CBIZ Reports 69.5% Revenue Growth to $838M in Latest Quarter

CBIZ, Inc. reported significant financial growth in its latest quarterly filing, with revenue for the three months ended March 31, 2025, reaching $838.0 million, a 69.5% increase from $494.3 million in the same period last year. This surge in revenue was largely attributed to the acquisition of Marcum LLP, which contributed approximately $333.4 million, or 66.8%, of the incremental revenue. The company's net income also saw a substantial rise, totaling $122.8 million, or $1.91 per diluted share, compared to $76.9 million, or $1.53 per diluted share, in the prior year.

In terms of operational metrics, CBIZ's accounts receivable increased significantly, reflecting the growth in revenue. As of March 31, 2025, accounts receivable stood at $735.4 million, up from $534.9 million at the end of 2024. The company reported a trailing twelve-month Days Sales Outstanding (DSO) of 96 days, an improvement from 101 days a year earlier. The increase in customer accounts and the successful integration of Marcum's operations are key indicators of the company's expanding market presence.

Strategically, CBIZ has focused on enhancing its service offerings and market reach through acquisitions. The acquisition of Marcum, completed in November 2024, has been a pivotal move, allowing CBIZ to strengthen its position in the financial services sector. The company has also established a Captive Insurance Company to provide stop-loss coverages, which commenced operations in January 2025. This strategic direction aims to bolster CBIZ's capabilities in serving small and medium-sized businesses across the United States and parts of Canada.

Despite the positive financial performance, CBIZ acknowledged challenges in the current economic environment, which has led to a decrease in demand for nonrecurring project-based services. The company anticipates that this softness in demand may persist, potentially impacting its ability to forecast future revenue. Looking ahead, CBIZ aims to prioritize debt reduction while maintaining liquidity for future strategic acquisitions, as it navigates the complexities of integrating Marcum's operations and managing its increased leverage following the acquisition.

Overall, CBIZ's first-quarter results reflect a strong financial performance driven by strategic acquisitions and operational growth, while also highlighting the need for careful management of market conditions and integration challenges moving forward.