CBIZ Q1 2025 presentation: Revenue surges 69.5% following Marcum acquisition

Introduction & Market Context

CBIZ Inc . (NYSE:CBZ) presented its first quarter 2025 results on April 24, 2025, highlighting substantial growth following its strategic acquisition of Marcum. The professional services provider reported a 69.5% increase in total revenue for Q1 2025, with particularly strong performance in its Financial Services segment, which grew by 91.5% year-over-year.

The presentation positions CBIZ as the 7th largest accounting firm in the United States according to Accounting Today’s 2025 rankings, with approximately $2.8 billion in pro forma revenue. The company serves over 135,000 clients across 22 major markets with more than 10,000 employees.

As shown in the following overview of CBIZ’s national presence and key statistics:

Quarterly Performance Highlights

CBIZ reported impressive financial results for Q1 2025, largely driven by the Marcum acquisition. The company’s total revenue growth of 69.5% significantly outpaced its historical growth rates. Financial Services, the company’s largest segment, saw revenue surge by 91.5%, while Benefits and Insurance Services grew by a more modest 4.2%. The National Practices segment experienced a 14.2% decline.

For Q1 2025, CBIZ reported GAAP diluted earnings per share of $1.91 and adjusted diluted EPS of $2.29. The company’s performance in the first quarter positions it well to achieve its full-year 2025 guidance.

The following slide details the company’s Q1 2025 performance and 2025 guidance:

These results follow a strong performance in Q4 2024, when CBIZ exceeded market expectations with an EPS of -$0.20 compared to a forecast of -$0.22, and revenue of $460.28 million against a forecast of $353 million.

Strategic Initiatives

The Marcum acquisition represents a transformative move for CBIZ, significantly expanding its Financial Services segment and strengthening its market position. The strategic rationale behind the acquisition includes solidifying CBIZ’s position in the middle market, accelerating growth, enhancing talent acquisition and retention, and expanding industry expertise.

The following slide outlines the strategic rationale for the Marcum acquisition:

CBIZ has developed a comprehensive three-phase integration plan for Marcum:

• At closing in Q4 2024: Focus on people-focused onboarding, brand elevation, client engagement, and alignment of financial processes
• First 18 months: Alignment of operational processes, standardization of client services, and consolidation of resources
• 2026 and beyond: Realization of $25M+ in cost synergies and process innovation

The company expects the Marcum acquisition to be accretive in 2025, with an estimated contribution to adjusted EPS of approximately 10%.

Detailed Financial Analysis

The Marcum acquisition has significantly altered CBIZ’s revenue composition. On a pro forma basis, Financial Services now represents 84% of total revenue, up from 75% pre-acquisition. Benefits and Insurance Services accounts for 14% (down from 22%), while National Practices represents 2% (down from 3%).

As illustrated in the following revenue breakdown charts:

CBIZ emphasizes the stability of its business model, with approximately 77% of revenue coming from recurring services and 23% from project-based work. This high proportion of recurring revenue contributes to the company’s impressive 90% client retention rate and provides visibility into future performance.

The company’s balance sheet has been impacted by the Marcum acquisition, with pro forma net leverage of adjusted EBITDA at approximately 3.25x to 3.50x at close. However, CBIZ has outlined a clear path to deleveraging, expecting to reduce this ratio to approximately 2.00x to 2.25x within 24 months post-close, primarily through strong free cash flow generation.

The following slide illustrates CBIZ’s deleveraging plan:

Forward-Looking Statements

CBIZ has provided guidance for 2025, projecting revenue between $2.8 billion and $2.95 billion, GAAP EPS between $1.97 and $2.02, and adjusted EPS between $3.60 and $3.65. The company also expects continued strong cash flow generation.

Looking beyond 2025, CBIZ has set ambitious long-term annual growth goals of 8-10% for revenue and 1.5x-2x for earnings growth, highlighting the company’s confidence in its business model and growth strategy.

The following slide summarizes CBIZ’s financial goals:

CBIZ’s growth strategy combines internal growth drivers (net new business, pricing, cross-serving, producer development) with strategic acquisitions. The company targets acquisitions that enter attractive geographic markets, strengthen existing markets, add breadth of service or depth of expertise, expand into high-growth industries, and provide access to top talent.

Investment Highlights

CBIZ presents a compelling investment case based on its operational leverage, strong financial attributes, and consistent results. The company has demonstrated its ability to grow earnings faster than revenue, with a 2019-2023 revenue growth CAGR of 13.8% and adjusted EPS growth CAGR of 17.6%.

The following slide outlines CBIZ’s key investment highlights:

The company has significantly outperformed the broader market and its peer group in terms of shareholder returns. Over the five-year period from December 2019 to December 2024, CBIZ delivered superior cumulative total returns compared to the S&P 500 Index, the Russell 2000 Index, and its peer group.

As illustrated in the following total shareholder return comparison:

Despite these strong results and positive outlook, CBIZ’s stock experienced a slight decline of 0.36% in pre-market trading following its Q4 2024 earnings release, closing at $85.01, near its 52-week high of $89.25. As of the most recent data, the stock is trading at $77.24, with a change of $1.28 or 1.69% from its previous close.

With its expanded scale following the Marcum acquisition, strong recurring revenue base, and clear growth strategy, CBIZ appears well-positioned to continue its trajectory of above-market growth and shareholder value creation.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.