Cbiz Stock Earnings Reports

Q1 2026 highlights: CBIZ reported results largely in line with expectations — consolidated revenue $849M (+1.3% y/y), organic revenue +1.0%, adjusted EBITDA $244M (up $3M y/y), and adjusted diluted EPS $2.50 (+7% y/y). Free cash flow improved materially (helped by a one-time $53M purchase-price adjustment) and supported ~ $63M of share repurchases through April; net leverage fell to ~3.4x. Management reaffirmed 2026 guidance: revenue $2.8B–$2.9B (2%–5% growth), adjusted EBITDA $465M–$475M, free cash flow $270M–$290M, and increased adjusted EPS to $4.00–$4.10 reflecting lower share count from buybacks. Organic growth improved sequentially during Q1 and management expects to exit the year at a mid-single-digit organic growth rate as integration-related headwinds abate in H2. Strategic priorities: (1) talent attraction and lateral hires (B&I producers target ~15% growth), (2) national brand campaign and industry verticals to drive cross-selling, (3) AI investments — moving from assistive to agentic AI with early efficiency gains (example: 20% efficiency in year 1 for an attest workflow, with potential to reach 40%), and (4) offshoring expansion (targeting ~10% offshore hours in 2026 and >20% over several years). Capital allocation: continue to fund organic growth and maintenance capex, prioritize deleveraging (target <2.5x net leverage in 2027), and opportunistic share repurchases at current valuations. Management emphasized the durability of recurring revenue, improving pipeline for advisory work, and the belief that AI and scale create a competitive moat and margin expansion opportunities.