Crawford & Company · NYSE:CRD.A
Crawford & — Q2 2025 Earnings Presentation
35 slides from Crawford &'s earnings presentation, Aug 4, 2025
Slide 1: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results CRD-A & CRD-B (NYSE) ® Crawford & Company
Slide 2: Forward-Looking Statements & Additional Information
Forward-Looking Statements & Additional Information Q2 2025 FINANCIAL RESULTS Forward-Looking Statements This presentation contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statem
Slide 3: Strategic Update
STRATEGIC UPDATE Rohit Verma President & Chief Executive Officer 3 Q2 2025 FINANCIAL RESULTS
Slide 4: Global Reach; Trusted Partner
Countries 70 Employees 10,000+ 50,000+ Field Resources $20B+ Claims Managed Annually Global Reach; Trusted Partner Q2 2025 FINANCIAL RESULTS
Slide 5: Multiple Growth Drivers Benefitting Crawford
Increasing weather volatility continues to drive global demand in weather-related claims Gaining market share within fragmented U.S. market as carriers pursue a flight to quality with well-established partners Industry-leading expertise and technology capabilities enhancing market share Growing and
Slide 6: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights Consolidated revenue growth of 2.8% YoY Revenue growth in North America Loss Adjusting, International Operations and Broadspire segments Consolidated operating earnings consistent with 2Q24 NALA operating earnings and margin decreased in the quarter due to lower U.S. p
Slide 7: Diversified Business Model Supports Growth Through Weather and Market Fluctuations
Q2 ‘24 Q2 ‘25 Non-weather-related revenue Weather-related revenue (US CAT, USLA, Australia) Diversified Business Model Supports Growth Through Weather and Market Fluctuations U.S. Severe Storm Reports1,2 1 National Oceanic and Atmospheric Administration (NOAA) Storm Prediction Database, July 15, 202
Slide 8: Our Capital Allocation Strategy
Our Capital Allocation Strategy Investing in long-term growth through Cap Ex and M&A Strong liquidity Leverage ratio significantly below industry average at 1.75x EBITDA Paid quarterly dividend of $0.07 per share for CRD-A and CRD-B Q2 2025 FINANCIAL RESULTS Committed to Industry-Leading Financial S
Slide 9: Operational Update
OPERATIONAL UPDATE Bruce Swain, Chief Financial Officer Q2 2025 FINANCIAL RESULTS 9
Slide 10: Second Quarter 2025 Revenue Contribution
Comprised of All Service Lines Outside of North America: UK Europe Australia Asia Latin America Legal Services International Operations 34% Third Party Administration for: Workers' Compensation Auto and Liability Claims Medical Management Disability Technology Services Accident and Health Comprised
Slide 11: North America Loss Adjusting Second Quarter 2025 Results
Revenue increased 2.7% Operating earnings decreased by 6% YoY Growth in GTS was offset by a decline in U.S. Field Operations due to lower property claims activity Operating margin decreased by 54 bps Destination for high caliber and specialized insurance adjusting talent North America Loss Adjusting
Slide 12: International Operations Second Quarter 2025 Results
Revenue growth of 6.6% or 6.9% when measured in constant currency Strong performances in UK, Europe and Asia driven by organic new business growth and weather-related claims Operating earnings increased by 34% Operating margin expanded by 143 bps Segment momentum continues driven by improved pricing
Slide 13: Broadspire Second Quarter 2025 Results
Broadspire Second Quarter 2025 Results Revenues $100.6M $13.7M Operating Earnings 13 Q2 2025 FINANCIAL RESULTS Record quarterly revenues YoY growth of 3.6% with growth across all service lines driven by new business wins Operating earnings and margin impacted by strategic headcount additions related
Slide 14: Platform Solutions Second Quarter 2025 Results
Platform Solutions Second Quarter 2025 Results Revenues $35.2M Operating Earnings $3.1M 14 Q2 2025 FINANCIAL RESULTS Revenue down by 9.2% YoY Networks revenues decreased by 31.1% YoY primarily due to pullback in claims outsourcing from key client Contractor Connection revenues increased 2.0% YoY Sub
Slide 15: Financial Update
FINANCIAL UPDATE Bruce Swain, Chief Financial Officer Q2 2025 FINANCIAL RESULTS 15
Slide 16: Q2 2025 Financial Summary
Q2 2025 Financial Summary (1) See Appendix for non-GAAP explanation and reconciliation Quarter Ended Unaudited ($ in millions, except per share amounts) June 30, 2025 June 30, 2024 % Change Revenues $323.0 $314.2 3% Non-GAAP Revenues excluding foreign exchange fluctuations(1) $323.5 $314.2 3% Net In
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights (1) See Appendix for non-GAAP explanation and reconciliation Unaudited ($ in thousands) Jun 30, 2025 December 31, 2019 Dec 31, 2024 December 31, 2018 Change Change Cash and cash equivalents $ 58,529 $ 55,412 $ 3,117 Accounts receivable, net 136,063 142,064 (6,001 ) Unbilled
Slide 18: Net Debt and Pension Liability
Net Debt and Pension Liability $166.9M Net debt at $166.9 million $137.3M Leverage Ratio of 1.75x EBITDA at end of Q2 ‘25 $20.5M Pension liability at $20.5 million $74.3M Funded Ratio of US pension plan is 93.5% at end of Q2 ‘25 Q2 2025 FINANCIAL RESULTS
Slide 19: Operating and Free Cash Flow
Operating and Free Cash Flow (1) See Appendix for non-GAAP explanation and reconciliation Unaudited ($ in thousands) 2025 2019 2024 2018 Change Change Net Income Attributable to Shareholders of Crawford & Company $ 14,466 $ 11,421 $ 3,045 Depreciation and Other Non-Cash Operating Items 23,670 20,756
Slide 20: Additional Financial Matters
Additional Financial Matters Unallocated Corporate and Shared Costs and Credits Unallocated corporate costs of $7.0 million in Q2 ‘25 compared to corporate costs of $5.1 million in Q2 ‘24 Variance was primarily due to a one-time $3.1 million indirect tax expense caused by a change in international t
Slide 21: Summary
Financial strength and liquidity provide flexibility to pursue market opportunities Capitalizing on the changing landscape due to climate change and demographic shifts Leading the industry with next generation Insurtech capabilities Leveraging strong relationships to enhance market position Summary
Slide 22: Appendix: Segment Results and Non-GAAP Financial Information
Appendix: Segment Results and Non-GAAP Financial Information Q2 2025 FINANCIAL RESULTS 22
Slide 23: North America Loss Adjusting
North America Loss Adjusting Three months ended Unaudited (in thousands, except percentages) June 30, 2025 June 30, 2024 Variance Revenues $78,074 $76,030 2.7% Direct expenses 63,827 61,473 3.8% Gross profit 14,247 14,557 (2.1)% Indirect expenses 9,652 9,672 (0.2)% Operating earnings $4,595 $4,885 (
Slide 24: International Operations
International Operations Three months ended Unaudited (in thousands, except percentages) June 30, 2025 June 30, 2024 Variance Revenues $109,070 $102,283 6.6% Direct expenses 85,907 83,096 3.4% Gross profit 23,163 19,187 20.7% Indirect expenses 15,527 13,485 15.1% Operating earnings $7,636 $5,702 33.
Slide 25: Broadspire
Broadspire Three months ended Unaudited (in thousands, except percentages) June 30, 2025 June 30, 2024 Variance Revenues $100,617 $97,087 3.6% Direct expenses 74,393 70,744 5.2% Gross profit 26,224 26,343 (0.5)% Indirect expenses 12,572 11,252 11.7% Operating earnings $13,652 $15,091 (9.5)% Gross pr
Slide 26: Platform Solutions
Platform Solutions Three months ended Unaudited (in thousands, except percentages) June 30, 2025 June 30, 2024 Variance Revenues $35,236 $38,827 (9.2)% Direct expenses 27,164 31,511 (13.8)% Gross profit 8,072 7,316 10.3% Indirect expenses 4,940 5,847 (15.5)% Operating earnings $3,132 $1,469 113.2% G
Slide 27: Non-GAAP Financial Information
Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to oth
Slide 28: Non-GAAP Financial Information (cont.)
Non-GAAP Financial Information (cont.) Segment and Consolidated Operating Earnings Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker to evaluate the financial performance of our Company and operating segments and make res
Slide 29: Total Revenue Before Reimbursements by Major Currency
The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business: Total Revenue Before Reimbursements by Major Currency Three Months Ended Unaudited (in thousands) June 30, 2025 June 30, 2024 Geographic Area Curr
Slide 30: Revenues and Costs of Services Provided
Revenues and Costs of Services Provided Reconciliation of Non-GAAP Item Quarter Ended Quarter Ended Quarter Ended Quarter Ended Unaudited ($ in thousands) June 30, 2025 December 31, June 30, 2024 December 31, 2019 2018 Revenues Before Reimbursements Total Revenues $ 334,595 $ 326,853 Reimbursements
Slide 31: Operating Earnings Reconciliation of Non-GAAP Items
Operating Earnings Reconciliation of Non-GAAP Items (cont.) Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, 2025 December 31, June 30,2024 December 31, Unaudited ($ in thousands) 2019 2018 North America Loss Adjusting $ 4,595 $ 4,885 International Operations 7,636 5,702 Broadspire 1
Slide 32: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation of Non-GAAP items (cont.) Quarter Ended December 31, Quarter Ended December 31, June 30, 2025 December 31, June 30, 2024 December 31, Unaudited ($ in thousands) 2019 2018 Net Income Attributable to Shareholders of Crawford & Company $ 7,782 $ 8,584 Add: Depreciation an
Slide 33: Net Debt
Net Debt Non-GAAP Financial Information (cont.) June 30, 2025 December 31, December 31, 2024 December 31, Unaudited ($ in thousands) 2019 2018 Short-term borrowings $ 22,745 $ 17,750 Current installments of finance leases and other obligations 46 72 Long-term debt and finance leases, less current in
Slide 34: Segment Gross Profit
Segment Gross Profit Non-GAAP Financial Information (cont.) Three months ended Three months ended Unaudited ($ in thousands) June 30, 2025 December 31, 2019 June 30, 2024 December 31, 2018 North America Loss Adjusting $ 14,247 $ 14,557 International Operations 23,163 19,187 Broadspire 26,224 26,343
Slide 35: Reconciliation of Second Quarter Non-GAAP Results
Reconciliation of Second Quarter Non-GAAP Results Three Months Ended June 30, 2025 Unaudited ($ in thousands) Pretax Earnings Pretax (Loss) Earnings Net Income Attributable to Crawford & Company Net (Loss) Income Attributable to Crawford & Company Diluted Earnings per CRD-A Share(1) Diluted (Loss) E