NYSE:CBZ
CBIZ, Inc.
A leading North American provider of business insurance and risk management solutions serving small to medium-sized enterprises.
Key Metrics
Investment Thesis
Bull Case
The stock is attractive due to a clear recovery in profitability with net income returning to multi-year highs alongside robust revenue growth. Strong free cash flow generation of $192.5M provides ample liquidity for shareholder returns and strategic acquisitions. The dominant position in the SMB insurance niche offers defensive characteristics during economic uncertainty.
Bear Case
High debt levels with long-term obligations of $1.39B create leverage risk if interest rates remain elevated or cash flow tightens. The massive revolver repayment of $1.43B suggests potential refinancing pressure that could strain liquidity in the coming quarters. Recent volatility in net income between 2024 and 2025 highlights sensitivity to insurance cycle fluctuations.
About CBIZ, Inc.
CBIZ, Inc. (CBZ) provides business services to small and medium-sized businesses across North America, specializing in insurance brokerage, risk management, and professional services. The company operates primarily through its Insurance Services segment, offering tailored solutions like property and casualty insurance, employee benefits, and financial planning. CBIZ serves a diverse client base ranging from sole proprietors to large enterprises with complex operational needs.
Analysis
Management Discussion
CBIZ reported a significant revenue jump to $2.76B in 2025, up from $1.81B the prior year, indicating strong market penetration. Net income recovered to $115.4M after a dip in 2024, suggesting successful cost management and improved underwriting discipline. The substantial reduction in cash and equivalents from $187.2M to $18.3M reflects aggressive share repurchases of $160.1M.
Industry Overview
The business services and insurance brokerage industry is characterized by fragmentation, with CBIZ leading the small-to-mid-market segment. Consolidation trends favor larger players capable of offering comprehensive risk solutions while maintaining personal agent relationships. Regulatory headwinds and competition from digital-first brokers present ongoing challenges to traditional operating models.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.41B | $1.59B | $1.81B | $2.76B |
| Cost of Revenue | $1.19B | $1.37B | $1.63B | $2.40B |
| Gross Profit | $223.4M | $223.2M | $182.5M | $355.4M |
| Operating Expenses | $55.0M | $58.0M | $108.8M | $121.4M |
| Operating Income | $168.3M | $165.2M | $73.7M | $234.0M |
| G&A | $55.0M | $58.0M | $108.8M | $121.4M |
| Stock-Based Comp | $14.7M | $12.3M | $13.8M | $26.0M |
| D&A | $32.9M | $36.3M | $48.1M | $98.3M |
| Depreciation | $11.2M | $12.5M | $15.3M | $23.4M |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $-26.9M | $1.1M | $-15.9M | $-73.2M |
| Pre-Tax Income | $141.5M | $166.3M | $57.8M | $160.8M |
| Income Tax | $36.1M | $45.3M | $16.8M | $45.4M |
| Continuing Ops | $105.4M | $121.0M | $41.0M | $115.4M |
| Discontinued Ops | $-18.0K | $0 | $0 | $0 |
| Net Income | $105.4M | $121.0M | $41.0M | $115.4M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $105.4M | $121.0M | $41.0M | $115.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $568.4M | $612.7M | $835.7M | $899.2M |
| Cash & Equivalents | $4.7M | $8.1M | $13.8M | $18.3M |
| Accounts Receivable | $334.5M | $380.2M | $534.9M | $556.0M |
| Other Current Assets | $229.2M | $224.4M | $287.0M | $325.0M |
| Long-Term Assets | $1.31B | $1.43B | $3.64B | $3.51B |
| PP&E (Net) | $45.2M | $57.0M | $88.2M | $81.2M |
| Goodwill | $819.9M | $865.2M | $2.33B | $2.33B |
| Operating Leases | $184.0M | $211.0M | $393.5M | $334.0M |
| Other LT Assets | $261.6M | $297.7M | $822.0M | $765.2M |
| Total Assets | $1.88B | $2.04B | $4.47B | $4.41B |
| Current Liabilities | $512.4M | $511.9M | $705.8M | $735.6M |
| Accounts Payable | $80.7M | $82.8M | $90.6M | $90.9M |
| Current Debt | — | — | $66.2M | $66.4M |
| Current Leases | $36.4M | $36.3M | $60.5M | $64.7M |
| Taxes Payable | $1.6M | $2.1M | $0 | $11.0M |
| Other Current Liab | $393.7M | $390.7M | $488.4M | $502.6M |
| Long-Term Liabilities | $653.3M | $740.1M | $1.99B | $1.91B |
| Long-Term Debt | $263.7M | $310.8M | $1.33B | $1.39B |
| LT Operating Leases | $174.5M | $203.9M | $372.6M | $307.9M |
| Other LT Liab | $212.9M | $223.3M | $276.6M | $211.4M |
| Total Liabilities | $1.17B | $1.25B | $2.69B | $2.65B |
| Shareholders' Equity | $713.5M | $791.6M | $1.78B | $1.76B |
| Retained Earnings | $734.1M | $855.1M | $896.1M | $1.01B |
| AOCI | $3.6M | $1.8M | $1.2M | $-3.3M |
| Total L&E | $1.88B | $2.04B | $4.47B | $4.41B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $105.4M | $121.0M | $41.0M | $115.4M |
| Non-Cash Adjustments | $-83.1M | $-23.9M | $161.3M | $48.6M |
| Working Capital Changes | $103.9M | $56.4M | $-78.7M | $28.4M |
| Cash from Operations | $126.1M | $153.5M | $123.7M | $192.5M |
| Capital Expenditures | $8.6M | $23.1M | $12.9M | $17.0M |
| Cash from Investing | $-99.1M | $-79.4M | $-1.13B | $-15.9M |
| Share Buybacks | $122.5M | $65.4M | $0 | $160.1M |
| Cash from Financing | $-17.3M | $-77.1M | $1.04B | $-145.7M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $9.7M | $-3.0M | $30.0M | $30.9M |
| Beginning Cash | $150.5M | $160.1M | $157.1M | $187.2M |
| Ending Cash | $160.1M | $157.1M | $187.2M | $218.1M |
Frequently Asked Questions
How does CBIZ, Inc. make money?
The primary revenue stream is Insurance Services, which includes commercial lines, employee benefits, and financial services. The company also generates revenue through Professional Services such as advisory consulting, forensic accounting, and litigation support. Additional segments include specialized units like Claims Management and Health & Safety Services that offer niche solutions to corporate clients.
What are the main risks for CBZ?
Volatility in property and casualty insurance markets can lead to premium fluctuations and higher loss ratios. Regulatory changes at state and federal levels could increase compliance costs or restrict certain underwriting practices. Economic downturns may reduce demand for non-essential professional services or delay client expansions. Rising claims severity from natural disasters could significantly impact net income.
What is CBZ's competitive advantage?
CBIZ leverages a highly trained network of independent agents who provide personalized service unlike large broker-dealers. The company's diversified portfolio across multiple insurance lines provides stable cash flows regardless of market cycles. Its deep specialization in serving the small and mid-sized business (SMB) segment creates high switching costs for clients.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.