CBIZ, Inc. (CBZ): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine driving a major national professional services advisor, and frankly, the model for a firm like CBIZ, Inc. is complex, blending accounting, tax, and insurance under one roof for the U.S. middle market. As someone who's spent two decades dissecting these structures, I can tell you their current strategy is all about scale and aggressive growth, which means managing big numbers: they are projecting full-year 2025 revenue in the $2.8 billion to $2.95 billion range, all while absorbing significant near-term costs like the projected $75 million in acquisition integration expenses. It's fascinating how they fund this expansion, given their Q1 2025 operating expenses hit $609.9 million and they carried roughly $1.6 billion in net debt as of Q2 2025, all supported by over 10,000 team members. This Business Model Canvas lays out exactly how they translate that massive operational footprint into revenue across their nine core blocks; dive in below to see the precise mechanics.

CBIZ, Inc. (CBZ) - Canvas Business Model: Key Partnerships

CBIZ CPAs P.C. operates under an alternative practice structure with CBIZ, Inc. and its subsidiaries, as defined by AICPA Ethics Interpretation 101-14. CBIZ CPAs P.C. is the licensed independent CPA firm providing attest services to clients. CBIZ, Inc. and its subsidiaries provide the tax, advisory, and consulting services. This structure was reinforced by the name change of Mayer Hoffman McCann P.C. to CBIZ CPAs P.C. in August 2024 to better align with CBIZ, Inc.'s non-attest practices.

CBIZ, Inc. depends on key vendors and partners to execute strategic initiatives, particularly in technology. The company partners with leading cybersecurity companies and organizations, leveraging third-party technology and expertise to monitor deployments, scan for vulnerabilities, and conduct penetration testing.

The technology provider ecosystem includes internal teams dedicated to emerging technology, such as Artificial Intelligence. CBIZ has a partnership with Rillet to transform finance operations using an AI-Powered ERP system.

The acquisition of the non-attest business of Marcum LLP, which closed in November 2024, significantly expanded the partnership base and service delivery scale. This transaction positions CBIZ as the largest full-service professional services advisor of its kind in the U.S. The integration is expected to contribute approximately 10% to adjusted diluted EPS in 2025.

The scale of the combined entity, post-Marcum acquisition, is reflected in these key figures for the 2025 operating environment:

• Expected pro forma revenue for the full year 2025 is a range of $2.8 billion to $2.95 billion.
• Nine months ended September 30, 2025, total revenue reached $2,215.3 million.
• Third quarter of 2025 revenue was $693.8 million, up 58.1% year-over-year.
• Full-year 2025 guidance for Adjusted fully diluted earnings per share is within a range of $3.60 to $3.65.

The integration of Marcum's non-attest business is projected to yield over $25 million in annual cost synergies by 2026.

The combined scale achieved through the Marcum acquisition is detailed below:

Metric	CBIZ (Pre-Acquisition Context)	Marcum (Non-Attest Business)	Combined Pro Forma (2025 Expectation)
Annualized Revenue	FY23 Net Revenue: $1.35 billion	N/A (Non-attest portion)	Approximately $2.8 billion
Client Count	N/A	Serves more than 35,000 clients	135,000 clients
Team Members	N/A	Employs more than 3,500 professionals	More than 10,000 team members
U.S. Locations	N/A	43 offices	Across 160 U.S. locations

CBIZ CPAs P.C. has grown into a national independent CPA firm with a footprint in major metropolitan markets across the country, adding dedicated CPAs from firms that previously sold their tax and consulting practices to CBIZ, Inc.

The reliance on external technology and cybersecurity partners is a stated risk factor, as failure to perform by these third parties could adversely affect CBIZ's ability to execute strategic initiatives.

CBIZ's technology practice professionals help prevent, identify, and respond to cyber attacks, designing and implementing customized security solutions.

• CBIZ dedicates teams to AI implementation pillars: strategy, governance and security, data management, and their own business-first AI platform.
• Gartner predicts 45% of organizations will experience software supply chain attacks by 2025, highlighting the importance of vendor risk management.

Finance: review 13-week cash flow projection incorporating Marcum synergy realization by Friday.

CBIZ, Inc. (CBZ) - Canvas Business Model: Key Activities

You're looking at the core engine of CBIZ, Inc. (CBZ) right now, which is heavily focused on integrating the massive Marcum acquisition while driving organic growth in its essential service lines. The key activities are all about service delivery scale and successful post-merger execution.

Delivering core accounting, tax, and advisory services remains the largest component of the business. This activity is supported by the sheer scale achieved, serving over 135,000 clients across more than 25 industries nationwide. The Financial Services practice group was the dominant revenue contributor in the last full fiscal year.

Service Category	FY 2024 Revenue Contribution Percentage
Financial Services (Accounting, Tax, Advisory)	75.1%
Benefits and Insurance Services	22.1%
National Practices	2.8%

Providing benefits, insurance, and payroll administration services is the other major pillar. This segment shows resilience; for example, in the third quarter of 2024, its total revenue increased by 3.7% year-over-year, with all growth being organic. The Benefits and Insurance segment delivered $102 million in revenue in the second quarter of 2025, achieving a 20% adjusted EBITDA margin for that period.

Executing strategic growth through acquisitions and integration is a defining activity. CBIZ completed five strategic acquisitions in 2024, including the transformational Marcum LLP deal, which closed on November 1, 2024. This activity has rapidly scaled the firm; post-acquisition, CBIZ grew to a team of more than 10,000 team members across more than 160 locations in 22 major markets. Management is actively working to realize the expected $25 million synergy opportunity identified over approximately three years from the Marcum transaction.

Proactive revenue and cost control initiatives, including workforce integration, are critical to managing the combined entity's profitability. The focus on integration and cost discipline has yielded results, with the year-to-date 2025 Adjusted EBITDA margin reaching 23%, an increase of nearly 500 basis points versus the prior year. As part of workforce integration, management reported nearly 450 fewer full-time equivalent employees in core businesses compared to the prior year as of the second quarter of 2025. The full-year 2025 Adjusted EBITDA guidance is set between $450 million and $456 million.

Maintaining compliance with evolving regulatory and tax changes is an ongoing service delivery activity that underpins client retention. The company is planning for the 2025 fiscal year with an expected effective tax rate of approximately 29%. The overall scale of operations is reflected in the nine-month 2025 revenue of $2,215.3 million, a 63.7% increase over the same period in 2024.

• Service delivery volume for the first half of 2025 reached $1.5 billion in consolidated revenue.
• The company is managing a debt load, with net debt ending Q2 2025 at approximately $1.6 billion, representing 3.7x leverage.
• The company executed $71 million in share repurchases during the second quarter of 2025.

Finance: draft 13-week cash view by Friday.

CBIZ, Inc. (CBZ) - Canvas Business Model: Key Resources

You're looking at the hard assets and capabilities that make CBIZ, Inc. a major player in professional services as of late 2025. Honestly, the scale they achieved through recent M&A activity is what defines this section now.

The human capital is definitely a core asset. CBIZ, Inc. has grown to a team of more than 10,000 team members as of October 2025. This headcount is a key competitive advantage, reflecting the combination of their existing staff and the professionals brought on board from the Marcum acquisition.

This large team operates through a significant national footprint. You'll find them across more than 160 locations, strategically positioned within 22 major U.S. markets coast to coast. That's a big jump from their pre-acquisition footprint of over 120 offices in 33 states.

The acquisition of Marcum LLP in November 2024 was a massive resource infusion. This transaction, valued at approximately $2.3 billion in cash and stock, brought in significant intangible assets, namely client relationships and expertise. The combined entity now serves over 135,000 clients.

Here's a quick look at the scale of that key intangible asset acquisition:

Metric	Marcum Contribution (Non-Attest)	CBIZ, Inc. Post-Acquisition Scale
Approximate Annual Revenue	$1.2 billion	Projected $2.8 billion to $2.95 billion for full-year 2025
Professionals/Team Members	Over 3,500	Over 10,000
Client Base	Over 35,000	Over 135,000

The depth of specialized knowledge is codified in their structure. CBIZ, Inc. utilizes 13 national industry teams to deliver collective insight and points of view based on their industry knowledge and expertise.

The firm relies on proprietary technology platforms to support this scale. These systems are used for service delivery and to drive internal efficiency across the organization.

You can see the impact of these resources reflected in their financial projections. The expected full-year 2025 revenue range is $2.8 billion to $2.95 billion.

The core service delivery capabilities are supported by:

• The 10,000+ team members.
• The network of 160+ locations in 22 major markets.
• The integration of Marcum's non-attest business, which instantly boosted scale.
• The 13 national industry teams providing specialized knowledge.

Finance: draft 13-week cash view by Friday.

CBIZ, Inc. (CBZ) - Canvas Business Model: Value Propositions

You're looking at what makes CBIZ, Inc. stick with its clients, especially when they are navigating the complexities of the middle market. It's not just about filing returns; it's about being an embedded strategic resource.

Full-service professional advice beyond just accounting and tax.

CBIZ, Inc. moves well past basic compliance. The Financial Services Division delivers traditional accounting and tax compliance, but the real value is in the advisory work. This includes specialized areas like transaction advisory, risk advisory, litigation support, and valuation services. They also offer specific consulting, such as healthcare consulting, which broadens the scope of advice significantly.

National resources and technical depth delivered with local support.

The company positions itself as the solution for middle-market businesses that are too big for a small local shop but don't need the impersonal scale of the largest national firms. CBIZ, Inc. combines national resources with local relationships to help businesses move forward with confidence. As of the second quarter of 2025, CBIZ, Inc. had more than 10,000 team members operating across more than 160 locations in 22 major markets coast to coast.

Expertise in managing middle-market cost pressures and operational resilience.

CBIZ, Inc. focuses squarely on the middle market, which they see as the engine of innovation. When uncertainty hits, this focus translates into specific, actionable insights. For example, their Q2 2025 Mid-Market Pulse, which surveyed 1,500 business leaders, showed that leaders were prioritizing cost control and operational resilience amid rising costs and global trade uncertainty. Data from a survey conducted in late 2024 showed that middle-market CEOs were reacting to tariff concerns:

Cost Pressure Response Area	Percentage Considering Action (Late 2024 Data)
Considering relocating production	80.9%
May reduce workforce	75.4%
Plan to delay investments	72.3%
Exploring new supplier options	66.4%

This data shows you exactly what pressures CBIZ, Inc. is helping clients manage.

High client retention rates and deep, meaningful client relationships.

The proof of the value proposition is in the stickiness of the client base. CBIZ, Inc. reports an estimated client retention rate of approximately 90%. Furthermore, in their Q1 2025 earnings call, the President and CEO stated they continue to experience strong employee and client retention rates.

Integrated solutions across financial, insurance, and advisory segments.

The model is built on integration, which drives cross-selling and a holistic view of the client. This means delivering guidance across several core areas. Here's a look at the scale of the combined entity following the Marcum acquisition, which closed November 1, 2024:

• FY 2024 Total Revenue was $1,813.5 million.
• FY 2025 Total Revenue Guidance is a range of $2.8 billion to $2.95 billion.
• FY 2025 Adjusted EBITDA Guidance is set between $450 million to $456 million.
• Q2 2025 Total Revenue reached $683.5 million, a 62.7% increase year-over-year.
• For the first six months of 2025, Total Revenue was $1,521.5 million, up 66.4% over the first six months of 2024.

The integration is on track, with management identifying a $25 million synergy opportunity over approximately 3 years.

Finance: draft the 13-week cash view incorporating the Q2 2025 actuals by Friday.

CBIZ, Inc. (CBZ) - Canvas Business Model: Customer Relationships

You're looking at how CBIZ, Inc. (CBZ) keeps clients close; it's built on scale and personal touch. The firm fields a large team to service its base, reporting more than 10,000 team members across more than 160 locations in 22 major markets coast to coast as of early 2025.

The core of the model relies on keeping clients long-term. Management specifically noted experiencing strong client retention rates following the Marcum integration as of the first quarter of 2025. This stability is underpinned by the nature of the work itself, where essential and recurring services account for approximately 77% of CBIZ's services.

The model is definitely relationship-driven, aiming to maximize value through existing connections. For instance, the Benefits and Insurance (B&I) team was reported as actively pursuing cross-selling opportunities with legacy Marcum clients following the integration. This focus helps drive overall scale, as seen in the reported third quarter 2025 sales of US$693.82 million, with year-to-date sales reaching US$2.22 billion as of September 30, 2025.

The consultative element helps clients manage uncertainty. The firm's own research, the Mid-Market Pulse, is built from 1,500 survey responses from clients and CBIZ advisors, showing how leaders respond to pressures like cost inflation and regulatory shifts. This insight gathering directly informs the advisory approach used to help clients navigate these complex changes.

Here's a look at the financial scale supporting these relationships across the first half of 2025:

Metric	Value	Period
Total Revenue	$1,521.5 million	Six Months Ended June 30, 2025
Net Income	$164.7 million	Six Months Ended June 30, 2025
Adjusted Diluted EPS	$3.26	Six Months Ended June 30, 2025
Full-Year 2025 Revenue Guidance Range	$2.8 billion to $2.95 billion	Full Year 2025 Estimate

The firm's ability to deliver strong earnings and cash flow in varying climates is a direct outcome of this structure. The first quarter of 2025 saw total revenue hit $838.0 million. Plus, the second quarter 2025 consolidated revenue was $683.5 million.

CBIZ, Inc. (CBZ) - Canvas Business Model: Channels

You're looking at how CBIZ, Inc. gets its services-from tax advice to insurance brokerage-into the hands of its clients. The model relies heavily on a physical presence backed by national expertise, which is key to serving the middle market.

Direct sales and consulting via local offices and professionals

This is the bedrock of the CBIZ, Inc. model: local professionals delivering national-caliber advice. The reach is extensive, allowing for that personalized, local touch you mentioned. As of late 2025 context, the firm operates with over 10,000 team members across more than 160 locations in 22 major markets. This physical network supports the delivery of services to over 135,000 clients. The structure is designed to combine national resources with local relationships, which is how they maintain strong client retention, reportedly at a high level.

• The firm's structure includes local offices in 33 states plus the District of Columbia.
• The team size is substantial, exceeding 6,700 professionals historically, with newer data pointing toward over 10,000 team members.

CBIZ website and digital platforms for client insights and resources

The digital front door is certainly important for resource distribution and brand presence, found at www.cbiz.com. While the core business is high-touch consulting, digital channels support engagement and thought leadership. For instance, in Q4 2025, the firm's Mid-Market Pulse survey indicated that 44% of leaders felt AI and digital transformation benefited their business, showing the relevance of digital topics to their client base. This suggests the website and associated digital content are crucial for capturing interest in these modern service areas.

National Practices segment for specialized, high-growth services

The National Practices segment channels specialized expertise that might not fit neatly into the core Financial Services or Benefits and Insurance buckets. This segment has shown significant growth momentum recently, even though it saw a dip earlier in the year. For the nine months ended September 30, 2025, this segment generated $35,034 thousand in revenue. This is a key area for cross-selling and high-value advisory work. Here's how the segment revenue stacked up for the first nine months of 2025 compared to the prior year, showing the impact of the Marcum acquisition on overall scale:

Segment	Revenue (Nine Months Ended Sept 30, 2025)	Revenue (Nine Months Ended Sept 30, 2024)	Q1 2025 YoY Change	YTD Growth (as of Q2 2025)
Financial Services	$1,862,002 thousand	$1,004,158 thousand	91.5%	N/A
Benefits and Insurance Services	$318,292 thousand	$309,867 thousand	4.2%	Low single digits
National Practices	$35,034 thousand	$39,168 thousand	-14.2%	13%

Note that the 13% year-to-date growth for National Practices reported in Q2 2025 contrasts with the -14.2% decline seen in Q1 2025 revenue figures.

Webinars and publications for thought leadership and client engagement

CBIZ, Inc. uses thought leadership to engage prospects and existing clients, which directly feeds the sales pipeline. The firm publishes its quarterly Mid-Market Pulse survey, which surveyed over 1,200 CBIZ clients and professionals for its Q4 2025 edition. This publication acts as a primary channel for demonstrating deep industry insight, covering topics like cost pressures and the impact of new tax provisions. The company also highlights its 13 national industry teams as a source of collective insight provided to clients.

Finance: draft 13-week cash view by Friday.

CBIZ, Inc. (CBZ) - Canvas Business Model: Customer Segments

You're looking at the core clientele for CBIZ, Inc. as of late 2025. The focus is definitely on the engine of the U.S. economy, which is the middle market.

U.S. middle-market businesses form the primary customer base for CBIZ, Inc. The firm supports these companies with industry knowledge and expertise across accounting, tax, advisory, benefits, insurance, and technology services. CBIZ, Inc. has more than 10,000 team members operating across more than 160 locations in 22 major markets coast to coast. The company reports an impressive client retention rate of 90%. The insights used to gauge this segment come from surveys like the Q4 2025 Mid-Market Pulse, which draws on input from more than 1,200 CBIZ clients and client service professionals.

CBIZ, Inc. sees specific industry concentrations where their services are highly relevant. For instance, leaders in the Construction, Healthcare, and consumer products sectors continue to experience the greatest strain from labor and supply chain costs as of Q4 2025. In the Q2 2025 Mid-Market Pulse, 46% of leaders cited tariffs and trade policy as a top concern, particularly in construction and healthcare.

The structure of CBIZ, Inc.'s own services suggests where the largest client revenue concentration lies following the Marcum acquisition. The Financial Services segment now represents 84% of total revenue, while Benefits and Insurance Services accounts for 14%, and National Practices is at 2% on a pro forma basis for Q1 2025. The National Practices group serves a single client under a cost-plus contract expiring on December 31, 2028, with that largest client generating approximately 2.3% of consolidated revenue in 2024.

Private equity sponsors and C-suite professionals are key segments, particularly given the M&A environment. Through the second quarter of 2025, middle-market deal value climbed 18% Year-over-Year to nearly $100 billion across almost 1,000 deals. Equity contributions eased to 46% of buyout value in Q3 2025. Valuations have averaged about 12x EBITDA. Private equity firms are focusing on smaller buyouts and bolt-ons, which now represent roughly three-quarters of buyouts.

Businesses requiring attest services are served by CBIZ CPAs P.C. For example, Applied Digital Corporation ratified CBIZ CPAs P.C. as its independent registered public accounting firm for the fiscal year ending May 31, 2026. The company emphasizes that approximately 77% of its revenue comes from recurring services, which would include many core attest and compliance engagements.

Here's a quick look at the scale and focus areas:

Segment Characteristic	Data Point/Metric	Reference Period/Context
Primary Market Focus	U.S. Middle Market	Ongoing, evidenced by Mid-Market Pulse survey
Client Survey Size	More than 1,200 professionals/clients	Q4 2025
Client Retention Rate	90%	Reported for recurring services
Revenue Concentration (Financial Services)	84% of total revenue	Q1 2025 Pro Forma
Revenue Concentration (Benefits & Insurance)	14% of total revenue	Q1 2025 Pro Forma
Industry Strain Mentioned	Construction, Healthcare	Q4 2025 Mid-Market Pulse
Largest Single Client Revenue Share	2.3% of consolidated revenue	2024
Middle Market Deal Value Growth (YoY)	18%	Through Q2 2025
Average Valuation Multiple	About 12x EBITDA	Q3 2025

You should track the recurring revenue percentage, which stands at approximately 77%, as this is the bedrock supporting the demand for core services like attest work.

CBIZ, Inc. (CBZ) - Canvas Business Model: Cost Structure

The cost structure for CBIZ, Inc. (CBZ) is heavily weighted toward personnel and the ongoing financial impact of its major strategic moves, particularly the Marcum acquisition.

Employee compensation and benefits represent a foundational cost, supporting over 10,000 team members across its national platform. You're managing a large professional workforce, so payroll and associated benefits are your largest recurring expense category. For context on benefits, the company provides comprehensive medical and detail insurance, retirement savings, and other support programs for its staff.

A significant, though non-recurring, cost component involves acquisition integration. For fiscal year 2025, CBIZ, Inc. budgeted integration costs related to acquisitions totaling approximately $75 million. This covers consulting, technology upgrades, and personnel alignment necessary to merge operations, especially following the Marcum transaction.

Core operating expenses are substantial. For the first quarter of 2025, total reported operating expenses reached $609.9 million. This figure reflects the scaled-up operational base post-acquisition.

Financing costs are also a material factor in the cost base. As of the second quarter of 2025, CBIZ, Inc. reported net debt of approximately $1.51 billion. Interest expense is directly tied to this balance, which increased significantly in Q1 2025 due to the acquisition funding and borrowing rates; for instance, Q1 2025 interest expense was $21,000,000 higher than the prior year period.

Another key non-cash cost is the amortization of acquired intangible assets. For the full year 2025 guidance, this expense was projected to be $75.1 million.

Here's a quick look at the major financial components driving the cost base for 2025:

Cost Component	2025 Financial Figure	Period/Context
Operating Expenses (Total)	$609.9 million	Q1 2025
Acquisition Integration Costs (Budgeted)	$75.0 million	Full Year 2025 Guidance
Amortization of Acquired Intangible Assets (Projected)	$75.1 million	Full Year 2025 Guidance
Net Debt	$1.51 billion	As of Q2 2025

You should also track these specific expense drivers:

• Interest expense was $21,000,000 higher year-over-year in Q1 2025 due to increased borrowing.
• The amortization of acquired intangible assets was projected at $1.15 per share for the full year 2025 guidance.
• Integration costs related to acquisitions were projected at $1.15 per share for the full year 2025 guidance.
• Deferred compensation plan expenses are included within Operating expenses and Corporate general and administrative expenses.

Finance: draft 13-week cash view by Friday.

CBIZ, Inc. (CBZ) - Canvas Business Model: Revenue Streams

You're looking at how CBIZ, Inc. (CBZ) brings in its money as of late 2025, which is heavily influenced by the Marcum acquisition and current economic conditions. The overall picture for the full year 2025 points to total revenue being expected at the low end of the $2.8 billion to $2.95 billion range. This expectation reflects management's view that market conditions seen in the first half of the year will likely continue through the remainder of the year, particularly impacting non-recurring service lines.

The business model relies on a mix of revenue sources, which management notes provides stability. Specifically, the recurring and nonrecurring revenue mix was updated to 72% recurring and 28% nonrecurring as of the second quarter of 2025. This high proportion of recurring essential business revenue helps cushion against volatility in the more market-sensitive areas of the business.

Here is a look at the revenue breakdown by the main operating segments, based on the nine months ended September 30, 2025, which gives you a solid view of where the bulk of the revenue is coming from following the recent strategic moves.

Segment	Revenue (Nine Months Ended September 30, 2025)	Revenue (Q3 2025)
Financial Services segment revenue	$1,862,002 thousand	$578,522 thousand
Benefits and Insurance Services segment revenue	$318,292 thousand	$103,387 thousand
National Practices segment revenue	$35,034 thousand	$11,909 thousand
Total Revenue (Nine Months)	$2,215,328 thousand	$693,818 thousand

The Financial Services segment, which covers accounting, tax, and advisory work, is clearly the largest driver of top-line results, especially after the integration of Marcum. For instance, in the first quarter of 2025, this segment saw revenue surge by 91.5% year-over-year.

The revenue streams within these segments include:

• Financial Services segment revenue: Accounting, tax compliance, and advisory services.
• Benefits and Insurance Services segment revenue: Helping businesses manage employee benefits and insurance needs. This segment showed more modest growth, increasing by about 4.2% in Q1 2025.
• National Practices segment revenue: Specialized services to niche markets, which can include government healthcare consulting and technology solutions. This segment actually saw a 14.2% decline in Q1 2025.

The expectation for full-year 2025 total revenue to land at the low end of the $2.8 billion to $2.95 billion guidance underscores the impact of market-sensitive areas, even with the stability provided by the core recurring revenue base.

Finance: draft 13-week cash view by Friday.