CBIZ | 10-K: FY2025 Revenue Beats Estimate at USD 2.758 T

Revenue: As of FY2025, the actual value is USD 2.758 T, beating the estimate of USD 2.793 B.EPS: As of FY2025, the actual value is USD 1.83, missing the estimate of USD 1.928.EBIT: As of FY2025, the actual value is USD 268.05 B.Consolidated Financial PerformanceNet Income:2025: $115,444 thousand 2024: $41,038 thousand 2023: $120,968 thousand Operating Expenses:2025: $2,402,598 thousand (87.1% of revenue) 2024: $1,631,003 thousand (89.9% of revenue) Excluding non-qualified deferred compensation plan (NQDCP) impact:2025: $2,382,282 thousand (86.4% of revenue) 2024: $1,612,227 thousand (88.9% of revenue) Gross Margin:2025: $355,393 thousand 2024: $182,469 thousand 2023: $223,204 thousand Excluding NQDCP impact:2025: $375,709 thousand (13.6% of revenue) 2024: $201,245 thousand (11.1% of revenue) Operating Income:2025: $234,010 thousand 2024: $73,716 thousand 2023: $165,239 thousand Excluding NQDCP impact:2025: $257,306 thousand (9.3% of revenue) 2024: $94,859 thousand (5.2% of revenue) Corporate General & Administrative (G&A) Expenses:2025: $121,383 thousand (4.4% of revenue) 2024: $108,753 thousand (6.0% of revenue) Excluding NQDCP impact:2025: $118,403 thousand (4.3% of revenue) 2024: $106,386 thousand (5.9% of revenue) Interest Expense:2025: -$107,215 thousand 2024: -$34,379 thousand 2023: -$20,131 thousand Gain on Sale of Operations, net:2025: $711 thousand 2024: $4,932 thousand 2023: $176 thousand Other Income, net:2025: $33,329 thousand 2024: $13,538 thousand 2023: $21,019 thousand Excluding NQDCP impact:2025: $10,033 thousand (0.4% of revenue) 2024: -$7,605 thousand (-0.4% of revenue) Income Before Income Tax Expense:2025: $160,835 thousand 2024: $57,807 thousand 2023: $166,303 thousand Excluding NQDCP impact:2025: $115,444 thousand (4.2% of revenue) 2024: $57,807 thousand (3.2% of revenue) Income Tax Expense:2025: $45,391 thousand (28.2% effective tax rate) 2024: $16,769 thousand (29.0% effective tax rate) 2023: $45,335 thousand (27.3% effective tax rate) Financial Services SegmentRevenue:2025: $2,301,462 thousand (83.4% of total CBIZ revenue), a 68.9% increase from 2024 2024: $1,362,539 thousand (75.1% of total CBIZ revenue) 2023: $1,160,686 thousand (73.0% of total CBIZ revenue) The increase in 2025 was driven by the Marcum LLP acquisition, with traditional accounting and tax-related services increasing by $796.9 million, advisory services by $94.0 million, national technology services by $46.1 million, and government healthcare consulting services by $1.9 million .Fees Earned under Administrative Service Agreements (ASAs):2025: $651.2 million 2024: $306.5 million 2023: $259.6 million Operating Expenses:2025: $1,964,869 thousand, a 61.9% increase from 2024 2024: $1,213,621 thousand Operating expense as a percentage of revenue:2025: 85.4% 2024: 89.1% Gross Margin / Operating Income:2025: $336,593 thousand, a 126.0% increase from 2024 2024: $148,918 thousand Gross Margin Percentage:2025: 14.6% 2024: 10.9% Income Before Income Tax Expense:2025: $334,614 thousand, a 123.8% increase from 2024 2024: $149,540 thousand Benefits and Insurance Services SegmentRevenue:2025: $409,633 thousand (14.9% of total CBIZ revenue), a 2.1% increase from 2024 2024: $401,048 thousand (22.1% of total CBIZ revenue) 2023: $382,605 thousand (24.0% of total CBIZ revenue) The increase in 2025 was primarily due to an $11.2 million increase in employee benefit and retirement benefit services and a $6.1 million increase from payroll and human capital related services, partially offset by an $8.7 million decrease in property and casualty services .Operating Expenses:2025: $334,696 thousand, a 2.0% increase from 2024 2024: $328,272 thousand Operating expense as a percentage of revenue:2025: 81.7% 2024: 81.9% Gross Margin / Operating Income:2025: $74,937 thousand, a 3.0% increase from 2024 2024: $72,776 thousand Gross Margin Percentage:2025: 18.3% 2024: 18.1% Income Before Income Tax Expense:2025: $76,073 thousand, a 4.3% increase from 2024 2024: $72,925 thousand National Practices SegmentRevenue:2025: $46,896 thousand (1.7% of total CBIZ revenue), a -6.0% decrease from 2024 2024: $49,885 thousand (2.8% of total CBIZ revenue) 2023: $47,903 thousand (3.0% of total CBIZ revenue) The decrease in revenue and operating expenses was attributed to the sale of CBIZ KA Consulting Services, LLC in 2024 .Operating Expenses:2025: $42,033 thousand, a -5.8% decrease from 2024 2024: $44,625 thousand Operating expense as a percentage of revenue:2025: 89.6% 2024: 89.4% Gross Margin / Operating Income:2025: $4,863 thousand, a -7.5% decrease from 2024 2024: $5,260 thousand Gross Margin Percentage:2025: 10.4% 2024: 10.5% Income Before Income Tax Expense:2025: $5,988 thousand, a -41.2% decrease from 2024 2024: $10,189 thousand Cash Flow and Capital ResourcesNet Cash Provided by Operating Activities:2025: $192,485 thousand 2024: $123,692 thousand 2023: $153,507 thousand Net Cash Used in Investing Activities:2025: -$15,853 thousand 2024: -$1,129,283 thousand 2023: -$79,393 thousand Net Cash Provided by (Used in) Financing Activities:2025: -$145,712 thousand 2024: $1,035,613 thousand 2023: -$77,111 thousand Bank Debt:2025: $1,472,400 thousand 2024: $1,420,900 thousand Stockholders’ Equity:2025: $1,762,067 thousand 2024: $1,779,983 thousand Total Capital:2025: $3,234,467 thousand 2024: $3,200,883 thousand Weighted Average Blended Interest Rate (2024 Credit Facilities):2025: 6.56% (range 3.54% - 6.84%) 2024: 6.00% (range 1.93% - 6.84%) Available Funds under 2024 Credit Facilities:2025: Approximately $415.5 million Days Sales Outstanding (DSO):2025: 71 days 2024: 73 days Unique MetricsGoodwill and Other Intangible Assets, net:2025: $2,869,790 thousand 2024: $2,945,470 thousand Goodwill at December 31, 2025: $2,329,799 thousand Amortization expense for client lists and other intangible assets:2025: $74.9 million 2024: $32.7 million 2023: $23.8 million Share Repurchases (under Share Repurchase Program):2025: 1.5 million shares for $109.1 million (under ROFR Agreement) and 0.9 million shares for $50.9 million (open market) 2024: No open market repurchases Shares Repurchased for Tax Withholding:2025: 0.1 million shares for $7.8 million 2024: 0.2 million shares for $11.5 million Contingent Purchase Price Liabilities:2025: -$40,248 thousand 2024: -$96,967 thousand Net expense from change in fair value of contingent purchase price liabilities:2025: $2.6 million 2024: $7.0 million 2023: $2.7 million Interest Rate Swaps (notional value):2025: $500.0 million Outlook / Guidance[CBIZ 公司]’s primary objective is to fund organic growth acceleration and meet working capital needs, including investments in client service delivery and emerging technology . Following the completion of the Transaction, the company’s second priority is to pay down debt to be within a net leverage ratio range of 2.0x and 2.5x over time . [CBIZ 公司] also plans to continue making strategic acquisitions and considers share repurchases a prudent use of financial resources .