CBIZ Reports Third-Quarter Revenue of $702 Million as Earnings Fall Below Analyst Estimates

CBIZ, Inc. (NYSE:CBZ) reported third-quarter 2026 revenue of $702 million, representing a 1.2% increase from the previous year but falling below analysts’ expectations of $727.72 million.

The US professional services company posted adjusted earnings per share of $1.21, compared with the consensus estimate of $1.28. Despite the shortfall against forecasts, CBIZ reported higher net income and adjusted EBITDA for the quarter.

The company’s shares were unchanged in after-hours trading following the announcement.

Third-Quarter Revenue Increases 1.2%

CBIZ generated revenue of $702 million during the third quarter, compared with $693.8 million in the corresponding period of 2025.

Revenue from the Financial Services division increased 1.2% year on year to $597.8 million.

The Benefits and Insurance Services division recorded revenue of $104.4 million, an increase of 1.0% from the previous year.

Both divisions contributed to the overall increase in quarterly revenue, although the company’s consolidated performance remained below market expectations.

Net Income Rises 56.7% as Adjusted EBITDA Increases

CBIZ reported third-quarter net income of $47 million, representing an increase of 56.7% from the corresponding period last year.

Earnings per share calculated under generally accepted accounting principles (GAAP) increased to $0.79 from $0.48 a year earlier.

Adjusted earnings per share reached $1.21, below the $1.28 expected by analysts.

Adjusted EBITDA increased 6.3% year on year to $132 million.

The results indicate that CBIZ recorded higher reported profitability despite relatively limited revenue growth during the quarter.

The difference between GAAP and adjusted earnings reflects the use of separate accounting measures, with adjusted figures excluding certain items under the company’s reporting methodology.

Nine-Month Revenue Reaches $2.23 Billion

For the nine months ended 30 September 2026, CBIZ reported total revenue of $2.23 billion, an increase of 0.8% compared with the same period in 2025.

Financial Services revenue increased 1.1% to $1.92 billion during the period.

Net income rose 12.2% to $219 million, while adjusted diluted earnings per share increased 5.9% to $4.64.

The nine-month results reflected higher earnings alongside a more moderate increase in consolidated revenue.

CBIZ also reported improvements in cash generation.

Operating cash flow increased by $98 million compared with the corresponding nine-month period last year, while free cash flow rose by $91 million.

These changes indicate higher cash generation during the period, although the company did not provide additional details in the supplied results regarding the factors contributing to the increases.

CBIZ Withholds Annual Guidance Ahead of Acquisition

CBIZ did not issue financial guidance for the full year 2026 or hold an earnings conference call following its third-quarter results.

The decision was linked to the company’s pending acquisition by Grant Thornton, which is backed by private equity firm New Mountain Capital.

The proposed all-cash transaction was announced on 29 July 2026 and values CBIZ at approximately $5.0 billion.

Under the agreement, CBIZ shareholders are expected to receive $55.00 in cash for each share they hold.

The acquisition would result in CBIZ becoming a privately held company following completion.

Grant Thornton Transaction Expected to Close in Fourth Quarter

The proposed acquisition remains subject to shareholder approval, regulatory clearances and other customary closing conditions.

The companies expect the transaction to be completed during the fourth quarter of 2026.

If the acquisition proceeds as planned, CBIZ common shares will be delisted from the New York Stock Exchange.

The company will subsequently operate as a private business under the ownership arrangements established by the transaction.

Until the deal closes, CBIZ remains a publicly traded company, and completion is dependent on the outstanding approvals and conditions being satisfied.

Investors Assess Results Ahead of Expected Delisting

CBIZ’s third-quarter announcement showed revenue and adjusted earnings per share below analysts’ forecasts, alongside increases in net income, GAAP earnings per share and adjusted EBITDA.

For the first nine months of 2026, the company also reported higher profitability and improvements in operating and free cash flow.

However, the pending $5.0 billion acquisition by Grant Thornton remains a significant consideration for shareholders.

With no updated full-year guidance or earnings conference call accompanying the results, attention is expected to remain on the transaction’s approval process and anticipated completion during the fourth quarter.

The proposed acquisition would end CBIZ’s listing on the New York Stock Exchange, subject to the transaction closing under the agreed terms.

CBIZ stock price