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]. - North America Loss Adjusting segment revenues decreased by 2.9% to $76.995 million for the three months ended September 30, 2025, while International Operations increased by 6.7% to $112.853 million[113]. - 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 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]. - Revenues before reimbursements from the International Operations segment totaled $326.3 million for the nine months ended September 30, 2025, representing a 6.6% increase compared to $306.1 million in 2024[154]. - Revenues before reimbursements for the Broadspire segment reached $103.4 million in Q3 2025, a 4.4% increase from $99.0 million in Q3 2024, driven by pricing increases and a rise in cases in Claims Management[166]. - For the nine months ended September 30, 2025, Broadspire revenues before reimbursements totaled $300.4 million, up 3.4% from $290.4 million in the same period of 2024[167]. Case Volume and Operations - 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 North America Loss Adjusting segment saw a 34.2% increase in cases received for the nine months ended September 30, 2025, totaling 251,213 cases[116]. - The International Operations segment reported a 10.7% decrease in cases received for the nine months ended September 30, 2025, totaling 330,140 cases[116]. - The total number of cases received in the U.S. increased by 45.3% to 53,327 for the three months ended September 30, 2025, compared to 36,707 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]. - Selling, general, and administrative (SG&A) expenses decreased by $2.1 million, or 3.0%, in the three months ended September 30, 2025, mainly due to lower professional fees and administrative compensation expenses[118]. - Costs of services provided increased by $2.4 million, or 0.4%, for the nine months ended September 30, 2025, compared to the 2024 period, driven by increased compensation expenses in International Operations[117]. - SG&A expenses increased by $1.2 million, or 0.5%, for the nine months ended September 30, 2025, primarily due to a one-time indirect tax expense of $3.1 million[118]. - Direct compensation, fringe benefits, and non-employee labor are significant operating expenses for the segments, reflecting the costs of employees and outsourced service providers[128]. - Direct compensation and related expenses as a percentage of revenues before reimbursements decreased to 70.8% for the three months ended September 30, 2025, down from 71.9% in 2024[147]. - Expenses other than reimbursements for the three months ended September 30, 2025, were $15.6 million, a decrease from $16.8 million in 2024, representing 20.2% of revenues before reimbursements[148]. Profitability and Earnings - 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 North America Loss Adjusting increased to $16.1 million, or 20.9% of revenues before reimbursements, in Q3 2025, compared to $14.8 million, or 18.6% in Q3 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]. - Operating earnings in the International Operations segment increased to $7.4 million, or 6.6% of revenues before reimbursements, for the three months ended September 30, 2025, compared to $5.1 million, or 4.9% in 2024[149]. - Gross profit for the International Operations segment rose to $22.8 million, or 20.2% of revenues before reimbursements, for the three months ended September 30, 2025, up from $18.5 million, or 17.5% in 2024[150]. - Total International Operations Operating Earnings increased by 48.0% to $18.5 million for the nine months ended September 30, 2025, compared to $12.5 million in 2024[152]. - The gross profit margin improved to 19.9% for the nine months ended September 30, 2025, up from 17.5% in 2024[152]. - The Broadspire segment reported operating earnings of $41.4 million, or 13.8% of revenues before reimbursements, for the nine months ended September 30, 2025[163]. Financial Position and Cash Flow - 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]. - Cash and cash equivalents totaled $68.8 million as of September 30, 2025, compared to $55.4 million at December 31, 2024[195]. - 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]. - The company paid $10.6 million in dividends during the nine months ended September 30, 2025, compared to $10.3 million in the same period of 2024[205]. Pension and Tax Information - 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]. - The overall effective tax rate decreased to 31.9% for Q3 2025 from 36.2% in Q3 2024, primarily due to improved profitability in certain jurisdictions[184].
Crawford(CRD_B) - 2025 Q3 - Quarterly Report