Part I. Financial Information Financial Statements The company's financial statements for the period ended June 30, 2025, show a year-over-year increase in total revenues for both the second quarter and the first six months, with net income attributable to shareholders decreasing in Q2 2025 but increasing for the six-month period, while the balance sheet indicates a stable financial position and improved cash flow from operations Consolidated Statements of Operations Highlights (In thousands, except per share amounts) | Metric | 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 | Consolidated Balance Sheet Highlights (In thousands) | Metric | June 30, 2025 (Unaudited) | 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 | Consolidated Cash Flow Highlights (In thousands) | Metric | 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 The notes detail the basis of presentation, revenue recognition policies by segment, and other key accounting considerations, including an increased effective tax rate due to a one-time foreign tax expense and segment performance data - The company operates through four reportable segments: North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions31 - The effective income tax rate for Q2 2025 increased to 42.8% from 34.5% in Q2 2024, and for H1 2025 increased to 36.4% from 32.9% in H1 2024, primarily due to a one-time expense of $1.3 million relating to administrative guidance from a foreign tax authority5960 - As of June 30, 2025, the company had $113.4 million of remaining performance obligations, with approximately 73% expected to be recognized as revenue within one year53 Revenues Before Reimbursements by Segment (In thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | North America Loss Adjusting | $78,074 | $76,030 | $157,814 | $153,395 | | International Operations | $109,070 | $102,283 | $213,464 | $200,375 | | Broadspire | $100,617 | $97,087 | $197,001 | $191,385 | | Platform Solutions | $35,236 | $38,827 | $66,750 | $70,726 | | Total | $322,997 | $314,227 | $635,029 | $615,881 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management reports a 2.8% increase in consolidated revenues before reimbursements for Q2 2025, driven by growth in North America Loss Adjusting, International Operations, and Broadspire, partially offset by a decline in Platform Solutions, with stronger constant currency revenue growth and improved liquidity Results of Operations Consolidated revenues before reimbursements rose by 2.8% to $323.0 million in Q2 2025 and by 3.1% to $635.0 million in H1 2025, with constant currency growth of 3.0% for the quarter and 3.9% for the half-year, primarily driven by North America Loss Adjusting, International Operations, and Broadspire segments, while SG&A expenses increased by 8.4% in Q2 due to a one-time indirect tax expense Q2 2025 Revenue Growth vs. Q2 2024 (Constant Currency) | Segment | % Variance (Reported) | % Variance (Constant Currency) | | :--- | :--- | :--- | | North America Loss Adjusting | 2.7% | 3.0% | | International Operations | 6.6% | 6.9% | | Broadspire | 3.6% | 3.6% | | Platform Solutions | (9.2)% | (9.2)% | | Total | 2.8% | 3.0% | - SG&A expenses increased by $6.1 million (8.4%) in Q2 2025, largely due to a one-time indirect tax expense of $3.1 million, increased IT costs, and higher administrative compensation113 - Total cases received decreased by 3.7% in Q2 2025 and 4.6% in H1 2025, driven by International Operations and Platform Solutions, while North America Loss Adjusting saw a significant increase due to the transfer of low-value inspection cases111112 Segment Performance Segment performance varied in Q2 2025, with International Operations and Platform Solutions showing strong growth in operating earnings due to cost efficiencies, while North America Loss Adjusting and Broadspire experienced declines despite revenue growth, positioning International Operations as the largest revenue segment and Broadspire as the most profitable Segment Operating Earnings (In thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | North America Loss Adjusting | $4,595 | $4,885 | (5.9)% | | International Operations | $7,636 | $5,702 | 33.9% | | Broadspire | $13,652 | $15,091 | (9.5)% | | Platform Solutions | $3,132 | $1,469 | 113.2% | - North America Loss Adjusting case volume increased 42.2% in Q2 2025, primarily due to the transfer of 24,100 low-value inspection services cases from the Platform Solutions segment138 - Platform Solutions' operating earnings increased 113.2% in Q2 2025, driven by cost reductions related to the transfer of low-value inspection services, an increase in average rates, and lower compensation costs165 Liquidity, Capital Resources, and Financial Condition The company's financial condition improved, with working capital increasing by $20.6 million to $95.1 million at June 30, 2025, and cash from operating activities turning around to a source of $21.1 million in H1 2025, contributing to a total liquidity of $277.8 million - Cash provided by operating activities increased to $21.1 million for H1 2025, compared to an $8.3 million use of cash in H1 2024, driven by higher earnings and working capital improvements191 - Total liquidity at June 30, 2025 was $277.8 million, consisting of cash on hand and borrowing capacity under the Credit Facility195 - Working capital increased by $20.6 million to $95.1 million at June 30, 2025, from December 31, 2024188 Quantitative and Qualitative Disclosures About Market Risk The company states that its exposures to market risk have not changed materially since December 31, 2024, as detailed in its Annual Report on Form 10-K - There have been no material changes in the company's market risk exposures since the end of the last fiscal year206 Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded that they were effective as of June 30, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025209 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls210 Part II. Other Information Risk Factors The company refers to the risk factors detailed in its Annual Report on Form 10-K for the year ended December 31, 2024, stating that those factors could materially affect its business, financial condition, or results of operations - The company directs investors to the risk factors disclosed in its 2024 Form 10-K, indicating no material updates in this quarterly report212 Unregistered Sales of Equity Securities and Use of Proceeds The company did not repurchase any of its Class A or Class B common stock during the second quarter of 2025, but had remaining authorization to repurchase 1,089,809 shares under its existing plan through December 31, 2025 - No shares of CRD-A or CRD-B common stock were repurchased during the three months ended June 30, 2025214 - As of June 30, 2025, the company has authorization to repurchase an additional 1,089,809 shares through December 31, 2025213 Other Information During the second quarter of 2025, no directors or officers adopted or terminated any Rule 10b5-1 trading plans for the purchase or sale of the company's securities - No directors or officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025215 Exhibits This section lists the exhibits filed with the Form 10-Q, including certifications from the principal executive officer and principal financial officer as required by the Sarbanes-Oxley Act, and Inline XBRL documents
Crawford(CRD_B) - 2025 Q2 - Quarterly Report