CRAWFORD & CO
For the period ended Mar 31, 2026. Filed May 4, 2026.
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.
Mar 31, 2026 · Filed May 4, 2026
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 2025-09-30; filed 2025-11-03.
0001193125-25-262728
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0001193125-26-204372
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 173 previous paragraphs and 150 current paragraphs.
77 unchanged; 48 reworded; 24 added; 47 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 30 previous and 16 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 (24)
Current report
Excluding foreign currency impacts, consolidated revenues before reimbursements decreased $10.3 million, or (3.3)%, for the three months ended March 31, 2026 compared with the same period of 2025. Revenues from the U.S. Property & Casualty segment decreased in the 2026 first quarter primarily due to revenue reductions in Catastrophe Services, Claims Solutions and Contractor Connection. Revenues from the Broadspire segment increased for the quarter due to an increase in Claims and Medical Management revenues, partially offset by a reduction in Subrogation revenues. Excluding foreign currency impacts, revenues from the International Operations segment decreased in the 2026 first quarter compared with the same period in 2025 due to reductions in the U.K., Europe and Latin America, partially offset by revenue increases in Australia, Canada, and Asia.
Current report
Overall, there was an increase in cases received of 0.8% for the three months ended March 31, 2026. Within our U.S. Property & Casualty segment, cases decreased for the 2026 first quarter as a result of a weather-related reduction in all service lines other than Contractor Connection. 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. Cases within our International Operations segment increased for the first quarter, primarily due to an increase in high-frequency, low-severity cases in Spain and weather-related activity in Australia, partially offset by reductions in low-severity cases in Brazil.
Current report
Selling, general, and administrative ("SG&A") expenses increased $1.6 million, or 2.1%, in the three months ended March 31, 2026 as compared with the 2025 period. The increase was primarily due to an increase in self-insurance expense, partially offset by a reduction in contingent earnout expenses.
Current report
U.S. PROPERTY & CASUALTY SEGMENT
Current report
Operating earnings in our U.S. Property & Casualty segment totaled $7.6 million, or 10.4% of revenues before reimbursements, for the three months ended March 31, 2026, compared with 2025 operating earnings of $9.8 million, or 11.9% of revenues before reimbursements. The decrease in operating earnings in the 2026 first quarter was driven by a decline in revenues within the Catastrophe Services, Claims Solutions, and Contractor Connection service lines, offsetting benefits from improved operating efficiency within Global Technical Services.
Current report
Excluding centralized indirect support costs, gross profit decreased from $23.1 million, or 28.1% of revenues before reimbursements in 2025, to $20.6 million, or 28.3% of revenues before reimbursements, in the three months ended March 31, 2026, primarily due to revenue declines within the Claims Solutions and Contractor Connection service line, partially offset by improvements in operational efficiencies within Global Technical Services.
Current report
Operating results for our U.S. Property & Casualty segment, including gross profit, for the three months ended March 31, 2026 and 2025 were as follows:
Current report
Revenues before reimbursements from our U.S. Property & Casualty segment totaled $72.9 million in the three months ended March 31, 2026, compared with $82.2 million in the 2025 period. This decrease was primarily driven by a continued decrease in weather-driven services within our Claims Solutions and Catastrophe Services businesses. There was a decrease in segment unit volume, measured principally by cases received, of (16.9)% for the three months ended March 31, 2026, compared with the 2025 period. This includes a decrease in low value inspection services cases, of 10,800 or (11.1)%. The decrease in revenues from weather-driven activity in our Catastrophe Services business resulted in a decrease in revenues of $4.0 million, or (4.9)%, for which there are minimal cases related. Changes in product mix and in the rates charged for those services accounted for a (0.6)% revenue decrease for the three months ended March 31, 2026 compared with the same period in 2025.
Current report
Revenue variance components for our U.S. Property & Casualty segment, for the three months ended March 31, 2026 are summarized as follows:
Current report
U.S. Property & Casualty segment unit volumes by service line, measured by cases received, for the three months ended March 31, 2026 and 2025 were as follows:
Current report
Overall, there was a decrease in cases of (16.9)% in the three months ended March 31, 2026, compared to the same period in 2025. The decrease in Claims Solutions volumes in the 2026 first quarter was primarily due to the decrease in low value inspection services of 10,800 cases. There was a decrease in Catastrophe Services in the 2026 first quarter primarily due to less weather-driven activity, as compared with the 2025 period.
Current report
The most significant expense in our U.S. Property & Casualty 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 62.6% for the three months ended March 31, 2026 compared with 61.8% for the 2025 period. The total dollar amount of these expenses decreased to $45.6 million for the three months ended March 31, 2026 from $50.8 million for the comparable 2025 period. The first quarter decrease was primarily in line with the reduction of revenues, driven by the reduction of costs affiliated with Catastrophe Services, as well as a reduction of claims within Claims Solution and Global Technical Services. There was an average of 1,637 full-time equivalent employees in this segment in the three months ended March 31, 2026 compared with an average of 1,811 in the 2025 period.
Current report
U.S. Property & Casualty expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $19.6 million for the three months ended March 31, 2026 compared with $21.6 million for the 2025 period. As a percentage of revenues before reimbursements, these expenses were 26.9% for the three months ended March 31, 2026 compared with 26.3% for the 2025 period. The decrease in the 2026 first quarter expenses was due to reduction in the allowance for credit losses and a reduction in centralized indirect support costs as compared to the 2025 period. The increase in costs as a percentage of revenues was due to the reduction in revenues.
Current report
Our Broadspire segment reported operating earnings of $10.9 million, or 10.4% of revenues before reimbursements, for the three months ended March 31, 2026 as compared with $12.0 million, or 11.6% of revenues before reimbursements, for the first quarter of 2025. The decrease in the 2026 first quarter was due to a shift in product mix and an increase in employees and average wages.
Current report
Excluding centralized indirect support costs, first quarter gross profit decreased from $32.6 million, or 31.5% of revenues before reimbursements, in 2025 to $31.4 million, or 29.9% of revenues before reimbursements in 2026. This decrease was due to an increase in employees and average wages related to the increase in revenues, as well as product mix changes
Current report
Operating earnings in our International Operations segment were $4.0 million, or 3.0% of revenues before reimbursements, for the three months ended March 31, 2026, compared with $2.2 million, or 1.8% of revenues before reimbursements, in the 2025 period. The increase in operating earnings in the 2026 period was primarily due to improved operating results in Canada, Australia, and Asia, partially offset by a reduction in operating earnings within the U.K. and Latin America.
Current report
Excluding centralized indirect support costs, gross profit increased slightly from $22.3 million, or 17.7% of revenues before reimbursements in 2025, to $22.5 million, or 17.1% of revenues before reimbursements, in the three months ended March 31, 2026. The slight increase in gross profit in the 2026 period was primarily due to improved operating results in Canada, Australia, and Asia, partially offset by an reduction in earnings within the U.K. and Latin America.
Current report
Revenues before reimbursements from our International Operations segment totaled $131.9 million in the three months ended March 31, 2026, compared with $126.2 million in the 2025 period. The change in exchange rates increased our International Operations segment revenues by approximately 6.2%, or $7.8 million, for the three months ended March 31, 2026 as compared with the 2025 period. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $124.0 million for the three months ended March 31, 2026. There was an increase in segment unit volume, measured principally by cases received, of 4.9% for the three months ended March 31, 2026, compared with the 2025 period. There was a net increase in high-frequency, low-severity cases of 3,500, or 2.5%, primarily in Spain and Finland, offset by a decrease in Brazil. In addition, revenues decreased by $3.2 million or 2.5% in the current year within Australia and the U.K. within our legal services business. In the Middle East, revenue was $1.5 million or 1.2% lower due to revenues related to weather activity recorded in 2025 for cases received at the end of 2024. Changes in product mix and in the rates charged for those services accounted for a 3.3% revenue increase for the three months ended March 31, 2026 compared with the same period in 2025.
Current report
Overall, there was an increase in cases received of 4.9% for the three months ended March 31, 2026, compared with the 2025 period. The increases were primarily related to high-frequency, low-severity cases within Europe, where Spain had an increase of 10,000 cases and Finland increased by 1,600 cases. In addition, Australia volume improved by 3,100 cases. These increases were offset by Latin America where high-frequency, low-value cases received in Brazil decreased by 8,100 cases from the 2025 period.
Current report
International Operations expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $37.5 million for each of the three months ended March 31, 2026 and 2025. As a percentage of revenues before reimbursements, these expenses were 28.5% for the three months ended March 31, 2026 compared with 29.7% for the 2025 period. The decrease in the expense as a percentage of revenues before reimbursements for the 2026 first quarter was due to the increase in revenues while costs remained consistent with the 2025 period.
Current report
Unallocated corporate and shared costs were $8.8 million and $6.1 million for the three months ended March 31, 2026 and 2025, respectively. The increase in the 2026 first quarter was primarily due to an increase in administrative compensation expense and self-insurance reserves.
Current report
Cash Provided by (Used in) Operating Activities
Current report
Cash used in investing activities was $7.9 million for the three months ended March 31, 2026, compared with $9.1 million used in the first three months of 2025. The decrease in cash used in 2025 was primarily due to decreases in capital expenditures in 2026 compared to 2025.
Current report
Unbilled revenues increased $13.0 million excluding foreign exchange impacts. The increase is primarily attributable to Global Technical Services in the U.S. Property & Casualty segment and Australia and the U.K. in the International Operations segment.
Removed paragraphs (47)
Previous report
Excluding foreign currency impacts, consolidated revenues before reimbursements decreased $(10.5) million, or (3.2)%, for the three months ended September 30, 2025, but increased $13.6 million, or 1.4%, for the nine months ended September 30, 2025 compared with the same periods of 2024. Revenues from the North America Loss Adjusting segment decreased in the 2025 third quarter due to a reduction in claims within U.S. Field Operations, partially offset by the transfer of the inspection services business from Platform Solutions. Revenues from the North America Loss Adjusting segment increased for the nine months ended September 30, 2025 due to revenue growth in U.S. Global Technical Services and the addition of the inspection services business transferred from the Platform 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 third quarter and year-to-date periods in all geographic regions with the exception of Latin America, which decreased slightly for the third quarter. 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 third quarter and year-to-date periods due to decreases in revenues from weather-related activity and staff augmentation services in the Networks service line and a reduction in inspection services cases due to the transfer of this business to the North America Loss Adjusting segment.
Previous report
Overall, there was a decrease in cases received of (9.2)% for the three months ended September 30, 2025 and a decrease of (6.2)% for the nine months ended September 30, 2025. Within our North America Loss Adjusting segment, cases increased for the 2025 third 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 third quarter and year-to-date periods, primarily due to decreases in the U.K., Europe, and Latin America, due to decreases in high-frequency, low-severity cases, and decreases in Australia due to higher weather-related activity in the prior year-to-date period. There was an increase in cases within our Broadspire segment for the third 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 third 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 and Subrogation cases.
Previous report
Selling, general, and administrative ("SG&A") expenses decreased $(2.1) million, or (3.0)%, in the three months ended September 30, 2025 as compared with the 2024 period. The decrease is primarily due to a decrease in professional fees and administrative compensation expenses. SG&A expenses increased $1.2 million, or 0.5%, in the nine months ended September 30, 2025 as compared with the 2024 period, primarily due to a one-time indirect tax expense of $3.1 million, partially offset by lower professional fees and administrative compensation expenses.
Previous report
NORTH AMERICA LOSS ADJUSTING SEGMENT
Previous report
Operating earnings in our North America Loss Adjusting segment totaled $6.9 million, or 9.0% of revenues before reimbursements, for the three months ended September 30, 2025, compared with 2024 operating earnings of $5.4 million, or 6.9% of revenues before reimbursements. For the nine months ended September 30, 2025, our North American Loss Adjusting segment reported operating earnings of $17.0 million, or 7.2% of revenues before reimbursements, compared with 2024 operating earnings of $14.8 million, or 6.4% of revenues before reimbursements. The increase in operating earnings in the 2025 third quarter was driven by improved staff utilization in U.S. Global Technical Services and Canada Loss Adjusting, as well as a decrease in allowance for estimated credit losses. Year-to-date, the increase in 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, as well as a decrease in allowance for estimated credit losses.
Previous report
Excluding centralized indirect support costs, gross profit increased from $14.8 million, or 18.6% of revenues before reimbursements in 2024, to $16.1 million, or 20.9% of revenues before reimbursements, in the three months ended September 30, 2025, primarily due to improved staff utilization in U.S. Global Technical Services, U.S. Field Operations, and Canada Loss Adjusting, as well as a decrease in allowance for estimated credit losses. For the nine months ended September 30, 2025, gross profit increased from $43.8 million or 18.8% of revenues before reimbursements in 2024 to $46.2 million, or 19.7% of revenues before reimbursements, due to revenue growth and improved efficiencies in U.S. Global Technical Services, attributable to new client additions and expansion with existing accounts, as well as a decrease in allowance for estimated credit losses.
Previous report
Operating results for our North America Loss Adjusting segment, including gross profit, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Previous report
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 nine months ended September 30, 2025 and 2024 were as follows:
Previous report
Revenues before reimbursements from our North America Loss Adjusting segment totaled $77.0 million in the three months ended September 30, 2025, compared with $79.3 million in the 2024 period. The change in exchange rates decreased our North America Loss Adjusting segment revenues by approximately (0.2)%, or $(0.2) million, for the three months ended September 30, 2025 as compared with the 2024 period. Absent foreign exchange rate fluctuations, North America Loss Adjusting segment revenues would have been $77.2 million for the three months ended September 30, 2025. There was an increase in segment unit volume, measured principally by cases received, of 17.7% for the three months ended September 30, 2025, compared with the 2024 period. This includes an increase in low value inspection services cases, previously handled within Platform Solutions, of 21,400 or 32.6%. There was a decrease in high-frequency, low-severity cases received of (4,300) or (6.5)% within Canada related to flooding during the 2024 period. In addition, there was a decrease in high-frequency, low-severity cases received of (2,200) or (3.3)% within U.S. Field Operations. Changes in product mix and in the rates charged for those services accounted for a 2.4% revenue increase for the three months ended September 30, 2025 compared with the same period in 2024, due to increases in pricing and average fee per case.
Previous report
Revenues before reimbursements from our North America Loss Adjusting segment totaled $234.8 million in the nine months ended September 30, 2025, compared with $232.7 million in the 2024 period. The change in exchange rates decreased our North America Loss Adjusting segment revenues by approximately (0.8)%, or $(1.9) million, for the nine months ended September 30, 2025 as compared with the 2024 period. Absent foreign exchange rate fluctuations, North America Loss Adjusting segment revenues would have been $236.7 million for the nine months ended September 30, 2025. There was an increase in segment unit volume, measured principally by cases received, of 34.2% for the nine months ended September 30, 2025, compared with the 2024 period. This includes an increase in low value inspection services cases, previously handled within Platform Solutions, of 77,300 or 41.3%. There was a decrease in high-frequency, low-severity cases received of (4,300) or (2.3)% within Canada related to flooding during the 2024 period. In addition, there was a decrease in high-frequency, low-severity cases received of (6,400) or (3.4)% within U.S. Field Operations. Changes in product mix and in the rates charged for those services accounted for a 3.1% revenue increase for the nine months ended September 30, 2025 compared with the same period in 2024, due to increases in pricing and average fee per case.
Previous report
Revenues decreased in the U.S. and Canada, based on constant foreign exchange rates, for the third quarter. The decrease in revenues within the U.S. was primarily due to declines in U.S Field Operations claims, reflecting lower significant weather events partially offset by the transfer of the inspection services business from Platform Solutions, which contributed $1.1 million to 2025 third quarter revenues. The slight decrease in Canada revenues, was attributable to lower significant weather events, including two major floods that occurred in the prior year third quarter.
Previous report
On a year-to-date basis, revenues increased in the U.S. and decreased slightly in Canada, based on constant foreign exchange rates. The increase in revenues within the U.S. for the year-to-date period was primarily due to 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 $3.7 million to the increase in 2025 year-to-date revenues. The slight decrease in Canada was attributable to lower significant weather events, including two major floods that occurred in the prior year third quarter.
Previous report
Revenue variance components for our North America Loss Adjusting segment, for the three and nine months ended September 30, 2025 are summarized as follows:
Previous report
North America Loss Adjusting segment unit volumes by geographic region, measured by cases received, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Previous report
Overall, there was an increase in cases of 17.7% in the three months ended September 30, 2025, compared to the same period in 2024. The increase in U.S. case volumes in the 2025 third quarter was primarily due to the increase in low value inspection services of 21,400 cases, transferred from Platform Solutions. There was a decrease in cases in Canada in the 2025 third quarter primarily due to a decrease in high-frequency, low-severity cases as a result of flooding in prior year third quarter.
Previous report
There was an increase in cases of 34.2% in the nine months ended September 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 77,300 cases, transferred from Platform Solutions. The decrease in cases in Canada for the 2025 year-to-date period was primarily due to a reduction in high-frequency, low-severity cases as a result of flooding in the prior year third quarter.
Previous report
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 70.8% for the three months ended September 30, 2025 compared with 71.9% for the 2024 period. For the nine months ended September 30, 2025, these expenses were 70.4% compared with 71.9% for the 2024 period. The total dollar amount of these expenses decreased to $54.5 million for the three months ended September 30, 2025 from $57.1 million for the comparable 2024 period, and were $165.3 million for the nine months ended September 30, 2025, decreasing from $167.2 million in 2024. The decreases in the 2025 third quarter and year-to-date expenses as a percentage of revenues before reimbursements were due to improved staff utilization in U.S. Global Technical Services and Canada Loss Adjusting, compared to each of the 2024 periods. In addition, the expenses decreased for the 2025 third quarter due to the decrease in revenues for the segment. There was an average of 2,038 full-time equivalent employees in this segment in the nine months ended September 30, 2025 compared with an average of 2,003 in the 2024 period.
Previous report
North America Loss Adjusting expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $15.6 million for the three months ended September 30, 2025 compared with $16.8 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 20.2% for the three months ended September 30, 2025 compared with 21.2% for the 2024 period. For the nine months ended September 30, 2025, these expenses were $52.5 million, compared with $50.7 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 22.3% for the nine months ended September 30, 2025 compared with 21.8% for the 2024 period. The decreases in the 2025 third quarter expenses and as a percentage of revenues before reimbursements were due to a decrease in allowance for estimated credit losses as compared to the 2024 periods. The increases in the 2025 year-to-date expenses and as a percentage of revenues before reimbursements were due to increases in data processing costs, software costs, and centralized indirect support cost, partially offset by a decrease in allowance for estimated credit losses as compared to the 2024 periods.
Previous report
Operating earnings in our International Operations segment were $7.4 million, or 6.6% of revenues before reimbursements, for the three months ended September 30, 2025, compared with $5.1 million, or 4.9% of revenues before reimbursements, in the 2024 period. For the nine months ended September 30, 2025, our International Operations segment reported operating earnings of $18.5 million, or 5.7% of revenues before reimbursements, compared with operating earnings in 2024 of $12.5 million, or 4.1% of revenues before reimbursements. The increases in operating earnings for the three and nine months ended September 30, 2025 over the comparable 2024 periods was primarily due to improved operating results in the U.K., Asia, and Australia, partially offset by an increase in centralized indirect support costs.
Previous report
Excluding centralized indirect support costs, gross profit increased from $18.5 million, or 17.5% of revenues before reimbursements in 2024, to $22.8 million, or 20.2% of revenues before reimbursements, in the three months ended September 30, 2025. For the nine months ended September 30, 2025, gross profit increased from $53.7 million, or 17.5% of revenues before reimbursements in 2024, to $64.9 million, or 19.9% of revenues before reimbursements. The increase in gross profit for the three and nine months ended September 30, 2025 over the comparable 2024 periods was primarily due to improved operating results in the U.K., Asia, and Australia during each period.
Previous report
Revenues before reimbursements from our International Operations segment totaled $112.9 million in the three months ended September 30, 2025, compared with $105.7 million in the 2024 period. Absent foreign exchange fluctuations, each geographic region increased in revenues for the quarter with the exception of Latin America. The change in exchange rates increased our International Operations segment revenues by approximately 3.3%, or $3.6 million, for the three months ended September 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 September 30, 2025. There was a decrease in segment unit volume, measured principally by cases received, of (9.4)% for the three months ended September 30, 2025, compared with the 2024 period. There was a decrease in high-frequency, low-severity cases of (8,500), or (7.5)%, primarily in Brazil and Germany. There was also an increase in higher-value third-party administration claims in the U.K., which led to a 2.6% increase in revenue for the three months ended September 30, 2025, compared with the 2024 period. Changes in product mix and in the rates charged for those services accounted for a 2.7% revenue increase for the three months ended September 30, 2025 compared with the same period in 2024.
Previous report
Revenues before reimbursements from our International Operations segment totaled $326.3 million in the nine months ended September 30, 2025, compared with $306.1 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 increased our International Operations segment revenues by approximately 0.1%, or $0.2 million, for the nine months ended September 30, 2025 as compared with 2024. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $326.1 million for the nine months ended September 30, 2025. There was a decrease in segment unit volume, measured principally by cases received, of (10.7)% for the nine months ended September 30, 2025, compared with the 2024 period. There was a decrease in high-frequency, low-severity cases of (38,000), or (10.3%), 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 4.2% increase in revenue for the nine months ended September 30, 2025, compared with the 2024 period. Changes in product mix and in the rates charged for those services accounted for a 2.7% revenue increase for the nine months ended September 30, 2025 compared with the same period in 2024.
Previous report
Overall, there was a decrease in cases received of (9.4)% for the three months ended September 30, 2025, compared with the 2024 period. There was a decrease in the U.K. in the third 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 small weather activity. 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 report
There was a decrease in cases received of (10.7)% for the nine months ended September 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 slightly decreased in Europe due to a decrease in claims in Germany, offset by 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 report
International Operations expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $29.9 million for the three months ended September 30, 2025 compared with $31.2 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 26.5% for the three months ended September 30, 2025 compared with 29.5% for the 2024 period. For the nine months ended September 30, 2025, these expenses were $89.3 million, compared with $93.2 million for the 2024 period. As a percentage of revenues before reimbursements, these expenses were 27.4% for the nine months ended September 30, 2025, compared with 30.4% for the 2024 period. The decrease in the expense and as a percentage of revenues before reimbursements for the 2025 third 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 report
Our Broadspire segment reported operating earnings of $15.6 million, or 15.1% of revenues before reimbursements, for the three months ended September 30, 2025 as compared with $14.4 million, or 14.5% of revenues before reimbursements, for the third quarter of 2024. For the nine months ended September 30, 2025, our Broadspire segment reported operating earnings of $41.4 million, or 13.8% of revenues before reimbursements, compared with 2024 operating earnings of $42.3 million, or 14.6% of revenues before reimbursements. The increase in the 2025 third quarter was primarily due to a decrease in cost of risk and office rent costs. The decrease in the 2025 year-to-date period was primarily due to an increase in software and centralized indirect support costs.
Previous report
Excluding centralized indirect support costs, third quarter gross profit increased from $25.6 million, or 25.9% of revenues before reimbursements in 2024, to $27.5 million, or 26.6% of revenues before reimbursements in 2025. For the nine months ended September 30, 2025, gross profit increased from $76.2 million, or 26.3% of revenues before reimbursements in 2024, to $78.2 million, or 26.0% of revenues before reimbursements. This increase in gross profit for the 2025 third quarter was primarily due to the increase in revenues and a reduction in cost of risk. For the year-to-date period, gross profit increased primarily due to the increased revenues, partially offset by increases in software costs.
Previous report
PLATFORM SOLUTIONS SEGMENT
Previous report
Our Platform Solutions segment reported operating earnings of $2.6 million for the three months ended September 30, 2025, compared with operating earnings of $3.8 million in the 2024 period. The segment operating margin increased from 8.5% for the three months ended September 30, 2024, to 8.9% in the comparable 2025 period. For the nine months ended September 30, 2025, our Platform Solutions segment reported operating earnings of $8.6 million, or 9.0% of revenues before reimbursements, compared with 2024 operating earnings of $6.4 million, or 5.5% of revenues before reimbursements. The decrease in the third quarter operating earnings was primarily due to the decreased staff augmentation services in our Networks service line as operating margin as a percent of revenues before reimbursements increased slightly. The increase in operating earnings for the year-to-date period was due to a reduction in costs related to low value inspection services previously handled within our Networks service line, lower compensation costs due to decreased staff augmentation revenues, and a decrease in centralized indirect support costs.
Previous report
Excluding indirect support costs, gross profit in the third quarter decreased from $9.8 million, or 21.5% of revenues before reimbursements in 2024, to $7.2 million, or 25.0% of revenues before reimbursements, in 2025. For the nine months ended September 30, 2025, gross profit decreased from $24.3 million, or 20.9% of revenues before reimbursements in 2024, to $23.1 million, or 24.2% of revenues before reimbursements in 2025. The decrease in gross profit was primarily due to the decreased staff augmentation services. The increase in gross profit as a percent of revenues before reimbursements was due to a reduction in costs related to low value inspection services previously handled within our Networks service line and lower compensation costs due to decreased staff augmentation revenues.
Previous report
Operating results for our Platform Solutions segment, including gross profit, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Previous report
Revenues before reimbursements from our Platform Solutions segment totaled $28.9 million in the three months ended September 30, 2025, compared with $45.3 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 (48.1)%, for the three months ended September 30, 2025, 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 (29,400), or (35.3%), fewer cases in the three months ended September 30, 2025, compared to 2024. There was a decrease in revenues from staff augmentation in our Networks service line which decreased revenues $(13.4) million, or (29.6)%, in the 2025 third quarter. There was a decrease in high-frequency, low-severity cases within our Subrogation service line of (3,250), or (3.9)% for the 2025 three month period compared with 2024. Changes in product mix and in the rates charged for those services accounted for a 2.4% revenue increase for the 2025 three month period compared with 2024.
Previous report
For the nine months ended September 30, 2025, revenues before reimbursements from our Platform Solutions segment totaled $95.7 million, compared with $116.0 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 (45.0)%, 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 (87,300), or (37.7%), fewer cases in the nine months ended September 30, 2025, compared to 2024. There was a decrease in revenues from staff augmentation in our Networks service line which decreased revenues $(16.4) million, or (14.1)%, in the nine months ended September 30, 2025, compared to 2024. There was a decrease in high-frequency, low-severity cases within our Subrogation service line of (4,400), or (1.9)% for the 2025 nine-month period compared with 2024. Changes in product mix and in the rates charged for those services accounted for a 2.0% revenue increase for the 2025 nine-month period compared with 2024.
Previous report
Revenue variance components for our Platform Solutions segment, for the three and nine months ended September 30, 2025 are summarized as follows:
Previous report
Reimbursements for out-of-pocket expenses incurred in our Platform Solutions segment were $0.1 million for the three months ended September 30, 2025 compared with $0.7 million in the 2024 period. Reimbursements were $0.6 million and $1.2 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous report
Platform Solutions unit volumes by service line, as measured by cases received, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Previous report
Overall case volumes were (48.1)% lower in the three months ended September 30, 2025 and (45.0)% lower in the nine months ended September 30, 2025 compared with the 2024 periods, primarily due to the transfer to North America Loss Adjusting of low value inspection services cases from our Networks service line resulting in 29,400 and 87,300 fewer cases in the three and nine months ended September 30, 2025, respectively, as compared to the 2024 periods. The decrease in cases in our Contractor Connection service line in the three and nine months ended September 30, 2025, is due to reduced claims activity in the marketplace. The reduction in cases in our Subrogation service line in the three and nine months ended September 30, 2025, is due to a reduction of high-frequency, low-severity cases as compared to the 2024 periods.
Previous report
Platform Solutions direct compensation, fringe benefits, and non-employee labor expenses as a percent of revenues before reimbursements were 55.6% in the 2025 third quarter compared with 64.0% in the 2024 quarter. For the nine months ended September 30, 2025, these expenses were 55.7% compared with 61.5% in 2024. The dollar amount of these expenses was $16.1 million for the 2025 third quarter and $29.0 million in the 2024 quarter, and were $53.2 million for the nine months ended September 30, 2025 compared to $71.3 million in 2024. The decrease in costs in each of the three and nine months ended September 30, 2025 compared to the 2024 periods was due to lower compensation costs due to decreased staff augmentation and weather-related revenues and the reduction of employees performing low value inspection services. There was an average of 735 full-time equivalent employees in the Platform Solutions segment in the 2025 year-to-date period, compared with an average of 980 for the 2024 period.
Previous report
Expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were 35.4% of Platform Solutions revenues before reimbursements for the three months ended September 30, 2025 compared with 27.6% for the period in 2024. For the nine months ended September 30, 2025, these expenses were 35.3% compared with 33.0% in 2024. The dollar amount of these expenses was $10.3 million for the 2025 third quarter and $12.5 million in the 2024 quarter, and were $33.8 million for the nine months ended September 30, 2025 compared to $38.3 million in 2024. The decrease in costs before reimbursements for the third quarter and year-to-date periods is due to a reduction in data processing costs, the reduction of costs related to low value inspection services and a reduction in centralized indirect support costs. Costs as a percent of revenues increased related to the decrease in revenues for each of the three and nine months ended September 30, 2025 as compared to the 2024 periods.
Previous report
The provision for income taxes on consolidated income before income taxes totaled $14.1 million and $10.9 million for the nine months ended September 30, 2025 and 2024, respectively. The overall effective tax rate decreased slightly to 34.4% for the nine months ended September 30, 2025 compared with 34.5% for the 2024 period primarily due to improved profitability in certain jurisdictions, net of the one-time expense of $1.3 million related to administrative guidance issued by a foreign tax authority.
Showing the first 40 of 47 passages. Open the source sections for the rest.
Reworded paragraphs (48)
Previous wording
proliferation and escalation of international hostilities and geopolitical events, such as the ongoing conflicts in Russia/Ukraine and Israel,
Current wording
proliferation and escalation of international hostilities and geopolitical events, such as the ongoing conflicts in the Middle East and Russia/Ukraine,
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 and nine months ended September 30, 2025 and 2024, and as of September 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.
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 months ended March 31, 2026 and 2025, and as of March 31, 2026, and December 31, 2025, 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, 2025. 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 decreased $(7.2) million, or (2.2)%, for the three months ended September 30, 2025, compared with the same period of 2024. This decrease was due to decreases in our North America Loss Adjusting and Platform Solutions operating segments. Changes in foreign exchange rates increased our consolidated revenues before reimbursements by $3.3 million, or 1.0%, for the three months ended September 30, 2025. Consolidated revenues before reimbursements increased $11.9 million, or 1.3%, for the nine months ended September 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 consolidated revenues before reimbursements by $(1.6) million, or (0.1)%, for the nine months ended September 30, 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 and nine months ended September 30, 2025.
Current wording
Consolidated revenues before reimbursements decreased $2.5 million, or (0.8)%, for the three months ended March 31, 2026, compared with the same period of 2025. This decrease was primarily driven by lower volumes in our U.S. Property & Casualty reportable segment. Changes in foreign exchange rates increased our consolidated revenues before reimbursements by $7.8 million, or 2.5%, for the three months ended March 31, 2026, 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, 2026.
Previous wording
Cases received are presented below by segment for the three and nine months ended September 30, 2025 and 2024:
Current wording
Cases received are presented below by segment for the three months ended March 31, 2026 and 2025:
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 and nine months ended September 30, 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 months ended March 31, 2026:
Previous wording
Costs of services provided, before reimbursements, decreased $(7.6) million, or (3.2)%, for the three months ended September 30, 2025 as compared to 2024. The decrease was primarily due to a decrease in compensation expense in North America Loss Adjusting related to the reduction in claims within U.S. Field Operations, and a decrease in Platform Solutions due to decreases in revenues from weather-related activity and staff augmentation services in the Networks service line. Costs of services provided, before reimbursements, increased $2.4 million, or 0.4%, for the nine months ended September 30, 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 International Operations, which had increased revenues in all geographic regions, and Broadspire, which had improvements in Claims and Medical Management revenues. These were partially offset by reductions in compensation expense in North America Loss Adjusting and Platform Solutions.
Current wording
Costs of services provided, before reimbursements, decreased $0.5 million, or (0.2)%, for the three months ended March 31, 2026, as compared to the 2025 period. As a percentage of revenues before reimbursements, costs of services decreased consistent with the decrease in revenues.
Previous wording
Additional discussion and analysis of our income taxes, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, and unallocated corporate and shared costs, net follows the discussion and analysis of the results of operations of our four operating segments.
Current wording
Additional discussion and analysis of our income taxes, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, and unallocated corporate and shared costs, net follows the discussion and analysis of the results of operations of our three operating segments.
Previous wording
Operating results for our North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions segments reconciled to net income before income taxes and net income attributable to shareholders of Crawford & Company were follows:
Current wording
Operating results for our U.S. Property & Casualty, Broadspire, and International Operations segments reconciled to net income before income taxes and net income attributable to shareholders of Crawford & Company were follows:
Previous wording
Platform Solutions segment revenues are primarily derived from the property and casualty insurance company markets in the U.S. Revenues before reimbursements by service line for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
U.S. Property & Casualty segment revenues are primarily derived from the property and casualty insurance company markets within the U.S. Revenues before reimbursements by service line for the three months ended March 31, 2026 and 2025 were 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 $2.0 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively. Reimbursements were $6.4 million and $6.5 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Reimbursements for out-of-pocket expenses incurred in our U.S. Property & Casualty segment, which are included in total Company revenues, were $1.8 million for each of the three months ended March 31, 2026 and 2025.
Previous wording
Operating results for our Broadspire segment, including gross profit, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Operating results for our Broadspire segment, including gross profit, for the three months ended March 31, 2026 and 2025 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 and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Broadspire revenues are derived from the property, 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, 2026 and 2025 were as follows:
Previous wording
Revenues before reimbursements from our Broadspire segment totaled $103.4 million in the three months ended September 30, 2025 compared with $99.0 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 1.3% for the three months ended September 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 $(1.1) 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 (1.1)% decrease in revenues. There was also a $1.0 million increase in revenues within our Medical Management service line for which no cases are received, or a 1.0% increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 3.2% revenue increase for the 2025 third quarter compared with the 2024 period.
Current wording
Revenues before reimbursements from our Broadspire segment totaled $104.8 million in the three months ended March 31, 2026 compared with $103.7 million in the 2025 period. This increase was primarily due to an increase in cases in the Claims Management and Medical Management service lines. There was an increase in segment unit volume, measured principally by cases received, of 8.7% for the three months ended March 31, 2026 compared with the same period of 2025. This was primarily due to an increase high-frequency, low-severity claims within our Claims Management service line of 14,900, or 10.2%, primarily related to new disability clients. Revenues were negatively impacted by a $(1.0) 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 $0.3 million increase in revenues within our Medical Management service line for which no cases are received, or a 0.2% increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 3.2% revenue increase for the 2026 first quarter compared with the 2025 period.
Previous wording
Revenue variance components for our Broadspire segment, for the three and nine months ended September 30, 2025 are summarized as follows:
Current wording
Revenue variance components for our Broadspire segment, for the three months ended March 31, 2026 are summarized as follows:
Previous wording
Reimbursements for out-of-pocket expenses incurred in our Broadspire segment were $0.9 million and $0.8 million for the three months ended September 30, 2025 and 2024, respectively. Reimbursements were $2.4 million and $2.8 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Reimbursements for out-of-pocket expenses incurred in our Broadspire segment were $0.7 million and $0.8 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Broadspire unit volumes by service line, as measured by cases received, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Broadspire unit volumes by service line, as measured by cases received, for the three months ended March 31, 2026 and 2025 were as follows:
Previous wording
Overall case volumes increased 1.3% and 1.4% for the three and nine months ended September 30, 2025, respectively, due primarily to an increase in new disability clients within our Claims Management service line.
Current wording
Overall case volumes increased 8.7% for the three months ended March 31, 2026 due primarily to an increase in new disability clients within our Claims Management service line, increases in physician review services and utilization management claims within Medical Management, partially offset by a decrease in Subrogation cases due to the loss of a customer.
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 $62.4 million for the three months ended September 30, 2025, compared to $59.7 million for the 2024 period. As a percent of the related revenues before reimbursements, these expenses remained consistent at 60.3% for each of the 2024 and 2025 quarters. For the nine months ended September 30, 2025, these expenses totaled $181.1 million, compared to $175.1 million in 2024. For the nine months ended September 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 third 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 2,799 in the nine months ended September 30, 2025, compared with 2,691 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 March 31, 2026, compared to $58.3 million for the 2025 period. As a percent of the related revenues before reimbursements, these expenses increased from 56.3% in the 2025 first quarter to 57.6% in 2026 first quarter. The increase in cost and as a percentage of revenues before reimbursements for the 2026 first quarter was primarily due to increased employees and average wages related to the increase in revenues, as well as product mix changes. Average full-time equivalent employees in this segment totaled 2,935 in the three months ended March 31, 2026, compared with 2,841 in the 2025 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 24.6% for the three months ended September 30, 2025, compared with 25.2% in the 2024 period. The amount of these expenses increased from $24.9 million for the three months ended September 30, 2024 to $25.4 million in 2025. For the nine months ended September 30, 2025 and 2024, these expenses were $77.9 million and $73.0 million, respectively. As a percentage of revenues before reimbursements, these expenses were 25.9% for the nine months ended September 30, 2025, compared with 25.1% for the 2024 period. While costs increased during the third quarter due to an increase in indirect support costs, costs as a percentage of revenues before reimbursements decreased due to improved operating leverage. The increase in year-to-date expenses and percentages of revenues before reimbursements was due to higher software costs and higher 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 decreased slightly to 32.0% for the three months ended March 31, 2026, from 32.2% in the 2025 period. The amount of these expenses increased slightly from $33.4 million for the three months ended March 31, 2025 to $33.5 million in 2026. The slight decrease in the 2026 first quarter expenses as a percentage of revenues before reimbursements was due to improved operating leverage.
Previous wording
Operating results for our International Operations segment, including gross profit, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
Operating results for our International Operations segment, including gross profit, for the three months ended March 31, 2026 and 2025 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 and nine months ended September 30, 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, Canada, 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, 2026 and 2025 were as follows:
Previous wording
Based on constant foreign exchange rates, the increase in revenues in the U.K. for the 2025 third 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 an expansion of the Spanish business. There was an increase in Australia in the 2025 periods, compared with 2024, due to increases in small weather events. 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 that continues to generate revenues into the third quarter. The increase in revenues in Latin America in the 2025 periods was primarily driven by increased revenues in Brazil and Chile.
Current wording
Based on constant foreign exchange rates, revenues decreased by $2.1 million. Excluding foreign currencies, revenues decreased in the U.K. for the 2026 first quarter due a reduction in higher-value third-party administration claims as well as a reduction in legal services as compared to the prior year first quarter. There was a decrease in revenues in Europe in the 2026 period, compared with 2025, due to a reduction in flood related revenues in the Middle East. There was an increase in Australia in the 2026 first quarter, compared with 2025, due to increased weather-related activity, partially offset by the sale of the legal services division. Canada increased in the 2026 first quarter, compared with 2025, related to a new client in third-party administration. There was an increase in revenues in Asia in the 2026 first quarter, compared with 2025, due to earthquakes in Thailand in 2025 that continue to generate revenues in the current year, as well as increases in Hong Kong and Taiwan. The decrease in revenues in Latin America in the 2026 period was primarily driven by a reduction in weather-related cases in Chile.
Previous wording
Revenue variance components for our International Operations segment, for the three and nine months ended September 30, 2025 are summarized as follows:
Current wording
Revenue variance components for our International Operations segment, for the three months ended March 31, 2026 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 $7.6 million and $9.4 million for the three months ended September 30, 2025 and 2024, respectively. Reimbursements were $24.1 million and $26.6 million for the nine months ended September 30, 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 $8.4 million and $8.6 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
International Operations segment unit volumes by geographic region, measured by cases received, for the three and nine months ended September 30, 2025 and 2024 were as follows:
Current wording
International Operations segment unit volumes by geographic region, measured by cases received, for the three months ended March 31, 2026 and 2025 were as follows:
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 66.9% for the three months ended September 30, 2025 compared with 65.6% for the 2024 period. The total dollar amount of these expenses was $75.6 million for the three months ended September 30, 2025, compared to $69.4 million for the 2024 period. For the nine months ended September 30, 2025, these expenses were 66.9%, compared with 65.5% in 2024, and were $218.4 million for the nine months ended September 30, 2025 compared to $200.4 million in 2024. The increase in cost and as a percentage of revenues before reimbursements for the 2025 third quarter was due to an increase in compensation expense, related to the increase in revenues, including incentive compensation. The increase in cost and as a percentage of revenues before reimbursements for the year-to-date period 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 3,511 full-time equivalent employees in this segment in the nine months ended September 30, 2025, compared with an average of 3,638 in the 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 68.5% for each of the three months ended March 31, 2026 and 2025. The total dollar amount of these expenses was $90.4 million for the three months ended March 31, 2026, compared to $86.5 million for the 2025 period. The increase in cost was due to an increase in compensation expense, related to the increase in revenues, including incentive compensation, partially offset by a decrease in non-employee labor. There was an average of 4,219 full-time equivalent employees in this segment in the three months ended March 31, 2026, compared with an average of 4,430 in the comparable 2025 period.
Previous wording
The Company's consolidated effective income tax rate may change periodically due to changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, and changes in unrecognized tax benefits. We estimate that our effective income tax rate for 2025 will be approximately 34% to 36% after considering known discrete items as of September 30, 2025.
Current wording
The Company's consolidated effective income tax rate may change periodically due to changes in enacted statutory tax rates, changes in tax law or policy, changes in the composition of taxable income from the countries in which it operates, the Company's ability to utilize net operating loss and tax credit carryforwards, changes in permanent reinvestment assertions, and changes in unrecognized tax benefits. We estimate that our effective income tax rate for 2026 will be approximately 33% to 35% after considering known discrete items as of March 31, 2026.
Previous wording
The provision for income taxes on consolidated income before income taxes totaled $5.8 million and $5.3 million for the three months ended September 30, 2025 and 2024, respectively. The overall effective tax rate decreased to 31.9% for the three months ended September 30, 2025 compared with 36.2% for the 2024 period primarily due to improved profitability in certain jurisdictions.
Current wording
The provision for income taxes on consolidated income before income tax totaled $2.4 million and $2.5 million for the three months ended March 31, 2026 and 2025, respectively. The overall effective tax rate increased to 32.6% for the three months ended March 31, 2026 compared with 26.9% for the 2025 period primarily due to changes in the mix of income and U.S. taxation of foreign subsidiary profits in the 2026 results.
Previous wording
Net corporate interest expense consists of interest expense that we incur on our short- and long-term borrowings, partially offset by any 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 $4.6 million and $5.5 million for the three months ended September 30, 2025 and 2024, respectively. Interest income was $0.8 million for each of the three months ended September 30, 2025 and 2024. Corporate interest expense totaled $14.0 million and $15.1 million for the nine months ended September 30, 2025 and 2024, respectively. Interest income was $2.4 million and $2.5 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Net corporate interest expense consists of interest expense that we incur on our short- and long-term borrowings, partially offset by any 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 $3.4 million and $4.8 million for the three months ended March 31, 2026 and 2025, respectively. Interest income was $0.8 million for each of the three months ended March 31, 2026 and 2025.
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 totaled $0.1 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively. Stock option expense totaled $0.5 million for each of the nine months ended September 30, 2025 and 2024, respectively.
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 totaled $0.2 million for each of the three months ended March 31, 2026 and 2025.
Previous wording
Amortization of acquisition-related 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 $2.1 million and $1.9 million for the three months ended September 30, 2025 and 2024, respectively. Amortization expense associated with these intangible assets totaled $5.8 million for the nine months ended September 30, 2025 and $5.7 million for the 2024 period. This amortization expense is included in "Selling, general, and administrative expenses" in our unaudited Condensed Consolidated Statements of Operations.
Current wording
Amortization of acquisition-related 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 $1.8 million for each of the three months ended March 31, 2026 and 2025. This amortization expense is included in "Selling, general, and administrative expenses" in our unaudited Condensed Consolidated Statements of Operations.
Previous wording
Certain unallocated corporate and shared costs are excluded from the determination of segment operating earnings. For the three and nine months ended September 30, 2025 and 2024, unallocated corporate and shared costs and credits represented expenses for our chief executive officer and our Board of Directors, certain adjustments to our self-insured liabilities, certain unallocated legal costs and professional fees, and certain adjustments and recoveries to our allowances for estimated credit losses.
Current wording
Certain unallocated corporate and shared costs are excluded from the determination of segment operating earnings. For the three months ended March 31, 2026 and 2025, unallocated corporate and shared costs and credits represented expenses for our chief executive officer and our Board of Directors, certain adjustments to our self-insured liabilities, certain unallocated legal costs and professional fees, and certain adjustments and recoveries to our allowances for estimated credit losses.
Previous wording
Contingent earnout expense (benefit) represents the fair value adjustment of earnout liabilities arising from recent acquisitions. This resulted in expense of $0.1 million and $0.5 million for the three and nine months ended September 30, 2025, compared to benefits of $(2.1) million and $(1.5) million for the three and nine months ended September 30, 2024. The fair value adjustments are based on changes to projections of acquired entities over the respective earnout periods, which span multiple years.
Current wording
Contingent earnout expense represents the fair value adjustment of earnout liabilities arising from recent acquisitions. This resulted in a benefit of $0.2 million for the three months ended March 31, 2026, compared to expenses of $0.4 million for the three months ended March 31, 2025. 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 costs totaled $2.4 million and $7.1 million for the three and nine months ended September 30, 2025, respectively, compared to $2.4 million and $7.3 million for the three and nine months ended September 30, 2024, respectively. 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 $2.0 million for the three months ended March 31, 2026, compared to $2.3 million for the three months ended March 31, 2025. 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
At September 30, 2025, our working capital balance (current assets less current liabilities) was approximately $97.4 million, an increase of $22.9 million from the working capital balance at December 31, 2024. Our cash and cash equivalents were $68.8 million at September 30, 2025, compared with $55.4 million at December 31, 2024.
Current wording
At March 31, 2026, our working capital balance (current assets less current liabilities) was approximately $45.1 million, an increase of $2.3 million from the working capital balance at December 31, 2025. Our cash and cash equivalents were $54.5 million at March 31, 2026, compared with $64.1 million at December 31, 2025.
Previous wording
Cash and cash equivalents as of September 30, 2025 consisted of $21.7 million held in the U.S. and $47.1 million held in our foreign subsidiaries. The Company generally does not provide for additional U.S. and foreign income taxes on undistributed earnings of foreign subsidiaries because they are considered to be indefinitely reinvested. The Company maintained its permanent reinvestment assertion on a portion of prior year undistributed earnings for certain foreign operations and accrued deferred taxes attributable to these earnings. The majority of the remaining historical earnings and future foreign earnings are expected to remain permanently reinvested and will be used to provide working capital for these operations, fund defined benefit pension plan obligations, repay non-U.S. debt, fund capital improvements, and fund future acquisitions.
Current wording
Cash and cash equivalents as of March 31, 2026 consisted of $17.0 million held in the U.S. and $37.5 million held in our foreign subsidiaries. The Company generally does not provide for additional U.S. and foreign income taxes on undistributed earnings of foreign subsidiaries because they are considered to be indefinitely reinvested. The Company maintained its permanent reinvestment assertion on a portion of prior year undistributed earnings for certain foreign operations and accrued deferred taxes attributable to earnings that were not permanently reinvested. The majority of the remaining historical earnings and future foreign earnings are expected to remain permanently reinvested and will be used to provide working capital for these operations, fund defined benefit pension plan obligations, repay non-U.S. debt, fund capital improvements, and fund future acquisitions.
Previous wording
Cash provided by operating activities was $51.7 million for the nine months ended September 30, 2025, compared with $11.1 million of cash provided by operating activities in the 2024 period. The increase in cash provided was primarily driven by higher earnings, net change in incentive compensation and net change in billed and unbilled receivables as compared to prior year.
Current wording
Cash provided by operating activities was $3.3 million for the three months ended March 31, 2026, compared with $13.9 million used in operating activities in the 2025 period. The increase in cash provided was primarily driven by timing of payments to vendors and increases in working capital accounts, partially offset by lower earnings compared to prior year.
Previous wording
Cash (Used in) Provided by Financing Activities
Current wording
Cash Provided by Financing Activities
Previous wording
Cash used in financing activities was $13.8 million for the nine months ended September 30, 2025, compared with $13.3 million cash provided in the 2024 period. During the first nine months of 2025, there was a decrease of $0.7 million in net borrowing from our revolving credit facility, compared with a net increase during the 2024 period of $29.0 million. The decrease in net borrowing in the 2025 period was primarily related to the increase in cash provided by operations. We paid $3.0 million for share repurchases in the 2025 period, compared with $3.6 million in the 2024 period. We paid $10.6 million in dividends in the nine months ended September 30, 2025 compared with $10.3 million in the 2024 period.
Current wording
Cash provided by financing activities was $3.4 million for the three months ended March 31, 2026, compared with $25.0 million of cash provided in the 2025 period. During the first three months of 2026, there was an increase of $5.0 million in net borrowing from our revolving credit facility, compared with a net increase during the 2025 period of $28.5 million. The decrease in borrowing in the 2026 period was primarily related to the decrease in payments of our accounts payable and accrued liabilities. In addition, we added $9.3 million of fiduciary liabilities, due to the timing of fund transfers. We repurchased shares for $5.5 million in the 2026 period, compared with no share repurchases made in the 2025 period. We paid $3.7 million in dividends in the three months ended March 31, 2026 compared with $3.5 million in the 2025 period.
Previous wording
As a component of our Credit Facility with Bank of America (the "Credit Facility"), we maintain a letter of credit facility to satisfy certain contractual obligations. Including $8.5 million of undrawn letters of credit issued under the letter of credit facility, the available balance under our credit facility totaled $223.5 million at September 30, 2025. Our short-term debt obligations typically peak during the first half of each year due to the annual payment of incentive compensation, contributions to retirement plans, working capital fluctuations, and certain other recurring payments, and generally decline during the balance of the year. The balance of short-term borrowings represents amounts under our credit facility that we expect, but are not required, to repay in the next twelve months. Long- and short-term borrowings outstanding, including current installments and finance leases, totaled $218.1 million as of each of the periods ended September 30, 2025 and December 31, 2024.
Current wording
As a component of our Credit Facility with Bank of America (the "Credit Facility"), we maintain a letter of credit facility to satisfy certain contractual obligations. Including $8.5 million of undrawn letters of credit issued under the letter of credit facility, the available balance under our credit facility totaled $266.8 million at March 31, 2026. Our short-term debt obligations typically peak during the first half of each year due to the annual payment of incentive compensation, contributions to retirement plans, working capital fluctuations, and certain other recurring payments, and generally decline during the balance of the year. The balance of short-term borrowings represents amounts under our credit facility that we expect, but are not required, to repay in the next twelve months. Long- and short-term borrowings outstanding, including current installments and finance leases, totaled $194.1 million as of March 31, 2026 compared with $189.1 million at December 31, 2025.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Additional information related to the adoption of recently issued accounting standards is provided in Note 2 to the accompanying unaudited condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
For the nine months ended September 30, 2025, revenues before reimbursements from our Broadspire segment totaled $300.4 million compared with $290.4 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 nine months ended September 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 $(2.6) 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 $3.3 million increase in revenues within our Medical Management service line for which no cases are received, or 1.1% of the 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 nine-month period compared with the 2024 period.