CRAWFORD & CO
For the period ended Jun 30, 2025. Filed Aug 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 4, 2025
CRD-A$11.53-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-05.
0000950170-25-063584
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-04.
0000950170-25-102033
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 163 previous paragraphs and 172 current paragraphs.
87 unchanged; 69 reworded; 12 added; 7 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 20 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Selling, general, and administrative ("SG&A") expenses increased $6.1 million, or 8.4%, in the three months ended June 30, 2025 as compared with the 2024 period. The increase was primarily due to a one-time indirect tax expense of $3.1 million, IT costs, and an increase in administrative compensation expenses. SG&A expenses increased $3.3 million, or 2.2%, in the six months ended June 30, 2025 as compared with the 2024 period, primarily due to the one-time indirect tax expense.
Current report
Operating earnings in our North America Loss Adjusting segment totaled $4.6 million, or 5.9% of revenues before reimbursements, for the three months ended June 30, 2025, compared with 2024 operating earnings of $4.9 million, or 6.4% of revenues before reimbursements. For the six months ended June 30, 2025, our North American Loss Adjusting segment reported operating earnings of $10.1 million, or 6.4% of revenues before reimbursements, compared with 2024 operating earnings of $9.4 million, or 6.1% of revenues before reimbursements. The decrease in operating earnings in the 2025 second quarter was driven by decreased revenue in U.S. Field Operations and an increase in data processing and software costs, partially offset by revenue growth and improved efficiencies in U.S. Global Technical Services, attributable to new client additions and expansion with existing accounts and improved profitability in Canada. The increase in year-to-date operating earnings was due to revenue growth and improved efficiencies in U.S. Global Technical Services, attributable to new client additions and expansion with existing accounts.
Current report
Excluding centralized indirect support costs, gross profit decreased from $14.6 million, or 19.1% of revenues before reimbursements in 2024, to $14.2 million, or 18.2% of revenues before reimbursements, in the three months ended June 30, 2025, primarily due to decreased revenues in U.S. Field Operations, partially offset by revenue growth and improved efficiencies in U.S. Global Technical Services. For the six months ended June 30, 2025, gross profit increased from $29.1 million or 19.0% of revenues before reimbursements in 2024 to $30.1 million, or 19.1% of revenues before reimbursements, due primarily to revenue growth in U.S. Global Technical Services.
Current report
Revenues grew in the U.S. and Canada, based on constant foreign exchange rates, for the second quarter and year-to-date periods. The increase in revenues within the U.S. for the second quarter and year-to-date period was primarily due growth in U.S. Global Technical Services due to increased business from new and existing clients, as well as the transfer of the inspection services business from Platform Solutions, which contributed $1.2 million and $2.6 million to the increase in 2025 second quarter and year-to-date revenues, respectively. The increase in Canada, was primarily due to claims related to an ice storm that occurred in the second quarter.
Current report
Excluding centralized indirect support costs, gross profit increased from $19.2 million, or 18.8% of revenues before reimbursements in 2024, to $23.2 million, or 21.2% of revenues before reimbursements, in the three months ended June 30, 2025. For the six months ended June 30, 2025, gross profit increased from $35.2 million, or 17.6% of revenues before reimbursements in 2024, to $42.1 million, or 19.7% of revenues before reimbursements. The increase in gross profit for the three and six months ended June 30, 2025 over the comparable 2024 periods was primarily due to improved operating results in the U.K. and Asia during each period.
Current report
Revenues before reimbursements from our International Operations segment totaled $213.5 million in the six months ended June 30, 2025, compared with $200.4 million in the 2024 period. Absent foreign exchange fluctuations, each geographic region increased in revenues for the year-to-date period. The change in exchange rates decreased our International Operations segment revenues by approximately (1.7)%, or $(3.3) million, for the six months ended June 30, 2025 as compared with 2024. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $216.7 million for the six months ended June 30, 2025. There was a decrease in segment unit volume, measured principally by cases received, of (11.3)% for the six months ended June 30, 2025, compared with the 2024 period. There was a decrease in high-frequency, low-severity cases of (29,500), or (11.5%), primarily in Brazil and the U.K. There was also an increase in higher-value third-party administration claims in the U.K, which led to a 4.6% increase in revenue for the six months ended June 30, 2025, compared with the 2024 period. Changes in product mix and in the rates charged for those services accounted for a 3.4% revenue increase for the six months ended June 30, 2025 compared with the same period in 2024.
Current report
Excluding centralized indirect support costs, second quarter gross profit decreased slightly from $26.3 million, or 27.1% of revenues before reimbursements in 2024, to $26.2 million, or 26.1% of revenues before reimbursements in 2025. For the six months ended June 30, 2024, gross profit increased from $50.6 million, or 26.5% of revenues before reimbursements in 2024, to $50.7 million, or 25.7% of revenues before reimbursements. This decrease in gross profit as a percent of revenues before reimbursements for the 2025 second quarter and year-to-date periods was due to higher cost of risk and professional fees.
Current report
For the six months ended June 30, 2025, revenues before reimbursements from our Platform Solutions segment totaled $66.8 million, compared with $70.7 million in the 2024 period. This decrease was primarily due to a decrease in staff augmentation services, as well as a reduction in low value inspection service cases. There was a decrease in segment unit volume, measured principally by cases received, of (43.3)%, compared with the 2024 period. This was primarily related to the transfer of low value inspection services cases from our Networks service line to North America Loss Adjusting, which resulted in (57,900), or (39.1%), fewer cases in the six months ended June 30, 2025, compared to 2024. There was a decrease in revenues from staff augmentation in our Networks service line which decreased revenues $(2.9) million, or (4.1)%, in the six months ended June 30, 2025, compared to 2024. Changes in product mix and in the rates charged for those services accounted for a 2.7% revenue increase for the 2025 six-month period compared with 2024.
Current report
The provision for income taxes on consolidated income before income taxes totaled $8.3 million and $5.5 million for the six months ended June 30, 2025 and 2024, respectively. The overall effective tax rate increased to 36.4% for the six months ended June 30, 2025 compared with 32.9% for the 2024 period primarily due to the one-time expense of $1.3 million relating to administrative guidance issued by a foreign tax authority, net of changes in valuation allowances in certain jurisdictions.
Current report
The foreign tax administrative guidance issuance noted above also resulted in a one-time indirect tax expense of $3.1 million for the three and six months ended June 30, 2025, which is included in “Selling, general, and administrative expenses” on the unaudited Condensed Consolidated Statements of Operations.
Current report
Unallocated corporate and shared costs were $7.0 million and $5.1 million for the three months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, unallocated corporate and shared costs were $13.2 million and $13.1 million, respectively. The increase in the 2025 second quarter was due to the one-time $3.1 million indirect tax expense and $0.6 million increase in self-insurance expense, partially offset by a $1.9 million decrease in professional fees. The increase for the six months ended June 30, 2025 was due to the one time indirect tax expense, largely offset by a decrease in professional fees.
Current report
Cash used in investing activities decreased slightly with $18.3 million for the six months ended June 30, 2025, compared with $18.4 million used in the first six months of 2024.
Removed paragraphs (7)
Previous report
Selling, general, and administrative ("SG&A") expenses decreased $(2.7) million, or (3.5)%, in the three months ended March 31, 2025 as compared with the 2024 period. The decrease was primarily due to a reduction in professional fees and self-insurance reserves, partially offset by an increase in administrative compensation expenses.
Previous report
Operating earnings in our North America Loss Adjusting segment totaled $5.5 million, or 6.9% of revenues before reimbursements, for the three months ended March 31, 2025, compared with 2024 operating earnings of $4.5 million, or 5.8% of revenues before reimbursements. The increase in operating earnings in the 2025 first quarter was driven by revenue growth in U.S. Global Technical Services, attributable to new client additions and expansion with existing accounts. We also saw benefits from improved U.S. Field Operations operating efficiency.
Previous report
Excluding centralized indirect support costs, gross profit increased from $14.5 million, or 18.8% of revenues before reimbursements in 2024, to $15.8 million, or 19.8% of revenues before reimbursements, in the three months ended March 31, 2025, primarily due to profitability improvements in U.S. Field Operations and revenue growth in U.S. Global Technical Services, partially offset by a decline in revenues in Canada.
Previous report
Excluding centralized indirect support costs, gross profit increased from $16.0 million, or 16.3% of revenues before reimbursements in 2024, to $18.9 million, or 18.1% of revenues before reimbursements, in the three months ended March 31, 2025. The increase in gross profit in the 2025 period was mainly driven by increased revenues and an insurance recovery.
Previous report
Excluding centralized indirect support costs, first quarter gross profit increased slightly from $24.3 million, or 25.8% of revenues before reimbursements, in 2024 to $24.5 million, or 25.4% of revenues before reimbursements in 2025. This increase was due to the increased revenues for all service lines from new clients and pricing that were partially offset by increased direct expenses.
Previous report
Unallocated corporate and shared costs were $6.2 million and $8.0 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in the 2025 first quarter was primarily due to a decrease in professional fees, self-insured reserves, and bad debt expense, partially offset by an increase in administrative compensation expenses.
Previous report
Cash used in investing activities was $9.1 million for the three months ended March 31, 2025, compared with $9.6 million used in the first three months of 2024. The decrease in cash used in 2025 was due to decreases in capital expenditures in 2025 compared to 2024.
Reworded paragraphs (69)
Previous wording
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with (i) our unaudited condensed consolidated financial statements and accompanying notes thereto for the three months ended March 31, 2025 and 2024, and as of March 31, 2025, and December 31, 2024, contained in Item 1 of this Quarterly Report on Form 10-Q, and (ii) our Annual Report on Form 10-K for the year ended December 31, 2024. As described in Note 1, "Basis of Presentation," the financial results of our operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines are included in our consolidated financial statements on a two-month delayed basis (fiscal year-end of October 31) as permitted by U.S. generally accepted accounting principles ("GAAP") in order to provide sufficient time for accumulation of their results.
Current wording
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with (i) our unaudited condensed consolidated financial statements and accompanying notes thereto for the three and six months ended June 30, 2025 and 2024, and as of June 30, 2025, and December 31, 2024, contained in Item 1 of this Quarterly Report on Form 10-Q, and (ii) our Annual Report on Form 10-K for the year ended December 31, 2024. As described in Note 1, "Basis of Presentation," the financial results of our operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines are included in our consolidated financial statements on a two-month delayed basis (fiscal year-end of October 31) as permitted by U.S. generally accepted accounting principles ("GAAP") in order to provide sufficient time for accumulation of their results.
Previous wording
Consolidated revenues before reimbursements increased $10.4 million, or 3.4%, for the three months ended March 31, 2025, compared with the same period of 2024. This increase was due to increases in our North America Loss Adjusting, International Operations and Broadspire operating segments. Changes in foreign exchange rates decreased our consolidated revenues before reimbursements by $4.4 million, or (1.5)%, for the three months ended March 31, 2025, as compared with the prior year period. To illustrate this impact, segment revenues are presented below, using a constant exchange rate, for the three months ended March 31, 2025.
Current wording
Consolidated revenues before reimbursements increased $8.8 million, or 2.8%, for the three months ended June 30, 2025, compared with the same period of 2024. This increase was due to increases in our North America Loss Adjusting, International Operations and Broadspire operating segments. Changes in foreign exchange rates decreased our consolidated revenues before reimbursements by $0.5 million, or (0.2)%, for the three months ended June 30, 2025 and $5.0 million, or (0.8)%, for the six months ended June 30, 2025, as compared with the prior year periods. To illustrate this impact, segment revenues are presented below, using a constant exchange rate, for the three and six months ended June 30, 2025.
Previous wording
Excluding foreign currency impacts, consolidated revenues before reimbursements increased $14.8 million, or 4.9%, for the three months ended March 31, 2025 compared with the same period of 2024. Revenues from the North America Loss Adjusting segment increased in the 2025 first quarter due to revenue growth in U.S. Field Operations and U.S. Global Technical Services, partially offset by a decline in revenues in Canada. Excluding foreign currency impacts, revenues from the International Operations segment increased in the 2025 first quarter in all geographic regions. Revenues from the Broadspire segment increased for the quarter due to an increase in Claims and Medical Management revenues. Revenues from the Platform Solutions segment decreased slightly in the first quarter due to a reduction in low value inspection service cases, partially offset by an increase in revenues from weather-related activity and staff augmentation services.
Current wording
Excluding foreign currency impacts, consolidated revenues before reimbursements increased $9.3 million, or 3.0%, for the three months ended June 30, 2025, and increased $24.1 million, or 3.9%, for the six months ended June 30, 2025 compared with the same periods of 2024. Revenues from the North America Loss Adjusting segment increased in the 2025 second quarter and year-to-date periods primarily due to revenue growth in U.S. Global Technical Services and the addition of the inspection services business transferred from the Platforms Solutions segment, partially offset by a decline in U.S. Field Operations revenues. Excluding foreign currency impacts, revenues from the International Operations segment increased in the 2025 second quarter and year-to-date periods in all geographic regions. Revenues from the Broadspire segment increased for the quarter and year-to-date periods due to an increase in Claims and Medical Management revenues. Revenues from the Platform Solutions segment decreased in the second quarter and year-to-date periods due to decreases in revenues from weather-related activity and staff augmentation services and a reduction in inspection services cases due to the transfer of this business to the North America Loss Adjusting segment.
Previous wording
Overall, there was a decrease in cases received of (5.6)% for the three months ended March 31, 2025. Within our North America Loss Adjusting segment, cases increased for the 2025 first quarter as a result of an increase in low value inspection services cases transferred from our Platforms Solutions group with minimal revenues. Cases within our International Operations segment declined for the first quarter, primarily due to decreases in the U.K. and Australia, due to decreases in high-frequency, low-severity cases, and higher weather-related activity in the prior year period. There was an increase in cases within our Broadspire segment for the first quarter primarily due to an increase in new disability clients within Claims Management. Within our Platform Solutions segment, the decrease was primarily related to the transfer of low value inspection services to North America Loss Adjusting, as well as a decrease in Contractor Connection cases.
Current wording
Overall, there was a decrease in cases received of (3.7)% for the three months ended June 30, 2025 and a decrease of (4.6)% for the six months ended June 30, 2025. Within our North America Loss Adjusting segment, cases increased for the 2025 second quarter and year-to-date periods as a result of an increase in low value inspection services cases transferred from our Platforms Solutions group with minimal revenues. Cases within our International Operations segment declined for the second quarter and year-to-date periods, primarily due to decreases in the U.K. and Latin America, due to decreases in high-frequency, low-severity cases. In addition, cases within our International Operations segment declined for the year-to date period due to decreases in Australia due to higher weather-related activity in the prior year period. There was an increase in cases within our Broadspire segment for the second quarter and year-to-date periods primarily due to an increase in new disability clients within Claims Management. Within our Platform Solutions segment, the decreases for the second quarter and year-to-date periods were primarily related to the transfer of low value inspection services to North America Loss Adjusting, as well as a decrease in Contractor Connection cases.
Previous wording
Cases received are presented below by segment for the three months ended March 31, 2025 and 2024:
Current wording
Cases received are presented below by segment for the three and six months ended June 30, 2025 and 2024:
Previous wording
To illustrate exposure to the impact of changes in foreign currencies, revenues before reimbursements are presented below by denominated currency for the three months ended March 31, 2025:
Current wording
To illustrate exposure to the impact of changes in foreign currencies, revenues before reimbursements are presented below by denominated currency for the three and six months ended June 30, 2025:
Previous wording
Costs of services provided, before reimbursements, increased $7.5 million, or 3.5%, for the three months ended March 31, 2025, as compared to the 2024 period. As a percentage of revenues before reimbursements, costs of services increased consistent with the increase in revenues. The increase was primarily due to an increase in compensation expense in all segments other than Platform Solutions, which had a reduction of employees performing low value inspection services.
Current wording
Costs of services provided, before reimbursements, increased $2.5 million, or 1.1%, for the three months ended June 30, 2025, and increased $10.0 million, or 2.3%, for the six months ended June 30, 2025, as compared to the 2024 periods. As a percentage of revenues before reimbursements, costs of services increased consistent with the increase in revenues. The increase was primarily due to an increase in compensation expense in all segments other than Platform Solutions, which had a reduction of employees performing low value inspection services as well as a reduction in staff augmentation services.
Previous wording
Operating results for our North America Loss Adjusting segment, including gross profit, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
Operating results for our North America Loss Adjusting segment, including gross profit, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
North America Loss Adjusting segment revenues are primarily derived from the property and casualty insurance company markets in the U.S. and Canada. Revenues before reimbursements by major region, based on actual exchange rates and using a constant exchange rate, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
North America Loss Adjusting segment revenues are primarily derived from the property and casualty insurance company markets in the U.S. and Canada. Revenues before reimbursements by major region, based on actual exchange rates and using a constant exchange rate, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
Revenues before reimbursements from our North America Loss Adjusting segment totaled $79.7 million in the three months ended March 31, 2025, compared with $77.4 million in the 2024 period. Revenue growth was led by U.S. Global Technical Services revenues due to increased business from new and existing clients. The transfer of the inspection services business from Platform Solutions contributed $1.4 million to the increase in revenues. The change in exchange rates decreased our North America Loss Adjusting segment revenues by approximately (1.8)%, or $(1.4) million, for the three months ended March 31, 2025 as compared with the 2024 period. Absent foreign exchange rate fluctuations, North America Loss Adjusting segment revenues would have been $81.2 million for the three months ended March 31, 2025. There was an increase in segment unit volume, measured principally by cases received, of 44.1% for the three months ended March 31, 2025, compared with the 2024 period. This includes an increase in low value inspection services cases, previously handled within Platform Solutions, of (31,700) or (51.2)%, an increase in higher value U.S. Global Technical Services cases which contributed to a 4.9% increase in revenues before reimbursements, and a decrease in low-severity cases received in Contractor Connection in Canada of 2,032 or 3.3%. Changes in product mix and in the rates charged for those services accounted for a 3.8% revenue increase for the three months ended March 31, 2025 compared with the same period in 2024, due to increases in pricing and average fee per case.
Current wording
Revenues before reimbursements from our North America Loss Adjusting segment totaled $157.8 million in the six months ended June 30, 2025, compared with $153.4 million in the 2024 period. The change in exchange rates decreased our North America Loss Adjusting segment revenues by approximately (1.1)%, or $(1.7) million, for the six months ended June 30, 2025 as compared with the 2024 period. Absent foreign exchange rate fluctuations, North America Loss Adjusting segment revenues would have been $159.5 million for the six months ended June 30, 2025. There was an increase in segment unit volume, measured principally by cases received, of 43.2% for the six months ended June 30, 2025, compared with the 2024 period. This includes an increase in low value inspection services cases, previously handled within Platform Solutions, of 55,900 or 46.0% and an increase in higher value U.S. Global Technical Services cases which contributed to a 2.5% increase in revenues before reimbursements. Changes in product mix and in the rates charged for those services accounted for a 4.3% revenue increase for the six months ended June 30, 2025 compared with the same period in 2024, due to increases in pricing and average fee per case.
Previous wording
Revenue variance components for our North America Loss Adjusting segment, for the three months ended March 31, 2025 are summarized as follows:
Current wording
Revenue variance components for our North America Loss Adjusting segment, for the three and six months ended June 30, 2025 are summarized as follows:
Previous wording
Reimbursements for out-of-pocket expenses incurred in our North America Loss Adjusting segment, which are included in total Company revenues, were $2.3 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively. The increase was due to the increase in revenues in U.S. Global Technical Services.
Current wording
Reimbursements for out-of-pocket expenses incurred in our North America Loss Adjusting segment, which are included in total Company revenues, were $2.2 million and $2.3 million for the three months ended June 30, 2025 and 2024, respectively. Reimbursements were $4.5 million and $4.3 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
North America Loss Adjusting segment unit volumes by geographic region, measured by cases received, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
North America Loss Adjusting segment unit volumes by geographic region, measured by cases received, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
Overall, there was an increase in cases of 44.1% in the three months ended March 31, 2025, compared to the same period in 2024. The increase in U.S. case volumes in the 2025 first quarter was primarily due to the increase in low value inspection services of 31,700 cases, transferred from Platform Solutions. There was a decrease in cases in Canada in the 2025 first quarter primarily due to 2,032 less high-frequency, low-severity Contractor Connection cases related to the loss of a customer, as compared with the 2024 period.
Current wording
Overall, there was an increase in cases of 42.2% in the three months ended June 30, 2025, compared to the same period in 2024. The increase in U.S. case volumes in the 2025 second quarter was primarily due to the increase in low value inspection services of 24,100 cases, transferred from Platform Solutions. There was an increase in cases in Canada in the 2025 second quarter primarily due to an increase in high-frequency, low-severity cases within Contractor Connection as a result of winter storms in 2025, as compared with the 2024 period.
Previous wording
The most significant expense in our North America Loss Adjusting segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. As a percentage of revenues before reimbursements, these expenses were 70.3% for the three months ended March 31, 2025 compared with 71.7% for the 2024 period. The total dollar amount of these expenses increased to $56.0 million for the three months ended March 31, 2025 from $55.5 million for the comparable 2024 period. The first quarter increase was due to increases in expert adjusting staff in U.S. Global Technical Services, partially offset by decreases in employees in U.S. Field Operations and Canada. The decrease in the percentage of revenues before reimbursements is due to improved staff utilization in U.S. Field Operations, compared to the 2024 period. There was an average of 2,078 full-time equivalent employees in this segment in the three months ended March 31, 2025 compared with an average of 2,046 in the 2024 period.
Current wording
The most significant expense in our North America Loss Adjusting segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. As a percentage of revenues before reimbursements, these expenses were 70.2% for the three months ended June 30, 2025 compared with 72.0% for the 2024 period. For the six months ended June 30, 2025, these expenses were 70.2% compared with 71.8% for the 2024 period. The total dollar amount of these expenses increased to $54.8 million for the three months ended June 30, 2025 from $54.7 million for the comparable 2024 period, and were $110.9 million for the six months ended June 30, 2025, increasing from $110.2 million in 2024. The decrease in the percentage of revenues before reimbursements is due to improved staff utilization in U.S. Global Technical Services and Canada Loss Adjusting, compared to each of the 2024 periods. There was an average of 2,066 full-time equivalent employees in this segment in the six months ended June 30, 2025 compared with an average of 2,029 in the 2024 period.
Previous wording
North America Loss Adjusting expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $18.2 million for the three months ended March 31, 2025 compared with $17.4 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 22.9% for the three months ended March 31, 2025 compared with 22.5% for the 2024 period. The increase in the 2025 first quarter expenses and as a percentage of revenues before reimbursements was due to an increase in data processing costs and centralized indirect support costs as compared to the 2024 period.
Current wording
North America Loss Adjusting expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $18.6 million for the three months ended June 30, 2025 compared with $16.4 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 23.9% for the three months ended June 30, 2025 compared with 21.6% for the 2024 period. For the six months ended June 30, 2025, these expenses were $36.9 million, compared with $33.9 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 23.4% for the six months ended June 30, 2025 compared with 22.1% for the 2024 period. The increases in the 2025 second quarter and year-to-date expenses and as a percentage of revenues before reimbursements were due to an increase in data processing costs and software costs as compared to the 2024 periods.
Previous wording
Operating earnings in our International Operations segment were $3.5 million, or 3.3% of revenues before reimbursements, for the three months ended March 31, 2025, compared with $1.7 million, or 1.7% of revenues before reimbursements, in the 2024 period. The increase in operating earnings in the 2025 period was primarily due to improved operating results in the U.K. and Asia, partially offset by an increase in centralized indirect support costs.
Current wording
Operating earnings in our International Operations segment were $7.6 million, or 7.0% of revenues before reimbursements, for the three months ended June 30, 2025, compared with $5.7 million, or 5.6% of revenues before reimbursements, in the 2024 period. For the six months ended June 30, 2025, our International Operations segment reported operating earnings of $11.1 million, or 5.2% of revenues before reimbursements, compared with operating earnings in 2024 of $7.4 million, or 3.7% of revenues before reimbursements. The increases in operating earnings for the three and six months ended June 30, 2025 over the comparable 2024 periods was primarily due to improved operating results in the U.K. and Asia, partially offset by an increase in centralized indirect support costs.
Previous wording
Operating results for our International Operations segment, including gross profit, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
Operating results for our International Operations segment, including gross profit, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
International Operations segment revenues are primarily derived from the global property and casualty insurance company markets in the U.K, Europe, Australia, Asia and Latin America. Revenues before reimbursements by major region, based on actual exchange rates and using a constant exchange rate, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
International Operations segment revenues are primarily derived from the global property and casualty insurance company markets in the U.K, Europe, Australia, Asia and Latin America. Revenues before reimbursements by major region, based on actual exchange rates and using a constant exchange rate, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
Revenues before reimbursements from our International Operations segment totaled $104.4 million in the three months ended March 31, 2025, compared with $98.1 million in the 2024 period. Absent foreign exchange fluctuations, each geographic region increased in revenues for the quarter. The change in exchange rates decreased our International Operations segment revenues by approximately (3.1)%, or $(3.0) million, for the three months ended March 31, 2025 as compared with the 2024 period. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $107.4 million for the three months ended March 31, 2025. There was a decrease in segment unit volume, measured principally by cases received, of (13.5)% for the three months ended March 31, 2025, compared with the 2024 period. There was a decrease in high-frequency, low-severity cases of 11,700, or 8.6%, primarily in Australia and in the U.K. In addition, the prior year had 9,000 more cases, or 6.6%, with minimal revenues recognized in the first quarter related to storms in Australia. There was also an increase in higher-value third-party administration claims in the U.K, which led to a 5.5% increase in revenue for the three months ended March 31, 2025, compared with the 2024 period. Changes in product mix and in the rates charged for those services accounted for a 2.3% revenue increase for the three months ended March 31, 2025 compared with the same period in 2024.
Current wording
Revenues before reimbursements from our International Operations segment totaled $109.1 million in the three months ended June 30, 2025, compared with $102.3 million in the 2024 period. Absent foreign exchange fluctuations, each geographic region increased in revenues for the quarter. The change in exchange rates decreased our International Operations segment revenues by approximately (0.3)%, or $(0.3) million, for the three months ended June 30, 2025 as compared with the 2024 period. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $109.3 million for the three months ended June 30, 2025. There was a decrease in segment unit volume, measured principally by cases received, of (8.8)% for the three months ended June 30, 2025, compared with the 2024 period. There was a decrease in high-frequency, low-severity cases of (17,100), or (14.1)%, primarily in Brazil and in the U.K. There was also an increase in higher-value third-party administration claims in the U.K, which led to a 3.5% increase in revenue for the three months ended June 30, 2025, compared with the 2024 period. Revenues decreased $(3.0) million or (2.9)%, related to prior year severe storms in Australia for which cases were recorded in the prior year first quarter. Changes in product mix and in the rates charged for those services accounted for a 1.0% revenue increase for the three months ended June 30, 2025 compared with the same period in 2024.
Previous wording
Based on constant foreign exchange rates, the increase in revenues in the U.K. for the 2025 first quarter was due to an increase in higher-value third-party administration revenues. There was an increase in revenues in Europe in the 2025 period, compared with 2024, due to increases in flood related claims in the Middle East and Spain. There was a slight increase in Australia in the 2025 first quarter, compared with 2024. There was an increase in revenues in Asia in the 2025 first quarter, compared with 2024, due to increases in Taiwan for claims related to the earthquake that occurred in 2024. The increase in revenues in Latin America in the 2025 period was primarily driven by increased revenues in Brazil and Chile.
Current wording
Based on constant foreign exchange rates, the increase in revenues in the U.K. for the 2025 second quarter and year-to-date period was due to an increase in higher-value third-party administration revenues. There was an increase in revenues in Europe in the 2025 periods, compared with 2024, due to increases in flood related claims in the Middle East. There was a slight increase in Australia in the 2025 periods, compared with 2024. There was an increase in revenues in Asia in the 2025 periods, compared with 2024, due to increases in Taiwan for claims related to the earthquake that occurred in 2024 and related to an earthquake impacting Thailand that occurred in the second quarter of 2025. The increase in revenues in Latin America in the 2025 periods was primarily driven by increased revenues in Brazil and Chile.
Previous wording
Revenue variance components for our International Operations segment, for the three months ended March 31, 2025 are summarized as follows:
Current wording
Revenue variance components for our International Operations segment, for the three and six months ended June 30, 2025 are summarized as follows:
Previous wording
Reimbursements for out-of-pocket expenses incurred in our International Operations segment, which are included in total Company revenues, were $7.9 million and $8.5 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Reimbursements for out-of-pocket expenses incurred in our International Operations segment, which are included in total Company revenues, were $8.5 million and $8.7 million for the three months ended June 30, 2025 and 2024, respectively. Reimbursements were $16.4 million and $17.2 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
International Operations segment unit volumes by geographic region, measured by cases received, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
International Operations segment unit volumes by geographic region, measured by cases received, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
Overall, there was a decrease in cases received of (13.5)% for the three months ended March 31, 2025, compared with the 2024 period. There was a decrease in the U.K. in the first quarter due to decreases in high-frequency, low-severity cases. The increase in Europe was primarily due to increases in high-frequency, low-severity cases in third party administration within the Netherlands, as well as expansion in Spain. Cases decreased in Australia due to higher weather-related activity in the prior year. The increase in cases received in Asia was due to an increase in cases in Taiwan. Latin America experienced a decrease in high-frequency, low-value cases received in Brazil.
Current wording
There was a decrease in cases received of (11.3)% for the six months ended June 30, 2025, compared with the 2024 period. There was a decrease in cases in the U.K., due to decreases in high-frequency, low-severity cases in third party administration. Cases increased in Europe due to an increase in claims in Spain. Australia decreased primarily due to higher weather-related activity in the prior year. The increase in cases received in Asia was due to an increase in cases in Thailand and Singapore. Latin America experienced a decrease in high-frequency, low-value cases received in Brazil.
Previous wording
The most significant expense in our International Operations segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. As a percentage of revenues before reimbursements, these expenses were 67.6% for the three months ended March 31, 2025 compared with 66.2% for the 2024 period. The total dollar amount of these expenses was $70.6 million for the three months ended March 31, 2025, compared to $65.0 million for the 2024 period. The increase in cost and as a percentage of revenues before reimbursements was due to an increase in compensation expense, related to the increase in revenues, including incentive compensation, and an increase in non-employee labor. There was an average of 3,539 full-time equivalent employees in this segment in the three months ended March 31, 2025, compared with an average of 3,611 in the comparable 2024 period.
Current wording
The most significant expense in our International Operations segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. As a percentage of revenues before reimbursements, these expenses were 66.3% for the three months ended June 30, 2025 compared with 64.6% for the 2024 period. The total dollar amount of these expenses was $72.3 million for the three months ended June 30, 2025, compared to $66.0 million for the 2024 period. For the six months ended June 30, 2025, these expenses were 66.9%, compared with 65.4% in 2024, and were $142.9 million for the six months ended June 30, 2025 compared to $131.0 million in 2024. The increase in cost and as a percentage of revenues before reimbursements for the periods was due to an increase in compensation expense, related to the increase in revenues, including incentive compensation, and an increase in non-employee labor. There was an average of 3,531 full-time equivalent employees in this segment in the six months ended June 30, 2025, compared with an average of 3,623 in the 2024 period.
Previous wording
International Operations expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $30.4 million for the three months ended March 31, 2025 compared with $31.4 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 29.1% for the three months ended March 31, 2025 compared with 32.0% for the 2024 period. The decrease in the expense and as a percentage of revenues before reimbursements for the 2025 first quarter was due to an insurance recovery, partially offset by an increase in centralized indirect support costs.
Current wording
International Operations expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $29.1 million for the three months ended June 30, 2025 compared with $30.5 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 26.7% for the three months ended June 30, 2025 compared with 29.9% for the 2024 period. For the six months ended June 30, 2025, these expenses were $59.5 million, compared with $62.0 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 27.9% for the six months ended June 30, 2025, compared with 30.9% for the 2024 period. The decrease in the expense and as a percentage of revenues before reimbursements for the 2025 second quarter was due to a reduction in professional and legal fees, partially offset by an increase in centralized indirect support costs. The year-to-date period decrease was due to a reduction in professional and legal fees as well as an insurance recovery, partially offset by an increase in centralized indirect support costs.
Previous wording
Our Broadspire segment reported operating earnings of $12.2 million, or 12.7% of revenues before reimbursements, for the three months ended March 31, 2025 as compared with $12.8 million, or 13.6% of revenues before reimbursements, for the first quarter of 2024. The decrease in the 2025 first quarter was due to an increase in centralized indirect support costs.
Current wording
Our Broadspire segment reported operating earnings of $13.7 million, or 13.6% of revenues before reimbursements, for the three months ended June 30, 2025 as compared with $15.1 million, or 15.5% of revenues before reimbursements, for the second quarter of 2024. For the six months ended June 30, 2025, our Broadspire segment reported operating earnings of $25.9 million, or 13.1% of revenues before reimbursements, compared with 2024 operating earnings of $27.9 million, or 14.6% of revenues before reimbursements. The decrease in the 2025 second quarter and year-to-date periods was primarily due to an increase in cost of risk and centralized indirect support costs.
Previous wording
Operating results for our Broadspire segment, including gross profit, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
Operating results for our Broadspire segment, including gross profit, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
Broadspire revenues are derived from the casualty and disability insurance and self-insured markets in the U.S. Revenues before reimbursements by service line for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
Broadspire revenues are derived from the casualty and disability insurance and self-insured markets in the U.S. Revenues before reimbursements by service line for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
Revenues before reimbursements from our Broadspire segment totaled $96.4 million in the three months ended March 31, 2025 compared with $94.3 million in the 2024 period. This increase was primarily due to an increase in pricing in both lines and a rise in cases in Claims Management. There was an increase in segment unit volume, measured principally by cases received, of 1.3% for the three months ended March 31, 2025 compared with the same period of 2024. This was primarily due to an increase in new disability clients within our Claims Management service line. Revenues were negatively impacted by a $(0.7 million) decrease in revenues within our Claims Management service line related to income earned which offsets the costs of managing the funds maintained to administer claims for our customers, for which no cases are received, or (0.7)% decrease in revenues. There was also a $1.1 million increase in revenues within our Medical Management service line for which no cases are received, or a 1.2% increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 0.4% revenue increase for the 2025 first quarter compared with the 2024 period.
Current wording
Revenues before reimbursements from our Broadspire segment totaled $100.6 million in the three months ended June 30, 2025 compared with $97.1 million in the 2024 period. This increase was primarily due to an increase in pricing in both service lines and a rise in cases in Claims Management. There was an increase in segment unit volume, measured principally by cases received, of 1.5% for the three months ended June 30, 2025 compared with the same period of 2024. This was primarily due to an increase in new disability clients within our Claims Management service line. Revenues were negatively impacted by a $(0.9 million) decrease in revenues within our Claims Management service line related to income earned which offsets the costs of managing the funds maintained to administer claims for our customers, for which no cases are received, or (0.9)% decrease in revenues. There was also a $1.2 million increase in revenues within our Medical Management service line for which no cases are received, or a 1.2% increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 1.8% revenue increase for the 2025 second quarter compared with the 2024 period.
Previous wording
Revenue variance components for our Broadspire segment, for the three months ended March 31, 2025 are summarized as follows:
Current wording
Revenue variance components for our Broadspire segment, for the three and six months ended June 30, 2025 are summarized as follows:
Previous wording
Reimbursements for out-of-pocket expenses incurred in our Broadspire segment were $0.8 million and $0.9 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Reimbursements for out-of-pocket expenses incurred in our Broadspire segment were $0.7 million and $1.0 million for the three months ended June 30, 2025 and 2024, respectively. Reimbursements were $1.5 million and $1.9 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Broadspire unit volumes by service line, as measured by cases received, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
Broadspire unit volumes by service line, as measured by cases received, for the three and six months ended June 30, 2025 and 2024 were as follows:
Previous wording
Overall case volumes increased 1.3% for the three months ended March 31, 2025 due primarily to an increase in new disability clients within our Claims Management service line.
Current wording
Overall case volumes increased 1.5% and 1.4% for the three and six months ended June 30, 2025, respectively, due primarily to an increase in new disability clients within our Claims Management service line.
Previous wording
The most significant expense in our Broadspire segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. These expenses totaled $58.4 million for the three months ended March 31, 2025, compared to $57.3 million for the 2024 period. As a percent of the related revenues before reimbursements, these expenses decreased slightly from 60.7% in the 2024 first quarter to 60.5% in 2025 first quarter. The increase in cost in the first quarter was primarily due to increased employees, average wages, and incentive compensation, related to the increase in revenues. The three months ended March 31, 2025 had a slightly lower percentage of revenues before reimbursements due to improved operating leverage. Average full-time equivalent employees in this segment totaled 2,764 in the three months ended March 31, 2025, compared with 2,601 in the 2024 period.
Current wording
The most significant expense in our Broadspire segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. These expenses totaled $60.4 million for the three months ended June 30, 2025, compared to $58.2 million for the 2024 period. As a percent of the related revenues before reimbursements, these expenses increased slightly from 59.9% in the 2024 second quarter to 60.0% in 2025 second quarter. For the six months ended June 30, 2025, these expenses totaled $118.7 million, compared to $115.4 million in 2024. For the six months ended June 30, 2025, these expenses, as a percent of the related revenues before reimbursements, remained consistent with the 2024 period at 60.3%. The increase in cost in the second quarter and year-to-date periods was primarily due to increased employees, average wages, and incentive compensation, related to the increase in revenues. Average full-time equivalent employees in this segment totaled 2,783 in the six months ended June 30, 2025, compared with 2,674 in the 2024 period.
Previous wording
Broadspire segment expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor as a percent of revenues before reimbursements were 26.8% for the three months ended March 31, 2025, compared with 25.7% in the 2024 period. The amount of these expenses increased from $24.2 million for the three months ended March 31, 2024 to $25.8 million in 2025. The increase in the 2025 first quarter expenses and as a percentage of revenues before reimbursements was due to higher cost of risk expenses and indirect support costs.
Current wording
Broadspire segment expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor as a percent of revenues before reimbursements were 26.4% for the three months ended June 30, 2025, compared with 24.5% in the 2024 period. The amount of these expenses increased from $23.8 million for the three months ended June 30, 2024 to $26.6 million in 2025. For the six months ended June 30, 2025 and 2024, these expenses were $52.4 million and $48.1 million, respectively. As a percentage of revenues before reimbursements, these expenses were 26.6% for the six months ended June 30, 2025, compared with 25.1% for the 2024 period. The increase in the second quarter and year-to-date expenses and percentages of revenues before reimbursements was due to higher cost of risk expenses and indirect support costs.
Previous wording
Our Platform Solutions segment reported operating earnings of $2.9 million for the three months ended March 31, 2025, compared with operating earnings of $1.1 million in the 2024 period. The segment operating margin increased from 3.5% for the three months ended March 31, 2024, to 9.3% in the comparable 2025 period. The increase was due to an increase in staff augmentation revenues within our Networks service line, an increase in average rates within our Contractor Connection service line, a reduction in costs related to low value self inspection services previously handled within our Networks service line, as well as a decrease in centralized indirect support costs.
Current wording
Our Platform Solutions segment reported operating earnings of $3.1 million for the three months ended June 30, 2025, compared with operating earnings of $1.5 million in the 2024 period. The segment operating margin increased from 3.8% for the three months ended June 30, 2024, to 8.9% in the comparable 2025 period. For the six months ended June 30, 2025, our Platform Solutions segment reported operating earnings of $6.1 million, or 9.1% of revenues before reimbursements, compared with 2024 operating earnings of $2.6 million, or 3.7% of revenues before reimbursements. The increase was due to a reduction in costs related to low value inspection services previously handled within our Networks service line, an increase in average rates within our Contractor Connection service line, lower compensation costs due to decreased staff augmentation revenues, and a decrease in centralized indirect support costs.
Previous wording
Excluding indirect support costs, gross profit in the first quarter increased from $7.2 million, or 22.7% of revenues before reimbursements in 2024, to $7.8 million, or 24.8% of revenues before reimbursements, in 2025. The increase was due to an increase in staff augmentation revenues within our Networks service line, an increase in average rates within our Contractor Connection service line, and a reduction in costs related to low value self inspection services previously handled within our Networks service line.
Current wording
Excluding indirect support costs, gross profit in the second quarter increased from $7.3 million, or 18.8% of revenues before reimbursements in 2024, to $8.1 million, or 22.9% of revenues before reimbursements, in 2025. For the six months ended June 30, 2025, gross profit increased from $14.5 million, or 20.6% of revenues before reimbursements in 2024, to $15.9 million, or 23.8% of revenues before reimbursements in 2025. The increase was due to a reduction in costs related to low value inspection services previously handled within our Networks service line, an increase in average rates within our Contractor Connection service line, and lower compensation costs due to decreased staff augmentation revenues.
Previous wording
Operating results for our Platform Solutions segment, including gross profit, for the three months ended March 31, 2025 and 2024 were as follows:
Current wording
Operating results for our Platform Solutions segment, including gross profit, for the three and six months ended June 30, 2025 and 2024 were as follows:
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Current report — wording carried from elsewhere
Revenues before reimbursements from our North America Loss Adjusting segment totaled $78.1 million in the three months ended June 30, 2025, compared with $76.0 million in the 2024 period. The change in exchange rates decreased our North America Loss Adjusting segment revenues by approximately (0.3)%, or $(0.3) million, for the three months ended June 30, 2025 as compared with the 2024 period. Absent foreign exchange rate fluctuations, North America Loss Adjusting segment revenues would have been $78.3 million for the three months ended June 30, 2025. There was an increase in segment unit volume, measured principally by cases received, of 42.2% for the three months ended June 30, 2025, compared with the 2024 period. This includes an increase in low value inspection services cases, previously handled within Platform Solutions, of 24,100 or 40.5%. Changes in product mix and in the rates charged for those services accounted for a 1.3% revenue increase for the three months ended June 30, 2025 compared with the same period in 2024, due to increases in pricing and average fee per case.
Current report — wording carried from elsewhere
There was an increase in cases of 43.2% in the six months ended June 30, 2025, compared to the same period in 2024. The increase in U.S. case volumes in the 2025 year-to-date period was primarily due to the increase in low value inspection services of 55,900 cases, transferred from Platform Solutions.
Current report — wording carried from elsewhere
Overall, there was a decrease in cases received of (8.8)% for the three months ended June 30, 2025, compared with the 2024 period. There was a decrease in the U.K. in the second quarter due to decreases in high-frequency, low-severity cases in third party administration. The decrease in Europe was primarily due to decreases in high-frequency, low-severity cases in third party administration within Germany. Cases increased in Australia due to an increase in high-frequency, low-severity cases. The increase in cases received in Asia was due to an increase in cases in Thailand and Singapore. Latin America experienced a decrease in high-frequency, low-value cases received in Brazil.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, revenues before reimbursements from our Broadspire segment totaled $197.0 million compared with $191.4 million in the 2024 period. This increase was primarily due to an increase in pricing in both service lines and a rise in cases in Claims Management. There was an increase in segment unit volume, measured principally by cases received, of 1.4% for the six months ended June 30, 2025 compared with the same period of 2024. This was primarily due to an increase in new disability clients within our Claims Management service line. Revenues were negatively impacted by a $(1.5 million) decrease in revenues within our Claims Management service line related to income earned which offsets the costs of managing the funds maintained to administer claims for our customers, for which no cases are received, or (0.8)% decrease in revenues. There was also a $2.3 million increase in revenues within our Medical Management service line for which no cases are received, or 1.2% of the increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 1.1% revenue increase for the 2025 six-month period compared with the 2024 period.