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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

10. Segment Information

The Company has four reportable segments consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's reportable segments are comprised of the following:

•
North America Loss Adjusting, which services the North American property and casualty market. This is comprised of Loss Adjusting operations in the U.S. and Canada, including Global Technical Services. The Canadian operations include all operations within that country including third party administration and Contractor Connection.
•
International Operations, which services the global property and casualty market outside North America. This is comprised of Loss Adjusting operations in the U.K., Europe, Australia, Asia and Latin America, and includes Crawford Legal Services. International Operations includes all operations within the respective countries, including Loss Adjusting, Global Technical Services, Legal Services, third party administration, and where applicable, Contractor Connection services.
•
Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers in the U.S.
•
Platform Solutions, which consists of the Contractor Connection, Networks, and Subrogation service lines in the U.S. The Networks service line includes Catastrophe operations.

The Platform Solutions reportable segment represents the aggregation of certain service line operating segments. Intersegment sales are recorded at cost and are not material.

Effective January 1, 2024, the Company combined the operating segments within North America Loss Adjusting and International Operations, and accordingly, there are no operating segments within these reportable segments to aggregate.

The Company's four reportable segments represent components of the business for which separate financial information is available, and which is evaluated regularly by the chief operating decision maker ("CODM"). The Company’s President and CEO, Mr. Rohit Verma, is considered the CODM as he is responsible for strategic decisions including the allocation of resources to each reporting segment and the assessment of their performance. Specifically, he assesses the financial health of each segment, reviews budgeting and resource allocation, directs all strategic planning, reviews investments for new products and technology allocations, evaluates pricing strategies and cash flow management, and oversees risk management for each segment. Mr. Verma regularly meets with the segment managers to discuss financial performance, operational issues and revenue forecasts. Additionally, the segment managers create segment-level budgets and forecasts and receive incentive compensation derived from the operating results of the segments. These financial packages are discussed in the meetings with Mr. Verma.

Operating earnings is the primary financial performance measure used by the Company's senior management and the CODM to evaluate the financial performance of the Company's operating segments and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. The CODM considers revenues before reimbursements and operating earnings when making decisions about the allocation of operating and capital resources. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represent segment earnings before certain unallocated corporate and shared costs and credits, 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.

Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its four reportable segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process.

In the normal course of its business, the Company sometimes pays for certain out-of-pocket expenses that are thereafter reimbursed by its clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in the Company's consolidated results of operations. However, in evaluating segment results, Company management excludes these reimbursements and related expenses from segment results, as they offset each other.

Financial information as of and for the three and six months ended June 30, 2025 and 2024 related to the Company's reportable segments is presented below:

 

 

 

Three Months Ended June 30, 2025

 

 

 

North America
Loss Adjusting

 

International
Operations

 

Broadspire

 

Platform
Solutions

 

Total

 

 

 

(In thousands)

 

Revenues before reimbursements

 

$

78,074

 

$

109,070

 

$

100,617

 

$

35,236

 

$

322,997

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

 

 

 

 

 

     Compensation

 

 

44,943

 

 

54,746

 

 

46,466

 

 

15,546

 

 

161,701

 

     Benefits and payroll taxes

 

 

8,382

 

 

10,345

 

 

9,539

 

 

2,686

 

 

30,952

 

     Non-employee labor

 

 

1,510

 

 

7,220

 

 

4,355

 

 

882

 

 

13,967

 

Total Compensation

 

 

54,835

 

 

72,311

 

 

60,360

 

 

19,114

 

 

206,620

 

     Office rent and occupancy

 

 

1,169

 

 

3,353

 

 

2,133

 

 

878

 

 

7,533

 

     Other office operating expense (1)

 

 

4,329

 

 

6,738

 

 

4,196

 

 

2,276

 

 

17,539

 

     Depreciation

 

 

1,038

 

 

1,036

 

 

1,442

 

 

1,717

 

 

5,233

 

     Professional fees

 

 

427

 

 

737

 

 

4,666

 

 

649

 

 

6,479

 

     Cost of risk

 

 

499

 

 

400

 

 

1,030

 

 

627

 

 

2,556

 

     Other, net (2)

 

 

1,530

 

 

1,332

 

 

566

 

 

1,903

 

 

5,331

 

Total Other Operating Expense

 

 

8,992

 

 

13,596

 

 

14,033

 

 

8,050

 

 

44,671

 

Allocated corporate, shared services, and administrative costs (3)

 

 

9,652

 

 

15,527

 

 

12,572

 

 

4,940

 

 

42,691

 

Total Segment Expenses

 

 

73,479

 

 

101,434

 

 

86,965

 

 

32,104

 

 

293,982

 

Segment Operating Earnings

 

$

4,595

 

$

7,636

 

$

13,652

 

$

3,132

 

$

29,015

 

Reconciliation of segment operating earnings:

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

 

 

 

 

 

(7,019

)

Net corporate interest expense

 

 

 

 

 

 

 

 

 

 

(3,858

)

Stock option expense

 

 

 

 

 

 

 

 

 

 

(214

)

Amortization of acquisition-related intangible assets

 

 

 

 

 

 

 

 

 

 

(1,825

)

Non-service pension costs

 

 

 

 

 

 

 

 

 

 

(2,354

)

Contingent earnout adjustments

 

 

 

 

 

 

 

 

 

 

(80

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

13,665

 

Income taxes

 

 

 

 

 

 

 

 

 

 

(5,845

)

Net Income

 

 

 

 

 

 

 

 

 

 

7,820

 

Net Income Attributable to Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

(38

)

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

 

 

 

 

$

7,782

 

 

 

 

 

Six Months Ended June 30, 2025

 

 

North America
Loss Adjusting

International
Operations

Broadspire

Platform
Solutions

Total

 

 

(In thousands)

Revenues before reimbursements

 

$157,814

$213,464

$197,001

$66,750

$635,029

Less:

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

     Compensation

 

90,205

107,162

91,449

30,320

319,136

     Benefits and payroll taxes

 

17,692

20,064

18,640

5,264

61,660

     Non-employee labor

 

2,956

15,662

8,622

1,575

28,815

Total Compensation

 

110,853

142,888

118,711

37,159

409,611

     Office rent and occupancy

 

2,205

6,788

4,242

1,834

15,069

     Other office operating expense (1)

 

8,872

13,677

8,612

4,090

35,251

     Depreciation

 

2,053

2,001

2,886

3,391

10,331

     Professional fees

 

837

3,082

8,649

1,275

13,843

     Cost of risk

 

651

(30)

2,332

738

3,691

     Other, net (2)

 

2,269

2,974

846

2,373

8,462

Total Other Operating Expense

 

16,887

28,492

27,567

13,701

86,647

Allocated corporate, shared services, and administrative costs (3)

 

20,003

30,992

24,868

9,831

85,694

Total Segment Expenses

 

147,743

202,372

171,146

60,691

581,952

Segment Operating Earnings

 

$10,071

$11,092

$25,855

$6,059

$53,077

Reconciliation of segment operating earnings:

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

(13,237)

Net corporate interest expense

 

 

 

 

 

(7,802)

Stock option expense

 

 

 

 

 

(398)

Amortization of acquisition-related intangible assets

 

 

 

 

 

(3,625)

Non-service pension costs

 

 

 

 

 

(4,687)

Contingent earnout adjustments

 

 

 

 

 

(443)

Income before income taxes

 

 

 

 

 

22,885

Income taxes

 

 

 

 

 

(8,325)

Net Income

 

 

 

 

 

14,560

Net Income Attributable to Noncontrolling Interests

 

 

 

 

 

(94)

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

$14,466

 

 

 

 

Three Months Ended June 30, 2024

 

 

North America
Loss Adjusting

International
Operations

Broadspire

Platform
Solutions

Total

 

 

(In thousands)

Revenues before reimbursements

 

$76,030

$102,283

$97,087

$38,827

$314,227

Less:

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

     Compensation

 

44,796

50,521

44,769

18,893

158,979

     Benefits and payroll taxes

 

8,782

9,820

9,051

3,154

30,807

     Non-employee labor

 

1,130

5,706

4,342

1,357

12,535

Total Compensation

 

54,708

66,047

58,162

23,404

202,321

     Office rent and occupancy

 

1,066

3,267

2,307

864

7,504

     Other office operating expense (1)

 

3,921

6,895

3,770

2,564

17,150

     Depreciation

 

794

792

1,192

1,602

4,380

     Professional fees

 

423

2,922

4,144

584

8,073

     Cost of risk

 

183

1,177

606

162

2,128

     Other, net (2)

 

378

1,996

563

2,331

5,268

Total Other Operating Expense

 

6,765

17,049

12,582

8,107

44,503

Allocated corporate, shared services, and administrative costs (3)

 

9,672

13,485

11,252

5,847

40,256

Total Segment Expenses

 

71,145

96,581

81,996

37,358

287,080

Segment Operating Earnings

 

$4,885

$5,702

$15,091

$1,469

$27,147

Reconciliation of segment operating earnings:

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

(5,079)

Net corporate interest expense

 

 

 

 

 

(4,256)

Stock option expense

 

 

 

 

 

(139)

Amortization of acquisition-related intangible assets

 

 

 

 

 

(1,856)

Non-service pension costs

 

 

 

 

 

(2,399)

Contingent earnout adjustments

 

 

 

 

 

(430)

Income before income taxes

 

 

 

 

 

12,988

Income taxes

 

 

 

 

 

(4,486)

Net Income

 

 

 

 

 

8,502

Net Loss Attributable to Noncontrolling Interests

 

 

 

 

 

82

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

$8,584

 

 

 

 

Six Months Ended June 30, 2024

 

 

North America
Loss Adjusting

International
Operations

Broadspire

Platform
Solutions

Total

 

 

(In thousands)

Revenues before reimbursements

 

$153,395

$200,375

$191,385

$70,726

$615,881

Less:

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

     Compensation

 

89,738

100,605

88,726

34,216

313,285

     Benefits and payroll taxes

 

17,982

19,285

17,993

5,859

61,119

     Non-employee labor

 

2,455

11,136

8,700

2,259

24,550

Total Compensation

 

110,175

131,026

115,419

42,334

398,954

     Office rent and occupancy

 

2,312

7,002

4,596

1,840

15,750

     Other office operating expense (1)

 

7,475

13,933

7,844

4,263

33,515

     Depreciation

 

1,607

1,588

2,466

3,245

8,906

     Professional fees

 

755

5,633

8,253

1,083

15,724

     Cost of risk

 

669

1,987

1,315

388

4,359

     Other, net (2)

 

1,333

4,038

844

3,026

9,241

Total Other Operating Expense

 

14,151

34,181

25,318

13,845

87,495

Allocated corporate, shared services, and administrative costs (3)

 

19,705

27,776

22,753

11,963

82,197

Total Segment Expenses

 

144,031

192,983

163,490

68,142

568,646

Segment Operating Earnings

 

$9,364

$7,392

$27,895

$2,584

$47,235

Reconciliation of segment operating earnings:

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

(13,086)

Net corporate interest expense

 

 

 

 

 

(7,852)

Stock option expense

 

 

 

 

 

(306)

Amortization of acquisition-related intangible assets

 

 

 

 

 

(3,724)

Non-service pension costs

 

 

 

 

 

(4,872)

Contingent earnout adjustments

 

 

 

 

 

(581)

Income before income taxes

 

 

 

 

 

16,814

Income taxes

 

 

 

 

 

(5,533)

Net Income

 

 

 

 

 

11,281

Net Loss Attributable to Noncontrolling Interests

 

 

 

 

 

140

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

$11,421

 

(1)
Other office and operating expenses include travel and entertainment, automobile expenses, office operating expenses and data processing costs.
(2)
Other, net primarily includes bank service charges and advertising expenses.
(3)
Allocated corporate, shared services, and administrative costs, comprise of expenses for administrative functions, including direct compensation, payroll taxes, and benefits which are allocated to each segment based on usage.
(4)
Unallocated corporate and shared costs and credits represent expenses for the Company's Chief Executive Officer and Board of Directors, certain adjustments to self-insured liabilities, certain unallocated legal and professional fees, and certain adjustments and recoveries to the Company's allowances for estimated credit losses.

 

Segment assets consist of accounts receivable, less allowance for expected credit losses, unbilled revenues at estimated billable amounts, goodwill and intangible assets arising from business acquisitions, net. Assets at June 30, 2025 and December 31, 2024 were as follows:

 

 

 

North America Loss Adjusting

 

International Operations

 

Broadspire

 

Platform
Solutions

 

Total

 

 

(In thousands)

June 30, 2025

 

 

 

 

 

 

 

 

 

 

Assets

 

$114,939

 

$163,208

 

$74,272

 

$77,206

 

$429,625

December 31, 2024

 

 

 

 

 

 

 

 

 

 

Assets

 

106,657

 

149,441

 

73,114

 

94,845

 

$424,057

 

Revenues by geographic region and major service line for the North America Loss Adjusting, International Operations, Broadspire and Platform Solutions segments are shown in Note 2, "Revenue Recognition."

Capital expenditures for the three and six months ended June 30, 2025 and 2024 are shown in the following table:

 

 

 

Three Months Ended

 

Six Months Ended

(in thousands)

 

June 30,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

North America Loss Adjusting

 

$1,075

 

$1,010

 

$3,217

 

$2,207

International Operations

 

71

 

112

 

227

 

168

Broadspire

 

3,893

 

2,424

 

7,345

 

5,917

Platform Solutions

 

1,036

 

1,296

 

1,962

 

2,416

Corporate

 

3,090

 

4,058

 

5,737

 

7,741

Total capital expenditures

 

$9,165

 

$8,900

 

$18,488

 

$18,449

 

The total of the Company's reportable segments' revenues before reimbursements reconciled to total consolidated revenues for the three and six months ended June 30, 2025 and 2024 was as follows:

 

 

 

Three Months Ended

 

Six Months Ended

(in thousands)

 

June 30,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Segments' revenues before reimbursements

 

$322,997

 

$314,227

 

$635,029

 

$615,881

Reimbursements

 

11,598

 

12,626

 

22,905

 

24,045

Total consolidated revenues

 

$334,595

 

$326,853

 

$657,934

 

$639,926

 

The Company's reportable segments' total operating earnings reconciled to consolidated income before income taxes for the three and six months ended June 30, 2025 and 2024 were as follows:

 

 

 

Three Months Ended

 

Six Months Ended

(in thousands)

 

June 30,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Operating earnings of all reportable segments

 

$29,015

 

$27,147

 

$53,077

 

$47,235

Unallocated corporate and shared costs and credits

 

(7,019)

 

(5,079)

 

(13,237)

 

(13,086)

Net corporate interest expense

 

(3,858)

 

(4,256)

 

(7,802)

 

(7,852)

Stock option expense

 

(214)

 

(139)

 

(398)

 

(306)

Amortization of acquisition-related intangible assets

 

(1,825)

 

(1,856)

 

(3,625)

 

(3,724)

Non-service pension costs

 

(2,354)

 

(2,399)

 

(4,687)

 

(4,872)

Contingent earnout adjustments

 

(80)

 

(430)

 

(443)

 

(581)

Income before income taxes

 

$13,665

 

$12,988

 

$22,885

 

$16,814

 

The Company's reportable segments' total assets reconciled to consolidated total assets of the Company at June 30, 2025 and December 31, 2024 are presented in the following table:

 

 

 

June 30,
2025

 

December 31,
2024

 

 

(In thousands)

Assets of reportable segments

 

$429,625

 

$424,057

Corporate assets:

 

 

 

 

Cash and cash equivalents

 

58,529

 

55,412

Income taxes receivable

 

4,803

 

5,337

Prepaid expenses and other current assets

 

31,433

 

40,334

Net property and equipment

 

17,999

 

20,554

Operating lease right-of-use asset, net

 

71,706

 

78,808

Capitalized software costs, net

 

116,478

 

111,854

Deferred income tax assets

 

24,239

 

25,305

Other noncurrent assets

 

44,553

 

42,094

Total corporate assets

 

369,740

 

379,698

Total assets

 

$799,365

 

$803,755