CBIZ Revenue Soars 64% on Marcum Acquisition, Net Income Up 48%

TL;DR

**CBZ is crushing it post-Marcum acquisition, but keep an eye on that ballooning interest expense.**

AI Summary

CBIZ, Inc. reported a significant increase in revenue and net income for the nine months ended September 30, 2025, largely driven by the acquisition of Marcum LLP. Revenue surged to $2,215,328,000, a 63.7% increase from $1,353,193,000 in the prior year. Net income also saw a substantial rise, reaching $194,861,000, up 47.9% from $131,761,000. Operating income for the nine-month period increased by 76.9% to $319,168,000 from $180,381,000. However, interest expense dramatically increased to $80,983,000 from $15,363,000, reflecting higher debt levels. The Marcum acquisition contributed $840,000,000 in revenue and $162,300,000 in operating income during the nine months ended September 30, 2025. Diluted EPS grew to $3.06 from $2.62 year-over-year. The company also engaged in share repurchases totaling $127,754,000 during the nine months ended September 30, 2025.

Why It Matters

This filing reveals CBIZ's aggressive growth strategy, primarily through the Marcum LLP acquisition, which has significantly boosted its top and bottom lines. For investors, the substantial revenue and net income growth, despite rising interest expenses, indicates successful integration and market expansion, potentially signaling continued upside. Employees of both CBIZ and acquired entities benefit from a larger, more diversified company with potentially more career opportunities. Customers gain access to a broader range of professional services. In the competitive landscape of professional services, this acquisition positions CBIZ as a stronger player, challenging rivals with its expanded capabilities and market reach.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in long-term debt to $1,502,639,000 from $1,333,755,000, and a substantial rise in interest expense to $80,983,000 for the nine months ended September 30, 2025, compared to $15,363,000 in the prior year. This increased debt load and interest burden could impact future profitability, especially in a rising interest rate environment, despite strong revenue growth.

Analyst Insight

Investors should consider holding or initiating a position in CBZ, given the strong revenue and net income growth driven by strategic acquisitions. However, closely monitor the company's debt management and interest expense in future quarters to ensure financial stability and sustained profitability.

Financial Highlights

debt To Equity

1.43

revenue

$2,215,328,000

operating Margin

14.41%

total Assets

$4,545,144,000

total Debt

$1,568,962,000

net Income

$194,861,000

eps

$3.06

gross Margin

18.33%

cash Position

$16,969,000

revenue Growth

+63.7%

Revenue Breakdown

Key Numbers

• $2.22B — Revenue (Increased 63.7% for the nine months ended September 30, 2025, from $1.35B in 2024.)
• $194.86M — Net Income (Increased 47.9% for the nine months ended September 30, 2025, from $131.76M in 2024.)
• $319.17M — Operating Income (Increased 76.9% for the nine months ended September 30, 2025, from $180.38M in 2024.)
• $80.98M — Interest Expense (Increased significantly for the nine months ended September 30, 2025, from $15.36M in 2024.)
• $840.0M — Marcum Acquisition Revenue Contribution (Revenue contributed by Marcum LLP for the nine months ended September 30, 2025.)
• $162.3M — Marcum Acquisition Operating Income Contribution (Operating income contributed by Marcum LLP for the nine months ended September 30, 2025.)
• $3.06 — Diluted EPS (Increased from $2.62 for the nine months ended September 30, 2024.)
• $1.50B — Long-term Debt (Increased from $1.33B as of December 31, 2024.)
• $127.75M — Share Repurchases (Amount spent on treasury stock acquisition for the nine months ended September 30, 2025.)

Key Players & Entities

• CBIZ, Inc. (company) — registrant
• Marcum LLP (company) — acquired entity
• $2,215,328,000 (dollar_amount) — revenue for nine months ended September 30, 2025
• $1,353,193,000 (dollar_amount) — revenue for nine months ended September 30, 2024
• $194,861,000 (dollar_amount) — net income for nine months ended September 30, 2025
• $131,761,000 (dollar_amount) — net income for nine months ended September 30, 2024
• $80,983,000 (dollar_amount) — interest expense for nine months ended September 30, 2025
• $15,363,000 (dollar_amount) — interest expense for nine months ended September 30, 2024
• $1,063,000,000 (dollar_amount) — cash consideration for Marcum LLP acquisition
• $934,700,000 (dollar_amount) — common stock consideration for Marcum LLP acquisition

FAQ

Risk Factors

• Increased Interest Expense [high — financial]: Interest expense increased dramatically from $15,363,000 in the nine months ended September 30, 2024, to $80,983,000 in the same period of 2025. This surge is directly linked to higher debt levels, likely incurred to finance the Marcum LLP acquisition.
• Leverage from Acquisition [high — financial]: The acquisition of Marcum LLP, while boosting revenue and operating income, has led to a substantial increase in long-term debt, rising from $1,333,755,000 as of December 31, 2024, to $1,502,639,000 as of September 30, 2025. This increased leverage heightens financial risk.
• Integration of Acquired Businesses [medium — operational]: The company's growth strategy relies heavily on acquisitions, such as Marcum LLP. The successful integration of these businesses is critical. Failure to integrate effectively could disrupt operations, impact client retention, and hinder the realization of expected synergies.
• Competition in Professional Services [medium — market]: The accounting, tax, and advisory services market is highly competitive, with numerous national and local firms. CBIZ faces competition from both larger, more established players and smaller, specialized firms, which could pressure pricing and market share.
• Regulatory Compliance [medium — regulatory]: As a provider of financial and accounting services, CBIZ is subject to a complex and evolving regulatory environment. Changes in accounting standards, tax laws, or industry-specific regulations could require significant compliance efforts and investments.

Industry Context

CBIZ operates in the highly competitive professional services sector, providing accounting, tax, and advisory services. The industry is characterized by ongoing consolidation, with larger firms acquiring smaller ones to expand service offerings and geographic reach. Trends include increasing demand for specialized advisory services, digital transformation, and a focus on talent acquisition and retention.

Regulatory Implications

As a financial services provider, CBIZ is subject to stringent regulatory oversight. Compliance with evolving accounting standards (GAAP), tax regulations, and data privacy laws is paramount. Any missteps in compliance can lead to significant fines, reputational damage, and operational disruptions.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios.
2. Assess the integration success of Marcum LLP.
3. Evaluate operating margin trends.

Key Dates

• 2025-09-30: Nine Months Ended — Reporting period for the significant revenue and income growth, largely driven by the Marcum LLP acquisition and increased debt.
• 2024-12-31: Year-End — Prior period balance sheet data for comparison, showing lower long-term debt ($1,333,755,000) and total assets ($4,470,883,000).

Glossary

Marcum LLP Acquisition

A significant business acquisition by CBIZ, Inc. that has substantially impacted the company's financial performance in the current reporting period. (The primary driver of the reported revenue and operating income growth for the nine months ended September 30, 2025.)

Goodwill and other intangible assets, net

Represents the excess of the purchase price of an acquired company over the fair value of its identifiable net assets. Intangible assets include items like patents, trademarks, and customer lists. (A substantial portion of CBIZ's assets ($2,885,727,000 as of Sep 30, 2025), reflecting the premium paid for acquisitions.)

Treasury stock

Stock that a company has repurchased from the open market. It is recorded as a contra-equity account. (CBIZ has a significant negative balance in treasury stock ($1,046,152,000 as of Sep 30, 2025), indicating substantial share repurchases.)

Contingent purchase price liabilities

Liabilities that may arise from the purchase of a business, dependent on the future performance of the acquired business. (Decreased from $61,164,000 (current) and $35,803,000 (non-current) as of Dec 31, 2024, to $30,506,000 (current) and $10,751,000 (non-current) as of Sep 30, 2025, suggesting earn-out targets were met or expired.)

Year-Over-Year Comparison

CBIZ, Inc. has reported a dramatic increase in revenue for the nine months ended September 30, 2025, up 63.7% to $2.22 billion, primarily due to the acquisition of Marcum LLP. This acquisition also contributed significantly to operating income, which rose 76.9%. However, this growth was financed by a substantial increase in debt, leading to a more than five-fold increase in interest expense from $15.36 million to $80.98 million. While net income and EPS also grew, the higher interest burden is a key factor to watch.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value CBZ New York Stock Exchange

Filing Documents

• cbz-20250930.htm (10-Q) — 1465KB
• cbz-20250930x10qex311.htm (EX-31.1) — 9KB
• cbz-20250930x10qex312.htm (EX-31.2) — 9KB
• cbz-20250930x10qex321.htm (EX-32.1) — 5KB
• cbz-20250930x10qex322.htm (EX-32.2) — 5KB
• 0000944148-25-000022.txt ( ) — 7260KB
• cbz-20250930.xsd (EX-101.SCH) — 51KB
• cbz-20250930_cal.xml (EX-101.CAL) — 89KB
• cbz-20250930_def.xml (EX-101.DEF) — 204KB
• cbz-20250930_lab.xml (EX-101.LAB) — 644KB
• cbz-20250930_pre.xml (EX-101.PRE) — 425KB
• cbz-20250930_htm.xml (XML) — 1047KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) – September 30, 2025 and December 31, 2024 3 Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Three and Nine Months Ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) – Three and Nine Months Ended September 30, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows (Unaudited) – Nine Months Ended September 30, 2025 and 2024 7 Notes to the Condensed Consolidated Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 41 PART II. OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3. Defaults Upon Senior Securities 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 44 Signature 45 2

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CBIZ, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 16,969 $ 13,826 Restricted cash 44,455 38,661 Accounts receivable, net 719,554 534,858 Other current assets 96,655 72,528 Current assets before funds held for clients 877,633 659,873 Funds held for clients 127,782 175,853 Total current assets 1,005,415 835,726 Non-current assets: Property and equipment, net 83,730 88,163 Goodwill and other intangible assets, net 2,885,727 2,945,470 Assets of deferred compensation plan 181,127 167,170 Right-of-use assets, net 349,101 393,512 Other non-current assets 40,044 40,842 Total non-current assets 3,539,729 3,635,157 Total assets $ 4,545,144 $ 4,470,883 LIABILITIES Current liabilities: Accounts payable $ 99,653 $ 90,646 Income taxes payable 41,712 — Accrued personnel costs 149,367 172,759 Contingent purchase price liabilities 30,506 61,164 Lease liabilities 64,183 60,549 Short-term debt (1) 66,323 66,177 Other current liabilities 62,425 78,579 Current liabilities before client fund obligations 514,169 529,874 Client fund obligations 127,590 175,928 Total current liabilities 641,759 705,802 Non-current liabilities: Long-term debt (1) 1,502,639 1,333,755 Income taxes payable 2,961 2,193 Deferred income taxes, net 5,190 10,880 Deferred compensation plan obligations 181,127 167,170 Contingent purchase price liabilities 10,751 35,803 Lease liabilities 322,241 372,586 Other non-current liabilities 6,677 62,711 Total non-current liabilities 2,031,586 1,985,098 Total liabilities 2,673,345 2,690,900 STOCKHOLDERS' EQUITY Common stock 1,438 1,380 Additional paid in capital 1,828,903 1,791,863 Retained earnings 1,090,983 896,122 Treasury stock ( 1,046,152 ) ( 910,601 ) Accumulated other comprehensive (loss) income ( 3,373 ) 1,219 Total stockholders' equity 1,871,799 1,779,983 To

View Full Filing

View this 10-Q filing on SEC EDGAR