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Segment Information
 9 Months Ended
Sep. 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 nine months ended September 30, 2025 and 2024 related to the Company's reportable segments is presented below:

 

 

 

Three Months Ended September 30, 2025

 

 

 

North America
Loss Adjusting

 

International
Operations

 

Broadspire

 

Platform
Solutions

 

Total

 

 

 

(In thousands)

 

Revenues before reimbursements

 

$

76,995

 

$

112,853

 

$

103,401

 

$

28,922

 

$

322,171

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

 

 

 

 

 

     Compensation

 

 

44,205

 

 

56,312

 

 

48,560

 

 

13,030

 

 

162,107

 

     Benefits and payroll taxes

 

 

8,365

 

 

11,007

 

 

9,666

 

 

2,375

 

 

31,413

 

     Non-employee labor

 

 

1,924

 

 

8,231

 

 

4,176

 

 

681

 

 

15,012

 

Total Compensation

 

 

54,494

 

 

75,550

 

 

62,402

 

 

16,086

 

 

208,532

 

     Office rent and occupancy

 

 

1,077

 

 

3,476

 

 

2,129

 

 

892

 

 

7,574

 

     Other office operating expense (1)

 

 

4,320

 

 

7,239

 

 

4,266

 

 

1,570

 

 

17,395

 

     Depreciation

 

 

1,078

 

 

1,031

 

 

1,442

 

 

1,715

 

 

5,266

 

     Professional fees

 

 

453

 

 

1,925

 

 

4,833

 

 

539

 

 

7,750

 

     Cost of risk

 

 

367

 

 

1,022

 

 

757

 

 

461

 

 

2,607

 

     Other, net (2)

 

 

(913

)

 

(175

)

 

92

 

 

436

 

 

(560

)

Total Other Operating Expense

 

 

6,382

 

 

14,518

 

 

13,519

 

 

5,613

 

 

40,032

 

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

 

 

9,178

 

 

15,338

 

 

11,915

 

 

4,639

 

 

41,070

 

Total Segment Expenses

 

 

70,054

 

 

105,406

 

 

87,836

 

 

26,338

 

 

289,634

 

Segment Operating Earnings

 

$

6,941

 

$

7,447

 

$

15,565

 

$

2,584

 

$

32,537

 

Reconciliation of segment operating earnings:

 

 

 

 

 

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

 

 

 

 

 

(5,946

)

Net corporate interest expense

 

 

 

 

 

 

 

 

 

 

(3,788

)

Stock option expense

 

 

 

 

 

 

 

 

 

 

(52

)

Amortization of acquisition-related intangible assets

 

 

 

 

 

 

 

 

 

 

(2,126

)

Non-service pension costs

 

 

 

 

 

 

 

 

 

 

(2,363

)

Contingent earnout adjustments

 

 

 

 

 

 

 

 

 

 

(60

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

18,202

 

Income taxes

 

 

 

 

 

 

 

 

 

 

(5,813

)

Net Income

 

 

 

 

 

 

 

 

 

 

12,389

 

Net Income Attributable to Noncontrolling Interests

 

 

 

 

 

 

 

 

 

 

19

 

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

 

 

 

 

$

12,408

 

 

 

 

 

Nine Months Ended September 30, 2025

 

 

North America
Loss Adjusting

International
Operations

Broadspire

Platform
Solutions

Total

 

 

(In thousands)

Revenues before reimbursements

 

$234,809

$326,317

$300,402

$95,672

$957,200

Less:

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

     Compensation

 

134,410

163,474

140,009

43,350

481,243

     Benefits and payroll taxes

 

26,057

31,071

28,306

7,639

93,073

     Non-employee labor

 

4,880

23,893

12,798

2,256

43,827

Total Compensation

 

165,347

218,438

181,113

53,245

618,143

     Office rent and occupancy

 

3,282

10,264

6,371

2,726

22,643

     Other office operating expense (1)

 

13,192

20,916

12,878

5,660

52,646

     Depreciation

 

3,131

3,032

4,328

5,106

15,597

     Professional fees

 

1,290

5,007

13,482

1,814

21,593

     Cost of risk

 

1,018

992

3,089

1,199

6,298

     Other, net (2)

 

1,356

2,799

938

2,809

7,902

Total Other Operating Expense

 

23,269

43,010

41,086

19,314

126,679

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

 

29,181

46,330

36,783

14,470

126,764

Total Segment Expenses

 

217,797

307,778

258,982

87,029

871,586

Segment Operating Earnings

 

$17,012

$18,539

$41,420

$8,643

$85,614

Reconciliation of segment operating earnings:

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

(19,183)

Net corporate interest expense

 

 

 

 

 

(11,590)

Stock option expense

 

 

 

 

 

(450)

Amortization of acquisition-related intangible assets

 

 

 

 

 

(5,751)

Non-service pension costs

 

 

 

 

 

(7,050)

Contingent earnout adjustments

 

 

 

 

 

(503)

Income before income taxes

 

 

 

 

 

41,087

Income taxes

 

 

 

 

 

(14,138)

Net Income

 

 

 

 

 

26,949

Net Income Attributable to Noncontrolling Interests

 

 

 

 

 

(75)

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

$26,874

 

 

 

 

Three Months Ended September 30, 2024

 

 

North America
Loss Adjusting

International
Operations

Broadspire

Platform
Solutions

Total

 

 

(In thousands)

Revenues before reimbursements

 

$79,329

$105,741

$99,009

$45,296

$329,375

Less:

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

     Compensation

 

46,694

52,317

45,958

23,457

168,426

     Benefits and payroll taxes

 

8,643

9,710

9,286

3,664

31,303

     Non-employee labor

 

1,718

7,368

4,436

1,855

15,377

Total Compensation

 

57,055

69,395

59,680

28,976

215,106

     Office rent and occupancy

 

1,119

3,783

2,266

923

8,091

     Other office operating expense (1)

 

4,052

7,147

4,113

2,619

17,931

     Depreciation

 

806

833

1,152

1,546

4,337

     Professional fees

 

474

2,783

4,617

500

8,374

     Cost of risk

 

385

895

1,364

496

3,140

     Other, net (2)

 

681

2,362

217

485

3,745

Total Other Operating Expense

 

7,517

17,803

13,729

6,569

45,618

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

 

9,314

13,407

11,198

5,918

39,837

Total Segment Expenses

 

73,886

100,605

84,607

41,463

300,561

Segment Operating Earnings

 

$5,443

$5,136

$14,402

$3,833

$28,814

Reconciliation of segment operating earnings:

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

(6,979)

Net corporate interest expense

 

 

 

 

 

(4,682)

Stock option expense

 

 

 

 

 

(188)

Amortization of acquisition-related intangible assets

 

 

 

 

 

(1,932)

Non-service pension costs

 

 

 

 

 

(2,441)

Contingent earnout adjustments

 

 

 

 

 

2,128

Income before income taxes

 

 

 

 

 

14,720

Income taxes

 

 

 

 

 

(5,333)

Net Income

 

 

 

 

 

9,387

Net Loss Attributable to Noncontrolling Interests

 

 

 

 

 

66

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

$9,453

 

 

 

 

Nine Months Ended September 30, 2024

 

 

North America
Loss Adjusting

International
Operations

Broadspire

Platform
Solutions

Total

 

 

(In thousands)

Revenues before reimbursements

 

$232,724

$306,116

$290,394

$116,022

$945,256

Less:

 

 

 

 

 

 

Segment Expenses:

 

 

 

 

 

 

     Compensation

 

136,432

152,922

134,684

57,673

481,711

     Benefits and payroll taxes

 

26,625

28,995

27,279

9,523

92,422

     Non-employee labor

 

4,173

18,504

13,136

4,114

39,927

Total Compensation

 

167,230

200,421

175,099

71,310

614,060

     Office rent and occupancy

 

3,431

10,785

6,862

2,763

23,841

     Other office operating expense (1)

 

11,527

21,080

11,957

6,882

51,446

     Depreciation

 

2,413

2,421

3,618

4,791

13,243

     Professional fees

 

1,229

8,416

12,870

1,583

24,098

     Cost of risk

 

1,054

2,882

2,679

884

7,499

     Other, net (2)

 

2,014

6,400

1,061

3,511

12,986

Total Other Operating Expense

 

21,668

51,984

39,047

20,414

133,113

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

 

29,019

41,183

33,951

17,881

122,034

Total Segment Expenses

 

217,917

293,588

248,097

109,605

869,207

Segment Operating Earnings

 

$14,807

$12,528

$42,297

$6,417

$76,049

Reconciliation of segment operating earnings:

 

 

 

 

 

 

Unallocated corporate administrative costs (4)

 

 

 

 

 

(20,065)

Net corporate interest expense

 

 

 

 

 

(12,534)

Stock option expense

 

 

 

 

 

(494)

Amortization of acquisition-related intangible assets

 

 

 

 

 

(5,656)

Non-service pension costs

 

 

 

 

 

(7,313)

Contingent earnout adjustments

 

 

 

 

 

1,547

Income before income taxes

 

 

 

 

 

31,534

Income taxes

 

 

 

 

 

(10,866)

Net Income

 

 

 

 

 

20,668

Net Loss Attributable to Noncontrolling Interests

 

 

 

 

 

206

Net Income Attributable to Shareholders of Crawford & Company

 

 

 

 

 

$20,874

 

(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 September 30, 2025 and December 31, 2024 were as follows:

 

 

 

North America Loss Adjusting

 

International Operations

 

Broadspire

 

Platform
Solutions

 

Total

 

 

(In thousands)

September 30, 2025

 

 

 

 

 

 

 

 

 

 

Assets

 

$106,398

 

$152,987

 

$74,548

 

$74,768

 

$408,701

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 nine months ended September 30, 2025 and 2024 are shown in the following table:

 

 

 

Three Months Ended

 

Nine Months Ended

(in thousands)

 

September 30,
2025

 

September 30,
2024

 

September 30,
2025

 

September 30,
2024

North America Loss Adjusting

 

$1,083

 

$1,113

 

$4,300

 

$3,320

International Operations

 

227

 

806

 

454

 

974

Broadspire

 

3,946

 

3,423

 

11,291

 

9,340

Platform Solutions

 

777

 

1,182

 

2,739

 

3,598

Corporate

 

3,065

 

4,472

 

8,802

 

12,213

Total capital expenditures

 

$9,098

 

$10,996

 

$27,586

 

$29,445

 

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

 

 

 

Three Months Ended

 

Nine Months Ended

(in thousands)

 

September 30,
2025

 

September 30,
2024

 

September 30,
2025

 

September 30,
2024

Segments' revenues before reimbursements

 

$322,171

 

$329,375

 

$957,200

 

$945,256

Reimbursements

 

10,636

 

13,351

 

33,541

 

37,396

Total consolidated revenues

 

$332,807

 

$342,726

 

$990,741

 

$982,652

 

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

 

 

 

Three Months Ended

 

Nine Months Ended

(in thousands)

 

September 30,
2025

 

September 30,
2024

 

September 30,
2025

 

September 30,
2024

Operating earnings of all reportable segments

 

$32,537

 

$28,814

 

$85,614

 

$76,049

Unallocated corporate and shared costs and credits

 

(5,946)

 

(6,979)

 

(19,183)

 

(20,065)

Net corporate interest expense

 

(3,788)

 

(4,682)

 

(11,590)

 

(12,534)

Stock option expense

 

(52)

 

(188)

 

(450)

 

(494)

Amortization of acquisition-related intangible assets

 

(2,126)

 

(1,932)

 

(5,751)

 

(5,656)

Non-service pension costs

 

(2,363)

 

(2,441)

 

(7,050)

 

(7,313)

Contingent earnout adjustments

 

(60)

 

2,128

 

(503)

 

1,547

Income before income taxes

 

$18,202

 

$14,720

 

$41,087

 

$31,534

 

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

 

 

 

September 30,
2025

 

December 31,
2024

 

 

(In thousands)

Assets of reportable segments

 

$408,701

 

$424,057

Corporate assets:

 

 

 

 

Cash and cash equivalents

 

68,767

 

55,412

Income taxes receivable

 

3,626

 

5,337

Prepaid expenses and other current assets

 

35,960

 

40,334

Net property and equipment

 

17,804

 

20,554

Operating lease right-of-use asset, net

 

75,249

 

78,808

Capitalized software costs, net

 

118,123

 

111,854

Deferred income tax assets

 

23,783

 

25,305

Other noncurrent assets

 

47,826

 

42,094

Total corporate assets

 

391,138

 

379,698

Total assets

 

$799,839

 

$803,755