CBIZ, Inc.
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
CBZ$54.980.0%Stored close · as of Oct 30, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000944148-25-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000944148-25-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 103 current paragraphs.
50 unchanged; 41 reworded; 9 added; 12 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Income and expenses related to the deferred compensation plan for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current report
The Financial Services practice group revenue for the three months ended September 30, 2025 grew by 79.5% to $578.5 million from $322.3 million during the same period in 2024. This increase of $256.2 million was primarily the result of the Transaction and was across almost all service lines. When compared to the same period in 2024, revenue from traditional accounting and tax-related services increased by $226.0 million, revenue from advisory services increased by $23.3 million, and revenue from national technology services increased by $8.6 million. Revenue from government healthcare consulting services remained relatively consistent.
Current report
Revenue for the nine months ended September 30, 2025 grew by 85.4% to $1,862.0 million from $1,004.2 million during the same period in 2024. This increase of $857.8 million was primarily the result of the Transaction and was across all service lines. As compared to the same period in 2024, revenue from the traditional accounting and tax-related services increased by $738.1 million, revenue from advisory services increased by $80.0 million, revenue from national technology increased by $37.2 million, and revenue from government healthcare consulting services increased by approximately $3.0 million.
Current report
Operating expenses for the nine months ended September 30, 2025 increased by $3.6 million, or 1.4%, when compared to the same period in 2024. This increase was primarily driven by direct costs and personnel costs which increased by $4.3 million and $1.0 million, respectively, when compared to the same period in 2024. This increase was offset by a decrease of $1.0 million of depreciation and amortization expenses and a decrease of $0.7 million in travel and entertainment costs. Operating expense as a percentage of revenue decreased to 79.6% during the nine months ended September 30, 2025 as compared to 80.6% of revenue for the same period in 2024.
Current report
Three and nine months ended September 30, 2025 compared with September 30, 2024.
Current report
Total operating expenses increased by $13.8 million during the three months ended September 30, 2025, as compared to the same period in 2024. The deferred compensation plan increased operating expenses by $7.8 million for the three months ended September 30, 2025 and increased operating expenses by $7.3 million during the same period in 2024. Excluding the deferred compensation expenses, operating expenses increased by $13.3 million during the three months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily driven by $5.9 million higher facility costs, $4.6 million higher personnel costs, $1.8 higher professional service costs, and $1.5 million higher other discretionary spending to support business growth.
Current report
Total corporate G&A expenses increased by $8.0 million, or 34.6%, during the three months ended September 30, 2025, as compared to the same period in 2024. The deferred compensation plan increased corporate G&A expenses by $1.1 million for the three months ended September 30, 2025 and by $1.1 million during the same period in 2024. Excluding the deferred compensation expenses, corporate G&A expense increased by approximately $8.0 million during the three months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily driven by $3.1 million higher personnel costs, $1.8 million higher marketing costs, $1.0 million higher insurance costs, $0.9 million higher other discretionary spending to support business growth, $0.8 million higher technology costs, and $0.4 million higher travel and entertainment costs. The G&A expenses for the three months ended September 30, 2025 included approximately $5.7 million of integration costs primarily associated with the Transaction. For the three months ended September 30, 2024, there were approximately $7.7 million of integration costs associated with the Transaction.
Current report
Total operating expenses increased by $10.6 million, or 30.4%, during the nine months ended September 30, 2025, as compared to the same period in 2024. The deferred compensation plan increased operating expenses by $17.1 million for the nine months ended September 30, 2025, and by $18.2 million during the same period in 2024. Excluding the deferred compensation expenses, operating expense increased by approximately $11.6 million during the nine months ended September 30, 2025, as compared to the same period in 2024. This increase was primarily driven by $5.2 million higher facility costs, $4.1 million higher professional service costs, $2.1 million higher personnel costs, and $0.2 million higher other discretionary spending to support business growth.
Current report
Total corporate G&A expenses increased by $23.0 million, or 35.9%, during the nine months ended September 30, 2025, as compared to the same period in 2024. The deferred compensation plan increased corporate G&A expenses by $2.4 million for the nine months ended September 30, 2025 and by $2.4 million during the same period in 2024. Excluding the deferred compensation expenses, corporate G&A expense increased by approximately $23.0 million during the nine months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily due to approximately $5.9 million higher professional fees, $4.8 million higher personnel costs, $3.3 million higher marketing costs, $2.8 million higher insurance costs, $1.8 million higher technology costs, $1.6 million higher other discretionary spending to support business growth, $1.5 million higher facility costs, and $1.3 higher legal settlement costs. The G&A expenses for the nine months ended September 30, 2025 included approximately $20.2 million of integration costs primarily associated with the Transaction. For the nine months ended September 30, 2024 there were approximately $15.0 million of non-recurring transaction and integration costs associated with the Transaction.
Removed paragraphs (12)
Previous report
Income and expenses related to the deferred compensation plan for the three and six months ended June 30, 2025 and 2024 are as follows:
Previous report
The Financial Services practice group revenue for the three months ended June 30, 2025 grew by 84.3% to $569.8 million from $309.2 million during the same period in 2024. This increase of $260.6 million is primarily driven by those units that provide traditional accounting and tax-related services, which increased $196.6 million primarily as a result of the Transaction, the units that provide advisory services, which increased by $48.1 million, the units that provide national technology services, which increased $15.8 million, andthe units that provide government healthcare compliance business consulting, which increased by approximately $0.2 million.
Previous report
Six months ended June 30, 2025 compared to June 30, 2024.
Previous report
Revenue for the six months ended June 30, 2025 grew by 88.2% to $1,283.5 million from $681.9 million during the same period in 2024. This increase of $601.6 million was primarily driven by those units that provide traditional accounting and tax-related services, which increased $512.1 million primarily as a result of the Transaction, the units that provide advisory services, which increased by $56.7 million, the units that provide national technology services, which increased $28.6 million, andthe units that provide government healthcare compliance business consulting, which increased by approximately $4.2 million.
Previous report
Six months ended June 30, 2025 compared to June 30, 2024.
Previous report
Operating expenses for the six months ended June 30, 2025 increased by $2.5 million, or 1.5%, when compared to the same period in 2024. Direct costs increased by $2.9 million compared to the same period in 2024. This increase was offset by a decrease of $0.4 million in discretionary spending to support business growth. Operating expense as a percentage of revenue decreased to 78.8% during the six months ended June 30, 2025 as compared to 81.1% of revenue for the same period in 2024.
Previous report
Three and six months ended June 30, 2025 compared with June 30, 2024
Previous report
Total operating expenses increased by $8.4 million during the three months ended June 30, 2025, as compared to the same period in 2024. The deferred compensation plan increased operating expenses by $11.7 million for the three months ended June 30, 2025 and increased operating expenses by $2.3 million during the same period in 2024. Excluding the deferred compensation expenses, operating expenses decreased by $1.1 million during the three months ended June 30, 2025, as compared to the same period in 2024. The decrease was primarily driven by lower personnel costs.
Previous report
Total corporate general and administrative expenses increased by $5.6 million, or 25.3%, during the three months ended June 30, 2025, as compared to the same period in 2024. The deferred compensation plan decreased corporate general and administrative expenses by $1.5 million for the three months ended June 30, 2025 and increased corporate general and administrative expenses by $0.3 million during the same period in 2024. Excluding the deferred compensation expenses, corporate general and administrative expense increased by approximately $4.5 million during the three months ended June 30, 2025, as compared to the same period in 2024. The increase was primarily driven by $1.4 million higher facility costs, $0.9 million higher insurance costs, $0.8 million higher marketing costs, $0.7 million higher professional services costs, $0.6 million higher technology costs, and $0.1 million higher other discretionary spending to support business growth. The corporate general and administrative expenses for the three months ended June 30, 2025 included approximately $8.1 million of integration costs primarily associated with the Transaction. For the three months ended June 30, 2024 there were approximately $0.1 million non-recurring transaction and integration costs associated with acquisitions.
Previous report
Six months ended June 30, 2025 compared to June 30, 2024
Previous report
Total operating expenses decreased by $3.2 million ,or 13.6%, during the six months ended June 30, 2025, as compared to the same period in 2024. The deferred compensation plan decreased operating expenses by $9.3 million for the six months ended June 30, 2025, and increased operating expense by $10.9 million during the same period in 2024. Excluding the deferred compensation expenses, operating expense decreased by approximately $1.6 million during the six months ended June 30, 2025, as compared to the same period in 2024, primarily driven by lower personnel costs.
Previous report
Total corporate general and administrative expenses increased by $14.9 million, or 36.7%, during the six months ended June 30, 2025, as compared to the same period in 2024. The deferred compensation plan increased corporate general and administrative expenses by $1.3 million for the six months ended June 30, 2025 and by $1.4 million during the same period in 2024. Excluding the deferred compensation expenses, corporate general and administrative expense increased by approximately $15.0 million during the six months ended June 30, 2025, as compared to the same period in 2024. The increase in corporate general and administrative expenses was primarily due to approximately $5.7 million higher professional service costs, $1.8 million higher insurance costs, $1.7 million higher personnel costs, $1.5 million higher marketing costs, $1.5 million higher facility costs, $1.5 million higher other discretionary costs to support business growth, $1.0 million higher technology costs, and $0.3 higher office expenses. The corporate general and administrative expenses for the six months ended June 30, 2025 included approximately $14.8 million of integration costs primarily associated with the Transaction. For the six months ended June 30, 2024 there were approximately $1.5 million non-recurring transaction and integration costs associated with acquisitions.
Reworded paragraphs (41)
Previous wording
The following discussion is intended to assist in the understanding of our financial position at June 30, 2025 and December 31, 2024, results of operations for the three and six months ended June 30, 2025 and 2024, and cash flows for the six months ended June 30, 2025 and 2024, and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2024. This discussion and analysis contains forward-looking statements and should be read in conjunction with the disclosures and information contained in “Forward-Looking Statements” included elsewhere in this Quarterly Report on Form 10-Q and in “Item 1A. Risk Factors” included in this Quarterly Report on Form 10-Q and in the Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
The following discussion is intended to assist in the understanding of our financial position at September 30, 2025 and December 31, 2024, results of operations for the three and nine months ended September 30, 2025 and 2024, and cash flows for the nine months ended September 30, 2025 and 2024, and should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2024. This discussion and analysis contains forward-looking statements and should be read in conjunction with the disclosures and information contained in “Forward-Looking Statements” included elsewhere in this Quarterly Report on Form 10-Q and in “Item 1A. Risk Factors” included in this Quarterly Report on Form 10-Q and in the Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
We provide professional business services, products and solutions that help our clients grow and succeed by better managing their finances and employees. These services are primarily provided to small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises throughout the United States and parts of Canada. We deliver integrated services through three practice groups: Financial Services, Benefits and Insurance Services, and National Practices. Refer to Note 19, Segment Disclosure to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024 for further discussion on the practice groups.
Current wording
We provide professional business services, products and solutions that help our clients grow and succeed by better managing their finances and employees. These services are primarily provided to small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises throughout the United States and parts of Canada. We deliver integrated services through three practice groups: Financial Services, Benefits and Insurance Services, and National Practices. Refer to Note 19, Segment Disclosures to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024 for further discussion on the practice groups.
Previous wording
Revenue for the three months ended June 30, 2025 increased by $263.5 million, or 62.7%, to $683.5 million from $420.0 million for the same period in 2024. Revenue from newly acquired operations, net of divestitures, contributed $256.2 million, or 60.3%, of incremental revenue for the three months ended June 30, 2025, as compared to the same period in 2024. A detailed discussion of revenue by practice group is included under "Operating Practice Groups."
Current wording
Revenue for the three months ended September 30, 2025 increased by $254.9 million, or 58.1%, to $693.8 million from $438.9 million for the same period in 2024. Revenue from newly acquired operations, net of divestitures, contributed $245.6 million, or 56.0%, of incremental revenue for the three months ended September 30, 2025, as compared to the same period in 2024. A detailed discussion of revenue by practice group is included under "Operating Practice Groups."
Previous wording
Revenue for the six months ended June 30, 2025 increased by $607.2 million, or 66.4%, to $1,521.5 million from $914.3 million for the same period in 2024. Revenue from newly acquired operations, net of divestitures, contributed $589.6 million, or 63.8%, of incremental revenue for the six months ended June 30, 2025 as compared to the same period in 2024. A detailed discussion of revenue by practice group is included under "Operating Practice Groups".
Current wording
Revenue for the nine months ended September 30, 2025 increased by $862.1 million, or 63.7%, to $2,215.3 million from $1,353.2 million for the same period in 2024. Revenue from newly acquired operations, net of divestitures, contributed $835.2 million, or 61.7%, of incremental revenue for the nine months ended September 30, 2025 as compared to the same period in 2024. A detailed discussion of revenue by practice group is included under "Operating Practice Groups".
Previous wording
Net income was $41.9 million, or $0.66 per diluted share, in the second quarter of 2025, compared to $19.8 million, or $0.39 per diluted share, in the second quarter of 2024. For the six months ended June 30, 2025, Net income was $164.7 million, or $2.58 per diluted share, compared to $96.7 million, or $1.92 per diluted share, for the same period in 2024. Refer to “Results of Operations" for a detailed discussion of the components of net income.
Current wording
Net income was $30.1 million, or $0.48 per diluted share, in the third quarter of 2025, compared to $35.1 million, or $0.70 per diluted share, in the third quarter of 2024. For the nine months ended September 30, 2025, net income was $194.9 million, or $3.06 per diluted share, compared to $131.8 million, or $2.62 per diluted share, for the same period in 2024. Refer to “Results of Operations" for a detailed discussion of the components of net income.
Previous wording
Our overall business objective continues to focus on making strategic acquisitions that allow us to strengthen our presence in existing markets, expand into high growth industries, and broaden our services to our existing offerings. As a result of the Transaction and related 2024 Credit Facilities, we have $1,573.7 million outstanding debt under the 2024 Credit Facilities as of June 30, 2025. To achieve our business objective of making strategic acquisitions, our current priority for use of capital is to maximize cash flow to pay down debt, which will allow us more liquidity to make strategic acquisitions in the future. In addition, we believe that repurchasing shares of our common stock can be a prudent use of our financial resources, and that investing in our stock is an attractive use of capital and an efficient means to provide value to our stockholders.
Current wording
Our overall business objective continues to focus on making strategic acquisitions that allow us to strengthen our presence in existing markets, expand into high growth industries, and broaden our services to our existing clients. As a result of the Transaction and related 2024 Credit Facilities, we have $1,586.8 million of outstanding debt under the 2024 Credit Facilities as of September 30, 2025. To achieve our business objective of making strategic acquisitions, our current priority for use of capital is to maximize cash flow to fund working capital to drive organic growth and to pay down debt, which will allow us more liquidity to make strategic, selective, and high-return acquisitions in the future. In addition, we believe that repurchasing shares of our common stock can be a prudent use of our financial resources, and that investing in our stock is an attractive use of capital and an efficient means to provide value to our stockholders.
Previous wording
During the six months ended June 30, 2025, we repurchased 1.0 million shares of our common stock at a cost of $71.3 million under the ROFR Agreement . Additionally, to settle statutory employee withholding related to vesting of stock awards, we repurchased 0.1 million shares of our common stock at cost of $7.8 million during the six months ended June 30, 2025 and 0.2 million shares at a cost of $11.2 million during the six months ended June 30, 2024. Refer to Note 10, Common Stock, to the accompanying unaudited condensed consolidated financial statements for further details
Current wording
During the nine months ended September 30, 2025, we repurchased 1.4 million shares of our common stock for $102.8 million under the ROFR Agreement and 0.4 million shares of our common stock in the open market for $25.0 million. Additionally, to settle statutory employee withholding related to vesting of stock awards, we repurchased 0.1 million shares of our common stock at a cost of $7.8 million during the nine months ended September 30, 2025 and 0.2 million shares at a cost of $11.4 million during the nine months ended September 30, 2024. Refer to Note 10, Common Stock, to the accompanying unaudited condensed consolidated financial statements for further details.
Previous wording
The following tables summarize total revenue for the three and six months ended June 30, 2025 and 2024:
Current wording
The following tables summarize total revenue for the three and nine months ended September 30, 2025 and 2024:
Previous wording
We sponsor a Non-qualified Deferred Compensation Plan (the "deferred compensation plan"), under which a CBIZ employee’s compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. Income and expenses related to the deferred compensation plan, which are recorded in "Corporate and Other" for segment reporting purposes, are included in “Operating expenses”, “Gross margin” and “Corporate general and administrative expenses” and are directly offset by deferred compensation gains or losses in “Other income, net” in the accompanying unaudited Condensed Consolidated Statements of Comprehensive Income. The deferred compensation plan has no impact on “Income before income tax expense” or diluted earnings per share.
Current wording
We sponsor a Non-qualified Deferred Compensation Plan (the "deferred compensation plan"), under which a CBIZ employee’s compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee. Income and expenses related to the deferred compensation plan, which are recorded in "Corporate and Other" for segment reporting purposes, are included in “Operating expenses”, “Gross margin” and “Corporate general and administrative expenses” and are directly offset by deferred compensation gains or losses in “Other income, net” in the accompanying Condensed Consolidated Statements of Comprehensive Income. The deferred compensation plan has no impact on “Income before income tax expense” or diluted earnings per share.
Previous wording
Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three and six months ended June 30, 2025 and 2024 are as follows:
Current wording
Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three and nine months ended September 30, 2025 and 2024 were as follows:
Previous wording
The following tables summarize total operating expenses for the three and six months ended June 30, 2025 and 2024:
Current wording
The following tables summarize total operating expenses for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Three months ended June 30, 2025 compared to June 30, 2024. Total operating expenses for the three months ended June 30, 2025 increased by $229.2 million, or 62.6%, to $595.6 million as compared to $366.4 million in the same period in 2024. The deferred compensation plan increased operating expenses by $11.7 million for the three months ended June 30, 2025 and increased operating expenses by $2.3 million in the same period in 2024. Excluding the deferred compensation expenses, which were recorded in "Corporate and Other" for segment reporting purposes, operating expenses would have been $583.9 million and $364.1 million, or 85.4% and 86.7% of revenue, for the three months ended June 30, 2025 and 2024, respectively. In addition, operating expenses for the three months ended June 30, 2025 included approximately $11.1 million of integration costs associated with the Transaction, and the operating expenses for the three months ended June 30, 2024 included approximately $0.2 million of non-recurring integration costs associated with the three acquisitions completed in 2024.
Current wording
Three months ended September 30, 2025 compared to September 30, 2024. Total operating expenses for the three months ended September 30, 2025 increased by $237.7 million, or 65.0%, to $603.7 million as compared to $366.0 million in the same period in 2024. The deferred compensation plan increased operating expenses by $7.8 million for the three months ended September 30, 2025 and increased operating expenses by $7.3 million in the same period in 2024. Excluding the deferred compensation expenses, which were recorded in "Corporate and Other" for segment reporting purposes, operating expenses would have been $595.8 million and $358.7 million, or 85.9% and 81.7% of revenue, for the three months ended September 30, 2025 and 2024, respectively. In addition, operating expenses for the three months ended September 30, 2025 included approximately $23.2 million of integration costs associated with the Transaction, and the operating expenses for the three months ended September 30, 2024 included approximately $0.6 million of non-recurring integration costs associated with the acquisitions completed in 2024.
Previous wording
The majority of our operating expenses relate to personnel costs, which include (i) salaries and benefits, (ii) commissions paid to producers, (iii) incentive compensation, and (iv) stock-based compensation. Excluding the impact of deferred compensation, which was recorded in "Corporate and Other" for segment reporting purposes, operating expenses increased by approximately $219.8 million during the three months ended June 30, 2025 as compared to the same period in 2024, driven by $161.7 million higher personnel costs primarily as a result of the Transaction, $15.6 million higher depreciation and amortization costs, $12.3 million higher facility costs, $12.0 million higher direct costs, $6.5 million higher technology costs, $5.6 million higher travel and entertainment costs, $4.9 million higher professional service costs, and $1.2 million higher discretionary spending to support business growth. Personnel costs are discussed in further detail under “Operating Practice Groups” below.
Current wording
The majority of our operating expenses relate to personnel costs, which include (i) salaries and benefits, (ii) commissions paid to producers, (iii) incentive compensation, and (iv) stock-based compensation. Excluding the impact of deferred compensation, which was recorded in "Corporate and Other" for segment reporting purposes, operating expenses increased by approximately $237.2 million during the three months ended September 30, 2025 as compared to the same period in 2024, driven by $175.9 million higher personnel costs primarily as a result of the
Previous wording
Six Months Ended June 30, 2025 compared to June 30, 2024. Total operating expenses for the six months ended June 30, 2025 increased by $462.6 million, or 62.3%, to $1,205.5 million as compared to $742.9 million in the same period in 2024. The deferred compensation plan decreased operating expenses by $9.3 million for the six months ended June 30, 2025, and increased operating expenses by $10.9 million during the same period in 2024. Excluding the impact of deferred compensation, which was recorded in "Corporate and Other" for segment reporting purposes, operating expenses increased by $464.2 million during the six months ended June 30, 2025 as compared to the same period in 2024. Operating expense for the six months ended June 30, 2025 included approximately $20.1 million of integration and retention costs associated with the Transaction. The increase in operating expense was primarily driven by personnel costs increase of $355.8 million primarily as a result of the Transaction, $31.0 million higher depreciation and amortization expense, $23.7 million higher facility costs, $21.9 million higher direct costs, $12.2 million higher technology related costs, $9.5 million higher travel and entertainment costs, $6.9 million higher professional services costs, and $2.8 million higher marketing costs, as well as $0.4 million higher other discretionary spending to support business growth.
Current wording
Nine months ended September 30, 2025 compared to September 30, 2024. Total operating expenses for the nine months ended September 30, 2025 increased by $700.4 million, or 63.2%, to $1,809.2 million as compared to $1,108.8 million in the same period in 2024. The deferred compensation plan increased operating expenses by $17.1 million for the nine months ended September 30, 2025 and by $18.2 million during the same period in 2024. Excluding the impact of deferred compensation, which was recorded in "Corporate and Other" for segment reporting purposes, operating expenses would have been $1,792.1 million and $1,090.7 million, or 80.9% and 80.6% of revenue, for the nine months ended September 30, 2025 and 2024, respectively. In addition, operating expense for the nine months ended September 30, 2025 included approximately $43.3 million of integration costs associated with the Transaction, and the operating expenses for the nine months ended September 30, 2024 included approximately $0.9 million of non-recurring integration costs associated with the acquisitions completed in 2024. The increase in operating expense was primarily driven by personnel costs increase of $531.7 million primarily as a result of the Transaction, $45.9 million higher depreciation and amortization expense, $40.7 million higher facility costs, $32.3 million higher direct costs, $18.5 million higher technology related costs, $12.8 million higher travel and entertainment costs, $12.5 million higher professional services costs, and $4.5 million higher marketing costs, as well as $2.5 million higher other discretionary spending to support business growth.
Previous wording
Three months ended June 30, 2025 compared to June 30, 2024. The deferred compensation plan increased G&A expenses by $1.5 million for the three months ended June 30, 2025, and increased G&A expenses by $0.3 million during the same period in 2024. The G&A expenses, excluding the impact of the deferred compensation plan, would have been $26.2 million, or 3.8% of revenue, for the three months ended June 30, 2025, compared to $21.7 million, or 5.2% of revenue, for the same period in 2024, an increase of approximately $4.5 million. The increase was primarily driven by $1.4 million higher facility costs, $0.9 million higher insurance costs, $0.8 million higher marketing costs, $0.7 million higher professional services costs, $0.6 million higher technology costs, and $0.1 million higher other discretionary spending to support business growth. The G&A expenses for the three months ended June 30, 2025 included approximately $8.1 million of integration costs primarily associated with the Transaction. For the three months ended June 30, 2024 there were approximately $0.1 million non-recurring transaction and integration costs associated with acquisitions.
Current wording
Three months ended September 30, 2025 compared to September 30, 2024. The deferred compensation plan increased G&A expenses by $1.1 million for the three months ended September 30, 2025, and increased G&A expenses by $1.1 million during the same period in 2024. The G&A expenses, excluding the impact of the deferred compensation plan, would have been $30.2 million, or 4.4% of revenue, for the three months ended September 30, 2025, compared to $22.2 million, or 5.0% of revenue, for the same period in 2024, an increase of approximately $8.0 million. The increase was primarily driven by $3.1 million higher personnel costs, $1.8 million higher marketing costs, $1.0 million higher insurance costs, $0.9 million higher other discretionary spending to support business growth, $0.8 million higher technology costs, and $0.4 million higher travel and entertainment costs. The G&A expenses for the three months ended September 30, 2025 included approximately $5.4 million of integration costs primarily associated with the Transaction. For the three months ended September 30, 2024, there were approximately $7.7 million of non-recurring transaction and integration costs associated with the Transaction.
Previous wording
Six Months Ended June 30, 2025 compared to June 30, 2024. The deferred compensation plan increased G&A expenses by $1.3 million for the six months ended June 30, 2025, and increased G&A expenses by $1.4 million during the same period in 2024. G&A expenses, excluding the impact of the deferred compensation plan, would have been $54.4 million, or 3.6% of revenue, for the six months ended June 30, 2025, compared to $39.4 million, or 4.3% of revenue, for the same period in 2024, an increase of $15.0 million. The increase in G&A expenses was primarily due to approximately $5.7 million higher professional service costs, $1.8 million higher insurance costs, $1.7 million higher personnel costs, $1.5 million higher marketing costs, $1.5 million higher facility costs, $1.5 million higher other discretionary costs to support business growth, $1.0 million higher technology costs, and $0.3 higher office expenses. The G&A expenses for the six months ended June 30, 2025 included approximately $14.8 million of integration costs primarily associated with the Transaction. For the six months ended June 30, 2024 there were approximately $1.5 million non-recurring transaction and integration costs associated with acquisitions.
Current wording
Nine months ended September 30, 2025 compared to September 30, 2024. The deferred compensation plan increased G&A expenses by $2.4 million for the nine months ended September 30, 2025, and increased G&A expenses by $2.4 million during the same period in 2024. G&A expenses, excluding the impact of the deferred compensation plan, would have been $84.6 million, or 3.8% of revenue, for the nine months ended September 30, 2025, compared to $61.5 million, or 4.5% of revenue, for the same period in 2024, an increase of $23.0 million. The increase in G&A expenses was primarily due to approximately $5.9 million higher professional fees, $4.8 million higher personnel costs, $3.3 million higher marketing costs, $2.8 million higher insurance costs, $1.8 million higher technology costs, $1.6 million higher other discretionary spending to support business growth, $1.5 million higher facility costs, and $1.3 higher legal settlement costs. The G&A expenses for the nine months ended September 30, 2025 included approximately $20.2 million of integration costs primarily associated with the Transaction. For the nine months ended September 30, 2024, there were approximately $15.0 million of non-recurring transaction and integration costs associated with the Transaction.
Previous wording
(1)Other income, net includes a net gain of $13.2 million during the three months ended June 30, 2025, and a net gain of $2.6 million for the same period in 2024, associated with the value of investments held in a rabbi trust related to the deferred compensation plan, which were recorded in "Corporate and Other" for segment reporting purposes. The adjustments to the investments held in a rabbi trust related to the deferred compensation plan are offset by a corresponding increase or decrease to compensation expense, which is recorded as “Operating expenses” and “G&A expenses.” The deferred compensation plan has no impact on “Income before income tax expense” or diluted earnings per share. In addition, included in Other income, net for the three months ended June 30, 2025 and 2024, is expense of $1.0 million and $0.2 million, respectively, related to net changes in the fair value of contingent consideration related to prior acquisitions. As stated in Note 6. Commitments and Contingencies, in the three months ended June 30, 2025 the Company recorded a gain of $12.5 million from a legal settlement within Other Income, net.
Current wording
(1)Other income, net includes a net gain of $8.9 million during the three months ended September 30, 2025, and a net gain of $8.4 million for the same period in 2024, associated with the value of investments held in a rabbi trust related to the deferred compensation plan, which were recorded in "Corporate and Other" for segment reporting purposes. The adjustments to the investments held in a rabbi trust related to the deferred compensation plan are offset by a corresponding increase or decrease to compensation expense, which is recorded as “Operating expenses” and “G&A expenses.” The deferred compensation plan has no impact on “Income before income tax expense” or diluted earnings per share. In addition, included in other income, net for the three months ended September 30, 2025 and 2024, is expense of $0.5 million and $5.7 million, respectively, related to net changes in the fair value of contingent consideration related to prior acquisitions.
Previous wording
(2)Other income, net includes a net gain of $10.6 million during the six months ended June 30, 2025, compared to a net gain of $12.2 million for the same period in 2024, associated with the value of investments held in a rabbi trust related to the deferred compensation plan, which were recorded in "Corporate and Other" for segment reporting purposes. The adjustments to the investments held in a rabbi trust related to the deferred compensation plan are offset by a corresponding increase or decrease to compensation expense, which is recorded as “Operating expenses” and “G&A expenses.” The deferred compensation plan has no impact on “Income from continuing operations before income tax expense” or diluted earnings per share. In addition, included in Other income, net for the six months ended June 30, 2025 and 2024, is expense of $1.5 million and $0.6 million, respectively, related to net changes in the fair value of contingent consideration related to prior acquisitions. As stated in Note 6. Commitments and Contingencies, in the six months ended June 30, 2025 the Company recorded a gain of $12.5 million from a legal settlement within Other income, net.
Current wording
(2)Other income, net includes a net gain of $19.5 million during the nine months ended September 30, 2025, compared to a net gain of $20.6 million for the same period in 2024, associated with the value of investments held in a rabbi trust related to the deferred compensation plan, which were recorded in "Corporate and Other" for segment reporting purposes. The adjustments to the investments held in a rabbi trust related to the deferred compensation plan are offset by a corresponding increase or decrease to compensation expense, which is recorded as “Operating expenses” and “G&A expenses.” The deferred compensation plan has no impact on “Income before income tax expense” or diluted earnings per share. In addition, included in other income, net for the nine months ended September 30, 2025 and 2024, is expense of $2.0 million and $6.3 million, respectively, related to net changes in the fair value of contingent consideration related to prior acquisitions. As stated in Note 6, Commitments and Contingencies, to the accompanying unaudited condensed consolidated financial statements in the nine months ended September 30, 2025, the Company recorded a gain of $12.5 million from a legal settlement within Other income, net.
Previous wording
Three and six months ended June 30, 2025 compared with June 30, 2024. During the three months ended June 30, 2025, our average debt balance and weighted average effective interest rate were $1,542.4 million and 6.75%, respectively, compared to $410.1 million and 4.85%, respectively, for the same period in 2024. The increase in interest expense for the three months ended June 30, 2025 as compared to the same period in 2024 was primarily driven by the higher average debt balance associated with the 2024 Credit Facilities which was entered into on November 1, 2024.
Current wording
Three and nine months ended September 30, 2025 compared with September 30, 2024. During the three months ended September 30, 2025, our average debt balance and weighted average effective interest rate were $1,554.7 million and 6.62%, respectively, compared to $350.7 million and 5.37%, respectively, for the same period in 2024. The increase in interest expense of $23.0 million for the three months ended September 30, 2025 as compared to the same period in 2024 was primarily driven by the higher average debt balance as well as higher weighted average effective interest rate associated with the 2024 Credit Facilities which was entered into on November 1, 2024.
Previous wording
During the six months ended June 30, 2025, our average debt balance and interest rate was $1,493.2 million and 6.67% compared to $367.9 million and 5.41% for the same period in 2024. The increase in interest expense for the six months ended June 30, 2025 as compared to the same period in 2024 was primarily driven by the higher average debt balance as well as higher weighted average effective interest rate.
Current wording
During the nine months ended September 30, 2025, our average debt balance and interest rate were $1,513.9 million and 6.64%, respectively, compared to $362.1 million and 5.40%, respectively, for the same period in 2024. The increase in interest expense for the nine months ended September 30, 2025 as compared to the same period in 2024 was $65.6 million. This was primarily driven by the higher average debt balance as well as higher weighted average effective interest rate associated with the 2024 Credit Facilities which was entered into on November 1, 2024.
Previous wording
Three and six months ended June 30, 2025 compared with June 30, 2024. For the three months ended June 30, 2025, other income, net includes a net gain of $13.2 million associated with the deferred compensation plan. For the same period in 2024, other income, net includes a net gain of $2.6 million associated with the deferred compensation plan. Excluding the impact of the deferred compensation plan from other income, net would result in a decrease of $9.7 million for the three months ended June 30, 2025 compared to the same period in 2024. The decrease was primarily due to $22.0 million higher interest expense offset by a gain from a legal settlement of $12.5 million recorded to other income, net.
Current wording
Three and nine months ended September 30, 2025 compared with September 30, 2024. For the three months ended September 30, 2025, other income, net includes a net gain of $8.9 million associated with the deferred compensation plan. For the same period in 2024, other income, net includes a net gain of $8.4 million associated with the deferred compensation plan. Excluding the impact of the deferred compensation plan, the other income, net would have been a $0.5 million loss for the three months ended September 30, 2025 and a $7.1 million loss for the same period in 2024. The decrease in other expense, net was primarily attributed to a $5.3 million assumed contingent purchase price liability during the three months ended September 30, 2024, which did not recur in 2025. Other miscellaneous expenses, net, decreased by $1.3 million in 2025 as compared to 2024.
Previous wording
For the six months ended June 30, 2025, other income, net includes a net gain of $10.6 million associated with the non-qualified deferred compensation plan. For the same period in 2024, other income, net includes a net gain of $12.2 million associated with the non-qualified deferred compensation plan. Excluding the impact of the deferred compensation plan from other income, net would result in a decrease of $29.5 million for the six months ended June 30, 2025 compared to the same period in 2024. The decrease was primarily due to $42.6 million higher interest expense offset by a gain from a legal settlement of $12.5 million recorded to other income, net and $0.7 million interest income.
Current wording
For the nine months ended September 30, 2025, other income, net includes a net gain of $19.5 million associated with the non-qualified deferred compensation plan. For the same period in 2024, other income, net includes a net gain of $20.6 million associated with the non-qualified deferred compensation plan. Excluding the impact of the deferred compensation plan from other income, net would result in an increase of $19.6 million for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was primarily due to a $12.5 million legal settlement gain, $1.4 million of higher interest income, and $1.3 million of higher other miscellaneous income, net. In addition, we recorded a $5.3 million assumed contingent purchase price liability in 2024, which did not recur in 2025, as a result, the expenses associated with the contingent earnout decreased by $4.4 million in 2025 as compared to 2024.
Previous wording
Three and six months ended June 30, 2025 compared with June 30, 2024. The effective tax rate for the three months ended June 30, 2025 was 27.4%, compared to an effective tax rate of 29.8% for the comparable period in 2024. The decrease in the effective tax rate for the three month period ended June 30, 2025 was primarily due to the tax effect of lower non-deductible expenses and lower state income tax expenses compared to the same period in 2024. These items favorably affected the tax rate as related to pre-tax income for the three months ended June 30, 2025 when compared to the same period in 2024. The increase in income tax expense for the three months ended June 30, 2025 when compared to the same period in 2024 was primarily driven by the increase in pre-tax income in 2025.
Current wording
Three and nine months ended September 30, 2025 compared with September 30, 2024. The effective tax rate for the three months ended September 30, 2025 was 25.4%, compared to an effective tax rate of 31.2% for the comparable period in 2024. The decrease in the effective tax rate for the three month period ended September 30, 2025 was primarily due to a higher tax benefit recognized related to stock based compensation expense along with lower state income tax expense during the third quarter of 2025 compared to the same period in 2024. These items favorably affected the tax rate as related to pre-tax income for the three months ended September 30, 2025 when compared to the same period in 2024. The decrease in income tax expense for the three months ended September 30, 2025, when compared to the same period in 2024, was primarily driven by the decrease in pre-tax income in 2025, along with the aforementioned favorable items.
Previous wording
We provide a range of services to affiliated CPA firms under joint referral and administrative service agreements (“ASAs”). Fees earned under the ASAs are recorded as revenue in the accompanying Condensed Consolidated Statements of Comprehensive Income and were approximately $164.6 million and $68.9 million for the three months ended June 30, 2025 and 2024, respectively.
Current wording
We provide a range of services to affiliated CPA firms under joint referral and administrative service agreements (“ASAs”). Fees earned under the ASAs are recorded as revenue in the accompanying Condensed Consolidated Statements of Comprehensive Income and were approximately $130.3 million and $60.9 million for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Operating expenses for the three months ended June 30, 2025 increased by $221.6 million, or 84.3%, as compared to the same period in 2024. Personnel costs increased by $165.3 million, of which acquisitions contributed approximately $163.5 million to the increase. Compared to the same period in 2024, depreciation and amortization costs, direct costs, facility costs, technology costs, professional service costs, travel and entertainment costs, and marketing costs increased by approximately$15.9 million, $13.2 million, $12.1 million, $6.1 million, $3.4 million, $2.9 million and $1.6 million, respectively. Additionally, there was $1.1 million higher other discretionary spending to support business growth. Operating expenses as a percentage of revenue stayed the same at 85.0% for the three months ended June 30, 2025 and 2024.
Current wording
Operating expenses for the three months ended September 30, 2025 increased by $223.2 million, or 85.6%, as compared to the same period in 2024. Personnel costs increased by $171.1 million, of which acquisitions contributed approximately $161.3 million to the increase. Compared to the same period in 2024, depreciation and amortization costs, direct costs, facility costs, technology costs, professional services costs, travel and entertainment costs, marketing costs, other discretionary spending to support business growth, and office expenses increased by approximately $15.3 million, $11.0 million, $11.0 million, $6.0 million, $3.6 million, $2.4 million, $1.5 million, $0.8 million, and $0.5 million, respectively. Operating expenses as a percentage of revenue increased to 83.6% for the three months ended September 30, 2025 from 80.9% of revenue for the same period in 2024.
Previous wording
Fees earned under the ASAs, as described above, were approximately$398.9 millionand $156.8 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Fees earned under the ASAs, as described above, were approximately $529.1 millionand $217.7 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Operating expenses for the six months ended June 30, 2025 increased by $466.6 million, or 88.3%, as compared to the same period last year. Personnel costs increased by $360.0 million, primarily do to the Transaction. Compared to the same period in 2024, depreciation and amortization costs, direct costs, facility costs, technology costs, professional services costs, marketing costs, travel and entertainment costs, and office expenses increased by approximately $31.6 million, $25.8 million, $23.5 million, $11.5 million, $4.6 million, $3.6 million, $3.2 million, and $1.5 million, respectively. In addition,other discretionary costs increased by approximately $1.4 million to support the business growth. Operating expense as a percentage of revenue stayed the same at 77.5% during the six months ended June 30, 2025 and 2024.
Current wording
Operating expenses for the nine months ended September 30, 2025 increased by $689.8 million, or 87.4%, as compared to the same period last year. Personnel costs increased by $530.8 million, of which acquisitions contributed approximately $519.2 million to the increase. Compared to the same period in 2024, depreciation and amortization costs, direct costs, facility costs, technology costs, professional services costs, travel and entertainment costs, marketing costs, and employee costs increased by approximately $46.9 million, $36.8 million, $34.5 million, $17.5 million, $8.1 million, $5.6 million, $5.1 million, and $2.6 million, respectively. In addition, other discretionary costs increased by approximately $1.9 million to support the business growth. Operating expense as a percentage of revenue increased to 79.4% during the nine months ended September 30, 2025 from 78.6% of revenue during the same period in 2024.
Previous wording
The Benefits and Insurance Services practice group revenue increased by $4.5 million, or 4.6%, to $101.9 million during the three months ended June 30, 2025 compared to $97.4 million for the same period in 2024. The increase is primarily driven by a $3.6 million increase in employee benefit and retirement benefit services lines and a$2.5 million increase in payroll-related services. The increase was offset by a $1.6 million decrease in the property and casualty services revenue.
Current wording
The Benefits and Insurance Services practice group revenue for the three months ended September 30, 2025 remained relatively unchanged when compared to the same period in 2024. Revenue for the three month period ended September 30, 2025 increased by $2.3 million from payroll and human capital related services and increased by $0.3 million in employee benefit and retirement benefit service lines. This increase was offset by a $3.2 million decrease in the property and casualty services revenue.
Previous wording
Operating expenses for the three months ended June 30, 2025 increased by $0.8 million, or 0.9%, when compared to the same period in 2024. Direct costs increased by $1.5 million compared to the same period in 2024. The increase was offset with a decrease of approximately $0.4 million in personnel costs and $0.4 million in other discretionary spending to support business growth. Operating expenses as a percentage of revenue decreased to 82.4% for the quarter ended June 30, 2025 from 85.4% of revenue for the same period in 2024, primarily due to increase in revenue generated from the employee benefit and retirement benefit services.
Current wording
Operating expenses for the three months ended September 30, 2025 increased by $1.1 million, or 1.3%, when compared to the same period in 2024. The increase was primarily driven by direct costs and professional services, which increased by $1.3 million and $0.2 million, respectively, when compared to the same period in 2024. The increase was offset with a decrease of approximately $0.4 million of depreciation and amortization expense. Operating expenses as a percentage of revenue increased to 81.3% for the quarter ended September 30, 2025 from 79.7% of revenue for the same period in 2024.
Previous wording
The Benefits and Insurance Services practice group revenue increased by $9.1 million, or 4.4%, to $214.9 million during the six months ended June 30, 2025 compared to $205.8 million for the same period in 2024. The increase is primarily driven by a $8.0 million increase from payroll-related services and a$6.7 million increase in employee benefit and retirement benefit services lines. The increase was offset by a $5.6 million decrease in the property and casualty services revenue.
Current wording
The Benefits and Insurance Services practice group revenue increased by $8.4 million, or 2.7%, to $318.3 million during the nine months ended September 30, 2025 compared to $309.9 million for the same period in 2024. The increase was primarily driven by a $10.3 million increase from payroll and human capital related services and a$7.0 million increase in employee benefit and retirement benefit services lines. The increase was offset by a $8.8 million decrease in the property and casualty services revenue.
Previous wording
The National Practices group is primarily driven by a cost-plus contract with a single client, which has existed since 1999. The cost-plus contract is a five-year contract with the most recent renewal through December 31, 2028. Revenues from this single client accounted for approximately 75% of the National Practice group’s revenue. During the three and six months ended June 30, 2025, revenue decreased by $1.6 million, or 12.1%, and by $3.5 million, or 13.1%, respectively, while operating expenses decreased by $1.5 million or 12.9%,and $3.2 million, or 13.4%, respectively.
Current wording
During the three months ended September 30, 2024, we completed the sale of CBIZ KA Consulting Services, LLC ("KA Consulting"), which was a component of the National Practices group. KA Consulting contributed approximately $2.2 million and $8.4 million of revenue for the three and nine months ended September 30, 2024. The remaining National Practice group is primarily driven by a cost-plus contract with a single client, which has existed since 1999. The cost-plus contract is a five-year contract with the most recent renewal through December 31, 2028. During the three and nine months ended September 30, 2025, revenue decreased by $0.6 million, or 5.1%, and by $4.1 million, or 10.6%, respectively, while operating expenses decreased by $0.4 million or 3.7%, and $3.6 million, or 10.4%, respectively. The decrease in revenue and in operating expense was attributed to the result of the sale of KA Consulting.
Previous wording
Total other income (expense), net increased by $1.1 million during the three months ended June 30, 2025, as compared to the same period in 2024. For the three months ended June 30, 2025, total other income (expense), net includes a net gain of $13.2 million associated with the deferred compensation plan. For the same period in 2024, total other income (expense), net includes a net gain of $2.6 million associated with the deferred compensation plan. Excluding the impact of the deferred compensation plan, total other income (expense), net decreased by $9.7 million for the three months ended June 30, 2025 compared to the same period in 2024. The decrease was primarily due to $22.0 million higher interest expense offset by a gain from a legal settlement of $12.5 million recorded to other income (expense), net.
Current wording
Total other expense, net increased by $15.3 million during the three months ended September 30, 2025, as compared to the same period in 2024. For the three months ended September 30, 2025, total other expense, net included a net gain of $8.9 million associated with the deferred compensation plan. For the same period in 2024, total other expense, net included a net gain of $8.4 million associated with the deferred compensation plan. Excluding the impact of the deferred compensation plan, total other expense, net increased by $15.9 million for the three months ended September 30, 2025 compared to the same period in 2024. The increase was primarily due to $23.0 million higher interest expense, partially offset by $5.0 million higher fair value adjustments as well as $2.5 million other adjustments recorded to other income (expense), net.
Previous wording
Total other (expense) income, net increased by $31.4 million during the six months ended June 30, 2025, as compared to the same period in 2024. Total other (expense) income, net for the six months ended June 30, 2025 includes a net gain of $10.6 million associated with the deferred compensation plan. For the same period in 2024, total other income (expense), net includes a net gain of $12.2 million associated with the deferred compensation plan. Excluding the impact of the deferred compensation plan, total other income (expense), net decreased by $29.5 million for the six months ended June 30, 2025 compared to the same period in 2024. The decrease was primarily due to $42.6 million higher interest expense, partially offset by a gain from a legal settlement of $12.5 million recorded to other income (expense), net and $0.7 million interest income.
Current wording
Total other expense, net increased by $46.7 million during the nine months ended September 30, 2025, as compared to the same period in 2024. Total other expense, net for the nine months ended September 30, 2025 includes a net gain of $19.5 million associated with the deferred compensation plan. For the same period in 2024, total other expense, net includes a net gain of $20.6 million associated with the deferred compensation plan. Excluding the impact of the deferred compensation plan, total other expense, net increased by $45.6 million for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was primarily due to $65.6 million higher interest expense, partially offset by a gain from a legal settlement of $12.5 million recorded to other income (expense), net, $4.4 million higher fair value adjustments and $1.7 million higher other adjustments, as well as an increase of $1.4 million of interest income.
Previous wording
Accounts receivable balances increase in response to the first six months' revenue generated by the Financial Services practice group. A significant amount of this revenue is billed and collected in subsequent quarters. Days sales outstanding (“DSO”) represent accounts receivable and unbilled revenue (net of realization adjustments) at the end of the period, divided by trailing twelve months' daily revenue. We provide DSO data because such data is commonly used as a performance measure by analysts and investors and as a measure of our ability to collect on receivables in a timely manner. Trailing-twelve-month DSO, including the impact of acquisitions, was 87 days and 95 days at June 30, 2025 and 2024, respectively. DSO at December 31, 2024 was 73 days.
Current wording
Accounts receivable balances increase in response to the first three months' revenue generated by the Financial Services practice group. A significant amount of this revenue is billed and collected in subsequent quarters. Days sales outstanding (“DSO”) represent accounts receivable and unbilled revenue (net of realization adjustments) at the end of the period, divided by trailing twelve months' daily revenue. We provide DSO data because such data is commonly used as a performance measure by analysts and investors and as a measure of our ability to collect on receivables in a timely manner. Trailing-twelve-month DSO, including the impact of acquisitions, was 94 days and 97 days at September 30, 2025 and 2024, respectively. DSO at December 31, 2024 was 73 days.
Previous wording
Operating Activities -Cash provided by operating activities was $24.9 million during the six months ended June 30, 2025, primarily consisted of working capital use of $225.1 million, which was offset by net income of $164.7 million and certain non-cash items, such as depreciation and amortization expense of $49.9 million, deferred income tax of $17.1 million, stock-based compensation expense of $12.2 million, and an adjustment to contingent earnout liability of $1.5 million. Cash provided by operating activities was $24.4 million during the six months ended June 30, 2024, and primarily consisted of working capital use of $101.5 million, which was offset by net income of $96.7 million and certain non-cash items, such as depreciation and amortization expense of $19.0 million, deferred income tax of $3.1 million, and stock-based compensation expense of $5.0 million.
Current wording
Operating Activities -Cash provided by operating activities was $48.8 million during the nine months ended September 30, 2025, primarily consisted of working capital use of $258.0 million, which was offset by net income of $194.9 million and certain non-cash items, such as depreciation and amortization expense of $74.3 million, deferred income tax of $8.8 million, stock-based compensation expense of $19.6 million, and an adjustment to contingent earnout liability of $2.0 million. Cash provided by operating activities was $68.2 million during the nine months ended September 30, 2024, primarily consisted of working capital use of $108.4 million, which was offset by net income of $131.8 million and certain non-cash items, such as depreciation and amortization expense of $28.6 million, deferred income tax of $4.8 million, stock-based compensation expense of $7.4 million, and an adjustment to contingent earnout liability of $6.3 million.
Previous wording
Investing Activities -Cash used in investing activities during the six months ended June 30, 2025 was $12.3 million and consisted primarily of $13.1 million in capital expenditures, and $0.5 million in other investing activities primarily related to acquisition related working capital adjustment payments and notes receivable. The net cash flow related to funds held for clients and other activities were immaterial. Cash used in investing activities during the six months ended June 30, 2024 was $33.2 million and consisted primarily of $22.5 million used for business acquisitions, $7.0 million in capital expenditures, and $3.8 million in other investing activities primarily related to acquisition related working capital adjustment payments and notes receivable. The net cash flow related to funds held for clients and other activities were immaterial.
Current wording
Investing Activities -Cash used in investing activities during the nine months ended September 30, 2025 was $16.9 million and consisted primarily of $15.0 million in capital expenditures and $4.0 million in net client fund investment activity, partially offset by $1.4 million received from sale of operations and $0.7 million in other investing activities primarily related to acquisition related working capital adjustment payments and notes receivable. The net cash flow related to funds held for clients and other activities were immaterial. Cash used in investing activities during the nine months ended September 30, 2024 was $24.9 million and consisted primarily of $22.9 million used for business acquisitions, $9.7 million in capital expenditures, and $2.2 million in other investing activities primarily related to acquisition related working capital adjustment payments and notes receivable. The net cash flow related to funds held for clients and other activities were immaterial.
Previous wording
Financing Activities -Cash used in financing activities during the six months ended June 30, 2025 was $33.2 million and primarily consisted of $79.1 million of cash used in share repurchases, of which $71.3 million was under the ROFR Agreement, a $57.2 million net decrease in client fund obligations and $48.8 million in contingent consideration payments related to prior acquisitions, which was partially offset by $152.8 million in net proceeds from the credit facility. Cash used in financing activities during the six months ended June 30, 2024 was $11.9 million and primarily consisted of $68.6 million in net proceeds from the credit facility, partially offset by $11.2 million of cash used in share repurchases for tax withholding purposes, a $28.3 million net decrease in client fund obligations and $41.0 million in contingent consideration payments related to prior acquisitions.
Current wording
Financing Activities -Cash used in financing activities during the nine months ended September 30, 2025 was $75.2 million and primarily consisted of $135.6 million of cash used in share repurchases, of which $102.8 million was used under the ROFR Agreement and $25.0 million were open market purchases. Additionally, $48.3 million was paid to reduce client fund obligations and $55.8 million was paid as contingent consideration payments related to prior acquisitions. The use of cash was partially offset by $165.9 million in net proceeds from the 2024 Credit Facilities. Cash used in financing activities during the nine months ended September 30, 2024 was $85.2 million and primarily consisted of $24.9 million in net proceeds from the 2022 credit facility, partially offset by $11.4 million cash used in share repurchases for tax withholding purposes, a $47.6 million net decrease in client fund obligations and $50.9 million in contingent consideration payments related to prior acquisitions.
Previous wording
Credit Facility -At June 30, 2025, we had $1,573.7 million outstanding under the 2024 Credit Facilities as well as $3.2 million of outstanding letters of credit. Available funds under the 2024 Credit Facilities, based on the terms of the commitment, were approximately $370.0 million at June 30, 2025. The weighted average interest rate under the 2024 Credit Facilities was 6.67% during the six months ended June 30, 2025, compared to 5.41% for the same period in 2024. The 2024 Credit Facilities allows for the allocation of funds for future strategic initiatives, including acquisitions and the repurchase of our common stock, subject to the terms and conditions of the 2024 Credit Facilities.
Current wording
Credit Facilities -At September 30, 2025, we had $1,586.8 million outstanding under the 2024 Credit Facilities as well as $3.2 million of outstanding letters of credit. Available funds under the 2024 Credit Facilities, based on the terms of the commitment, were approximately $316.0 million at September 30, 2025. The weighted average interest rate under the 2024 Credit Facilities was 6.64% during the nine months ended September 30, 2025, compared to 5.40% for the same period in 2024 under the 2022 credit facility. The 2024 Credit Facilities allows for the allocation of funds for future strategic initiatives, including acquisitions and the repurchase of our common stock, subject to the terms and conditions of the 2024 Credit Facilities.
Previous wording
Use of Capital -Our overall business objective continues to focus on making strategic acquisitions that allow us to strengthen our presence in existing markets, expand into high growth industries, and broaden our services to our existing offerings. As a result of the Transaction and related 2024 Credit Facilities we have $1,573.7 million of outstanding debt as of June 30, 2025. To achieve our business objective of making strategic acquisitions, our current priority for use of capital is to maximize cash flow to pay down debt, which will allow us more liquidity to make strategic acquisitions in the future. In addition, we believe that repurchasing shares of our common stock can be a prudent use of our financial resources, and that investing in our stock is an attractive use of capital and an efficient means to provide value to our stockholders. During the six months ended June 30, 2025 we completed no acquisitions. During the six months ended June 30, 2025, we repurchased 1.0 million shares of our common stock at a cost of $71.3 million under the ROFR Agreement. Additionally, to settle statutory employee withholding related to vesting of stock awards, we repurchased 0.1 million shares of our common stock at cost of $7.8 million during the six months ended June 30, 2025 and 0.2 million shares at a cost of $11.2 million during the six months ended June 30, 2024.
Current wording
Use of Capital -Our overall business objective continues to focus on making strategic acquisitions that allow us to strengthen our presence in existing markets, expand into high growth industries, and broaden our services to our existing clients. As a result of the Transaction and related 2024 Credit Facilities we have $1,586.8 million of outstanding debt as of September 30, 2025. To achieve our business objective of making strategic acquisitions, our current priority for use of capital is to maximize cash flow to fund working capital to drive organic growth and to pay down debt, which will allow us more liquidity to make strategic, selective, and high-return acquisitions in the future. In addition, we believe that repurchasing shares of our common stock can be a prudent use of our financial resources, and that investing in our stock is an attractive use of capital and an efficient means to provide value to our stockholders.
Previous wording
Cash Requirements -Cash requirements for the remainder of 2025 and beyond will include share repurchases through our ROFR agreement, the repayment of outstanding debt and related interest, making strategic acquisitions, funding seasonal working capital requirements, making contingent purchase price payments for previous acquisitions, income tax payments, and capital expenditures. We believe that cash provided by operations, as well as available funds under our 2024 Credit Facilities will be sufficient to meet cash requirements for the remainder of 2025 and beyond.
Current wording
Cash Requirements -Cash requirements for the remainder of 2025 and beyond will include share repurchases through both our ROFR Agreement and open market purchases, the repayment of outstanding debt and related interest, making strategic acquisitions, funding seasonal working capital requirements, making contingent purchase price payments for previous acquisitions, income tax payments, and capital expenditures. We believe that cash provided by operations, as well as available funds under our 2024 Credit Facilities, will be sufficient to meet cash requirements for the remainder of 2025 and beyond.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Transaction, $17.1 million higher facility costs, $14.9 million higher depreciation and amortization costs, $10.5 million higher direct costs, $6.5 million higher technology costs, $5.6 million higher professional service costs, $3.3 million higher travel and entertainment costs, $1.8 million higher discretionary spending to support business growth, and $1.6 million higher marketing costs. Personnel costs are discussed in further detail under “Operating Practice Groups” below.
Current report — wording carried from elsewhere
The effective tax rate for the nine months ended September 30, 2025 was 28.1%, compared to an effective tax rate of 28.1% for the same period in 2024. The increase in income tax expense for the nine months ended September 30, 2025, when compared to the same period in 2024, was primarily driven by the increase in pre-tax income in 2025.
Current report — wording carried from elsewhere
During the nine months ended September 30, 2025, we completed no acquisitions. During the nine months ended September 30, 2025, we repurchased 1.4 million shares of our common stock at a cost of $102.8 million under the ROFR Agreement and 0.4 million shares of our common stock in the open market for $25.0 million. Additionally, to settle statutory employee withholdings related to vesting of stock awards, we repurchased 0.1 million shares of our common stock at cost of $7.8 million during the nine months ended September 30, 2025 and 0.2 million shares at a cost of $11.4 million during the nine months ended September 30, 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The effective tax rate for the six months ended June 30, 2025 was 28.6%, compared to an effective tax rate of 26.9% for the same period in 2024. The increase in the effective tax rate for the six month period ended June 30, 2025 was primarily due to lower tax benefits related to stock-based compensation expense that was recognized in 2025 as compared to the same period in 2024. This item adversely affected the effective tax rate as related to pre-tax income for the six months ended June 30, 2025 when compared to the same period in 2024. The increase in income tax expense for the six months ended June 30, 2025 when compared to the same period in 2024 was primarily driven by the increase in pre-tax income in 2025.