Part I. Financial Information Financial Statements Financial statements for Q2 2025 show increased total revenues and six-month net income, with operating cash flow significantly improving Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric (In thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $334,595 | $326,853 | $657,934 | $639,926 | | Income Before Income Taxes | $13,665 | $12,988 | $22,885 | $16,814 | | Net Income Attributable to Shareholders | $7,782 | $8,584 | $14,466 | $11,421 | | Diluted EPS (Class A & B) | $0.16 | $0.17 | $0.29 | $0.23 | Condensed Consolidated Balance Sheet Highlights (Unaudited) | Metric (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $376,173 | $374,227 | | Total Assets | $799,365 | $803,755 | | Total Current Liabilities | $281,110 | $299,727 | | Total Liabilities | $624,024 | $648,204 | | Total Shareholders' Investment | $175,341 | $155,551 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $21,083 | $(8,253) | | Net cash used in investing activities | $(18,278) | $(18,449) | | Net cash (used in) provided by financing activities | $(1,078) | $15,655 | | Increase (Decrease) in Cash | $2,590 | $(11,202) | Notes to Condensed Consolidated Financial Statements Notes detail segment revenue recognition and operating earnings, highlighting growth in International Operations and Broadspire, and an increased effective tax rate - The company operates through four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions31 Total Revenues Before Reimbursements by Segment (Six Months Ended June 30) | Segment (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | North America Loss Adjusting | $157,814 | $153,395 | | International Operations | $213,464 | $200,375 | | Broadspire | $197,001 | $191,385 | | Platform Solutions | $66,750 | $70,726 | | Total | $635,029 | $615,881 | - The effective tax rate for the six months ended June 30, 2025, increased to 36.4% from 32.9% in the prior year period, primarily due to a one-time expense of $1.328 million related to administrative guidance from a foreign tax authority60 Segment Operating Earnings (Six Months Ended June 30) | Segment (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | North America Loss Adjusting | $10,071 | $9,364 | | International Operations | $11,092 | $7,392 | | Broadspire | $25,855 | $27,895 | | Platform Solutions | $6,059 | $2,584 | | Total | $53,077 | $47,235 | Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management attributes Q2 2025 consolidated revenue growth to segment increases, notes higher SG&A expenses, and highlights a significant improvement in operating cash flow - Consolidated revenues before reimbursements increased by 2.8% for Q2 2025 compared to Q2 2024, with a 3.0% increase excluding a $0.5 million negative impact from foreign exchange rates109110 - Selling, general, and administrative (SG&A) expenses increased by $6.1 million (8.4%) in Q2 2025, primarily due to a one-time indirect tax expense of $3.1 million, higher IT costs, and increased administrative compensation113 - Cash provided by operating activities was $21.1 million for the first six months of 2025, a significant improvement from an $8.3 million use of cash in the same period of 2024, attributed to higher earnings and working capital improvements191 - Total liquidity, defined as cash on hand plus borrowing capacity, was $277.8 million at June 30, 2025195 Segment Performance Analysis Q2 2025 segment performance varied, with International Operations and Platform Solutions showing strong operating earnings growth, offset by declines in other segments North America Loss Adjusting Q2 Performance | Metric (in thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $78,074 | $76,030 | 2.7% | | Operating Earnings | $4,595 | $4,885 | (5.9)% | | Operating Margin | 5.9% | 6.4% | -0.5 p.p. | International Operations Q2 Performance | Metric (in thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $109,070 | $102,283 | 6.6% | | Operating Earnings | $7,636 | $5,702 | 33.9% | | Operating Margin | 7.0% | 5.6% | +1.4 p.p. | Broadspire Q2 Performance | Metric (in thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $100,617 | $97,087 | 3.6% | | Operating Earnings | $13,652 | $15,091 | (9.5)% | | Operating Margin | 13.6% | 15.5% | -1.9 p.p. | Platform Solutions Q2 Performance | Metric (in thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $35,236 | $38,827 | (9.2)% | | Operating Earnings | $3,132 | $1,469 | 113.2% | | Operating Margin | 8.9% | 3.8% | +5.1 p.p. | Quantitative and Qualitative Disclosures About Market Risk The company reports no material changes to its market risk exposures since the disclosures in its December 31, 2024 Annual Report on Form 10-K - There have been no material changes in the Company's market risk exposures since December 31, 2024206 Controls and Procedures As of June 30, 2025, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures and concluded they were effective as of June 30, 2025209 - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting210 Part II. Other Information Risk Factors The company refers to previously disclosed risk factors in its December 31, 2024 Form 10-K, indicating no material changes or additions for the current quarter - The company directs investors to the risk factors discussed in its Form 10-K for the year ended December 31, 2024, implying no material updates for the current quarter212 Unregistered Sales of Equity Securities and Use of Proceeds The company did not repurchase any Class A or Class B common stock during Q2 2025, with over 1 million shares remaining authorized for repurchase through December 31, 2025 - No shares of CRD-A or CRD-B common stock were repurchased during the quarter from April 1, 2025, to June 30, 2025214 - As of June 30, 2025, the company has authorization to repurchase an additional 1,089,809 shares under its plan, which is effective through December 31, 2025213 Other Information No directors or officers adopted or terminated any Rule 10b5-1 trading plans or similar arrangements during Q2 2025 for company securities - No directors or officers adopted or terminated any Rule 10b5-1 trading plans or similar arrangements during the three months ended June 30, 2025215 Exhibits This section lists exhibits filed with the Form 10-Q, including certifications from principal executive and financial officers and Inline XBRL data files
Crawford(CRD_A) - 2025 Q2 - Quarterly Report