0001193125-26-116011
SEC filingCrawford & Company reported total revenues of $1,310.8 million for FY 2025, a decrease of 2.2% from $1,341.0 million in FY 2024. Net income attributable to shareholders was $19.6 million, a significant decline from $26.6 million in the prior year. Earnings per share (diluted) for Class A common stock were $0.39, down from $0.53. The company's performance was impacted by a 2.1% decrease in revenues before reimbursements to $1,265.7 million, coupled with increased costs, including $14.0 million in restructuring and other costs. Operating cash flow remained strong at $101.8 million, supporting capital expenditures of $38.5 million and dividend payments of $14.3 million. The company ended the year with $64.1 million in cash and cash equivalents and total debt of $189.1 million under its credit facility.
For the fiscal year ended December 31, 2025, Crawford & Company reported a decline in overall financial performance. Total revenues decreased by $30.1 million (2.2%) to $1,310.8 million. This was driven by a $26.8 million (2.1%) decrease in revenues before reimbursements, which fell to $1,265.7 million. Net income attributable to shareholders declined significantly by $7.0 million (26.2%) to $19.6 million. Diluted earnings per share for Class A common stock were $0.39, down from $0.53 in the prior year. The company's operating margin was 2.6%. Results were negatively impacted by $14.0 million in restructuring and other costs, net, incurred during the year as part of a plan to improve operational efficiencies.
Revenue performance varied significantly across the company's four reportable segments. The North America Loss Adjusting segment saw revenues before reimbursements decline by 2.3% to $304.9 million, with decreases in both U.S. and Canadian operations. In contrast, the International Operations segment grew by 4.7% to $438.2 million, led by strength in the U.K. and Europe. The Broadspire segment increased by 3.6% to $401.9 million, with growth in both Claims Management and Medical Management service lines. The Platform Solutions segment experienced a substantial 30.5% decline to $120.8 million, primarily due to a significant decrease in its Networks service line revenue, which fell from $77.0 million to $25.6 million.
The company's profitability metrics showed pressure in FY 2025. While specific gross profit and gross margin figures are not explicitly disclosed in the provided financial statements, the overall decline in net income and operating margin indicates margin compression. The provision for income taxes was $14.9 million, resulting in an effective tax rate of 43.1%, which was higher than the prior year's 35.5%. This increase was impacted by improved profitability in certain foreign jurisdictions, net of global intangible low-taxed income expense, and a one-time expense relating to administrative guidance issued by a foreign tax authority. Segment operating earnings totaled $108.3 million, but after corporate allocations and other costs, income before taxes was $34.6 million.
Crawford generated strong operating cash flow of $101.8 million in FY 2025, a significant increase from $51.6 million in the prior year. This was driven by improvements in working capital, particularly a $26.4 million decrease in accounts receivable. Capital expenditures totaled $38.5 million, primarily for capitalized software costs and property and equipment. Free cash flow (operating cash flow minus capital expenditures) was $63.3 million. The company used cash for financing activities of $57.6 million, including $14.3 million in dividend payments and $10.5 million in share repurchases. At year-end, cash and cash equivalents were $64.1 million, total debt was $189.1 million under the credit facility, and shareholders' investment was $171.4 million.
The filing does not contain explicit forward-looking guidance or management projections for future periods. However, the company disclosed a subsequent event regarding a segment realignment effective January 1, 2026, which will result in three new reportable segments: U.S. Property & Casualty, Broadspire, and International Operations. This restructuring is intended to align with updated management responsibilities. The company also noted it expects to make discretionary contributions of $3.0 million to its U.S. Qualified Pension Plan in the next fiscal year to minimize future required contributions. Risk factors include ongoing legal and regulatory proceedings, claims for indemnification from clients, and the potential impact of labor, employment, and other laws on operations.