Revenue Performance - Consolidated revenues before reimbursements decreased by $7.2 million, or 2.2%, for the three months ended September 30, 2025, compared to the same period in 2024[112]. - Total revenues before reimbursements for the nine months ended September 30, 2025, increased by $11.9 million, or 1.3%, compared to the same period in 2024[112]. - Total revenues before reimbursements for the nine months ended September 30, 2025, were $957.2 million, an increase of 1.3% compared to $945.3 million for the same period in 2024[114]. - Total revenues for the three months ended September 30, 2025, were $332.8 million, a decrease of 2.7% compared to $342.7 million in 2024[134]. - For the nine months ended September 30, 2025, total revenues reached $990.7 million, a slight increase from $982.7 million in 2024[134]. Segment Performance - North America Loss Adjusting segment revenues decreased by 2.9% to $76.995 million for the three months ended September 30, 2025[113]. - Revenues from the Broadspire segment increased due to a rise in Claims and Medical Management revenues for both the quarter and year-to-date periods[114]. - International Operations segment revenues increased by 6.7% to $112.853 million for the three months ended September 30, 2025[113]. - Platform Solutions segment revenues decreased by 36.1% to $28.922 million for the three months ended September 30, 2025[113]. - North America Loss Adjusting segment revenues before reimbursements totaled $76.995 million for the three months ended September 30, 2025, a decrease of 2.7% compared to $79.329 million in 2024[138]. Case Volume and Trends - Cases received decreased by 9.2% for the three months ended September 30, 2025, and by 6.2% for the nine months ended September 30, 2025[115]. - The company experienced a decline in cases within the International Operations segment, primarily due to decreases in the U.K., Europe, and Latin America[115]. - There was a significant increase in segment unit volume, with cases received rising by 17.7% for the three months and 34.2% for the nine months ended September 30, 2025 compared to the same periods in 2024[142]. - The total number of cases received in North America for the three months ended September 30, 2025 was 77,301, reflecting a 17.7% increase from 65,702 cases in 2024[144]. - The total number of cases received in the Broadspire segment increased by 1.3% in Q3 2025, with Claims Management cases rising by 2.2%[170]. Cost and Expense Management - Costs of services provided decreased by $7.6 million, or 3.2%, for the three months ended September 30, 2025, compared to 2024, primarily due to reduced compensation expenses in North America Loss Adjusting[117]. - SG&A expenses decreased by $2.1 million, or 3.0%, in the three months ended September 30, 2025, compared to the 2024 period, mainly due to lower professional fees and administrative compensation expenses[118]. - Direct compensation, fringe benefits, and non-employee labor are significant and variable operating expenses for the segments[128]. - Direct compensation and related expenses for North America Loss Adjusting were $54.5 million, representing 70.8% of related revenues before reimbursements in Q3 2025[134]. - Other expenses, excluding reimbursements and direct compensation, were $15.6 million for the three months ended September 30, 2025, a decrease from $16.8 million in 2024[148]. Profitability Metrics - Operating earnings is the primary financial performance measure used by senior management to evaluate the financial performance of operating segments[119]. - North America Loss Adjusting segment reported operating earnings of $6.9 million, or 9.0% of revenues before reimbursements, for Q3 2025, up from $5.4 million, or 6.9% in Q3 2024[135]. - Gross profit for the North America Loss Adjusting segment increased to $16.1 million, or 20.9% of revenues before reimbursements, compared to $14.8 million, or 18.6% in the same quarter of 2024[136]. - Operating earnings for the North America Loss Adjusting segment for the nine months ended September 30, 2025, were $17.0 million, or 7.2% of revenues before reimbursements, compared to $14.8 million, or 6.4% in 2024[135]. - Gross profit for the International Operations segment rose to $22.784 million (20.2% of revenues) for the three months ended September 30, 2025, up from $18.543 million (17.5%) in 2024[150]. Cash Flow and Liquidity - Cash provided by operating activities increased to $51.7 million for the nine months ended September 30, 2025, up from $11.1 million in the same period of 2024[198]. - Cash used in investing activities decreased to $25.2 million for the nine months ended September 30, 2025, compared to $29.4 million in the first nine months of 2024[199]. - Cash used in financing activities was $13.8 million for the nine months ended September 30, 2025, compared to $13.3 million provided in the 2024 period[200]. - Total liquidity as of September 30, 2025, was $298.3 million, including cash on hand and borrowing capacity under the Credit Facility[202]. - As of September 30, 2025, the company's working capital was approximately $97.4 million, an increase of $22.9 million from December 31, 2024[195]. Tax and Interest Expenses - The overall effective tax rate decreased to 31.9% for the three months ended September 30, 2025, compared to 36.2% in 2024[184]. - Net corporate interest expense for the three months ended September 30, 2025, was $4.6 million, down from $5.5 million in 2024[188]. - Contingent earnout expense for the three months ended September 30, 2025, was $0.1 million, compared to a benefit of $(2.1) million in 2024[193]. Pension and Contributions - The U.S. Qualified Plan was underfunded by $19.0 million as of December 31, 2024, based on accumulated benefit obligations of $248.5 million[203]. - The company made $2.2 million in contributions to its U.K. defined benefit pension plans for the nine months ended September 30, 2025, compared to $1.9 million in the same period of 2024[204].
Crawford(CRD_A) - 2025 Q3 - Quarterly Report