capital, has agreed to acquire CBIZ for $55.00 per share in cash, at a $5.0 billion enterprise value. CBIZ expects closing in the fourth quarter of 2026, subject to shareholder and required regulatory approvals.

22 points · 1 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.The agreed Grant Thornton affiliate acquisition offers shareholders $55.00 per share in cash, at $5.0 billion enterprise value.
• Moderate pointThird-quarter revenue rose 1.2% to $702 million versus the same period in 2025.
• Moderate pointThird-quarter net income increased 56.7% to $47 million year over year.
• Moderate pointThird-quarter adjusted EBITDA increased 6.3% to $132 million year over year.
• Moderate pointThird-quarter operating income increased to $90.177 million from $58.864 million in 2025.
• Moderate pointThird-quarter gross margin increased to 16.2% from 13.0% in 2025.
• Moderate pointNine-month revenue increased 0.8% to $2,233 million versus the same period in 2025.
• Moderate pointNine-month net income increased 12.2% to $219 million year over year.
• Moderate pointNine-month operating cash flow increased to $147.055 million from $48.846 million in 2025.
• Moderate pointNine-month free cash flow increased $91 million year over year.

12 minor points

• Minor pointThird-quarter diluted EPS rose 64.6% to $0.79 year over year.
• Minor pointThird-quarter adjusted diluted EPS increased 14.2% to $1.21 year over year.
• Minor pointThird-quarter corporate general and administrative expenses fell to $23.877 million from $31.265 million in 2025.
• Minor pointThird-quarter interest expense fell to $23.986 million from $27.960 million in 2025.
• Minor pointNine-month diluted EPS rose 18.3% to $3.62 year over year.
• Minor pointNine-month adjusted diluted EPS increased 5.9% to $4.64 year over year.
• Minor pointNine-month gross margin increased to 18.5% from 18.3% in 2025.
• Minor pointNine-month interest expense fell to $72.237 million from $80.983 million in 2025.
• Minor pointNine-month acquisition-related adjustment gains increased to $57.955 million from $1.124 million in 2025.
• Minor pointFinancial Services revenue rose 1.2% in the third quarter and 1.1% over nine months year over year.
• Minor pointFinancial Services gross profit rose to $109.931 million quarterly and $400.003 million over nine months, versus 2025.
• Minor pointBenefits and Insurance Services quarterly revenue rose to $104.449 million from $103.387 million in 2025.

Negative

• Moderate pointNine-month adjusted EBITDA declined 1.2% to $479 million year over year.
• Moderate pointNine-month operating income fell to $308.755 million from $319.168 million in 2025.
• Moderate pointNine-month corporate general and administrative expenses increased to $103.754 million from $86.972 million in 2025.
• Moderate pointBenefits and Insurance Services nine-month gross profit fell to $56.901 million from $64.845 million in 2025.
• Moderate pointNine-month cash, cash equivalents and restricted cash decreased $68.163 million, versus a $43.300 million decrease in 2025.

3 minor points

• Minor pointThe acquisition remains subject to CBIZ shareholder approval and required regulatory approvals; closing is expected in fourth-quarter 2026.
• Minor pointBenefits and Insurance Services nine-month revenue fell to $314.580 million from $318.292 million in 2025.
• Minor pointBenefits and Insurance Services quarterly gross profit fell to $18.299 million from $19.305 million in 2025.

News Explained

The release specifies the agreed acquisition’s endpoint: if it closes, CBIZ’s common stock will no longer be listed on the New York Stock Exchange, and the company will become private.

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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, chris.sikora@cbiz.com 
Media: Amy McGahan, Director of Corporate & Strategic Communications, amy.mcgahan@cbiz.com
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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were CBIZ's third-quarter 2026 earnings and revenue?

CBIZ reported $702 million in revenue and $47 million in net income for the third quarter of 2026. Revenue increased 1.2% and net income increased 56.7% from the same period in 2025. Diluted earnings per share rose 64.6% to $0.79.

How much will CBIZ shareholders receive in the proposed Grant Thornton acquisition?

The proposed acquisition provides $55.00 per share in cash to CBIZ shareholders. The transaction has an enterprise value of $5.0 billion. CBIZ expects closing in the fourth quarter of 2026, subject to shareholder approval, required regulatory approvals and other customary closing conditions.

Is CBIZ providing full-year 2026 guidance or holding a third-quarter earnings call?

CBIZ is not providing full-year 2026 financial guidance or hosting a conference call to discuss third-quarter results. The company gives the proposed acquisition as the reason.

Will CBIZ stock remain listed after the Grant Thornton acquisition?

CBIZ common stock will no longer be listed on the New York Stock Exchange following completion of the proposed acquisition. CBIZ will become a private company.