8-K
CRAWFORD & CO (CRD-A)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 3, 2025
CRAWFORD & COMPANY
(Exact Name of Registrant as Specified in Its Charter)
Georgia
(State or Other Jurisdiction of Incorporation)
| 1-10356 | 58-0506554 |
|---|---|
| (Commission File Number) | (IRS Employer Identification No.) |
| 5335 Triangle Parkway, Peachtree Corners, Georgia | 30092 |
| (Address of Principal Executive Offices) | (Zip Code) |
(404) 300-1000
(Registrant's Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Class A Common Stock — $1.00 Par Value | CRD-A | New York Stock Exchange, Inc. |
| Class B Common Stock — $1.00 Par Value | CRD-B | New York Stock Exchange, Inc. |
Item 2.02. Results of Operations and Financial Condition
On November 3, 2025, Crawford & Company (the "Company") issued a press release containing information about the Company's financial results for the third quarter 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by this reference.
Item 7.01. Regulation FD Disclosure
The Company has made available on the Company's website at https://ir.crawco.com a presentation designed to enhance the information presented at its quarterly earnings conference call on Tuesday, November 4, 2025 at 8:30 a.m. Eastern Time. A copy of the presentation is attached hereto as Exhibit 99.2 and is incorporated herein by this reference.
Item 9.01. Financial Statements and Exhibits
(d) The following exhibits are being filed herewith:
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated November 3, 2025 |
| 99.2 | Slide Presentation |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
The information contained in this current report on Form 8-K and in the accompanying exhibits shall not be incorporated by reference into any filing of the Company with the SEC, whether made before or after the date hereof, regardless of any general incorporation by reference language in such filing, unless expressly incorporated by specific reference to such filing. The information, including the exhibits hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CRAWFORD & COMPANY | ||
|---|---|---|
| (Registrant) | ||
| By: | /s/ W. BRUCE SWAIN | |
| W. Bruce Swain | ||
| Executive Vice President - | ||
| Chief Financial Officer | ||
| Dated: November 3, 2025 |
EX-99.1
Exhibit 99.1
Crawford & Company®
5335 Triangle Parkway
Peachtree Corners, GA 30092
FOR IMMEDIATE RELEASE
CRAWFORD & COMPANY REPORTS 2025 THIRD QUARTER RESULTS
Solid Earnings Growth in Third Quarter
Record Quarterly Revenues for Broadspire and International Operations
ATLANTA, (November 3, 2025) -- Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to announce its financial results for the third quarter ended September 30, 2025.
Revenues before reimbursements decreased (2)% to $322.2 million in the 2025 third quarter from $329.4 million in the 2024 third quarter. Third quarter net income was $12.4 million, or $0.25 per diluted share for CRD-A and CRD-B, compared to $9.5 million, or $0.19 per diluted share for CRD-A and CRD-B in the prior year quarter.
| GAAP Consolidated Results | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | |||||
| (in millions, except per share amounts) | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Revenues before reimbursements | $322.2 | $329.4 | (2)% | $957.2 | $945.3 | 1% |
| Net income attributable to shareholders | 12.4 | 9.5 | 31% | 26.9 | 20.9 | 29% |
| Diluted earnings per share CRD-A | 0.25 | 0.19 | 32% | 0.54 | 0.42 | 29% |
| Diluted earnings per share CRD-B | 0.25 | 0.19 | 32% | 0.54 | 0.42 | 29% |
| Non-GAAP Consolidated Results | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Three Months Ended<br>September 30, | Nine Months Ended<br>September 30, | |||||
| (in millions, except per share amounts) | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Revenues before reimbursements <br>on constant dollar basis | $318.8 | $329.4 | (3)% | $958.8 | $945.3 | 1% |
| Consolidated adjusted operating earnings | 26.6 | 21.8 | 22% | 66.4 | 56.0 | 19% |
| Consolidated adjusted EBITDA | 36.3 | 29.6 | 23% | 94.5 | 80.8 | 17% |
| Non-GAAP net income attributable to shareholders | 16.1 | 10.9 | 48% | 37.6 | 29.8 | 26% |
| Non-GAAP diluted earnings per share CRD-A | 0.32 | 0.22 | 45% | 0.75 | 0.60 | 25% |
| Non-GAAP diluted earnings per share CRD-B | 0.32 | 0.22 | 45% | 0.76 | 0.60 | 27% |
Mr. Rohit Verma, president and chief executive officer of Crawford & Company, commented, "Our Company delivered solid third-quarter results with a 22% increase in operating earnings and improved margins across all segments of our business. Broadspire and International Operations performed particularly well, but consolidated revenue decreased slightly due to the continued absence of significant weather events and lower U.S. claims activity in North America Loss Adjusting and Platform Solutions.”
Mr. Verma continued, “We are pleased with the expanded client relationships and new business momentum we saw in the third quarter. As we continue to strengthen our position as the partner of choice for insurance providers worldwide, our focus remains on delivering operational excellence and deepening engagement with existing clients. Our balance sheet remains strong, and we are committed to leveraging our growing pipeline to further extend our global reach.”
Segment Results for the Third Quarter
North America Loss Adjusting
North America Loss Adjusting revenues before reimbursements were $77.0 million in the third quarter of 2025, decreasing (2.9)% from $79.3 million in the third quarter of 2024, driven by a decrease in weather related claims impacting revenues in U.S. Field Operations. Foreign exchange rate impacts were immaterial.
The segment had operating earnings of $6.9 million in the 2025 third quarter, increasing from $5.4 million in the third quarter of 2024. The operating margin increased to 9.0% in the 2025 quarter, compared with 6.9% in the 2024 quarter, driven by improved efficiencies in U.S. Global Technical Services and Canada, partially offset by lower revenues in U.S. Field Operations.
North America Loss Adjusting revenues before reimbursements were $234.8 million in the nine months ended September 30, 2025, increasing 0.9% from $232.7 million in the 2024 period. Absent foreign exchange rate decreases of ($1.9) million, revenues would have been $236.7 million for the 2025 third quarter.
The segment had operating earnings of $17.0 million in the nine months ended September 30, 2025, increasing from $14.8 million in the 2024 period. The operating margin was 7.2% for the nine months ended September 30, 2025 and 6.4% in the 2024 period. The increase in operating earnings was primarily due to revenue growth and improved efficiencies in U.S Global Technical Services.
International Operations
International Operations revenues before reimbursements were a new quarterly record of $112.9 million in the third quarter of 2025, up 6.7% from $105.7 million in the same period of 2024 driven by growth in the U.K., Europe, and Asia. Absent foreign exchange rate increases of $3.6 million, revenues would have been $109.3 million for the 2025 third quarter.
Operating earnings were $7.4 million in the 2025 third quarter, increasing from $5.1 million in the 2024 period. The segment’s operating margin for the 2025 quarter increased to 6.6% compared with 4.9% in the 2024 quarter driven by higher value claims in the U.K., earthquake related claims in Thailand, and an increase in weather related claims in Australia.
International Operations revenues before reimbursements were $326.3 million in the 2025 year-to-date period, up 6.6% from $306.1 million in the 2024 period. Foreign exchange rate impacts were immaterial for the nine months ended September 30, 2025.
Operating earnings were $18.5 million in the nine months ended September 30, 2025, improving from $12.5 million in the 2024 period. The segment’s operating margin for year-to-date 2025 increased to 5.7% compared with 4.1% in the 2024 period driven by revenue growth in the U.K. and Asia.
Broadspire
Broadspire segment revenues before reimbursements were a new quarterly record of $103.4 million in the 2025 third quarter, increasing 4.4% from $99.0 million in the 2024 third quarter driven by increases in medical case management and casualty claims revenues.
Broadspire recorded operating earnings of $15.6 million in the third quarter of 2025, representing an operating margin of 15.1%, compared to $14.4 million, or 14.5% of revenues, in the 2024 third quarter. The increase in operating earnings and margin in the quarter was driven by revenue growth and a decrease in administrative costs.
Broadspire segment revenues before reimbursements were $300.4 million in the 2025 year-to-date period, increasing 3.4% from $290.4 million in the 2024 period.
Broadspire operating earnings were $41.4 million in the nine months ended September 30, 2025, representing an operating margin of 13.8%, decreasing from $42.3 million, or 14.6% of revenues in the 2024 period driven by an increase in administrative costs during the first half of 2025.
Platform Solutions
Platform Solutions revenues before reimbursements were $28.9 million in the third quarter of 2025, down (36.1)% from $45.3 million in the same period of 2024 due to lower staff augmentation business from insurance carriers.
Operating earnings were $2.6 million in the 2025 third quarter, compared with $3.8 million in the 2024 period. The segment’s operating margin for the 2025 quarter was 8.9% as compared with 8.5% in the 2024 quarter. The decrease in operating earnings was driven by a decrease in revenues in the Networks service line. The improvement in operating margin is due a shift in product mix from the Networks service line to Contractor Connection and Subrogation.
Platform Solutions revenues before reimbursements were $95.7 million in the nine months ended September 30, 2025, down (17.5)% from $116.0 million in the 2024 period.
Operating earnings were $8.6 million in the 2025 year-to-date period, increasing from $6.4 million in the 2024 period. The segment’s operating margin for the nine months ended September 30, 2025 was 9.0% as compared with 5.5% in the nine months ended September 30, 2024, improving due to the reduction in low value inspection services previously handled within our Networks service line and a decrease in administrative costs.
Unallocated Corporate and Shared Costs and Credits, Net
Unallocated corporate costs were $5.9 million in the third quarter of 2025, compared with $7.0 million in the same period of 2024. The decrease in the 2025 third quarter was primarily due to a decrease in professional fees and compensation expenses, partially offset by an increase in self-insurance expense.
Unallocated corporate costs were $19.2 million in the nine months ended September 30, 2025, compared with $20.1 million in the 2024 period. The decrease in 2025 was primarily due to lower professional fees and compensation expenses, partially offset by a one-time indirect tax expense of $3.1 million.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses (“SG&A”) decreased ($2.1) million, or 3.0%, in the three months ended September 30, 2025 as compared with the 2024 period. The decrease was primarily due to a lower professional fees and compensation expenses.
SG&A increased $1.2 million, or 0.5%, in the 2025 year-to-date period as compared with the 2024 period. The increase was primarily due to a one-time indirect tax expense, partially offset by lower professional fees and compensation expenses.
Other Matters
The Company recognized a pretax contingent earnout expense of $0.1 million in the 2025 third quarter, compared to a benefit of ($2.1) million in the same period of 2024, related to the fair value adjustment of earnout liabilities arising from acquisitions. These adjustments, which are not a component of operating earnings, are based on changes to projections of acquired entities over the respective earnout periods.
Subsequent Event
On October 30, 2025, the Company's Board of Directors authorized the addition of 2,000,000 shares of CRD-A or CRD-B (or a combination of the two) to its 2021 Repurchase Authorization which had a remaining authorization to purchase 813,865 shares at September 30, 2025. Under the new repurchase program, repurchases may be made through December 31, 2027 in the open market or privately negotiated transactions at such times and for such prices as management deems appropriate, subject to applicable regulatory guidelines. The new authorization does not obligate Crawford to acquire any stock, and purchases may be commenced or suspended at any time based on market conditions and other factors that the Company deems appropriate.
Balance Sheet and Cash Flow
The Company’s consolidated cash and cash equivalents position as of September 30, 2025, totaled $68.8 million, compared with $55.4 million at December 31, 2024. The Company’s total debt outstanding totaled $218.1 million as of September 30, 2025 and December 31, 2024.
The Company’s operations provided $51.7 million of cash during the first nine months of 2025, compared with $11.1 million provided in 2024. The increase in cash provided was primarily driven by higher earnings, net change in incentive compensation, and net change in billed and unbilled receivables as compared to the prior year.
During the 2025 third quarter, the Company repurchased 263,098 shares of CRD-A at an average per share cost of $10.71 and repurchased 12,846 shares of CRD-B at an average per share cost of $10.40. In the 2024 third quarter, the Company did not repurchase any shares of CRD-A but repurchased 154,683 shares of CRD-B at an average per share cost of $9.89.
Conference Call
As previously announced, Crawford & Company will host a conference call on November 4, 2025, at 8:30 a.m. Eastern Time to discuss its third quarter 2025 results. The conference call can be accessed live by dialing 1-800-715-9871 and using Conference ID 3506432. A presentation for tomorrow’s call can also be found on the investor relations portion of the Company’s website, https://ir.crawco.com. The call will be recorded and available for replay through November 11, 2025. You may dial 1-800-770-2030 and use passcode 3506432# to listen to the replay.
Non-GAAP Presentation
In the normal course of business, our operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by our clients. Under U.S. generally accepted accounting principles (“GAAP”), these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in our consolidated results of operations. In the foregoing discussion and analysis of segment results of operations, we do not include a gross up of segment expenses and revenues for these pass-through reimbursed expenses. The amounts of reimbursed expenses and related revenues offset each other in our results of operations with no impact to our net income or operating earnings. A reconciliation of revenues before reimbursements to consolidated revenues determined in accordance with GAAP is self-evident from the face of the accompanying unaudited condensed consolidated statements of operations.
Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker (“CODM”) to evaluate the financial performance of our Company and operating segments, and make resource allocation and certain compensation decisions. Unlike net income, segment operating earnings is not a standard performance measure found in GAAP. We believe this measure is useful to others in that it allows them to evaluate segment and consolidated operating performance using the same criteria used by our senior management and CODM. Consolidated operating earnings represent segment earnings including certain unallocated corporate and shared costs, but before net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, income taxes and net income or loss attributable to noncontrolling interests.
Adjusted EBITDA is not a term defined by GAAP and as a result our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies. However, adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results. The Company believes that adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties. Adjusted EBITDA is defined as net income attributable to shareholders of the Company with adjustments for depreciation and amortization, net corporate interest expense, contingent earnout adjustments, non-service pension costs, income taxes and stock-based compensation expense.
Unallocated corporate and shared costs and credits include expenses and credits related to our chief executive officer and Board of Directors, certain provisions for bad debt allowances or subsequent recoveries such as those related to bankrupt clients, certain unallocated professional fees and certain self-insurance costs and recoveries that are not allocated to our individual operating segments.
Income taxes, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, and non-service pension costs are recurring components of our net income, but they are not considered part of our segment operating earnings because they are managed on a corporate-wide basis. Income taxes are calculated for the Company on a consolidated basis based on statutory rates in effect in the various jurisdictions in which we provide services and vary significantly by jurisdiction. Net corporate interest expense results from capital structure decisions made by senior management and the Board of Directors, affecting the Company as a whole. Stock option expense represents the non-cash costs generally related to stock options and employee stock purchase plan expenses which are not allocated to our operating segments. Amortization expense is a non-cash expense for finite-lived customer-relationship and trade name intangible assets acquired in business combinations. Contingent earnout adjustments relate to changes in the fair value of earnouts associated with our recent acquisitions. Non-service pension costs represent the U.S. and U.K. non-service defined benefit pension costs, which are non-operating in nature as the U.S. plan was frozen in 2002 and the U.K. plans are closed to new participants. None of these costs relate directly to the performance of our services or operating activities and, therefore, are excluded from segment operating earnings to better assess the results of each segment's operating activities on a consistent basis.
A significant portion of our operations are international. These international operations subject us to foreign exchange fluctuations. The following table illustrates revenue as a percentage of total revenue for the major currencies of the geographic areas that Crawford does business:
| Nine Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | September 30,2024 | September 30,2025 | September 30,2024 | |||||||||||||
| Geographic Area | Currency | % of total | equivalent | % of total | equivalent | % of total | equivalent | % of total | ||||||||
| U.S. | 58.0 | % | 60.8 | % | 58.9 | % | 60.3 | % | ||||||||
| U.K. | 14.1 | % | 12.8 | % | 14.0 | % | 13.1 | % | ||||||||
| Canada | CAD | 7.0 | % | 7.1 | % | 7.1 | % | 7.4 | % | |||||||
| Australia | AUD | 7.5 | % | 7.1 | % | 6.8 | % | 6.9 | % | |||||||
| Europe | 5.3 | % | 4.6 | % | 5.2 | % | 4.8 | % | ||||||||
| Rest of World | Various | 8.1 | % | 7.6 | % | 8.0 | % | 7.5 | % | |||||||
| Total Revenues, before reimbursements | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
All values are in British Pounds.
The following is a reconciliation of consolidated operating earnings to net income attributable to shareholders of Crawford & Company on a GAAP basis:
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||
| Operating earnings: | ||||||||||||
| North America Loss Adjusting | $ | 6,941 | $ | 5,443 | $ | 17,012 | $ | 14,807 | ||||
| International Operations | 7,447 | 5,136 | 18,539 | 12,528 | ||||||||
| Broadspire | 15,565 | 14,402 | 41,420 | 42,297 | ||||||||
| Platform Solutions | 2,584 | 3,833 | 8,643 | 6,417 | ||||||||
| Unallocated corporate and shared costs, net | (5,946 | ) | (6,979 | ) | (19,183 | ) | (20,065 | ) | ||||
| Consolidated operating earnings | 26,591 | 21,835 | 66,431 | 55,984 | ||||||||
| (Deduct) add: | ||||||||||||
| Net corporate interest expense | (3,788 | ) | (4,682 | ) | (11,590 | ) | (12,534 | ) | ||||
| Stock option expense | (52 | ) | (188 | ) | (450 | ) | (494 | ) | ||||
| Amortization of intangible assets | (2,126 | ) | (1,932 | ) | (5,751 | ) | (5,656 | ) | ||||
| Non-service pension costs | (2,363 | ) | (2,441 | ) | (7,050 | ) | (7,313 | ) | ||||
| Contingent earnout adjustments | (60 | ) | 2,128 | (503 | ) | 1,547 | ||||||
| Income tax provision | (5,813 | ) | (5,333 | ) | (14,138 | ) | (10,866 | ) | ||||
| Net loss (income) attributable to noncontrolling interests | 19 | 66 | (75 | ) | 206 | |||||||
| Net income attributable to shareholders of Crawford & Company | $ | 12,408 | $ | 9,453 | $ | 26,874 | $ | 20,874 |
The following is a reconciliation of net income attributable to shareholders of Crawford & Company on a GAAP basis to non-GAAP adjusted EBITDA:
| Three Months Ended | Nine Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | September 30,<br>2025 | September 30,<br>2024 | September 30,<br>2025 | September 30,<br>2024 | ||||||
| Net income attributable to shareholders of Crawford & Company | $ | 12,408 | $ | 9,453 | $ | 26,874 | $ | 20,874 | ||
| Add (Deduct): | ||||||||||
| Depreciation and amortization | 10,084 | 8,813 | 29,545 | 26,957 | ||||||
| Stock-based compensation | 1,751 | 988 | 4,836 | 3,819 | ||||||
| Net corporate interest expense | 3,788 | 4,682 | 11,590 | 12,534 | ||||||
| Non-service pension costs | 2,363 | 2,441 | 7,050 | 7,313 | ||||||
| Contingent earnout adjustments | 60 | (2,128 | ) | 503 | (1,547 | ) | ||||
| Income tax provision | 5,813 | 5,333 | 14,138 | 10,866 | ||||||
| Non-GAAP adjusted EBITDA | $ | 36,267 | $ | 29,582 | $ | 94,536 | $ | 80,816 |
The following is a reconciliation of operating cash flow to free cash flow for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | September 30, 2025 | September 30, 2024 | Change | ||||||
| Net Cash Provided by Operating Activities | $ | 51,715 | $ | 11,093 | $ | 40,622 | |||
| Less: | |||||||||
| Property & Equipment Purchases, net | (3,765 | ) | (2,992 | ) | (773 | ) | |||
| Capitalized Software (internal and external costs) | (23,821 | ) | (26,453 | ) | 2,632 | ||||
| Free Cash Flow | $ | 24,129 | $ | (18,352 | ) | $ | 42,481 |
Non-GAAP consolidated results for 2025 and 2024 exclude the non-cash, after-tax adjustments for amortization of intangible assets, non-service-related pension costs, and contingent earnout adjustment.
The following are the reconciliations of GAAP Pretax Earnings, Net Income and Earnings Per Share to related non-GAAP Adjusted figures, which reflect each of 2025 and 2024 before amortization of intangible assets, non-service related pension costs and contingent earnout adjustments:
| Three Months Ended September 30, 2025 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | Pretax earnings | Net income <br>attributable to Crawford & Company | Diluted earnings per <br>CRD-A <br>share(1) | Diluted earnings per <br>CRD-B <br>share(1) | ||||||||
| GAAP | $ | 18,202 | $ | 12,408 | $ | 0.25 | $ | 0.25 | ||||
| Adjustments: | ||||||||||||
| Amortization of intangible assets | 2,126 | 1,814 | 0.04 | 0.04 | ||||||||
| Non-service related pension costs | 2,363 | 1,831 | 0.04 | 0.04 | ||||||||
| Contingent earnout adjustments | 60 | 60 | — | — | ||||||||
| Non-GAAP Adjusted | $ | 22,751 | $ | 16,113 | $ | 0.32 | $ | 0.32 | ||||
| Three Months Ended September 30, 2024 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (in thousands) | Pretax earnings | Net income <br>attributable to Crawford & Company | Diluted earnings per <br>CRD-A <br>share | Diluted earnings per <br>CRD-B <br>share | ||||||||
| GAAP | $ | 14,720 | $ | 9,453 | $ | 0.19 | $ | 0.19 | ||||
| Adjustments: | ||||||||||||
| Amortization of intangible assets | 1,932 | 1,668 | 0.03 | 0.03 | ||||||||
| Non-service related pension costs | 2,441 | 1,910 | 0.04 | 0.04 | ||||||||
| Contingent earnout adjustments | (2,128 | ) | (2,179 | ) | (0.04 | ) | (0.04 | ) | ||||
| Non-GAAP Adjusted | $ | 16,965 | $ | 10,852 | $ | 0.22 | $ | 0.22 | ||||
| Nine Months Ended September 30, 2025 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| (in thousands) | Pretax earnings | Net income <br>attributable to Crawford & Company | Diluted earnings per <br>CRD-A <br>share(1) | Diluted earnings per <br>CRD-B <br>share | ||||||||
| GAAP | $ | 41,087 | $ | 26,874 | $ | 0.54 | $ | 0.54 | ||||
| Adjustments: | ||||||||||||
| Amortization of intangible assets | 5,751 | 4,814 | 0.10 | 0.10 | ||||||||
| Non-service related pension costs | 7,050 | 5,457 | 0.11 | 0.11 | ||||||||
| Contingent earnout adjustments | 503 | 503 | 0.01 | 0.01 | ||||||||
| Non-GAAP Adjusted | $ | 54,391 | $ | 37,648 | $ | 0.75 | $ | 0.76 | ||||
| Nine Months Ended September 30, 2024 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (in thousands) | Pretax earnings | Net income <br>attributable to Crawford & Company | Diluted <br>earnings per <br>CRD-A <br>share | Diluted <br>earnings per <br>CRD-B <br>share | ||||||||
| GAAP | $ | 31,534 | $ | 20,874 | $ | 0.42 | $ | 0.42 | ||||
| Adjustments: | ||||||||||||
| Amortization of intangible assets | 5,656 | 4,807 | 0.10 | 0.10 | ||||||||
| Non-service related pension costs | 7,313 | 5,714 | 0.11 | 0.11 | ||||||||
| Contingent earnout adjustments | (1,547 | ) | (1,605 | ) | (0.03 | ) | (0.03 | ) | ||||
| Non-GAAP Adjusted | $ | 42,956 | $ | 29,790 | $ | 0.60 | $ | 0.60 |
(1) Sum of reconciling items may differ from total due to rounding of individual components.
The following is information regarding the weighted average shares used in the computation of basic and diluted earnings per share:
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||
| Weighted-Average Shares Used to Compute Basic Earnings Per Share: | ||||||||
| Class A Common Stock | 30,428 | 29,880 | 30,303 | 29,732 | ||||
| Class B Common Stock | 19,142 | 19,255 | 19,144 | 19,390 | ||||
| Weighted-Average Shares Used to Compute Diluted Earnings Per Share: | ||||||||
| Class A Common Stock | 30,925 | 30,472 | 30,805 | 30,308 | ||||
| Class B Common Stock | 19,142 | 19,255 | 19,144 | 19,390 |
Further information regarding the Company’s operating results for the three and nine months ended September 30, 2025, financial position as of September 30, 2025, and cash flows for the nine months ended September 30, 2025 is shown on the attached unaudited condensed consolidated financial statements.
About Crawford & Company
Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B) is a leading provider of claims management and outsourcing solutions to insurance companies and self-insured entities with an expansive network serving clients in more than 70 countries. The Company's two classes of stock are substantially identical, except with respect to voting rights for the Class B Common Stock (CRD-B) and protections for the non-voting Class A Common Stock (CRD-A). More information is available at www.crawco.com.
TAG: Crawford-Financial, Crawford-Investor-News-and-Events
FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL BRUCE SWAIN AT (404) 300-1051.
| This press release contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not historical facts may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company’s present expectations. Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Crawford & Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise or not arise after the date the forward-looking statements are made. For further information regarding Crawford & Company, including factors that could cause our actual financial condition, results or earnings to differ from those described in any forward-looking statements, please read Crawford & Company’s reports filed with the SEC and available at www.sec.gov and in the Investor Relations section of Crawford & Company’s website at www.crawco.com. |
|---|
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In Thousands, Except Per Share Amounts and Percentages)
| Three Months Ended September 30, | 2025 | 2024 | % Change | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Revenues: | |||||||||
| Revenues Before Reimbursements | $ | 322,171 | $ | 329,375 | (2 | )% | |||
| Reimbursements | 10,636 | 13,351 | (20 | )% | |||||
| Total Revenues | 332,807 | 342,726 | (3 | )% | |||||
| Costs and Expenses: | |||||||||
| Costs of Services Provided, Before Reimbursements | 228,379 | 235,957 | (3 | )% | |||||
| Reimbursements | 10,636 | 13,351 | (20 | )% | |||||
| Total Costs of Services | 239,015 | 249,308 | (4 | )% | |||||
| Selling, General, and Administrative Expenses | 69,393 | 71,526 | (3 | )% | |||||
| Corporate Interest Expense, Net | 3,788 | 4,682 | (19 | )% | |||||
| Total Costs and Expenses | 312,196 | 325,516 | (4 | )% | |||||
| Other Loss, Net | (2,409 | ) | (2,490 | ) | (3 | )% | |||
| Income Before Income Taxes | 18,202 | 14,720 | 24 | % | |||||
| Provision for Income Taxes | 5,813 | 5,333 | 9 | % | |||||
| Net Income | 12,389 | 9,387 | 32 | % | |||||
| Net Loss Attributable to Noncontrolling Interests | 19 | 66 | (71 | )% | |||||
| Net Income Attributable to Shareholders of Crawford & Company | $ | 12,408 | $ | 9,453 | 31 | % | |||
| Earnings Per Share - Basic: | |||||||||
| Class A Common Stock | $ | 0.25 | $ | 0.19 | 32 | % | |||
| Class B Common Stock | $ | 0.25 | $ | 0.19 | 32 | % | |||
| Earnings Per Share - Diluted: | |||||||||
| Class A Common Stock | $ | 0.25 | $ | 0.19 | 32 | % | |||
| Class B Common Stock | $ | 0.25 | $ | 0.19 | 32 | % | |||
| Cash Dividends Per Share: | |||||||||
| Class A Common Stock | $ | 0.075 | $ | 0.07 | 7 | % | |||
| Class B Common Stock | $ | 0.075 | $ | 0.07 | 7 | % |
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In Thousands, Except Per Share Amounts and Percentages)
| Nine Months Ended September 30, | 2025 | 2024 | % Change | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Revenues: | |||||||||
| Revenues Before Reimbursements | $ | 957,200 | $ | 945,256 | 1 | % | |||
| Reimbursements | 33,541 | 37,396 | (10 | )% | |||||
| Total Revenues | 990,741 | 982,652 | 1 | % | |||||
| Costs and Expenses: | |||||||||
| Costs of Services Provided, Before Reimbursements | 674,996 | 672,611 | 0 | % | |||||
| Reimbursements | 33,541 | 37,396 | (10 | )% | |||||
| Total Costs of Services | 708,537 | 710,007 | (0 | )% | |||||
| Selling, General, and Administrative Expenses | 222,317 | 221,116 | 1 | % | |||||
| Corporate Interest Expense, Net | 11,590 | 12,534 | (8 | )% | |||||
| Total Costs and Expenses | 942,444 | 943,657 | (0 | )% | |||||
| Other Loss, Net | (7,210 | ) | (7,461 | ) | (3 | )% | |||
| Income Before Income Taxes | 41,087 | 31,534 | 30 | % | |||||
| Provision for Income Taxes | 14,138 | 10,866 | 30 | % | |||||
| Net Income | 26,949 | 20,668 | 30 | % | |||||
| Net (Income) Loss Attributable to Noncontrolling Interests | (75 | ) | 206 | (136 | )% | ||||
| Net Income Attributable to Shareholders of Crawford & Company | $ | 26,874 | $ | 20,874 | 29 | % | |||
| Earnings Per Share - Basic: | |||||||||
| Class A Common Stock | $ | 0.54 | $ | 0.42 | 29 | % | |||
| Class B Common Stock | $ | 0.54 | $ | 0.42 | 29 | % | |||
| Earnings Per Share - Diluted: | |||||||||
| Class A Common Stock | $ | 0.54 | $ | 0.42 | 29 | % | |||
| Class B Common Stock | $ | 0.54 | $ | 0.42 | 29 | % | |||
| Cash Dividends Per Share: | |||||||||
| Class A Common Stock | $ | 0.215 | $ | 0.21 | 2 | % | |||
| Class B Common Stock | $ | 0.215 | $ | 0.21 | 2 | % |
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 30, 2025 and December 31, 2024
| December 31, | |||||
|---|---|---|---|---|---|
| 2024 | |||||
| (In thousands, except par value amounts) | * | ||||
| ASSETS | |||||
| Current Assets: | |||||
| Cash and Cash Equivalents | 68,767 | $ | 55,412 | ||
| Accounts Receivable, Net | 128,400 | 142,064 | |||
| Unbilled Revenues, at Estimated Billable Amounts | 134,928 | 131,080 | |||
| Income Taxes Receivable | 3,626 | 5,337 | |||
| Prepaid Expenses and Other Current Assets | 35,960 | 40,334 | |||
| Total Current Assets | 371,681 | 374,227 | |||
| Net Property and Equipment | 17,804 | 20,554 | |||
| Other Assets: | |||||
| Operating Lease Right-of-Use Asset, Net | 75,249 | 78,808 | |||
| Goodwill | 76,504 | 76,368 | |||
| Intangible Assets Arising from Business Acquisitions, Net | 68,869 | 74,545 | |||
| Capitalized Software Costs, Net | 118,123 | 111,854 | |||
| Deferred Income Tax Assets | 23,783 | 25,305 | |||
| Other Noncurrent Assets | 47,826 | 42,094 | |||
| Total Other Assets | 410,354 | 408,974 | |||
| Total Assets | 799,839 | $ | 803,755 | ||
| LIABILITIES AND SHAREHOLDERS’ INVESTMENT | |||||
| Current Liabilities: | |||||
| Short-Term Borrowings | 21,285 | $ | 17,822 | ||
| Accounts Payable | 45,470 | 50,605 | |||
| Accrued Compensation and Related Costs | 85,884 | 101,371 | |||
| Self-Insured Risks | 17,763 | 27,813 | |||
| Income Taxes Payable | 3,397 | 3,343 | |||
| Operating Lease Liability | 26,206 | 24,541 | |||
| Other Accrued Liabilities | 38,097 | 38,103 | |||
| Deferred Revenues | 36,179 | 36,129 | |||
| Total Current Liabilities | 274,281 | 299,727 | |||
| Noncurrent Liabilities: | |||||
| Long-Term Debt and Finance Leases, Less Current Installments | 196,813 | 200,315 | |||
| Operating Lease Liability | 61,251 | 66,811 | |||
| Deferred Revenues | 23,704 | 23,556 | |||
| Accrued Pension Liabilities | 20,368 | 21,084 | |||
| Other Noncurrent Liabilities | 37,743 | 36,711 | |||
| Total Noncurrent Liabilities | 339,879 | 348,477 | |||
| Shareholders’ Investment: | |||||
| Class A Common Stock, 1.00 Par Value | 30,238 | 30,124 | |||
| Class B Common Stock, 1.00 Par Value | 19,132 | 19,145 | |||
| Additional Paid-in Capital | 93,610 | 87,118 | |||
| Retained Earnings | 251,506 | 237,948 | |||
| Accumulated Other Comprehensive Loss | (207,170 | ) | (217,125 | ) | |
| Shareholders’ Investment Attributable to Shareholders of Crawford & Company | 187,316 | 157,210 | |||
| Noncontrolling Interests | (1,637 | ) | (1,659 | ) | |
| Total Shareholders’ Investment | 185,679 | 155,551 | |||
| Total Liabilities and Shareholders’ Investment | 799,839 | $ | 803,755 |
All values are in US Dollars.
(*) Derived from the audited Consolidated Balance Sheet
CRAWFORD & COMPANY
SUMMARY RESULTS BY OPERATING SEGMENT WITH DIRECT COMPENSATION AND OTHER EXPENSES
Unaudited
(In Thousands, Except Percentages)
Three Months Ended September 30,
| North America Loss Adjusting | % | International Operations | % | Broadspire | % | Platform Solutions | % | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | 2025 | 2024 | Change | 2025 | 2024 | Change | 2025 | 2024 | Change | |||||||||||||||||
| Revenues Before Reimbursements | $ | 76,995 | $ | 79,329 | (2.9)% | $ | 112,853 | $ | 105,741 | 6.7% | $ | 103,401 | $ | 99,009 | 4.4% | $ | 28,922 | $ | 45,296 | (36.1)% | ||||||||
| Direct Compensation, Fringe Benefits & Non-Employee Labor | 54,494 | 57,055 | (4.5)% | 75,550 | 69,395 | 8.9% | 62,402 | 59,680 | 4.6% | 16,086 | 28,976 | (44.5)% | ||||||||||||||||
| % of Revenues Before Reimbursements | 70.8 | % | 71.9 | % | 66.9 | % | 65.6 | % | 60.3 | % | 60.3 | % | 55.6 | % | 64.0 | % | ||||||||||||
| Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor | 15,560 | 16,831 | (7.6)% | 29,856 | 31,210 | (4.3)% | 25,434 | 24,927 | 2.0% | 10,252 | 12,487 | (17.9)% | ||||||||||||||||
| % of Revenues Before Reimbursements | 20.2 | % | 21.2 | % | 26.5 | % | 29.5 | % | 24.6 | % | 25.2 | % | 35.4 | % | 27.6 | % | ||||||||||||
| Total Operating Expenses | 70,054 | 73,886 | (5.2)% | 105,406 | 100,605 | 4.8% | 87,836 | 84,607 | 3.8% | 26,338 | 41,463 | (36.5)% | ||||||||||||||||
| Operating Earnings (1) | $ | 6,941 | $ | 5,443 | 27.5% | $ | 7,447 | $ | 5,136 | 45.0% | $ | 15,565 | $ | 14,402 | 8.1% | $ | 2,584 | $ | 3,833 | (32.6)% | ||||||||
| % of Revenues Before Reimbursements | 9.0 | % | 6.9 | % | 6.6 | % | 4.9 | % | 15.1 | % | 14.5 | % | 8.9 | % | 8.5 | % |
Nine Months Ended September 30,
| North America Loss Adjusting | % | International Operations | % | Broadspire | % | Platforms Solutions | % | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | 2025 | 2024 | Change | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||
| Revenues Before Reimbursements | $ | 234,809 | $ | 232,724 | 0.9% | $ | 326,317 | $ | 306,116 | 6.6% | $ | 300,402 | $ | 290,394 | 3.4% | $ | 95,672 | $ | 116,022 | (17.5)% | |||||||||
| \ | |||||||||||||||||||||||||||||
| Direct Compensation, Fringe Benefits & Non-Employee Labor | 165,347 | 167,230 | (1.1)% | 218,438 | 200,421 | 9.0% | 181,113 | 175,099 | 3.4% | 53,245 | 71,310 | (25.3)% | |||||||||||||||||
| % of Revenues Before Reimbursements | 70.4 | % | 71.9 | % | 66.9 | % | 65.5 | % | 60.3 | % | 60.3 | % | 55.7 | % | 61.5 | % | |||||||||||||
| Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor | 52,450 | 50,687 | 3.5% | 89,340 | 93,167 | (4.1)% | 77,869 | 72,998 | 6.7% | 33,784 | 38,295 | (11.8)% | |||||||||||||||||
| % of Revenues Before Reimbursements | 22.3 | % | 21.8 | % | 27.4 | % | 30.4 | % | 25.9 | % | 25.1 | % | 35.3 | % | 33.0 | % | |||||||||||||
| Total Operating Expenses | 217,797 | 217,917 | (0.1)% | 307,778 | 293,588 | 4.8% | 258,982 | 248,097 | 4.4% | 87,029 | 109,605 | (20.6)% | |||||||||||||||||
| Operating Earnings(1) | $ | 17,012 | $ | 14,807 | 14.9% | $ | 18,539 | $ | 12,528 | 48.0% | $ | 41,420 | $ | 42,297 | (2.1)% | $ | 8,643 | $ | 6,417 | 34.7% | |||||||||
| % of Revenues Before Reimbursements | 7.2 | % | 6.4 | % | 5.7 | % | 4.1 | % | 13.8 | % | 14.6 | % | 9.0 | % | 5.5 | % |
(1) A non-GAAP financial measurement which represents net income attributable to the applicable reporting segment excluding income taxes, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, non-service pension costs, contingent earnout adjustments, and certain unallocated corporate and shared costs and credits. See pages 2 and 3 for additional information about segment operating earnings.
CRAWFORD & COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year-to-Date Period Ended September 30, 2025 and September 30, 2024
Unaudited
(In Thousands)
| 2025 | 2024 | |||||
|---|---|---|---|---|---|---|
| Cash Flows From Operating Activities: | ||||||
| Net Income | $ | 26,949 | $ | 20,668 | ||
| Reconciliation of net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 29,545 | 26,957 | ||||
| Stock-based compensation | 4,836 | 3,819 | ||||
| Loss (gain) on disposal of property and equipment | 1,021 | (93 | ) | |||
| Contingent earnout adjustments | 503 | (1,547 | ) | |||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable, net | 13,153 | 751 | ||||
| Unbilled revenues, net | (3,146 | ) | (17,263 | ) | ||
| Accrued or prepaid income taxes | 74 | (5,520 | ) | |||
| Accounts payable and accrued liabilities | (23,557 | ) | (17,141 | ) | ||
| Deferred revenues | (272 | ) | (1,819 | ) | ||
| Accrued retirement costs | 5,098 | 4,993 | ||||
| Prepaid expenses and other operating activities | (2,489 | ) | (2,712 | ) | ||
| Net cash provided by operating activities | 51,715 | 11,093 | ||||
| Cash Flows From Investing Activities: | ||||||
| Acquisitions of property and equipment | (3,765 | ) | (2,992 | ) | ||
| Capitalization of computer software costs | (23,821 | ) | (26,453 | ) | ||
| Proceeds from settlement of life insurance policies | 295 | — | ||||
| Proceeds from business dispositions, net of cash disposed | 2,046 | — | ||||
| Net cash used in investing activities | (25,245 | ) | (29,445 | ) | ||
| Cash Flows From Financing Activities: | ||||||
| Cash dividends paid | (10,639 | ) | (10,320 | ) | ||
| Repurchases of common stock | (2,953 | ) | (3,604 | ) | ||
| Increases in short-term and revolving credit facility borrowings | 54,720 | 61,612 | ||||
| Payments on short-term and revolving credit facility borrowings | (55,449 | ) | (32,606 | ) | ||
| Payments of contingent consideration on acquisitions | (1,326 | ) | (3,183 | ) | ||
| Other financing activities | 1,840 | 1,410 | ||||
| Net cash (used in) provided by financing activities | (13,807 | ) | 13,309 | |||
| Effects of exchange rate changes on cash and cash equivalents | 123 | 181 | ||||
| Increase (Decrease) in cash, cash equivalents, and restricted cash(1) | 12,786 | (4,862 | ) | |||
| Cash, cash equivalents, and restricted cash at beginning of year(1) | 56,329 | 59,545 | ||||
| Cash, cash equivalents, and restricted cash at end of period(1) | $ | 69,115 | $ | 54,683 | ||
| Supplemental cash flow information: | ||||||
| Income taxes paid | $ | 13,304 | $ | 16,102 | ||
| Interest paid | 13,504 | 14,244 |
(1) The 2025 amounts include beginning restricted cash of $917 at December 31, 2024, and ending restricted cash of $348 at September 30, 2025, and the 2024 amounts include beginning restricted cash of $1,182 at December 31, 2023, and ending restricted cash of $2,343 at September 30, 2024, which we present as part of "Prepaid expenses and other current assets" on the Balance Sheets.
Third Quarter 2025 Financial Results CRD-A & CRD-B (NYSE) ® Crawford & Company
Forward-Looking Statements & Additional Information Q3 2025 FINANCIAL RESULTS Forward-Looking Statements This presentation contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not statements of historical fact may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company's present expectations. Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Crawford & Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise or not arise after the date the forward-looking statements are made. Results for any interim period presented herein are not necessarily indicative of results to be expected for the full year or for any other future period. For further information regarding Crawford & Company, and the risks and uncertainties involved in forward-looking statements, please read Crawford & Company's reports filed with the Securities and Exchange Commission and available at www.sec.gov or in the Investor Relations portion of Crawford & Company's website at https://ir.crawco.com. Crawford's business is dependent, to a significant extent, on case volumes. The Company cannot predict the future trend of case volumes for a number of reasons, including the fact that the frequency and severity of weather-related claims and the occurrence of natural and man-made disasters, which are a significant source of cases and revenue for the Company, are generally not subject to accurate forecasting. Revenues Before Reimbursements ("Revenues") Revenues Before Reimbursements are referred to as "Revenues" in both consolidated and segment charts, bullets and tables throughout this presentation. Segment and Consolidated Operating Earnings Under the Financial Accounting Standards Board's Accounting Standards Codification ("ASC") Topic 280, "Segment Reporting," the Company has defined segment operating earnings as the primary measure used by the Company to evaluate the results of each of its four operating segments. Segment operating earnings represent segment earnings, including the direct and indirect costs of certain administrative functions required to operate our business, but excludes unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, income taxes and net income or loss attributable to noncontrolling interests. Earnings Per Share The Company's two classes of stock are substantially identical, except with respect to voting rights for the Class B Common Stock (CRD-B) and protections for the non-voting Class A Common Stock (CRD-A). More information available on the Company’s website. The two-class method is an earnings allocation method under which earnings per share ("EPS") is calculated for each class of common stock considering both dividends declared and participation rights in undistributed earnings as if all such earnings had been distributed during the period. As a result, the Company may report different EPS for each class of stock due to the two-class method of computing EPS as required by ASC Topic 260 - "Earnings Per Share". Segment Gross Profit Segment gross profit is defined as revenues, less direct costs, which exclude indirect centralized administrative support costs allocated to the business. Indirect expenses consist of centralized administrative support costs, regional and local shared services that are allocated to each segment based on usage. Non-GAAP Financial Information For additional information about certain non-GAAP financial information presented herein, see the Appendix following this presentation.
STRATEGIC UPDATE Rohit Verma President & Chief Executive Officer 3 Q3 2025 FINANCIAL RESULTS
Countries 70 Employees 10,000+ $20B+ Claims Managed Annually Global Reach; Trusted Partner Q3 2025 FINANCIAL RESULTS
Natural disasters continue to drive global demand in weather-related claims Gaining share within fragmented U.S. market as carriers pursue a flight to quality with well-established partners Industry-leading expertise and technology capabilities enhancing market share Growing and strengthening strategic partnerships across business segments Diversified global business model addresses multiple verticals Multiple Growth Drivers Benefitting Crawford Q3 2025 FINANCIAL RESULTS
Third Quarter 2025 Highlights Consolidated revenues decreased slightly due to lower property claim activity in the U.S. Revenue grew 6.7% to record quarterly revenue of $112.9M at International Operations Revenue grew 4.4% to record quarterly revenue of $103.4M at Broadspire Consolidated operating earnings increased 21.8% with improved performance in NALA, International Operations and Broadspire and margin expansion in all segments Non-GAAP EPS of $0.32 for CRD-A and CRD-B Paid quarterly dividend of $0.075 per share Added $29 million in new business growth Strong balance sheet and liquidity Leverage ratio remains low at 1.64x EBITDA YoY Revenue YoY Adjusted Operating Earnings* $329.4M $21.8M 6 * See Appendix for non-GAAP explanation and reconciliation Q3 ‘24 Q3 ‘25 Q3 ‘24 Q3 ‘25 Q3 2025 FINANCIAL RESULTS $322.2M $26.6M
Our Capital Allocation Strategy Investing in long-term growth through Cap Ex and M&A Strong liquidity Leverage ratio of 1.64x EBITDA significantly below industry average Returning capital to shareholders: Paid quarterly dividend of $0.075 per share for CRD-A and CRD-B Active share repurchase program Q3 2025 FINANCIAL RESULTS Committed to Industry-Leading Financial Strength and Employing a Disciplined Approach to Capital Allocation
OPERATIONAL UPDATE Bruce Swain, Chief Financial Officer Q3 2025 FINANCIAL RESULTS 8
Comprised of All Service Lines Outside of North America: UK Europe Australia Asia Latin America Legal Services International Operations 35% Third Party Administration for: Workers' Compensation Auto and Liability Claims Medical Management Disability Technology Services Accident and Health Comprised of the Following Service Lines: Contractor Connection Networks Catastrophe Subrogation (Praxis) Comprised of the Following North American Service Lines: USLA US GTS US Field Ops Canada Loss Adjusting Canada TPA Canada Contractor Connection edjuster Alternative Inspection Solutions North America Loss Adjusting 24% Broadspire (US-only) 32% Platform Solutions (US-only) 9% Third Quarter 2025 Revenue Contribution Q3 2025 FINANCIAL RESULTS
Revenue decreased 2.9% primarily reflecting decline of property claims in the U.S. Operating earnings increased by $1.5M or 28% YoY Improvements driven by GTS & Canada Operating margin increased by 215 bps Destination for top-tier insurance adjusting talent, providing a key competitive advantage in expertise and service quality North America Loss Adjusting Third Quarter 2025 Results Revenues $77.0M Operating Earnings $6.9M 10 Q3 2025 FINANCIAL RESULTS
Revenue growth of 6.7% Broad-based growth across UK, Europe, Asia, and Australia Operating earnings increased by $2.3M or 45% YoY Operating margin expanded by 174 bps Strong international performance reflects operational discipline and commitment to revenue growth International Operations Third Quarter 2025 Results Revenues $112.9M Operating Earnings $7.4M 11 Q3 2025 FINANCIAL RESULTS
Broadspire Third Quarter 2025 Results Revenues $103.4M $15.6M Operating Earnings 12 Q3 2025 FINANCIAL RESULTS Record quarterly revenues YoY growth of 4.4% driven by continued growth in client demand and case volumes Retention rate of 93.5% Operating earnings increased by $1.2M or 8.1% YoY Operating margin increased by 51 bps Strong new business pipeline
Platform Solutions Third Quarter 2025 Results Revenues $28.9M Operating Earnings $2.6M 13 Q3 2025 FINANCIAL RESULTS Revenue down by 36% YoY Ongoing weather-related declines in the CAT and Contractor Connection business lines Operating earnings decreased by $1.2M or 33% YoY Operating margin improved by 47 bps
Q3 ‘24 Q3 ‘25 Non-weather-related revenue Weather-related revenue (US CAT, USLA, Australia) Diversified Business Model Strengthens Stability Through Weather and Market Fluctuations U.S. Severe Storm Reports1,2 1 National Oceanic and Atmospheric Administration (NOAA) Storm Prediction Database, October 14, 2025 2 Preliminary data Q3 2025 FINANCIAL RESULTS Q3 ‘24 Q3 ‘25 -35% 10,180 6,659 Consolidated Weather-Related vs. Non-Weather-Related Revenue $329.4M $322.2M -2.2% +3.4% -15.6%
FINANCIAL UPDATE Bruce Swain, Chief Financial Officer Q3 2025 FINANCIAL RESULTS 15
Q3 2025 Financial Summary (1) See Appendix for non-GAAP explanation and reconciliation Quarter Ended Unaudited ($ in millions, except per share amounts) September 30, 2025 September 30, 2024 % Change Revenues $322.2 $329.4 (2)% Non-GAAP Revenues excluding foreign exchange fluctuations(1) $318.8 $329.4 (3)% Net Income Attributable to Shareholders of Crawford & Company $12.4 $9.5 31% Diluted Earnings per Share CRD-A $0.25 $0.19 32% CRD-B $0.25 $0.19 32% Non-GAAP Diluted Earnings per Share (1) CRD-A $0.32 $0.22 45% CRD-B $0.32 $0.22 45% Adjusted Operating Earnings (1) $26.6 $21.8 22% Adjusted Operating Margin (1) 8.3% 6.6% 170 bps Adjusted EBITDA (1) $36.3 $29.6 23% Adjusted EBITDA Margin (1) 11.3% 9.0% 230 bps Q3 2025 FINANCIAL RESULTS
Balance Sheet Highlights (1) See Appendix for non-GAAP explanation and reconciliation Unaudited ($ in thousands) Sept 30, 2025 December 31, 2019 Dec 31, 2024 December 31, 2018 Change Change Cash and cash equivalents $ 68,767 $ 55,412 $ 13,355 Accounts receivable, net 128,400 142,064 (13,664 ) Unbilled revenues, net 134,928 131,080 3,848 Total receivables 263,328 273,144 (9,816 ) Goodwill 76,504 76,368 136 Intangible assets arising from business acquisitions, net 68,869 74,545 (5,676 ) Deferred revenues 59,883 59,685 198 Pension liabilities 20,368 21,084 (716 ) Short-term borrowings and current portion of finance leases 21,285 17,822 3,463 Long-term debt, less current portion 196,813 200,315 (3,502 ) Total debt 218,098 218,137 (39 ) Total stockholders' equity attributable to Crawford & Company 187,316 157,210 30,106 Net debt (1) 149,331 162,725 (13,394 ) Q3 2025 FINANCIAL RESULTS
Net Debt and Pension Liability $149.3M Net debt at $149.3 million $137.3M Leverage Ratio of 1.64x EBITDA at end of Q3 ‘25 $20.4M Pension liability at $20.4 million $74.3M Funded Ratio of US pension plan is 93.1% at end of Q3 ‘25 Q3 2025 FINANCIAL RESULTS
Operating and Free Cash Flow (1) See Appendix for non-GAAP explanation and reconciliation Unaudited ($ in thousands) 2025 2019 2024 2018 Change Change Net Income Attributable to Shareholders of Crawford & Company $ 26,874 $ 20,874 $ 6,000 Depreciation and Other Non-Cash Operating Items 35,477 30,477 5,000 Contingent Earnout Adjustments 503 (1,547 ) 2,050 Billed Receivables Change 13,153 751 12,402 Unbilled Receivables Change (3,146 ) (17,263 ) 14,117 Change in Accrued Compensation, 401K, and Other Payroll (16,487 ) (19,644 ) 3,157 Other Working Capital Changes (4,659 ) (2,555 ) (2,104 ) Cash Flows from Operating Activities 51,715 11,093 40,622 Property & Equipment Purchases, net (3,765 ) (2,992 ) (773 ) Capitalized Software (internal and external costs) (23,821 ) (26,453 ) 2,632 Free Cash Flow(1) $ 24,129 $ (18,352 ) $ 42,481 Q3 2025 FINANCIAL RESULTS
Additional Financial Matters Unallocated Corporate and Shared Costs and Credits Unallocated corporate costs of $5.9 million in Q3 ‘25 compared to corporate costs of $7.0 million in Q3 ‘24 Variance was primarily due to a decrease in professional fees and non-recurring items partially offset by higher self-insured medical cost Non-service Pension Costs Q3 ‘25 non-service pension costs remained consistent with Q3 ’24 at $2.4 million These costs are not a component of operating earnings and are added back for non-GAAP earnings and EPS Contingent Earnout Adjustment Recognized pre-tax contingent earnout cost totaling $0.1 million for Q3 ’25 compared to $2.1 million benefit in Q3 ‘24 These costs are not a component of operating earnings and are added back for non-GAAP earnings and EPS Quarterly Dividend In Q3 ‘25 Crawford paid a $0.075 dividend per share for CRD-A and CRD-B Share Repurchases In Q3 ‘25 Crawford repurchased 263,098 shares of CRD-A and 12,846 shares of CRD-B Subsequent to the third quarter, the Company's Board of Directors authorized the addition of 2 million shares of its common stock to the existing Share Repurchase Program for the repurchase of both CRD-A and CRD-B, and extended the program termination date to December 31, 2027 Approximately 2.8 million shares are eligible to be repurchased under the plan Q3 2025 FINANCIAL RESULTS
Summary Q3 2025 FINANCIAL RESULTS NEXT-GEN TECHNOLOGY Leading the industry with next generation Insurtech capabilities DIVERSIFIED REVENUE STREAMS Diverse business lines and international footprint support long term growth and cash generation EXPANDING MARKET PRESENCE Driving profitable growth across the globe STRONG FINANCIAL BASE Financial strength and liquidity provide flexibility to pursue market opportunities
Appendix: Segment Results and Non-GAAP Financial Information Q3 2025 FINANCIAL RESULTS 22
North America Loss Adjusting Three months ended Unaudited (in thousands, except percentages) September 30, 2025 September 30, 2024 Variance Revenues $76,995 $79,329 (2.9)% Direct expenses 60,876 64,572 (5.7)% Gross profit 16,119 14,757 9.2% Indirect expenses 9,178 9,314 (1.5)% Operating earnings $6,941 $5,443 27.5% Gross profit margin 20.9% 18.6% 2.3% Operating margin 9.0% 6.9% 2.1% Total cases received 77,301 65,702 17.7% Full time equivalent employees 1,982 1,951 1.6% Q3 2025 FINANCIAL RESULTS
International Operations Three months ended Unaudited (in thousands, except percentages) September 30, 2025 September 30, 2024 Variance Revenues $112,853 $105,741 6.7% Direct expenses 90,069 87,198 3.3% Gross profit 22,784 18,543 22.9% Indirect expenses 15,337 13,407 14.4% Operating earnings $7,447 $5,136 45.0% Gross profit margin 20.2% 17.5% 2.7% Operating margin 6.6% 4.9% 1.7% Total cases received 102,256 112,818 (9.4)% Full time equivalent employees 3,472 3,668 (5.3)% Q3 2025 FINANCIAL RESULTS
Broadspire Three months ended Unaudited (in thousands, except percentages) September 30, 2025 September 30, 2024 Variance Revenues $103,401 $99,009 4.4% Direct expenses 75,921 73,409 3.4% Gross profit 27,480 25,600 7.3% Indirect expenses 11,915 11,198 6.4% Operating earnings $15,565 $14,402 8.1% Gross profit margin 26.6% 25.9% 0.7% Operating margin 15.1% 14.5% 0.6% Total cases received 142,609 140,801 1.3% Full time equivalent employees 2,830 2,725 3.9% Q3 2025 FINANCIAL RESULTS
Platform Solutions Three months ended Unaudited (in thousands, except percentages) September 30, 2025 September 30, 2024 Variance Revenues $28,922 $45,296 (36.1)% Direct expenses 21,699 35,545 (39.0)% Gross profit 7,223 9,751 (25.9)% Indirect expenses 4,639 5,918 (21.6)% Operating earnings $2,584 $3,833 (32.6)% Gross profit margin 25.0% 21.5% 3.5% Operating margin 8.9% 8.5% 0.4% Total cases received 43,209 83,190 (48.1)% Full time equivalent employees 676 1,143 (40.9)% Q3 2025 FINANCIAL RESULTS
Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurements employed by other companies. Reimbursements for Out-of-Pocket Expenses In the normal course of our business, our operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by our clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in our consolidated results of operations. In this presentation, we do not believe it is informative to include in reported revenues the amounts of reimbursed expenses and related revenues, as they offset each other in our consolidated results of operations with no impact to our net income or operating earnings. As a result, unless noted in this presentation, revenue and expense amounts exclude reimbursements for out-of-pocket expenses. Net Debt Net debt is computed as the sum of long-term debt, capital leases and short-term borrowings less cash and cash equivalents. Management believes that net debt is useful because it provides investors with an estimate of what the Company's debt would be if all available cash was used to pay down the debt of the Company. The measure is not meant to imply that management plans to use all available cash to pay down debt. Free Cash Flow Management believes free cash flow is useful to investors as it presents the amount of cash the Company has generated that can be used for other purposes, including additional contributions to the Company's defined benefit pension plans, discretionary prepayments of outstanding borrowings under our credit agreement, and return of capital to shareholders, among other purposes. It does not represent the residual cash flow of the Company available for discretionary expenditures. Q3 2025 FINANCIAL RESULTS
Non-GAAP Financial Information (cont.) Segment and Consolidated Operating Earnings Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker to evaluate the financial performance of our Company and operating segments and make resource allocation and certain compensation decisions. Management believes operating earnings is useful to others in that it allows them to evaluate segment and consolidated operating performance using the same criteria our management and chief operating decision maker use. Consolidated operating earnings represent segment earnings including certain unallocated corporate and shared costs and credits, but before net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, income taxes and net income or loss attributable to noncontrolling interests. Segment and Consolidated Gross Profit Gross profit is defined as revenues less direct expenses which exclude indirect overhead expenses allocated to the business. Indirect expenses consist of centralized administrative support costs, regional and local shared services that are allocated to each segment based on usage. Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the Company believes that adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties. Adjusted EBITDA is defined as net income attributable to shareholders of the Company with recurring adjustments for depreciation and amortization, net corporate interest expense, contingent earnout adjustments, non-service pension costs, income taxes and stock-based compensation expense. Adjusted EBITDA is not a term defined by GAAP and as a result our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies. Adjusted Pretax Earnings, Net Income, and Diluted Earnings per Share Included in non-GAAP adjusted measurements as an add back or subtraction to GAAP measurements, are impacts of amortization of acquisition-related intangible assets, contingent earnout adjustments, and non-service pension costs which arise from non-core items not directly related to our normal business or operations, or our future performance. Management believes it is useful to exclude these charges when comparing net income and diluted earnings per share across periods, as these charges are not from ordinary operations. Q3 2025 FINANCIAL RESULTS
The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business: Total Revenue Before Reimbursements by Major Currency Three Months Ended Unaudited (in thousands) September 30, 2025 September 30, 2024 Geographic Area Currency USD equivalent % of total USD equivalent % of total U.S. USD $ 186,845 58.0% $ 200,160 60.8% U.K. GBP 45,476 14.1% 42,265 12.8% Canada CAD 22,473 7.0% 23,474 7.1% Australia AUD 24,116 7.5% 23,530 7.1% Europe EUR 17,237 5.3% 15,260 4.6% Rest of World Various 26,024 8.1% 24,686 7.6% Total Revenues, before reimbursements $ 322,171 100.0% $ 329,375 100.0% Q3 2025 FINANCIAL RESULTS
Revenues and Costs of Services Provided Reconciliation of Non-GAAP Item Quarter Ended Quarter Ended Quarter Ended Quarter Ended Unaudited ($ in thousands) September 30, 2025 December 31, September 30, 2024 December 31, 2019 2018 Revenues Before Reimbursements Total Revenues $ 332,807 $ 342,726 Reimbursements (10,636 ) (13,351 ) Revenues Before Reimbursements 322,171 329,375 Costs of Services Provided, Before Reimbursements Total Costs of Services 239,015 249,308 Reimbursements (10,636 ) (13,351 ) Costs of Services Provided, Before Reimbursements $ 228,379 $ 235,957 Q3 2025 FINANCIAL RESULTS
Operating Earnings Reconciliation of Non-GAAP Items (cont.) Quarter Ended Quarter Ended Quarter Ended Quarter Ended September 30, 2025 December 31, September 30,2024 December 31, Unaudited ($ in thousands) 2019 2018 North America Loss Adjusting $ 6,941 $ 5,443 International Operations 7,447 5,136 Broadspire 15,565 14,402 Platform Solutions 2,584 3,833 Unallocated corporate and shared costs, net (5,946 ) (6,979 ) Consolidated Operating Earnings 26,591 21,835 (Deduct) Add: Net corporate interest expense (3,788 ) (4,682 ) Stock option expense (52 ) (188 ) Amortization expense (2,126 ) (1,932 ) Non-service pension costs (2,363 ) (2,441 ) Contingent earnout adjustments (60 ) 2,128 Income tax provision (5,813 ) (5,333 ) Net loss attributable to noncontrolling interests 19 66 Net Income Attributable to Shareholders of Crawford & Company $ 12,408 $ 9,453 Q3 2025 FINANCIAL RESULTS
Adjusted EBITDA Reconciliation of Non-GAAP items (cont.) Quarter Ended December 31, Quarter Ended December 31, September 30, 2025 December 31, September 30, 2024 December 31, Unaudited ($ in thousands) 2019 2018 Net Income Attributable to Shareholders of Crawford & Company $ 12,408 $ 9,453 Add: Depreciation and amortization 10,084 8,813 Stock-based compensation 1,751 988 Net corporate interest expense 3,788 4,682 Non-service pension costs 2,363 2,441 Contingent earnout adjustments 60 (2,128 ) Income tax provision 5,813 5,333 Adjusted EBITDA $ 36,267 $ 29,582 Q3 2025 FINANCIAL RESULTS
Net Debt Non-GAAP Financial Information (cont.) September 30, 2025 December 31, December 31, 2024 December 31, Unaudited ($ in thousands) 2019 2018 Short-term borrowings $ 21,240 $ 17,750 Current installments of finance leases and other obligations 45 72 Long-term debt and finance leases, less current installments 196,813 200,315 Total debt 218,098 218,137 Less: Cash and cash equivalents 68,767 55,412 Net debt $ 149,331 $ 162,725 Q3 2025 FINANCIAL RESULTS
Segment Gross Profit Non-GAAP Financial Information (cont.) Three months ended Three months ended Unaudited ($ in thousands) September 30, 2025 December 31, 2019 September 30, 2024 December 31, 2018 North America Loss Adjusting $ 16,119 $ 14,757 International Operations 22,784 18,543 Broadspire 27,480 25,600 Platform Solutions 7,223 9,751 Segment gross profit 73,606 68,651 Segment indirect costs: North America Loss Adjusting (9,178 ) (9,314 ) International Operations (15,337 ) (13,407 ) Broadspire (11,915 ) (11,198 ) Platform Solutions (4,639 ) (5,918 ) Unallocated corporate and shared costs, net (5,946 ) (6,979 ) Consolidated operating earnings 26,591 21,835 Net corporate interest expense (3,788 ) (4,682 ) Stock option expense (52 ) (188 ) Amortization expense (2,126 ) (1,932 ) Non-service pension costs (2,363 ) (2,441 ) Contingent earnout adjustments (60 ) 2,128 Income tax provision (5,813 ) (5,333 ) Net loss attributable to noncontrolling interests 19 66 Net income attributable to shareholders of Crawford & Company $ 12,408 $ 9,453 Q3 2025 FINANCIAL RESULTS
Reconciliation of Third Quarter Non-GAAP Results Three Months Ended September 30, 2025 Unaudited ($ in thousands) Pretax Earnings Pretax (Loss) Earnings Net Income Attributable to Crawford & Company Net (Loss) Income Attributable to Crawford & Company Diluted Earnings per CRD-A Share(1) Diluted (Loss) Earnings per CRD-A Share Diluted Earnings per CRD-B Share(1) Diluted (Loss) Earnings per CRD-B Share GAAP $ 18,202 $ 12,408 $ 0.25 $ 0.25 Adjustments: Amortization of intangible assets 2,126 1,814 0.04 0.04 Non-service-related pension costs 2,363 1,831 0.04 0.04 Contingent earnout adjustments 60 60 — — Non-GAAP Adjusted $ 22,751 $ 16,113 $ 0.32 $ 0.32 Three Months Ended September 30, 2024 Unaudited ($ in thousands) Pretax Earnings Pretax Earnings Net Income Attributable to Crawford & Company Net Income Attributable to Crawford & Company Diluted Earnings per CRD-A Share Diluted Earnings per CRD-A Share Diluted Earnings per CRD-B Share Diluted Earnings per CRD-B Share GAAP $ 14,720 $ 9,453 $ 0.19 $ 0.19 Adjustments: Amortization of intangible assets 1,932 1,668 0.03 0.03 Non-service-related pension costs 2,441 1,910 0.04 0.04 Contingent earnout adjustments (2,128 ) (2,179 ) (0.04 ) (0.04 ) Non-GAAP Adjusted $ 16,965 $ 10,852 $ 0.22 $ 0.22 Q3 2025 FINANCIAL RESULTS (1) Sum of reconciling items may differ from total due to rounding of individual components