News

ATLANTA--(BUSINESS WIRE)-- Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to announce its financial results for the second quarter ended June 30, 2026.

Revenues before reimbursements decreased slightly to $321.4 million in the 2026 second quarter from $323.0 million in the 2025 second quarter. Second quarter net income was $13.4 million, or $0.27 per diluted share for CRD-A and $0.28 for CRD-B, compared to $7.8 million, or $0.16 per diluted share for CRD-A and CRD-B in the prior year quarter.

Mr. Bruce Swain, president and chief executive officer of Crawford & Company, commented, “Our second quarter was strong, rebounding nicely from the slower start to the year. Performance in the quarter was driven by weather-related claims volume in International, as well as continued solid results in Broadspire. I am confident in our overall direction despite a mixed claims environment that creates challenges in certain parts of our business. A cornerstone of our long-term strategy is to continue to focus on growing our non-weather dependent revenue streams to improve operational resiliency, and we are making progress in that regard.”

Mr. Swain continued, “Organic revenue growth and profitable market share gains are our top priorities, and we are focused on client-centricity and operational execution to drive long-term growth. We are encouraged by opportunities we’re seeing in the marketplace, winning nearly $22 million in new business in the quarter with an active pipeline in front of us. Given the Company’s consistent profitability and strong cash generation, our Board has approved an increase to our quarterly dividend to $0.08 per share. As we move through the second half of the year, we remain focused on delivering measurable long-term value to our clients, employees, and shareholders.”

Segment Results for the Second Quarter

U.S. Property and Casualty

U.S. Property and Casualty revenues before reimbursements were $74.1 million in the second quarter of 2026, down 10.2% from $82.5 million in the second quarter of 2025, primarily driven by decreases in weather-related claims and staff augmentation levels within our Catastrophe Services business and a decrease in referrals in Contractor Connection.

The segment had operating earnings of $7.2 million in the 2026 second quarter, decreasing from $7.5 million in the second quarter of 2025. The operating margin was 9.7% in the 2026 quarter, compared with 9.0% in the 2025 quarter. The decrease in operating earnings was primarily driven by the reduction in revenues as compared to the prior year quarter.

U.S. Property and Casualty revenues before reimbursements were $147.0 million in the six months ended June 30, 2026, decreasing 10.8% from $164.7 million in the 2025 period, primarily driven by decreases in weather-related claims and staff augmentation levels within our Catastrophe Services business and a decrease in referrals in Contractor Connection.

The segment had operating earnings of $14.8 million in the six months ended June 30, 2026, decreasing from $17.2 million in the 2025 period. The operating margin was 10.1% for the six months ended June 30, 2026, compared with 10.5% in the 2025 period. The decrease in operating earnings was primarily driven by the reduction in revenues as compared to the prior year period.

Broadspire

Broadspire segment revenues before reimbursements were $109.4 million in the 2026 second quarter, increasing 1.2% from $108.2 million in the 2025 second quarter driven by increases in disability claims and medical management revenues.

Broadspire operating earnings were $15.7 million in the second quarter of 2026, representing an operating margin of 14.4%, increasing from $14.2 million, or 13.1% of revenues in the 2025 period. The increase was due to the increased revenues as well as a reduction in centralized indirect support expenses.

Broadspire segment revenues before reimbursements were $214.2 million in the 2026 year-to-date period, increasing 1.1% from $211.8 million in the 2025 period due to increases in disability claims and medical management revenues.

Broadspire operating earnings were $26.6 million in the six months ended June 30, 2026, representing an operating margin of 12.4%, increasing from $26.2 million, or 12.4% of revenues in the 2025 period. The slight increase was due to a reduction in centralized indirect support expenses.

International Operations

International Operations revenues before reimbursements were $138.0 million in the second quarter of 2026, up 4.2% from $132.3 million in the prior-year quarter. The disposition of the Crawford Legal Services businesses reduced revenues by $4.1 million, while foreign currency exchange rate movements increased revenues by $7.7 million. Excluding the effects of these items, revenues increased $2.1 million, or 1.6%, from $127.3 million in the second quarter of 2025 to $129.4 million for the second quarter of 2026, driven primarily by higher weather-related activity in Australia and Asia.

Operating earnings were $10.9 million in the 2026 second quarter, increasing from $7.3 million in the 2025 period. The segment’s operating margin for the 2026 quarter increased to 7.9% compared with 5.5% in the 2025 quarter driven by improved operating results within Australia and Canada.

International Operations revenues before reimbursements were $269.8 million in the 2026 year-to-date period, up 4.4% from $258.5 million in the 2025 period. The disposition of the Crawford Legal Services businesses reduced revenues by $7.4 million, while foreign currency exchange rate movements increased revenues by $15.5 million. Excluding the effects of these items, revenues increased $3.2 million, or 1.3%, from $247.8 million for the six months ended June 30, 2025 to $251.0 million for the six months ended June 30, 2026, driven primarily by higher weather-related activity in Australia and Asia.

Operating earnings were $14.9 million in the six months ended June 30, 2026, increasing from $9.6 million in the 2025 period. The segment’s operating margin for the six months ended June 30, 2026 increased to 5.5% compared with 3.7% in the 2025 period driven by improved operating results within Australia, Canada and Asia.

Unallocated Corporate and Shared Costs and Credits, Net

Unallocated corporate costs were $4.3 million in the second quarter of 2026, compared with $7.0 million in the same period of 2025. The decrease in the 2026 second quarter was primarily due to one-time $3.1 million indirect tax expense incurred in the 2025 second quarter. Unallocated corporate costs were $13.1 million for both the six months ended June 30, 2026 and 2025.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses (“SG&A”) decreased $8.7 million, or 11.1%, in the three months ended June 30, 2026 as compared with the 2025 period. SG&A decreased $7.1 million, or 4.7%, in the 2026 year-to-date period as compared with the 2025 period. The decrease was primarily due to a $3.1 million one-time indirect tax expense incurred in the 2025 second quarter and lower compensation costs, partially offset by a $2.3 million software impairment charge in the 2026 second quarter.

Other Matters

The Company recognized a $1.3 million net loss on the disposition of businesses in the 2026 second quarter related to the sales of its Crawford Legal Services operations in the U.K. and Chile.

Balance Sheet and Cash Flow

The Company’s consolidated cash and cash equivalents position as of June 30, 2026, totaled $69.4 million, compared with $64.1 million at December 31, 2025. The Company’s total debt outstanding as of June 30, 2026, totaled $198.1 million, compared with $189.1 million at December 31, 2025.

The Company’s operations provided $23.1 million of cash during the first six months of 2026, compared with $21.1 million provided in 2025. The increase in cash provided was primarily driven by higher earnings compared to prior year.

During the first six months of 2026, the Company repurchased 763,577 shares of CRD-A at an average per-share cost of $10.52 and 97,940 shares of CRD-B at an average per-share cost of $10.24. In the first six 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 August 4, 2026, at 8:30 a.m. Eastern Time to discuss its second quarter 2026 results. The conference call can be accessed live by dialing 1-800-715-9871 and using Conference ID 3128371. 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 August 11, 2026. You may dial 1-800-770-2030 and use passcode 3128371# 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, loss on disposition of businesses, net, software impairment, 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, loss on disposition of businesses, net, software impairment, 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:

Following is a reconciliation of consolidated operating earnings to net income attributable to shareholders of Crawford & Company on a GAAP basis:

Following is a reconciliation of net income attributable to shareholders of Crawford & Company on a GAAP basis to non-GAAP adjusted EBITDA:

Following is a reconciliation of operating cash flow to free cash flow for the six months ended June 30, 2026 and 2025:

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, loss on disposition of businesses, net, software impairment, 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, loss on disposition of businesses, net, software impairment, and contingent earnout adjustments:

⁽¹⁾ Sum of reconciling items may differ from total due to rounding of individual components.

Following is information regarding the weighted average shares used in the computation of basic and diluted earnings per share:

Further information regarding the Company’s operating results for the three and six months ended June 30, 2026, financial position as of June 30, 2026, and cash flows for the six months ended June 30, 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.

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