Crawford & Company Reports 2026 First Quarter Results

View all news 05/04/2026 Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to announce its financial results for the first quarter ended March 31, 2026. Revenues before reimbursements decreased (1)% to $309.5 million in the 2026 first quarter from $312.0 million in the 2025 first quarter. First quarter net income was $4.9 million, or $0.10 per diluted share for CRD-A and CRD-B, compared to $6.7 million, or $0.13 per diluted share for CRD-A and CRD-B in the prior year quarter. GAAP Consolidated Results Three Months Ended March 31, (in millions, except per share amounts) 2026 2025 Change Revenues before reimbursements $309.5 $312.0 (1)% Net income attributable to shareholders 4.9 6.7 (27)% Diluted earnings per share CRD-A 0.10 0.13 (23)% Diluted earnings per share CRD-B 0.10 0.13 (23)% Non-GAAP Consolidated Results Three Months Ended March 31, (in millions, except per share amounts) 2026 2025 Change Revenues before reimbursements on constant dollar basis $301.7 $312.0 (3)% Consolidated adjusted operating earnings 13.7 17.8 (23)% Consolidated adjusted EBITDA 22.4 26.8 (16)% Non-GAAP net income attributable to shareholders 7.8 10.3 (24)% Non-GAAP diluted earnings per share CRD-A 0.16 0.21 (24)% Non-GAAP diluted earnings per share CRD-B 0.16 0.21 (24)% Mr. Bruce Swain, president and chief executive officer of Crawford & Company, commented, “We’ve entered 2026 with a focus on further strengthening our operating foundation, sharpening our go-to-market approach and enhancing Crawford’s leadership position in the marketplace. We saw a mixed environment in the first quarter, with revenue growth and margin improvement in our International Operations tempered by lower claims activity in U.S. Property & Casualty. Across our industry, outsourced claims activity has continued to be below historical levels, largely related to an extended period of benign weather. Despite a challenging first quarter environment, we won nearly $24 million in new and enhanced business, and our balance sheet and liquidity remain strong.” Mr. Swain continued, “Our diverse operating structure includes non-weather businesses that provide a strong and resilient business model. We’re encouraged by the pipeline of opportunities we’re seeing and remain focused on delivering excellent service execution and client outcomes, leveraging the strength of our capabilities to attract and win new customers and capturing additional market share.” Segment Results for the First Quarter U.S. Property and Casualty U.S. Property and Casualty revenues before reimbursements were $72.9 million in the first quarter of 2026, down (11.3)% from $82.2 million in the first quarter of 2025, primarily driven by continued decreases in weather-driven services within Claims Solutions and Catastrophe Services. The segment had operating earnings of $7.6 million in the 2026 first quarter, decreasing from $9.8 million in the first quarter of 2025. The operating margin was 10.4% in the 2026 quarter, compared with 11.9% in the 2025 quarter. The decrease in operating earnings was primarily driven by the reduction in revenues as compared to the prior year quarter. Broadspire Broadspire segment revenues before reimbursements were $104.8 million in the 2026 first quarter, increasing 1.0% from $103.7 million in the 2025 first quarter driven by increases in disability claims. Broadspire operating earnings were $10.9 million in the first quarter of 2026, representing an operating margin of 10.4%, decreasing from $12.0 million, or 11.6% of revenues in the 2025 period. The decrease was primarily due to a shift in product mix and an increase in employees and average wages. International Operations International Operations revenues before reimbursements were $131.9 million in the first quarter of 2026, up 4.5% from $126.2 million in the same period of 2025. Excluding foreign exchange rate benefits of $7.8 million, revenues would have been $124.0 million for the 2026 first quarter, reflecting declines in higher value third party administration claims in the U.K. and reduced flood-related revenues in the Middle East. Operating earnings were $4.0 million in the 2026 first quarter, increasing from $2.2 million in the 2025 period. The segment’s operating margin for the 2026 quarter increased to 3.0% compared with 1.8% in the 2025 quarter driven by improved operating results within Canada, Australia, and Asia, partially offset by performance in the U.K. and Latin America. Unallocated Corporate and Shared Costs and Credits, Net Unallocated corporate costs were $8.8 million in the first quarter of 2026, compared with $6.1 million in the same period of 2025. The increase in the 2026 first quarter was primarily driven by an increase in administrative compensation expenses and self-insurance reserves. Selling, General, and Administrative Expenses Selling, general, and administrative expenses (“SG&A”) increased $1.6 million, or 2.1%, in the three months ended March 31, 2026 as compared with the 2025 period. The increase was primarily due to an increase in self-insurance reserves, partially offset by a reduction in contingent earnout expenses. Balance Sheet and Cash Flow The Company’s consolidated cash and cash equivalents position as of March 31, 2026, totaled $54.5 million, compared with $64.1 million at December 31, 2025. The Company’s total debt outstanding as of March 31, 2026, totaled $194.1 million, compared with $189.1 million at December 31, 2025. The Company’s operations provided $3.3 million of cash during the first three months of 2026, compared with $13.9 million used in 2025. The increase in cash provided was due primarily to timing of payments, partially offset by an increase in billed and unbilled receivables. During the first three months of 2026, the Company repurchased 468,314 shares of CRD-A at an average per-share cost of $10.48 and 59,555 shares of CRD-B at an average per-share cost of $10.29. In the first three months of 2025, the Company did not repurchase any shares of CRD-A or CRD-B. Conference Call As previously announced, Crawford & Company will host a conference call on May 5, 2026, at 8:30 a.m. Eastern Time to discuss its first quarter 2026 results. The conference call can be accessed live by dialing 1-800-715-9871 and using Conference ID 7962074. 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 May 12, 2026. You may dial 1-800-770-2030 and use passcode 7962074# 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: Three Months Ended (in thousands) March 31, 2026 March 31, 2025 Geographic Area Currency USD equivalent % of total USD equivalent % of total U.S. USD $ 177,643 57.4 % $ 185,862 59.6 % U.K. GBP 43,163 13.9 % 44,342 14.2 % Canada CAD 23,732 7.7 % 21,776 7.0 % Australia AUD 20,745 6.7 % 19,048 6.1 % Europe EUR 17,479 5.6 % 15,924 5.1 % Rest of World Various 26,763 8.7 % 25,080 8.0 % Total Revenues, before reimbursements $ 309,525 100.0 % $ 312,032 100.0 % Following is a reconciliation of consolidated operating earnings to net income attributable to shareholders of Crawford & Company on a GAAP basis: Three Months Ended (in thousands) March 31, 2026 March 31, 2025 Operating earnings: U.S. Property & Casualty $ 7,616 $ 9,780 Broadspire 10,856 11,977 International Operations 3,997 2,220 Unallocated corporate and shared costs, net (8,771 ) (6,133 ) Consolidated operating earnings 13,698 17,844 (Deduct) add: Net corporate interest expense (2,645 ) (3,944 ) Stock option expense (186 ) (184 ) Amortization of intangible assets (1,784 ) (1,800 ) Non-service pension costs (1,976 ) (2,333 ) Contingent earnout adjustments 180 (363 ) Income tax provision (2,375 ) (2,480 ) Net income attributable to noncontrolling interests (7 ) (56 ) Net income attributable to shareholders of Crawford & Company $ 4,905 $ 6,684 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 (in thousands) March 31, 2026 March 31, 2025 Net income attributable to shareholders of Crawford & Company $ 4,905 $ 6,684 Add (Deduct): Depreciation and amortization 9,589 9,647 Stock-based compensation 1,046 1,390 Net corporate interest expense 2,645 3,944 Non-service pension costs 1,976 2,333 Contingent earnout adjustments (180 ) 363 Income tax provision 2,375 2,480 Non-GAAP adjusted EBITDA $ 22,356 $ 26,841 Following is a reconciliation of operating cash flow to free cash flow for the three months ended March 31, 2026 and 2025: Three Months Ended (in thousands) March 31, 2026 March 31, 2025 Change Net Cash Provided by (Used in) Operating Activities $ 3,274 $ (13,923 ) $ 17,197 Less: Property & Equipment Purchases, net (1,901 ) (994 ) (907 ) Capitalized Software (internal and external costs) (5,958 ) (8,329 ) 2,371 Free Cash Flow $ (4,585 ) $ (23,246 ) $ 18,661 Non-GAAP consolidated results for 2026 and 2025 exclude the non-cash, after-tax adjustments for amortization of intangible assets, non-service-related pension costs, and contingent earnout adjustments. Following are the reconciliations of GAAP Pretax Earnings, Net Income and Earnings Per Share to related non-GAAP Adjusted figures, which reflect each of 2026 and 2025 before amortization of intangible assets, non-service related pension costs and contingent earnout adjustments: Three Months Ended March 31, 2026 (in thousands) Pretax earnings Net income attributable to Crawford & Company Diluted earnings per CRD-A share Diluted earnings per CRD-B share GAAP $ 7,287 $ 4,905 $ 0.10 $ 0.10 Adjustments: Amortization of intangible assets 1,784 1,515 0.03 0.03 Non-service pension costs 1,976 1,575 0.03 0.03 Contingent earnout adjustments (180 ) (180 ) — — Non-GAAP Adjusted $ 10,867 $ 7,815 $ 0.16 $ 0.16 Three Months Ended March 31, 2025 (in thousands) Pretax earnings Net income attributable to Crawford & Company Diluted earnings per CRD-A share Diluted earnings per CRD-B share GAAP $ 9,220 $ 6,684 $ 0.13 $ 0.13 Adjustments: Amortization of intangible assets 1,800 1,489 0.03 0.03 Non-service pension costs 2,333 1,803 0.04 0.04 Contingent earnout adjustments 363 363 0.01 0.01 Non-GAAP Adjusted $ 13,716 $ 10,339 $ 0.21 $ 0.21 Following is information regarding the weighted average shares used in the computation of basic and diluted earnings per share: Three Months Ended (in thousands) March 31, 2026 March 31, 2025 Weighted-Average Shares Used to Compute Basic Earnings Per Share: Class A Common Stock 29,757 30,175 Class B Common Stock 18,990 19,145 Weighted-Average Shares Used to Compute Diluted Earnings Per Share: Class A Common Stock 30,411 30,706 Class B Common Stock 18,990 19,145 Further information regarding the Company’s operating results for the three months ended March 31, 2026, financial position as of March 31, 2026, and cash flows for the three months ended March 31, 2026 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 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 (In Thousands, Except Per Share Amounts and Percentages) Three Months Ended March 31, 2026 2025 % Change Revenues: Revenues Before Reimbursements $ 309,525 $ 312,032 (1 )% Reimbursements 10,601 11,307 (6 )% Total Revenues 320,126 323,339 (1 )% Costs and Expenses: Costs of Services Provided, Before Reimbursements 221,412 221,893 (0 )% Reimbursements 10,601 11,307 (6 )% Total Costs of Services 232,013 233,200 (1 )% Selling, General, and Administrative Expenses 76,144 74,587 2 % Corporate Interest Expense, Net 2,645 3,944 (33 )% Total Costs and Expenses 310,802 311,731 (0 )% Other Loss, Net (2,037 ) (2,388 ) (15 )% Income Before Income Taxes 7,287 9,220 (21 )% Provision for Income Taxes 2,375 2,480 (4 )% Net Income 4,912 6,740 (27 )% Net Income Attributable to Noncontrolling Interests (7 ) (56 ) (88 )% Net Income Attributable to Shareholders of Crawford & Company $ 4,905 $ 6,684 (27 )% Earnings Per Share - Basic: Class A Common Stock $ 0.10 $ 0.14 (29 )% Class B Common Stock $ 0.10 $ 0.14 (29 )% Earnings Per Share - Diluted: Class A Common Stock $ 0.10 $ 0.13 (23 )% Class B Common Stock $ 0.10 $ 0.13 (23 )% Cash Dividends Per Share: Class A Common Stock $ 0.075 $ 0.070 7 % Class B Common Stock $ 0.075 $ 0.070 7 % CRAWFORD & COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS As of March 31, 2026 and December 31, 2025 (In Thousands, Except Par Values) March 31, December 31, 2026 2025 (In thousands, except par value amounts) (Unaudited) * ASSETS Current Assets: Cash and Cash Equivalents $ 54,491 $ 64,079 Accounts Receivable, Net 118,064 115,661 Unbilled Revenues, at Estimated Billable Amounts 142,759 126,960 Income Taxes Receivable 4,134 4,350 Prepaid Expenses and Other Current Assets 48,880 41,362 Total Current Assets 368,328 352,412 Net Property and Equipment 16,484 16,649 Other Assets: Operating Lease Right-of-Use Asset, Net 63,040 66,322 Goodwill 76,500 76,569 Intangible Assets Arising from Business Acquisitions, Net 65,232 66,352 Capitalized Software Costs, Net 113,092 112,812 Deferred Income Tax Assets 24,010 24,684 Other Noncurrent Assets 44,963 48,500 Total Other Assets 386,837 395,239 Total Assets $ 771,649 $ 764,300 LIABILITIES AND SHAREHOLDERS’ INVESTMENT Current Liabilities: Short-Term Borrowings $ 43,501 $ 38,500 Accounts Payable 59,240 39,769 Accrued Compensation and Related Costs 84,388 108,878 Self-Insured Risks 25,989 19,095 Income Taxes Payable 4,793 3,874 Operating Lease Liability 26,917 27,650 Other Accrued Liabilities 44,683 37,970 Deferred Revenues 33,738 33,834 Total Current Liabilities 323,249 309,570 Noncurrent Liabilities: Long-Term Debt and Finance Leases, Less Current Installments 150,587 150,593 Operating Lease Liability 50,090 53,531 Deferred Revenues 24,059 23,259 Accrued Pension Liabilities 16,710 17,910 Other Noncurrent Liabilities 32,497 38,005 Total Noncurrent Liabilities 273,943 283,298 Shareholders’ Investment: Class A Common Stock, $1.00 Par Value 29,740 29,860 Class B Common Stock, $1.00 Par Value 18,954 19,014 Additional Paid-in Capital 91,237 92,251 Retained Earnings 229,959 233,708 Accumulated Other Comprehensive Loss (193,616 ) (201,740 ) Shareholders’ Investment Attributable to Shareholders of Crawford & Company 176,274 173,093 Noncontrolling Interests (1,817 ) (1,661 ) Total Shareholders’ Investment 174,457 171,432 Total Liabilities and Shareholders’ Investment $ 771,649 $ 764,300 (*)Derived from the audited Consolidated Balance Sheet CRAWFORD & COMPANY SUMMARY RESULTS BY OPERATING SEGMENT WITH DIRECT COMPENSATION AND OTHER EXPENSES (In Thousands, Except Percentages) Three Months Ended March 31, U.S. Property & Casualty % Broadspire % International Operations % 2026 2025 Change 2026 2025 Change 2026 2025 Change Revenues Before Reimbursements $ 72,885 $ 82,190 (11.3)% $ 104,758 $ 103,672 1.0% $ 131,882 $ 126,170 4.5% Direct Compensation, Fringe Benefits & Non-Employee Labor 45,633 50,788 (10.2)% 60,381 58,343 3.5% 90,357 86,467 4.5% % of Revenues Before Reimbursements 62.6 % 61.8 % 57.6 % 56.3 % 68.5 % 68.5 % Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor 19,636 21,622 (9.2)% 33,521 33,352 0.5% 37,528 37,483 0.1% % of Revenues Before Reimbursements 26.9 % 26.3 % 32.0 % 32.2 % 28.5 % 29.7 % Total Operating Expenses 65,269 72,410 (9.9)% 93,902 91,695 2.4% 127,885 123,950 3.2% Operating Earnings(1) $ 7,616 $ 9,780 (22.1)% $ 10,856 $ 11,977 (9.4)% $ 3,997 $ 2,220 80.0% % of Revenues Before Reimbursements 10.4 % 11.9 % 10.4 % 11.6 % 3.0 % 1.8 % (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 3 and 4 for additional information about segment operating earnings. CRAWFORD & COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year-to-Date Period Ended March 31, 2026 and March 31, 2025 (In Thousands) 2026 2025 Cash Flows From Operating Activities: Net income $ 4,912 $ 6,740 Reconciliation of net income to net cash provided by (used in) operating activities: Depreciation and amortization 9,589 9,647 Stock-based compensation 1,046 1,390 (Gain) loss on disposal of property and equipment (12 ) 564 Contingent earnout adjustments (180 ) 363 Changes in operating assets and liabilities: Accounts receivable, net (262 ) 6,002 Unbilled revenues, net (12,987 ) (8,045 ) Accrued or prepaid income taxes 1,189 229 Accounts payable and accrued liabilities 3,401 (25,176 ) Deferred revenues 281 315 Accrued retirement costs (3,318 ) (3,211 ) Prepaid expenses and other operating activities (385 ) (2,741 ) Net cash provided by (used in) operating activities 3,274 (13,923 ) Cash Flows From Investing Activities: Acquisitions of property and equipment (1,901 ) (994 ) Capitalization of computer software costs (5,958 ) (8,329 ) Proceeds from settlement of life insurance policies — 210 Net cash used in investing activities (7,859 ) (9,113 ) Cash Flows From Financing Activities: Cash dividends paid (3,663 ) (3,455 ) Payments related to shares received for withholding taxes under employee stock-based compensation plans (1,712 ) — Repurchases of common stock (5,519 ) — Increases in short-term and revolving credit facility borrowings 7,500 41,411 Payments on short-term and revolving credit facility borrowings (2,500 ) (12,901 ) Increases in fiduciary liabilities 9,334 — Other financing activities (27 ) (38 ) Net cash provided by financing activities 3,413 25,017 Effects of exchange rate changes on cash and cash equivalents 1,064 (289 ) (Decrease) Increase in cash, cash equivalents, and restricted cash(1) (108 ) 1,692 Cash, cash equivalents, and restricted cash at beginning of year(1) 64,546 56,329 Cash, cash equivalents, and restricted cash at end of period(1) $ 64,438 $ 58,021 Supplemental cash flow information: Income taxes paid $ 1,152 $ 2,205 Interest paid 3,161 4,565 (1) The 2026 amounts include beginning restricted cash of $467 at December 31, 2025, and ending restricted cash of $9,947 at March 31, 2026, and the 2025 amounts include beginning restricted cash of $917 at December 31, 2024, and ending restricted cash of $654 at March 31, 2025, which we present as part of "Prepaid expenses and other current assets" on the Balance Sheets. FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL HOLLY BOUDREAU AT (404) 220-4388. Source: Crawford & Company Multimedia Files: Categories: Press Releases View all news