Crawford & Company
05/04/2026 | Press release | Distributed by Public on 05/04/2026 15:25
CRAWFORD & COMPANY REPORTS 2026 FIRST QUARTER RESULTS (Form 8-K)
CRAWFORD & COMPANY REPORTS 2026 FIRST QUARTER RESULTS
ATLANTA, (May 4, 2026) -- Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to announce its financial results for the first quarter ended March 31, 2026.
Revenues before reimbursements decreased (1)% to $309.5 million in the 2026 first quarter from $312.0 million in the 2025 first quarter. First quarter net income was $4.9 million, or $0.10 per diluted share for CRD-A and CRD-B, compared to $6.7 million, or $0.13 per diluted share for CRD-A and CRD-B in the prior year quarter.
|
GAAP Consolidated Results |
|||
|
Three Months Ended |
|||
|
(in millions, except per share amounts) |
2026 |
2025 |
Change |
|
Revenues before reimbursements |
$309.5 |
$312.0 |
(1)% |
|
Net income attributable to shareholders |
4.9 |
6.7 |
(27)% |
|
Diluted earnings per share CRD-A |
0.10 |
0.13 |
(23)% |
|
Diluted earnings per share CRD-B |
0.10 |
0.13 |
(23)% |
|
Non-GAAP Consolidated Results |
|||
|
Three Months Ended |
|||
|
(in millions, except per share amounts) |
2026 |
2025 |
Change |
|
Revenues before reimbursements |
$301.7 |
$312.0 |
(3)% |
|
Consolidated adjusted operating earnings |
13.7 |
17.8 |
(23)% |
|
Consolidated adjusted EBITDA |
22.4 |
26.8 |
(16)% |
|
Non-GAAP net income attributable to shareholders |
7.8 |
10.3 |
(24)% |
|
Non-GAAP diluted earnings per share CRD-A |
0.16 |
0.21 |
(24)% |
|
Non-GAAP diluted earnings per share CRD-B |
0.16 |
0.21 |
(24)% |
Mr. Bruce Swain, president and chief executive officer of Crawford & Company, commented, "We've entered 2026 with a focus on further strengthening our operating foundation, sharpening our go-to-market approach and enhancing Crawford's leadership position in the marketplace. We saw a mixed environment in the first quarter, with revenue growth and margin improvement in our International Operations tempered by lower claims activity in U.S. Property & Casualty. Across our industry, outsourced claims activity has continued to be below historical levels, largely related to an extended period of benign weather. Despite a challenging first quarter environment, we won nearly $24 million in new and enhanced business, and our balance sheet and liquidity remain strong."
Mr. Swain continued, "Our diverse operating structure includes non-weather businesses that provide a strong and resilient business model. We're encouraged by the pipeline of opportunities we're seeing and remain focused on delivering excellent service execution and client outcomes, leveraging the strength of our capabilities to attract and win new customers and capturing additional market share."
Segment Results for the First Quarter
U.S. Property and Casualty
U.S. Property and Casualty revenues before reimbursements were $72.9 million in the first quarter of 2026, down (11.3)% from $82.2 million in the first quarter of 2025, primarily driven by continued decreases in weather-driven services within Claims Solutions and Catastrophe Services.
The segment had operating earnings of $7.6 million in the 2026 first quarter, decreasing from $9.8 million in the first quarter of 2025. The operating margin was 10.4% in the 2026 quarter, compared with 11.9% in the 2025 quarter. The decrease in operating earnings was primarily driven by the reduction in revenues as compared to the prior year quarter.
Broadspire
Broadspire segment revenues before reimbursements were $104.8 million in the 2026 first quarter, increasing 1.0% from $103.7 million in the 2025 first quarter driven by increases in disability claims.
Broadspire operating earnings were $10.9 million in the first quarter of 2026, representing an operating margin of 10.4% , decreasing from $12.0 million, or 11.6% of revenues in the 2025 period. The decrease was primarily due to a shift in product mix and an increase in employees and average wages.
International Operations
International Operations revenues before reimbursements were $131.9 million in the first quarter of 2026, up 4.5% from $126.2 million in the same period of 2025. Excluding foreign exchange rate benefits of $7.8 million, revenues would have been $124.0 million for the 2026 first quarter, reflecting declines in higher value third party administration claims in the U.K. and reduced flood-related revenues in the Middle East.
Operating earnings were $4.0 million in the 2026 first quarter, increasing from $2.2 million in the 2025 period. The segment's operating margin for the 2026 quarter increased to 3.0% compared with 1.8% in the 2025 quarter driven by improved operating results within Canada, Australia, and Asia, partially offset by performance in the U.K. and Latin America.
Unallocated Corporate and Shared Costs and Credits, Net
Unallocated corporate costs were $8.8 million in the first quarter of 2026, compared with $6.1 million in the same period of 2025. The increase in the 2026 first quarter was primarily driven by an increase in administrative compensation expenses and self-insurance reserves.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses ("SG&A") increased $1.6 million, or 2.1%, in the three months ended March 31, 2026 as compared with the 2025 period. The increase was primarily due to an increase in self-insurance reserves, partially offset by a reduction in contingent earnout expenses.
Balance Sheet and Cash Flow
The Company's consolidated cash and cash equivalents position as of March 31, 2026, totaled $54.5 million, compared with $64.1 million at December 31, 2025. The Company's total debt outstanding as of March 31, 2026, totaled $194.1 million, compared with $189.1 million at December 31, 2025.
The Company's operations provided $3.3 million of cash during the first three months of 2026, compared with $13.9 million used in 2025. The increase in cash provided was due primarily to timing of payments, partially offset by an increase in billed and unbilled receivables.
2
During the first three months of 2026, the Company repurchased 468,314 shares of CRD-A at an average per-share cost of $10.48 and 59,555 shares of CRD-B at an average per-share cost of $10.29. In the first three months of 2025, the Company did not repurchase any shares of CRD-A or CRD-B.
Conference Call
As previously announced, Crawford & Company will host a conference call on May 5, 2026, at 8:30 a.m. Eastern Time to discuss its first quarter 2026 results. The conference call can be accessed live by dialing 1-800-715-9871 and using Conference ID 7962074. A presentation for tomorrow's call can also be found on the investor relations portion of the Company's website, https://ir.crawco.com. The call will be recorded and available for replay through May 12, 2026. You may dial 1-800-770-2030 and use passcode 7962074# to listen to the replay.
Non-GAAP Presentation
In the normal course of business, our operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by our clients. Under U.S. generally accepted accounting principles ("GAAP"), these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in our consolidated results of operations. In the foregoing discussion and analysis of segment results of operations, we do not include a gross up of segment expenses and revenues for these pass-through reimbursed expenses. The amounts of reimbursed expenses and related revenues offset each other in our results of operations with no impact to our net income or operating earnings. A reconciliation of revenues before reimbursements to consolidated revenues determined in accordance with GAAP is self-evident from the face of the accompanying unaudited condensed consolidated statements of operations.
Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker ("CODM") to evaluate the financial performance of our Company and operating segments, and make resource allocation and certain compensation decisions. Unlike net income, segment operating earnings is not a standard performance measure found in GAAP. We believe this measure is useful to others in that it allows them to evaluate segment and consolidated operating performance using the same criteria used by our senior management and CODM. Consolidated operating earnings represent segment earnings including certain unallocated corporate and shared costs, but before net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, income taxes and net income or loss attributable to noncontrolling interests.
Adjusted EBITDA is not a term defined by GAAP and as a result our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies. However, adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results. The Company believes that adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties. Adjusted EBITDA is defined as net income attributable to shareholders of the Company with adjustments for depreciation and amortization, net corporate interest expense, contingent earnout adjustments, non-service pension costs, income taxes and stock-based compensation expense.
Unallocated corporate and shared costs and credits include expenses and credits related to our chief executive officer and Board of Directors, certain provisions for bad debt allowances or subsequent recoveries such as those related to bankrupt clients, certain unallocated professional fees and certain self-insurance costs and recoveries that are not allocated to our individual operating segments.
Income taxes, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, and non-service pension costs are recurring components of our net income, but they are not considered part of our segment operating earnings because they are managed on a corporate-wide basis. Income taxes are calculated for the Company on a consolidated basis based on statutory rates in effect in the various jurisdictions in which we provide services and vary significantly by jurisdiction. Net corporate interest expense results from capital structure decisions made by senior management and the Board of Directors, affecting the Company as a whole. Stock option expense represents the non-cash costs generally related to stock options and employee stock purchase plan expenses which are not allocated to our operating segments. Amortization expense is a non-cash expense for finite-lived customer-relationship and trade name intangible assets acquired in business combinations. Contingent earnout adjustments relate to changes in the fair value of earnouts associated with our recent acquisitions. Non-service pension costs represent the U.S. and U.K. non-service defined benefit pension costs, which are non-operating in nature as the U.S. plan was frozen in 2002 and the U.K. plans are closed to new participants. None of these costs relate directly to the performance of our services or operating activities and, therefore, are excluded from segment operating earnings to better assess the results of each segment's operating activities on a consistent basis.
3
A significant portion of our operations are international. These international operations subject us to foreign exchange fluctuations. The following table illustrates revenue as a percentage of total revenue for the major currencies of the geographic areas that Crawford does business:
|
Three Months Ended |
||||||||||||||
|
(in thousands) |
March 31, |
March 31, |
||||||||||||
|
Geographic Area |
Currency |
USD equivalent |
% of total |
USD equivalent |
% of total |
|||||||||
|
U.S. |
USD |
$ |
177,643 |
57.4 |
% |
$ |
185,862 |
59.6 |
% |
|||||
|
U.K. |
GBP |
43,163 |
13.9 |
% |
44,342 |
14.2 |
% |
|||||||
|
Canada |
CAD |
23,732 |
7.7 |
% |
21,776 |
7.0 |
% |
|||||||
|
Australia |
AUD |
20,745 |
6.7 |
% |
19,048 |
6.1 |
% |
|||||||
|
Europe |
EUR |
17,479 |
5.6 |
% |
15,924 |
5.1 |
% |
|||||||
|
Rest of World |
Various |
26,763 |
8.7 |
% |
25,080 |
8.0 |
% |
|||||||
|
Total Revenues, before reimbursements |
$ |
309,525 |
100.0 |
% |
$ |
312,032 |
100.0 |
% |
||||||
Following is a reconciliation of consolidated operating earnings to net income attributable to shareholders of Crawford & Company on a GAAP basis:
|
Three Months Ended |
||||||
|
(in thousands) |
March 31, 2026 |
March 31, 2025 |
||||
|
Operating earnings: |
||||||
|
U.S. Property & Casualty |
$ |
7,616 |
$ |
9,780 |
||
|
Broadspire |
10,856 |
11,977 |
||||
|
International Operations |
3,997 |
2,220 |
||||
|
Unallocated corporate and shared costs, net |
(8,771 |
) |
(6,133 |
) |
||
|
Consolidated operating earnings |
13,698 |
17,844 |
||||
|
(Deduct) add: |
||||||
|
Net corporate interest expense |
(2,645 |
) |
(3,944 |
) |
||
|
Stock option expense |
(186 |
) |
(184 |
) |
||
|
Amortization of intangible assets |
(1,784 |
) |
(1,800 |
) |
||
|
Non-service pension costs |
(1,976 |
) |
(2,333 |
) |
||
|
Contingent earnout adjustments |
180 |
(363 |
) |
|||
|
Income tax provision |
(2,375 |
) |
(2,480 |
) |
||
|
Net income attributable to noncontrolling interests |
(7 |
) |
(56 |
) |
||
|
Net income attributable to shareholders of Crawford & Company |
$ |
4,905 |
$ |
6,684 |
||
Following is a reconciliation of net income attributable to shareholders of Crawford & Company on a GAAP basis to non-GAAP adjusted EBITDA:
|
Three Months Ended |
||||||
|
(in thousands) |
March 31, |
March 31, |
||||
|
Net income attributable to shareholders of Crawford & Company |
$ |
4,905 |
$ |
6,684 |
||
|
Add (Deduct): |
||||||
|
Depreciation and amortization |
9,589 |
9,647 |
||||
|
Stock-based compensation |
1,046 |
1,390 |
||||
|
Net corporate interest expense |
2,645 |
3,944 |
||||
|
Non-service pension costs |
1,976 |
2,333 |
||||
|
Contingent earnout adjustments |
(180 |
) |
363 |
|||
|
Income tax provision |
2,375 |
2,480 |
||||
|
Non-GAAP adjusted EBITDA |
$ |
22,356 |
$ |
26,841 |
||
4
Following is a reconciliation of operating cash flow to free cash flow for the three months ended March 31, 2026 and 2025:
|
Three Months Ended |
|||||||||||
|
(in thousands) |
March 31, 2026 |
March 31, 2025 |
Change |
||||||||
|
Net Cash Provided by (Used in) Operating Activities |
$ |
3,274 |
$ |
(13,923 |
) |
$ |
17,197 |
||||
|
Less: |
|||||||||||
|
Property & Equipment Purchases, net |
(1,901 |
) |
(994 |
) |
(907 |
) |
|||||
|
Capitalized Software (internal and external costs) |
(5,958 |
) |
(8,329 |
) |
2,371 |
||||||
|
Free Cash Flow |
$ |
(4,585 |
) |
$ |
(23,246 |
) |
$ |
18,661 |
|||
Non-GAAP consolidated results for 2026 and 2025 exclude the non-cash, after-tax adjustments for amortization of intangible assets, non-service-related pension costs, and contingent earnout adjustments.
Following are the reconciliations of GAAP Pretax Earnings, Net Income and Earnings Per Share to related non-GAAP Adjusted figures, which reflect each of 2026 and 2025 before amortization of intangible assets, non-service related pension costs and contingent earnout adjustments:
|
Three Months Ended March 31, 2026 |
||||||||||||
|
(in thousands) |
Pretax earnings |
Net income |
Diluted earnings per |
Diluted earnings per |
||||||||
|
GAAP |
$ |
7,287 |
$ |
4,905 |
$ |
0.10 |
$ |
0.10 |
||||
|
Adjustments: |
||||||||||||
|
Amortization of intangible assets |
1,784 |
1,515 |
0.03 |
0.03 |
||||||||
|
Non-service pension costs |
1,976 |
1,575 |
0.03 |
0.03 |
||||||||
|
Contingent earnout adjustments |
(180 |
) |
(180 |
) |
- |
- |
||||||
|
Non-GAAP Adjusted |
$ |
10,867 |
$ |
7,815 |
$ |
0.16 |
$ |
0.16 |
||||
|
Three Months Ended March 31, 2025 |
||||||||||||
|
(in thousands) |
Pretax earnings |
Net income |
Diluted earnings per |
Diluted earnings per |
||||||||
|
GAAP |
$ |
9,220 |
$ |
6,684 |
$ |
0.13 |
$ |
0.13 |
||||
|
Adjustments: |
||||||||||||
|
Amortization of intangible assets |
1,800 |
1,489 |
0.03 |
0.03 |
||||||||
|
Non-service pension costs |
2,333 |
1,803 |
0.04 |
0.04 |
||||||||
|
Contingent earnout adjustments |
363 |
363 |
0.01 |
0.01 |
||||||||
|
Non-GAAP Adjusted |
$ |
13,716 |
$ |
10,339 |
$ |
0.21 |
$ |
0.21 |
||||
Following is information regarding the weighted average shares used in the computation of basic and diluted earnings per share:
|
Three Months Ended |
||||||
|
(in thousands) |
March 31, 2026 |
March 31, 2025 |
||||
|
Weighted-Average Shares Used to Compute Basic Earnings Per Share: |
||||||
|
Class A Common Stock |
29,757 |
30,175 |
||||
|
Class B Common Stock |
18,990 |
19,145 |
||||
|
Weighted-Average Shares Used to Compute Diluted Earnings Per Share: |
||||||
|
Class A Common Stock |
30,411 |
30,706 |
||||
|
Class B Common Stock |
18,990 |
19,145 |
||||
5
Further information regarding the Company's operating results for the three months ended March 31, 2026, financial position as of March 31, 2026, and cash flows for the three months ended March 31, 2026 is shown on the attached unaudited condensed consolidated financial statements.
About Crawford & Company
Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B) is a leading provider of claims management and outsourcing solutions to insurance companies and self-insured entities with an expansive network serving clients in more than 70 countries. The Company's two classes of stock are substantially identical, except with respect to voting rights for the Class B Common Stock (CRD-B) and protections for the non-voting Class A Common Stock (CRD-A). More information is available at www.crawco.com.
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Crawford & Company published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 04, 2026 at 21:26 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]