CBIZ, Inc.

CBIZ reported first-quarter 2026 revenue of $849 million, up 1.3% year over year, with organic revenue growth of 1%. Adjusted EBITDA was $244 million, up $3 million year over year, and adjusted EBITDA margin increased by 10 basis points. Adjusted diluted EPS was $2.50 versus $2.33 a year ago, up 7%. Free cash flow improved $64 million year over year, primarily due to $53 million of proceeds from the final purchase price adjustment. For 2026, the company reaffirmed revenue guidance of $2.8 billion to $2.9 billion and free cash flow guidance of $270 million to $290 million. Adjusted EBITDA guidance was updated to $465 million to $475 million, and adjusted EPS was raised to $4.00 to $4.10, assuming a weighted average fully diluted share count of about 60.5 million.

Jerry Grisko said CBIZ entered 2026 with a clear plan and delivered performance that was in line with expectations, with year-over-year growth in revenue, profitability and free cash flow. He emphasized that the company is now operating as one integrated platform, with better organic growth progression through the quarter, improving market conditions and a stronger go-to-market model built around 12 industry verticals, cross-selling and AI. His tone was confident and upbeat, especially on the company’s ability to exit the year at its mid-single-digit organic growth target and return to its long-term algorithm.

Brad Lakhia highlighted the key financial drivers: revenue of $849 million, adjusted EBITDA of $244 million, adjusted diluted EPS of $2.50, and free cash flow improvement of $64 million year over year. He said the company used strong cash generation to fund about $63 million in share repurchases through the end of April, while net leverage improved to approximately 3.4x from 3.9x a year earlier. He also noted the 2026 guidance changes: revenue unchanged at $2.8 billion-$2.9 billion, adjusted EBITDA updated to $465 million-$475 million, adjusted EPS raised to $4.00-$4.10, and free cash flow unchanged at $270 million-$290 million.

Analysts focused on AI’s potential to pressure pricing, whether clients could unbundle services, producer hiring in Benefits and Insurance, repurchase pace, pricing trends, macro conditions and integration progress. Management argued that regulated professional services require expertise and judgment that clients cannot easily replicate with AI tools, and said AI should strengthen CBIZ’s competitive position versus smaller rivals that cannot invest at the same scale. On B&I, management reiterated a goal of about 15% year-over-year producer growth in 2026; on buybacks, they said repurchases will remain active and opportunistic because they view the stock as undervalued and free cash flow as strong.