CRAWFORD & CO

Previous wording

Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and A&H to corporations, brokers and insurers in the U.S.

Current wording

Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers in the U.S.

Previous wording

As discussed in more detail in subsequent sections of this MD&A, our four reportable segments represent components of our Company for which separate financial information is available, and which is evaluated regularly by our chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing operating performance.

Current wording

As discussed in more detail in subsequent sections of this MD&A, our four reportable segments represent components of our Company for which separate financial information is available, and which is evaluated regularly by our chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing operating performance. The Company’s CEO is considered the CODM as he is responsible for strategic decisions including the allocation of resources to each reporting segment and the assessment of their performance.

Previous wording

Consolidated revenues before reimbursements were $1.293 billion in 2024, an increase of 2.0% compared with $1.267 billion in 2023. Net income attributable to the Company was $26.6 million in 2024, compared with net income of $30.6 million in 2023.

Current wording

Consolidated revenues before reimbursements were $1.266 billion in 2025, a decrease of 2.1% compared with $1.293 billion in 2024. Net income attributable to the Company decreased to $19.6 million in 2025, from $26.6 million in 2024, primarily due to restructuring and other costs, net of $14.0 million in the current year.

Previous wording

Consolidated revenues before reimbursements increased $25.4 million, or 2.0%, in 2024, compared with 2023. This increase was due to new client growth in North America Loss Adjusting, International Operations, and Broadspire and pricing increases in all of our segments. This was partially offset by a weather-related reduction in our Platforms Solutions segment. Changes in foreign exchange rates decreased our consolidated revenues before reimbursements by $0.8 million, or 0.1%, for 2024 as compared with the prior year.

Current wording

Consolidated revenues before reimbursements decreased $26.8 million, or 2.1%, in 2025, compared with 2024. This decrease was due to declines in weather-related activity within the Platforms Solutions and North America Loss Adjusting segments. This was partially offset by growth in our International Operations and Broadspire segments. Changes in foreign exchange rates increased our consolidated revenues before reimbursements by $2.0 million, or 0.1%, for 2025 as compared with the prior year.

Previous wording

Excluding foreign currency impacts, consolidated revenues before reimbursements increased $26.2 million, or 2.1%, for 2024. Revenues from the North America Loss Adjusting segment increased in 2024 primarily due to an increase in U.S. Global Technical Services. Revenues from the International Operations segment increased due to increases in the U.K., Europe, Asia and Latin America. Revenues from the Broadspire segment increased due to increases in Claims and Medical Management. Revenues from the Platform Solutions segment decreased due to a reduction in our Networks and Contractor Connection service lines.

Current wording

Excluding foreign currency impacts, consolidated revenues before reimbursements decreased $28.7 million, or (2.2)%, for 2025. Revenues from the North America Loss Adjusting segment decreased in 2025 primarily due to a decrease in U.S. Field Operations. Revenues from the International Operations segment increased due to increases in the U.K., Europe and Asia. Revenues from the Broadspire segment increased due to increases in Claims and Medical Management. Revenues from the Platform Solutions segment decreased primarily due to a reduction in our Networks service line, which experienced a reduction in catastrophe related claims.

Previous wording

Overall, there was a decrease in cases received of (2.7)% in 2024 compared with 2023. Within our North America Loss Adjusting segment, the reduction in cases received for 2024 was primarily due to the loss of a customer in the Contractor Connection service line in Canada. Cases within our International Operations segment increased, due primarily to increases in Latin America related to high-frequency, low-severity cases, and Australia, which had an increase in weather-related cases compared to the prior year. There was a slight increase in cases within our Broadspire segment due to an increase in Medical Management referrals, partially offset by an increase in the prior year of 24,700 takeover claims for disability clients within Claims Management. Within our Platform Solutions segment, there was a decrease in cases related to the Networks and the Contractor Connection service lines.

Current wording

Overall, there was a decrease in cases received of (6.9)% in 2025 compared with 2024. Within our North America Loss Adjusting segment, cases increased in 2025 as a result of an increase in low value inspection services cases transferred from our Platforms Solutions group with minimal revenues. Excluding the impact of this transfer, cases decreased (6.1)% due to decreased business in the U.S. from existing clients and the absence of significant weather-related activity in 2025. Cases within our International Operations segment declined in 2025, primarily due to decreases in high-frequency, low-severity cases in the U.K., Europe, and Latin America, and decreases in Australia due to higher weather-related activity in the prior year. There was an increase in cases within our Broadspire segment primarily due to an increase in new disability clients within Claims Management. Within our Platform Solutions segment, the decrease is primarily related to the transfer of low value inspection services to North America Loss Adjusting, as well as a decrease in Contractor Connection and Subrogation cases and the absence of significant weather-related activity in 2025.

Previous wording

Segment operating earnings (a measure of segment operating performance used by our management that is defined and discussed in more detail below) increased in our International Operations and Broadspire operating segments, partially offset by a decrease in our North America Loss Adjusting and Platform Solutions segments.

Current wording

Segment operating earnings (a measure of segment operating performance used by our management that is defined and discussed in more detail below) increased in our North America Loss Adjusting, International Operations, and Broadspire operating segments, partially offset by a decrease in our Platform Solutions segment.

Previous wording

In the International Operations segment, operating earnings increased from $11.2 million, or 2.9% of revenues before reimbursements in 2023, to $21.0 million, or 5.0% of revenues before reimbursements in 2024, primarily due to a $36.2 million increase in revenues and improved staff utilization. Excluding indirect expenses, gross profit increased from $60.4 million or 15.8% of revenues before reimbursements in 2023, to $77.5 million, or 18.5% of revenues before reimbursements in 2024.

Current wording

In the North America Loss Adjusting segment, operating earnings increased from $18.2 million, or 5.8% of revenues before reimbursements in 2024, to $21.0 million, or 6.9% of revenues before reimbursements in 2025, primarily due to improved staff utilization in U.S. Global Technical Services and Canada Loss Adjusting, a decrease in allowance for estimated credit losses, and a reduction in centralized indirect support costs. Excluding indirect expenses, gross profit increased slightly from $56.8 million, or 18.2% of revenues before reimbursements in 2024, to $57.0 million, or 18.7% of revenues before reimbursements in 2025.

Previous wording

In the Broadspire segment, operating earnings increased from $41.9 million, or 11.8% of revenues before reimbursements in 2023, to $52.4 million, or 13.5% of revenues before reimbursements in 2024, primarily due to a $32.4 million increase in revenues. Excluding indirect expenses, gross profit increased from $88.6 million, or 24.9% of revenues before reimbursements in 2023, to $97.5 million, or 25.1% of revenues before reimbursements in 2024.

Current wording

In the Broadspire segment, operating earnings increased from $52.4 million, or 13.5% of revenues before reimbursements in 2024, to $54.6 million, or 13.6% of revenues before reimbursements in 2025, primarily due to a $13.8 million increase in revenues. Excluding indirect expenses, gross profit increased from $97.5 million, or 25.1% of revenues before reimbursements in 2024, to $103.4 million, or 25.7% of revenues before reimbursements in 2025.

Previous wording

In the Platform Solutions segment, operating earnings decreased from $28.5 million, or 12.7% of revenues before reimbursements in 2023, to $11.2 million, or 6.4% of revenues before reimbursements in 2024, primarily due to a ($48.0) million decrease in revenues from staff argumentation within the Networks service line. Excluding indirect expenses, gross profit decreased from $51.6 million, or 22.9% of revenues before reimbursements in 2023, to $34.9 million, or 20.1% of revenues before reimbursements in 2024.

Current wording

In the Platform Solutions segment, operating earnings decreased from $11.2 million, or 6.4% of revenues before reimbursements in 2024, to $7.6 million, or 6.3% of revenues before reimbursements in 2025, primarily due to a $52.9 million decrease in revenues from a reduction in weather-related claims in our Networks service line. Excluding indirect expenses, gross profit decreased from $34.9 million, or 20.1% of revenues before reimbursements in 2024, as a result of reduced catastrophe related claims volume, to $27.0 million, or 22.3% of revenues before reimbursements in 2025.

Previous wording

Cost of services provided, before reimbursements, increased $16.9 million, or 1.9% for 2024 compared with 2023. This increase was primarily due to an increase in compensation expense, within our North America Loss Adjusting, International Operations and Broadspire segments, partially offset by decreases in compensation expense in our Platforms Solutions segment. This increase was consistent with the increase in revenues of $25.4 million, or 2.0%.

Current wording

Cost of services provided, before reimbursements, decreased $26.3 million, or 2.8% for 2025 compared with 2024. This decrease was primarily due to a decrease in compensation expense within our North America Loss Adjusting and Platform Solutions segments, as a result of reduced weather-related claims volumes, partially offset by increases in compensation expense in our International Operations and Broadspire segments. This decrease was consistent with the decrease in revenues of $26.8 million, or 2.1%.

Previous wording

Selling, general, and administrative ("SG&A") expenses increased $13.2 million, or 4.6%, in 2024, as compared with 2023. This increase was primarily due to increases in professional fees and IT costs, partially offset by the benefit from contingent earnout adjustments.

Current wording

Selling, general, and administrative ("SG&A") expenses decreased $5.5 million, or 1.8%, in 2025, as compared with 2024. This decrease was primarily due to reduction in professional fees, partially offset by a one-time indirect tax expense of $3.1 million.

Previous wording

Contingent earnout adjustments represent the fair value adjustment of earnout liabilities arising from recent acquisitions. This benefit totaled $1.1 million for 2024, compared to an expense of $4.0 million for 2023. The fair value adjustment is based on changes to projections of acquired entities over the respective earnout periods, which span multiple years.

Current wording

Contingent earnout adjustments represent the fair value adjustment of earnout liabilities arising from recent acquisitions. This expense totaled $0.5 million for 2025, compared to a benefit of $(1.1) million for 2024. The fair value adjustment is based on changes to projections of acquired entities over the respective earnout periods.

Previous wording

Non-service pension costs totaled $9.8 million for 2024, compared to $8.6 million for 2023, primarily due to higher amortization of net losses. Non-service pension costs represents the U.S. and U.K. non-service defined benefit pension costs, which are non-operating in nature as the U.S. plan is frozen and the U.K. plans are closed to new participants. The service cost component of the U.K. plans remains in compensation expense.

Current wording

Non-service pension costs totaled $9.4 million for 2025, compared to $9.8 million for 2024, primarily due to lower interest costs in 2025 for the U.K. plans. Non-service pension costs represents the U.S. and U.K. non-service defined benefit pension costs, which are non-operating in nature as the U.S. plan is frozen and the U.K. plans are closed to new participants. The service cost component of the U.K. plans remains in compensation expense.

Previous wording

We believe operating earnings is a measure that is useful to others in that it allows them to evaluate segment operating performance using the same criteria used by our senior management and CODM. Segment operating earnings represent segment earnings, including the direct and indirect costs of certain administrative functions required to operate our business, but excludes unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, goodwill impairment, non-service pension costs and credits, contingent earnout adjustments, income taxes, reserves on certain income tax assets, and net income or loss attributable to noncontrolling interests.

Current wording

We believe operating earnings is a measure that is useful to others in that it allows them to evaluate segment operating performance using the same criteria used by our senior management and CODM. Segment operating earnings represent segment earnings, including the direct and indirect costs of certain administrative functions required to operate our business, but excludes unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, non-service pension costs, restructuring and other costs, net, contingent earnout adjustments, income taxes, and net income or loss attributable to noncontrolling interests.

Previous wording

Income taxes, net corporate interest expense, stock option expense, contingent earnout adjustments, amortization of customer-relationship intangible assets, and non-service pension costs and credits 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 segments. Contingent earnout adjustments represent fair value adjustments of earnout liabilities arising from recent acquisitions. Amortization expense is a non-cash expense for finite-lived customer-relationship and trade name intangible assets acquired in business combinations. Non-service pension costs and credits represent the U.S. and U.K. non-service defined benefit pension costs and credits, which are non-operating in nature as the U.S. plan is frozen and the U.K. plans are closed to new participants. The service cost component of the U.K. plans remains in compensation expense. The exclusion of this measurement is intended to exclude market volatility related to an expense that is non-operating in nature and not related to business performance. None of these costs relate directly to the performance of our services or operating activities and, therefore, are excluded from segment operating earnings in order to better assess the results of each segment's operating activities on a consistent basis.

Current wording

Income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, non-service pension costs, and restructuring and other costs, net, are 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 past 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. Restructuring and other costs, net, are costs associated with initiatives intended to improve operating performance, profitability, and efficiency of business processes. Restructuring and other costs, net, include asset impairments, lease termination costs, severance and termination costs, and loss on sale of a business. 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.

Previous wording

Additional discussion and analysis of our income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, goodwill impairment, non-service pension costs and credits, reserves on certain income tax assets, and unallocated corporate and shared costs follows the discussion and analysis of the results of operations of our four segments.

Current wording

Additional discussion and analysis of our income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, non-service pension costs, restructuring and other costs, net, and unallocated corporate and shared costs follows the discussion and analysis of the results of operations of our four segments.

Previous wording

Operating results for our segments reconciled to income before income taxes and net income (loss) attributable to shareholders of the Company are as shown in the following table.

Current wording

Operating results for our segments reconciled to income before income taxes and net income attributable to shareholders of the Company are as shown in the following table.

Previous wording

Operating earnings in our North America Loss Adjusting segment totaled $23.2 million or 7.6% of revenues before reimbursements, in 2023, compared with 2022 operating earnings of $19.1 million, or 7.0% of revenues before reimbursements. The increase in operating earnings in 2023 was primarily due to an increase in revenues in the U.S. and improved staff utilization.

Current wording

Operating earnings in our North America Loss Adjusting segment totaled $21.0 million, or 6.9% of revenues before reimbursements, in 2025, compared with 2024 operating earnings of $18.2 million, or 5.8% of revenues before reimbursements. The increase in operating earnings in 2025 was primarily due to improved staff utilization in U.S. Global Technical Services and Canada Loss Adjusting, a decrease in allowance for estimated credit losses, and a reduction in centralized indirect support costs.

Previous wording

Reimbursements for out-of-pocket expenses incurred in our North America Loss Adjusting segment, which are included in total Company revenues, were $9.8 million in 2023 compared with $8.4 million in 2022. The increase in reimbursed expenses was primarily due to the increase in revenues in 2023.

Current wording

Reimbursements for out-of-pocket expenses incurred in our North America Loss Adjusting segment, which are included in total Company revenues, were $8.4 million in 2025 compared with $8.6 million in 2024.

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 payments to outsourced service providers that augment our staff. North America Loss Adjusting direct compensation, fringe benefits, and non-employee labor expense, as a percent of segment revenues before reimbursements, was 70.7% for 2023 and 72.2% for 2022. The dollar amount of these expenses increased from $198.4 million in 2022 to $214.6 million in 2023. The increase in amounts was due to an increase in employees required to handle the increased revenues and the impact of wage inflation. The decrease in the percentage of revenues before reimbursements is due to improved staff utilization.

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 payments to outsourced service providers that augment our staff. North America Loss Adjusting direct compensation, fringe benefits, and non-employee labor expense, as a percent of segment revenues before reimbursements, was 71.5% for 2025 and 72.5% for 2024. The dollar amount of these expenses decreased from $226.2 million in 2024 to $217.8 million in 2025. The decrease in expense was primarily due to the reduction in revenues, lower incentive compensation expense, and improved staff utilization, in U.S. Global Technical Services and Canada Loss Adjusting, compared to 2024. The decrease in expenses as a percentage of revenues before reimbursements were due to improved staff utilization in U.S. Global Technical Services and Canada Loss Adjusting.

Previous wording

Our International Operations segment reported operating earnings of $11.2 million, or 2.9% of revenues before reimbursements in 2023, as compared to an operating loss of $(12.9) million, or (3.6)% of revenues before reimbursements in 2022. This increase in operating earnings was due to increased revenues in the U.K., Europe, Asia and Latin America, and cost reductions in various international operations. The 2022 period included $4.1 million of severance expense for cost reduction actions in certain international operations.

Current wording

Our International Operations segment reported operating earnings of $25.1 million, or 5.7% of revenues before reimbursements in 2025, compared with operating earnings of $21.0 million, or 5.0% of revenues before reimbursements in 2024. This increase in operating earnings was due to improved operating results in the U.K., Australia, and Asia, partially offset by an increase in centralized indirect support costs.

Previous wording

Based on constant foreign exchange rates, the increase in revenues in the U.K. for 2023 was due to an increase in case volumes, higher average fee per case from both new and existing clients, and a change in operating model for certain clients. There was an increase in revenues in Europe in 2023, compared with 2022, due to increases in the Netherlands, including the benefit of the Van Dijk acquisition, partially offset by a decrease in high-frequency, low-severity cases in Scandinavia. There was a decrease in revenues in Australia due to the weather-related case activity from the 2022 flooding catastrophe. There was an increase in revenues in Asia in 2023, compared with 2022, due to an increase in high-frequency, low-severity case activity in Singapore. The increase in revenues in Latin America in 2023 was due to an increase in cases with higher average fees in Chile, partially offset by a decrease in high-frequency, low-severity cases in Colombia.

Current wording

Based on constant foreign exchange rates, the increase in the U.K. for 2025, compared with 2024, 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 an expansion of the Spanish business. Revenues in Australia decreased slightly, primarily due to the disposal of our legal services business, partially offset by growth in specialty claims. There was an increase in revenues in Asia in 2025, 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 in the current year. The decrease in revenues in Latin America in 2025 is primarily driven by decreased revenues in Brazil and Chile.

Previous wording

Overall, there was a decrease in cases received of (9.3)% for 2023, compared with the 2022 period. There was an increase in cases in the U.K., due to new business from both new and existing clients, partially offset by a reduction in high-frequency, low-severity third party administration cases. Cases declined in Europe due to a change in the mix of services provided between periods, including a reduction of 30,000 high-frequency, low-severity cases in Scandinavia from a client in 2022 that only generated minimal revenues. There was a decrease in 17,000 weather-related cases in Australia related to flooding catastrophe in 2022 referenced above. There was an increase in cases received in Asia due to an increase in high-frequency, low-severity activity in Singapore. Latin America experienced an increase in cases in Chile and Brazil, partially offset by a reduction in Colombia.

Current wording

Overall, there was a decrease in cases received of (10.5)% for 2025, compared with 2024. 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, partially offset by a decrease in claims in Germany. Australia decreased primarily due to higher weather-related activity in the prior year. There was an increase in cases received in Asia due to an increase in cases in Thailand, Malaysia, and Singapore. Latin America experienced a decrease in high-frequency, low-severity cases received in Brazil as well as cases received in Chile.

Previous wording

Revenues before reimbursements from Broadspire totaled $355.7 million in 2023, compared with $313.6 million in 2022. This increase was primarily due to an increase in new client growth, pricing increases, and an increase in average fees across both service lines. Revenues were positively impacted by a slight increase in unit volumes, measured principally by cases received, of 0.4% for 2023 compared with 2022. There was a $9.3 million increase in revenues within our Medical Management service line for which no cases are received, or 3.0% of the increase in revenues. There was also a $14.6 million increase 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 4.6% of the increase in revenues. This incremental income does not have a similar increase in operating cost associated with it. Changes in product mix and in the rates charged for those services accounted for a 5.4% revenue increase for 2023 as compared with 2022, due to an increase in volume and revenue for all other Medical Management service lines.

Current wording

Revenues before reimbursements from Broadspire totaled $401.9 million in 2025, compared with $388.1 million in 2024. This increase was primarily due to an increase in new client growth across both service lines, increased medical management usage, and pricing improvements. Revenues were positively impacted by a slight increase in unit volumes, measured principally by cases received, of 1.3% for 2025 compared with 2024. Revenues were negatively impacted by a $(3.6) million decrease 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 $4.7 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 2.0% revenue increase for 2025 as compared with 2024.

Previous wording

The most significant expense in our Broadspire segment is the compensation of employees, including related payroll taxes and fringe benefits, and payments to outsourced service providers that augment the functions performed by our employees. Direct compensation expenses, fringe benefits, and non-employee labor, as a percent of Broadspire segment revenues before reimbursements, decreased from 63.3% in 2022 to 61.1% in 2023. The total dollar amount of these expenses increased from $198.5 million in 2022 to $217.3 million in 2023. The increase in the amounts was due to the increased revenues, an increase in average full-time equivalent employees in support of client requirements, and the impact of wage inflation. The decrease in the expense as a percent of revenues before reimbursements was due to revenues increasing at a higher rate than the increase in expenses.

Current wording

The most significant expense in our Broadspire segment is the compensation of employees, including related payroll taxes and fringe benefits, and payments to outsourced service providers that augment the functions performed by our employees. Direct compensation expenses, fringe benefits, and non-employee labor, as a percent of Broadspire segment revenues before reimbursements, increased slightly from 60.6% in 2024 to 60.8% in 2025. The total dollar amount of these expenses increased from $235.3 million in 2024 to $244.4 million in 2025. The increase in the amounts was due to increased employees, average wages, and incentive compensation, related to the increase in revenues.

Previous wording

Our Platform Solutions segment recorded operating earnings of $28.5 million in 2023, or 12.7% of revenues before reimbursements, compared with operating earnings of $35.7 million in 2022, or 14.7% of revenues before reimbursements. The decrease in operating margin in 2023 was due to a decrease in revenues in our Networks service line.

Current wording

Our Platform Solutions segment recorded operating earnings of $7.6 million in 2025, or 6.3% of revenues before reimbursements, compared with operating earnings of $11.2 million in 2024, or 6.4% of revenues before reimbursements. The decrease was primarily driven by a reduction in catastrophe related claims in our Networks service line.

Previous wording

The most significant expense in our Platform Solutions segment is the compensation of employees, including related payroll taxes and fringe benefits, and payments to outsourced service providers that augment the functions performed by our employees. Platform Solutions direct compensation, fringe benefits, and non-employee labor expense, as a percent of the related revenues before reimbursements, was 65.6% in 2023 and 67.1% in 2022. The amount of these expenses decreased from $163.4 million in 2022 to $147.8 million in 2023. The decrease in costs was due to the lower revenues in the current year and reduction of employees in our Networks Service line. The decrease as a percentage of revenues before reimbursements in the current year was due to the reduction in revenues in our Networks service line which is more labor intensive than our other Platform Solutions service lines.

Current wording

The most significant expense in our Platform Solutions segment is the compensation of employees, including related payroll taxes and fringe benefits, and payments to outsourced service providers that augment the functions performed by our employees. Platform Solutions direct compensation, fringe benefits, and non-employee labor expense, as a percent of the related revenues before reimbursements, was 56.9% in 2025 and 64.4% in 2024. The amount of these expenses decreased from $111.8 million in 2024 to $68.7 million in 2025. The decrease in costs was due to lower compensation costs due to reduced weather-related revenues and the reduction of employees performing low value inspection services. The decrease as a percentage of revenues before reimbursements in the current year was due to the reduction in revenues in our Networks service line which is more labor intensive than our other Platform Solutions service lines.

Previous wording

Average FTEs in this segment totaled 1,314 in 2023, compared to an average of 1,336 FTEs in 2022.

Current wording

Average FTEs in this segment totaled 714 in 2025, down from an average of 1,049 FTEs in 2024 due to fewer adjusters in the Networks service line.

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 were as follows:

Current wording

Broadspire revenues are derived primarily from the casualty and disability insurance and self-insured markets in the U.S. Revenues before reimbursements by service line were as follows:

Previous wording

Revenues before reimbursements from our Platform Solutions segment totaled $173.7 million in 2024, compared with $225.5 million in 2023. This decrease was primarily due to a reduction in our Networks service line where we provide staff augmentation for our clients, along with a decrease in our Contractor Connection service line due to higher weather-related activity in the prior year period, partially offset by an increase in our Subrogation service line. There was a decrease in segment unit volume, measured principally by cases received, of (7.7)% for 2024, compared with the 2023 period. There was a reduction in low value inspection services cases within our Networks service line of 21,600 cases, or 6.4% in 2024, compared to 2023. There was a change in revenues from staff argumentation within our Networks service line, which have no corresponding cases, which resulted in decreased revenues of (21.3)% in 2024. Changes in product mix and in the rates charged for those services accounted for a (0.4)% revenue decrease for 2024 compared with 2023.

Current wording

Revenues before reimbursements from our Platform Solutions segment totaled $173.7 million in 2024, compared with $225.5 million in 2023. This decrease was primarily due to a reduction in our Networks service line where we provide staff augmentation for our clients, along with a decrease in our Contractor Connection service line due to higher weather-related activity in the prior year period, partially offset by an increase in our Subrogation service line. There was a decrease in segment unit volume, measured principally by cases received, of (7.7)% for 2024, compared with the 2023 period. There was a reduction in low value inspection services cases within our Networks service line of 21,600 cases, or 6.4% in 2024, compared to 2023. There was a change in revenues from staff augmentation within our Networks service line, which have no corresponding cases, which resulted in decreased revenues of (21.3)% in 2024. Changes in product mix and in the rates charged for those services accounted for a (0.4)% revenue decrease for 2024 compared with 2023.

Previous wording

Unallocated corporate and shared costs and credits were $28.1 million, $19.4 million, and $7.1 million in 2024, 2023, and 2022, respectively. The increase for 2024 was due to a $3.3 million increase in professional fees, $3.0 million increase in unallocated compensation, and a $2.4 million increase in self-insurance costs.

Current wording

Unallocated corporate and shared costs and credits were $26.0 million, $28.1 million, and $19.4 million in 2025, 2024, and 2023, respectively. The decrease for 2025 was due to a $6.6 million decrease in professional fees, partially offset by a one-time indirect tax expense of $3.1 million, and a $1.0 million increase in compensation expenses. The increase for 2024 was due to a $3.3 million increase in professional fees, $3.0 million increase in compensation expenses, and a $2.4 million increase in self-insurance costs.

Previous wording

Net corporate interest expense consists of interest expense that we incur on our short- and long-term borrowings, partially offset by interest income we earn on available cash balances and short-term investments. These amounts vary based on interest rates, borrowings outstanding, and the amounts of invested cash. Corporate interest expense totaled $20.3 million, $19.8 million, and $11.0 million for 2024, 2023, and 2022, respectively. Corporate interest income totaled $3.4 million, $2.8 million, and $0.7 million in 2024, 2023, and 2022, respectively. We pay interest on borrowings under our Credit Facility based on variable rates. Our level of interest expense is dependent on the future direction of interest rates as well as the level of outstanding borrowings relative to prior periods. The weighted average interest rates under our Credit Facility were 6.8%, 6.6%, and 3.3% for the years ending December 31, 2024, 2023, and 2022, respectively.

Current wording

Net corporate interest expense consists of interest expense that we incur on our short- and long-term borrowings, partially offset by interest income we earn on available cash balances and short-term investments. These amounts vary based on interest rates, borrowings outstanding, and the amounts of invested cash. Corporate interest expense totaled $18.0 million, $20.3 million, and $19.8 million for 2025, 2024, and 2023, respectively. Corporate interest income totaled $3.3 million, $3.4 million, and $2.8 million in 2025, 2024, and 2023, respectively. We pay interest on borrowings under our Credit Facility based on variable rates. Our level of interest expense is dependent on the future direction of interest rates as well as the level of outstanding borrowings relative to prior periods. The weighted average interest rates under our Credit Facility were 6.0%, 6.8%, and 6.6% for the years ending December 31, 2025, 2024, and 2023, respectively.

Previous wording

Stock option expense, a component of stock-based compensation, is comprised of non-cash expenses related to stock options granted under our various stock option and employee stock purchase plans. Stock option expense is not allocated to our operating segments. Stock option expense of $0.6 million, $0.6 million and $0.5 million was recognized during 2024, 2023, and 2022, respectively. Other stock-based compensation expense related to our Executive Stock Bonus Plan and our Omnibus Stock and Incentive Plan (pursuant to which we have authority to grant performance shares and restricted shares) is charged to our operating segments and included in the determination of segment operating earnings or loss.

Current wording

Stock option expense, a component of stock-based compensation, is comprised of non-cash expenses related to stock options granted under our various stock option and employee stock purchase plans. Stock option expense is not allocated to our operating segments. Stock option expense of $0.6 million for each of the years ended 2025, 2024, and 2023. Other stock-based compensation expense related to our Executive Stock Bonus Plan and our Omnibus Stock and Incentive Plan (pursuant to which we have authority to grant performance shares and restricted shares) is charged to our operating segments and included in the determination of segment operating earnings or loss.

Previous wording

Amortization of customer-relationship intangible assets represents the non-cash amortization expense for finite-lived customer-relationship and trade name intangible assets. Amortization expense associated with these intangible assets totaled $7.5 million, $7.8 million, and $7.8 million in 2024, 2023, and 2022, respectively. This amortization is included in "Selling, general and administrative expenses" in our Consolidated Statements of Operations.

Current wording

Amortization of customer-relationship intangible assets represents the non-cash amortization expense for finite-lived customer-relationship and trade name intangible assets. Amortization expense associated with these intangible assets totaled $8.4 million, $7.5 million, and $7.8 million in 2025, 2024, and 2023, respectively. This amortization is included in "Selling, general and administrative expenses" in our Consolidated Statements of Operations.

Previous wording

Contingent earnout (benefit) expense represents the fair value adjustment of earnout liabilities arising from recent acquisitions. This resulted in a benefit of $(1.1) million in 2024, and expenses of $4.0 million and $2.9 million for 2023 and 2022, respectively. The fair value adjustment is based on changes to projections of acquired entities over the respective earnout periods, which span multiple years.

Current wording

Contingent earnout expense (benefit) represents the fair value adjustment of earnout liabilities arising from past acquisitions. This resulted in an expense of $0.5 million in 2025, a benefit of $(1.1) million in 2024, and an expense of $4.0 million in 2023. The fair value adjustment is based on changes to projections of acquired entities over the respective earnout periods, which span multiple years.

Previous wording

Non-service pension cost totaled $9.8 million for 2024, $8.6 million in 2023, and a credit of $(1.6) million in 2022. The increase in 2024 was due to higher amortization of net losses compared to 2023. The increase in 2023 was primarily due to higher interest costs in 2023 compared to 2022 given changes in market rates. 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 is frozen and the U.K. plans are closed to new participants. The service cost component of the U.K. plans remains in compensation expense.

Current wording

Non-service pension cost totaled $9.4 million for 2025, $9.8 million for 2024, and $8.6 million in 2023. The decrease in 2025 was due to lower interest costs for the U.K. plan compared to 2024. The increase in 2024 was due to higher amortization of net losses compared to 2023. 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 is frozen and the U.K. plans are closed to new participants. The service cost component of the U.K. plans remains in compensation expense.

Previous wording

Our consolidated effective income tax rate for financial reporting purposes may change periodically due to changes in enacted tax rates, changes in tax law, fluctuations in the mix of income earned from our various domestic and international operations, which are subject to income taxes at different rates, our ability to utilize loss and tax credit carryforwards, and amounts related to uncertain income tax positions. Income tax provisions totaled $14.6 million, $17.1 million, and $23.6 million for 2024, 2023, and 2022, respectively. Our effective tax rate for financial reporting purposes was 35.5%, 36.1%, and 467.2% for 2024, 2023, and 2022, respectively. The Company's effective income tax rate in 2024 was impacted by performance in certain foreign jurisdictions and changes in valuation allowances. The Company's effective income tax rate in 2023 was impacted by changes in domestic tax guidance and changes in valuation allowances in certain jurisdictions. The Company's effective income tax rate in 2022 was impacted by the goodwill impairment and change in valuation allowances for certain foreign jurisdictions, primarily the U.K. Based on our 2025 operating plans, we anticipate our effective tax rate for financial reporting purposes in 2025 to be in the 33% to 35% range before considering any discrete items and assuming no material changes to tax law and policy in the material jurisdictions in which we operate.

Current wording

Our consolidated effective income tax rate for financial reporting purposes may change periodically due to changes in enacted tax rates, changes in tax law, fluctuations in the mix of income earned from our various domestic and international operations, which are subject to income taxes at different rates, our ability to utilize loss and tax credit carryforwards, and amounts related to uncertain income tax positions. Income tax provisions totaled $14.9 million, $14.6 million, and $17.1 million for 2025, 2024, and 2023, respectively. Our effective tax rate for financial reporting purposes was 43.1%, 35.5%, and 36.1% for 2025, 2024, and 2023, respectively. The Company's effective income tax rate in 2025 was impacted by improved profitability in certain jurisdictions, net of global intangible low-taxed income expense and a one-time expense relating to administrative guidance issued by a foreign tax authority. The Company's effective income tax rate in 2024 was impacted by performance in certain foreign jurisdictions and changes in valuation allowances. The Company's effective income tax rate in 2023 was impacted by changes in domestic tax guidance and changes in valuation allowances in certain jurisdictions. Based on our 2026 operating plans, we anticipate our effective tax rate for financial reporting purposes in 2026 to be in the 32% to 34% range before considering any discrete items and assuming no material changes to tax law and policy in the material jurisdictions in which we operate.

Previous wording

On November 5, 2021, the Company and certain of its subsidiaries (Crawford & Company Risk Services Investments Limited (the "U.K. Borrower"), Crawford & Company (Canada) Inc. (the "Canadian Borrower") and Crawford & Company (Australia) Pty. Ltd, (the "Australian Borrower"), collectively known with the Company, as the "Borrowers") entered into a Credit Facility (the "Credit Facility"), which replaced our prior credit agreement, dated as of December 8, 2011, as subsequently amended.

Current wording

On December 2, 2025, the Company and certain of its subsidiaries (Crawford & Company EMEA/AP Management Ltd (the "U.K. Borrower"), Crawford & Company (Canada) Inc. (the "Canadian Borrower") and Crawford & Company (Australia) Pty. Ltd, (the "Australian Borrower"), collectively known with the Company, as the "Borrowers") entered into an Amended and Restated Credit Facility (the "Credit Facility"), which amended and restated that certain credit agreement, dated as of November 5, 2021, as subsequently amended.

Previous wording

The Credit Facility consists of a $450.0 million revolving credit facility, with a letter of credit sub-commitment of $125.0 million. The Credit Facility contains sublimits of $250.0 million for borrowings by the U.K. Borrower, $125.0 million for borrowings by the Canadian Borrower, and $75.0 million for borrowings by the Australian Borrower. The Credit Facility matures, and all amounts outstanding thereunder, will be due and payable on November 5, 2026.

Current wording

The Credit Facility consists of a $500.0 million revolving credit facility, with a letter of credit sub-commitment of $125.0 million. The Credit Facility contains sublimits of $250.0 million for borrowings by the U.K. Borrower, $125.0 million for borrowings by the Canadian Borrower, and $75.0 million for borrowings by the Australian Borrower. The Credit Facility matures, and all amounts outstanding thereunder, will be due and payable on December 2, 2030.