CBIZ posts third-quarter profit surge ahead of Grant Thornton acquisition

CBIZ, Inc. reported third-quarter net income of $47 million, a 56.7% increase, while its total revenue rose 1.2% to $702 million. The Cleveland-based professional services firm disclosed these results on October 19, 2026, marking its final public earnings release before becoming a private company.

The company’s adjusted EBITDA increased by 6.3% to $132 million, and adjusted diluted earnings per share climbed 14.2% to $1.21. For the nine months ended September 30, 2026, total revenue reached $2,233 million, up 0.8%, while net income grew 12.2% to $219 million. GAAP earnings per share for the nine-month period stood at $3.62, an 18.3% increase. Despite the revenue growth, adjusted EBITDA for the nine-month period declined 1.2% to $479 million.

These financial figures were released in the context of a pending all-cash merger with Grant Thornton. As previously disclosed on July 29, 2026, CBIZ and an affiliate of Grant Thornton entered into a definitive merger agreement. The transaction values CBIZ at an enterprise value of $5.0 billion, or $55.00 per share, with backing from New Mountain Capital. The proposed acquisition is expected to close in the fourth quarter of 2026, subject to CBIZ shareholder approval and required regulatory clearances.

Upon completion of the transaction, CBIZ’s common stock will be delisted from the New York Stock Exchange, and the company will cease to be a public entity. Consequently, CBIZ stated it will not provide full-year 2026 financial guidance or host a conference call to discuss the third-quarter results. The company cited the pending merger as the reason for discontinuing these standard investor communications.

CBIZ operates as a national professional services advisor to middle-market businesses, offering expertise in accounting, tax, advisory, benefits, insurance, and technology. The firm employs more than 9,500 team members across 23 major markets in the United States. The merger agreement identifies several risks that could affect the transaction's completion or timing, including the possibility that regulatory approvals may not be obtained on schedule or that shareholder approval may not be secured.

The release notes that uncertainty remains regarding the financial performance of the combined company following integration. Potential challenges include delays in realizing revenue and cost synergies, difficulties in retaining key personnel, and unexpected costs associated with the merger. Additionally, the company highlighted risks related to debt financing for the transaction and the potential impact of the merger's pendency on client relationships and employee retention.

The financial results show a divergence between operating metrics over different periods. While third-quarter net income saw a significant jump, the nine-month adjusted EBITDA experienced a slight decline. Operating cash flow for the nine months increased by $98 million, and free cash flow rose by $91 million. The company’s forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projected outcomes.

The proposed transaction represents a significant shift for CBIZ, which has served clients across various industries nationwide. With the acquisition expected to close in the fourth quarter, CBIZ will transition from a publicly traded entity to a private one under Grant Thornton’s ownership. The finalization of this deal remains contingent on satisfying customary closing conditions and navigating the regulatory landscape.