Cbiz has exceeded profit expectations in the second quarter of 2025, reporting an adjusted earnings per share of $0.95, surpassing analyst estimates of $0.84 by 12.6%. This represents a remarkable 64% increase compared to the same period last year. However, the financial service provider fell slightly short of revenue projections, generating $684 million against forecasted $701.43 million. The 2024 Markham acquisition is proving to be a strategic masterstroke, with integration progressing ahead of schedule and expected to deliver synergies exceeding the initially targeted $25 million before 2026. The company’s adjusted EBITDA surged 128% to $66 million, improving margins to 17%.
Pricing Pressure Challenges Growth
For the first time in years, Cbiz faces pricing pressure, managing only 4% average price increases in the first half of 2025, down from the mid-to-high single-digit growth achieved in previous years. This reflects growing cost consciousness among mid-market clients amid economic uncertainties. The discretionary consulting business is particularly affected as clients postpone projects until economic conditions stabilize. Despite these challenges, Cbiz maintained its annual forecast of $2.8-2.95 billion in revenue and adjusted earnings per share of $3.60-3.65, though management now expects results to trend toward the lower end of these ranges as difficult market conditions persist.
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