Crawford & Company Q2 2025 Earnings Report

Crawford & Company EPS Results

• Actual EPS: $0.22
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Crawford & Company Revenue Results

• Actual Revenue: $334.60 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Crawford & Company Announcement Details

• Quarter: Q2 2025
• Date: 8/4/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, August 5, 2025
• Conference Call Time: 8:30AM ET

Crawford & Company (NYSE:CRD.A) provides claims management and outsourcing solutions to the risk management and insurance industry, and self-insured entities. The company's Crawford Claims Solutions segment offers claims management services related to property, casualty, and catastrophe losses caused by physical damage to commercial and residential real properties, and personal properties, as well as marine losses. It also offers services in the areas of field investigation, catastrophe, evaluation, and resolution of property and casualty insurance claims; and various on-demand inspection, verification, and other task specific field services for businesses and consumers through a mobile platform. Its Crawford TPA Solutions segment provides claims and risk management services; desktop claim adjusting and claims evaluation services; initial loss reporting services for claimants; loss mitigation services, such as medical bill review and case management, and vocational rehabilitation services; and risk management information services, as well as administers trust funds established to pay claims. It offers services for workers' compensation, auto and liability, disability absence and medical management, and accident and health markets. The company's Crawford Specialty Solutions segment offers claims management services related to large and complex losses in various industries, such as commercial property, aviation, forensic accounting, marine and transportation, retail, building and construction, cyber, and energy. It also provides a customer-centric solution for various loss types comprising high-frequency and low-complexity claims, and large complex repairs; and outsourced contractor management services to personal and commercial insurance carriers, and consumer markets. The company operates in the United States, the United Kingdom and the rest of Europe, Canada, Australia, and internationally. Crawford & Company was founded in 1941 and is based in Peachtree Corners, Georgia.

Crawford & Company Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Consolidated revenue grew 2.8% year-over-year, with 5.2% growth in non-weather segments offsetting a 3.8% decline in weather-related revenue, highlighting the strength of the diversified business model.
• Negative Sentiment: North America loss adjusting operating earnings fell 6% (margin down 54 bps) due to lower U.S. property claims frequency driven by higher deductibles and insurance pricing, though management expects normalization in the next 12–18 months.
• Positive Sentiment: International operations delivered 6.6% revenue growth (6.9% in constant currency) and a 34% increase in operating earnings with 143 bps margin expansion, despite caution over potential quarter-to-quarter variability.
• Neutral Sentiment: Broadspire achieved a record quarterly revenue of $100.6 million (+3.6% Y/Y) and maintained a 95.4% client retention rate, while strategic headcount additions and technology investments weighed on margins.
• Positive Sentiment: The Board raised the quarterly dividend to $0.75 per share, with leverage steady at 1.75× EBITDA and free cash flow improving to $2.6 million in Q2 from –$26.7 million a year ago, underscoring strong liquidity and capital discipline.

Presentation

[Operator]

Good morning. My name is Angeline, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford and Company Second Quarter twenty twenty five Earnings Release Conference Call. In conjunction with this call, a supplementary financial presentation is available on our website at www.croco.com under the Investor Relations section. All lines have been placed on mute to prevent any background noise.

[Operator]

After the speakers' remarks, there will be a question and answer period. Instructions will follow at that time. As a reminder, ladies and gentlemen, this conference is being recorded today, Tuesday, 08/05/2025. Now I would like to introduce Tammy Stephenson, Crawford and Company's General Counsel. Please go ahead.

[Tami Stevenson, General Counsel at Crawford & Company]

Thank you, Angeline. Some of the matters to be discussed in this conference call and in the supplementary financial presentations may include forward looking statements that involve risks and uncertainties. These statements may relate to, among other things, our expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses, expectations regarding our anticipated contributions to our underfunded defined benefit pension plans, collectability of our billed and unbilled accounts receivable, results from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreements, our long term capital resource and liquidity requirements, and our ability to pay dividends in the future. The company's actual results achieved in future quarters could differ materially from the results that may be implied by such forward looking statements. The company undertakes no obligation to publicly release revisions to any forward looking statements made in this conference call to reflect events or circumstances occurring after the day of the call or to reflect the occurrence of unanticipated events.

[Tami Stevenson, General Counsel at Crawford & Company]

In addition, you are reminded that operating results for any historical period are not necessarily indicative of the results to be expected for any future period. For a complete discussion regarding factors which could affect the company's financial performance, please refer to the company's Form 10 Q for the quarter ended 06/30/2025, filed with the Securities and Exchange Commission, particularly the information under the headings Risk Factors and Management's Discussion and Analysis of Financial Conditions and Results of Operation as well as subsequent company filings with the SEC. This presentation also includes certain non GAAP financial measures as defined under the SEC rules. As required, a reconciliation is provided for these matters to those most directly comparable GAAP measures. I would like to now introduce Mr. Rohit Verma, Chief Executive Officer of Crawford and Company. Rohit?

[Rohit Verma, President, CEO & Director at Crawford & Company]

Thank you, Tammy. Good morning, and welcome to our second quarter twenty twenty five earnings call. Joining me today is Bruce Swain, our Chief Financial Officer and Tammy Stephenson, our General Counsel. After our prepared remarks, we will open the call for your questions. This quarter, we continued to make progress on our strategic objectives.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Consolidated revenue grew year over year with three of our four segments delivering top line growth. While we're seeing the effects of lower property claims frequency in The U. S, which put some pressure on revenues in our North America loss adjusting and platform solutions segments, we saw encouraging results across the broader business. Notably, we achieved growth in our non weather segments, highlighting the effectiveness of our diverse business model and disciplined execution in navigating various market options. This morning, I'll review our segment operations for the second quarter before handing it over to Bruce for a deeper dive into our financial performance.

[Rohit Verma, President, CEO & Director at Crawford & Company]

As you've heard me say before, our scale, expertise and long standing legacy of service excellence are two differentiators in the marketplace. We operate in over 70 countries with 10,000 employees and access to more than 50,000 field resources and was one of the only companies with the capability to respond to complex claims of any size, anywhere. Each year, we manage more than $20,000,000,000 in claims globally, reflecting our reliability in meeting the needs of the world's leading carriers, corporations, and public entities. Our global presence, deep technical expertise, and over eight decades of experience position us competitively as a critical partner to clients navigating increased complexity and risk across a wide range of geographies and market conditions. We see several core components driving our growth.

[Rohit Verma, President, CEO & Director at Crawford & Company]

First, the global frequency of weather events continues to add volatility to claim staffing needs of carriers that heightens demand for our proven capabilities in managing complex weather related claims. At the same time, our diversified business model ensures that we're not solely dependent on weather. When one area experiences lower claims volume, like we've been seeing in US property, that downturn can be offset by growth in non weather related areas of our businesses like Broadspire and parts of international operations. We continue to gain market share where carriers are increasingly prioritizing reliability, scalability, and compliance, signaling a flight to quality service providers. As a trusted well established partner, we believe Crawford is uniquely positioned to surpass those expectations.

[Rohit Verma, President, CEO & Director at Crawford & Company]

We have formed many valuable strategic partnerships with clients across the globe and remain focused on deepening those relationships across multiple service lines and new geographies. Finally, our market leadership is reinforced by our deep bench of technical expertise and our investment in cutting edge technology. These capabilities not only set us apart from competitors, but are also a key factor in winning new business and enhancing profitability. With these drivers in place, we are confident in our ability to generate sustainable long term growth regardless of quarter to quarter weather fluctuations. In the second quarter, consolidated revenue grew 2.8% with North America loss adjusting, international operations and Broadspire each contributing to our top line growth and Broadspire having another record revenue quarter.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Consolidated operating earnings were largely consistent with last year's second quarter and improved sequentially compared to first quarter twenty twenty five. Excluding the impact of a nonrecurring international tax item, consolidated operating margin would have been 7.8%, representing an improvement over the 2024. Bruce will share more details on that shortly. North America loss adjusting saw an year over year decrease in operating earnings due to lower U. S.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Property claims activity. And Broadspire operating earnings decreased year over year due to strategic headcount additions and investment in technology. International operations and platform solutions posted improved operating earnings and margin expansion. We continue to see strong new business momentum, which is encouraging for future growth. Based on the company's solid performance and confidence in our continued growth, our Board has approved an increase in the quarterly dividend to $0.75 per share for both CRDA and CRDB.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Our balance sheet remains strong with liquidity well maintained and a leverage ratio steady at 1.75 times EBITDA. In the second quarter, storm activity was relatively stable year over year, up just 1%. A 3.8% decline in weather related revenue in the quarter was offset by revenue growth of 5.2% in our non weather businesses, enabling us to achieve consolidated revenue growth in the quarter. We are seeing a lower frequency of claims filed for comparable events. We believe this is largely related to affordability dynamics playing the residential property market in The U.

[Rohit Verma, President, CEO & Director at Crawford & Company]

S. Higher deductible and concern for increased insurance pricing has suppressed residential property claims filing. We view the lower U. S. Property claims frequency as a temporary dynamic and not a structural shift.

[Rohit Verma, President, CEO & Director at Crawford & Company]

As reinsurance pricing stabilizes, we expect this trend to normalize over the next twelve to eighteen months. In the meantime, the resilience of our non weather segments and the strength of our balanced model continues to support steady sustainable growth. This top line results demonstrate the effectiveness of our diversified business model, which enables us to respond and grow in an environment of changing weather patterns and market dynamics. Our capital allocation strategy is rooted in discipline and long term value creation. We remain focused on deploying capital in ways that support sustainable growth, strengthen our competitive position and return value to short shareholders.

[Rohit Verma, President, CEO & Director at Crawford & Company]

We continue to invest in our core business with an emphasis on operational excellence initiatives, technology enhancements and talent development, ensuring we are well positioned to serve clients and expand market share. We are also open to evaluating M and A opportunities that can expand our capabilities and our geographic reach. Our balance sheet reflects our progress in reducing leverage and our liquidity position is strong, giving us the financial flexibility to respond to both opportunities and challenges as they arise. We remain committed to returning capital to shareholders and are pleased to have had the opportunity to raise our dividend. With that, let me turn over the call to Bruce for a deeper look at our segment operational and financial performance.

[W. Bruce Swain, CFO at Crawford & Company]

Thank you, Rohit. Crawford operates through our four core segments that represent the global reach of our business. North America loss adjusting, which includes our loss adjusting operations in The U. S. And Canada, accounted for 24% of second quarter twenty twenty five revenues.

[W. Bruce Swain, CFO at Crawford & Company]

International operations, covering all service lines outside North America, contributed 34% of quarterly revenues. And Broadspire, our U. S.-based third party administration business, represented 31% of quarterly revenues. Platform solutions, which includes contractor connection, networks, and subrogation services, accounted for 11% of revenues. Our North America loss adjusting segment delivered 2.7% revenue growth in the second quarter, driven by continued strength in our global technical services business.

[W. Bruce Swain, CFO at Crawford & Company]

Performance in U. S. Field operations was impacted by reduced property claims activity, an industry wide trend related to affordability pressures and lower claim frequency. As a result, operating earnings in the segment declined 6% year over year and operating margin decreased by 54 basis points. As Rohit mentioned, we don't anticipate this pattern to be a long term trend and we expect industry trends to stabilize over the next twelve to eighteen months.

[W. Bruce Swain, CFO at Crawford & Company]

Crawford remains a destination for top tier specialized adjusting talent, and we continue to invest in building a best in class team to meet the evolving needs of our clients. International operations delivered another strong quarter with revenues increasing 6.6% year over year or 6.9% in constant currency. We saw particularly strong performance across The UK, Europe, and Asia where organic new business growth and weather related claims activity supported the top line. Operating earnings grew 34%, with the operating margin expanding by 143 basis points, reflecting our focus on pricing, productivity, and disciplined execution. While the second quarter was a strong result for this segment, we are mindful about potential margin fluctuation as we move through the balance of the year.

[W. Bruce Swain, CFO at Crawford & Company]

That said, we're pleased by the momentum we're seeing and optimistic about driving continued success in our international business. Broadspire delivered record quarterly revenues of $100,600,000 in the second quarter, reflecting year over year growth of 3.6%. We saw consistent growth across all service lines driven by new client wins. We have a strong retention rate of 95.4, which we view as a testament to the quality of our service and the trust we've built with our clients. In the second quarter, we continued to strategically add headcount to support new client onboarding and this activity as well as higher investments in technology impacted operating earnings and margin.

[W. Bruce Swain, CFO at Crawford & Company]

We believe these investments strengthen our team and position us well to support growth in the second half of the year and beyond. Broadspire continues to build momentum and remains a key contributor to the strength of our non weather dependent portfolio. Turning to Platform Solutions. Revenues declined 9.2 year over year, primarily due to a significant pullback in claims outsourcing from one of our key networks clients. However, we achieved year over year revenue growth in both contractor connections, up 2%, and subrogation, or our Praxis business, which grew 2.8%.

[W. Bruce Swain, CFO at Crawford & Company]

Platforms delivered operating earnings growth of 113% and expanded operating margin by over 500 basis points. This performance was driven by higher margin business mix and meaningful improvements in operational efficiency, particularly within the networks business. Platform Solutions continues to execute well and is an important component of our comprehensive portfolio of offerings. And now for a look at our consolidated financials. In the twenty twenty five second quarter, companywide revenues before reimbursements were $323,000,000 an increase of 2.8% compared to the prior year period.

[W. Bruce Swain, CFO at Crawford & Company]

Foreign exchange rates decreased revenues before reimbursements by approximately $500,000 or 0.2%. GAAP net income attributable to shareholders totaled $7,800,000 compared to $8,600,000 in the same period of 2024. GAAP diluted EPS in the twenty twenty five second quarter was $0.16 for both CRDA and CRDB, a slight decrease from $0.17 for both share classes in the 2024 period. On a non GAAP basis, diluted EPS was $0.22 for both CRDA and CRDB compared to $0.25 for both share classes in the prior year period. The company's non GAAP operating earnings totaled $22,000,000 in the twenty twenty five second quarter or 6.8% of revenues, compared to $22,100,000 or 7% of revenues in the prior year period.

[W. Bruce Swain, CFO at Crawford & Company]

Consolidated adjusted EBITDA was $31,400,000 in the twenty twenty five second quarter, compared to $30,600,000 in the twenty twenty four quarter. The EBITDA margin of 9.7% was consistent with last year's second quarter. Company's cash and cash equivalents as of 06/30/2025 totaled $58,500,000 compared to $55,400,000 at 12/31/2024. Total receivables were $281,400,000 as of 06/30/2025, up $8,300,000 from the 2024 year end. The company's total debt outstanding as of 06/30/2025, totaled $225,400,000 up from $218,100,000 as of 12/31/2024.

[W. Bruce Swain, CFO at Crawford & Company]

Net debt was $166,900,000 as of 06/30/2025, while our U. S. Pension liability was $20,500,000 reflecting a funded ratio of 93.5%. We made no discretionary contributions to our U. S.

[W. Bruce Swain, CFO at Crawford & Company]

Defined benefit pension plan during the 2025 and we do not intend to make contributions through the remainder of the year. Operating cash flow for the 2025 was $21,100,000 with free cash flow of $2,600,000 This compares to a use of $8,300,000 last year with free cash flow of negative $26,700,000 The significant improvement in operating free cash flow in the twenty twenty five second quarter was primarily due to improved earnings and improvement in working capital levels. Unallocated corporate costs were $7,000,000 in the twenty twenty five second quarter compared to cost of $5,100,000 in the 2024 period. The increase was primarily due to a non recurring indirect tax expense of $3,100,000 related to an international tax law change and an increase in self insurance expense, partially offset by a decrease in professional fees. During the twenty twenty five second quarter, non service pension costs were $2,400,000 consistent with the same period of 2024.

[W. Bruce Swain, CFO at Crawford & Company]

We recognized pretax contingent earn out cost of $80,000 in the twenty twenty five second quarter compared to cost of $430,000 in the 2024 period. During the 2025, the company did not repurchase any shares of CRD A or CRD B. As a reminder, approximately 1,100,000.0 shares are eligible to be repurchased under our 2021 share repurchase authorization. With that, I'll turn the call back over to Rohit for concluding remarks.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Thank you, Bruce. As we enter the second half of the year, we remain focused on delivering high quality outcomes for our clients. Historically, the second half of any year often brings heightened weather activity and our teams are well prepared to respond. We remain confident in our strategy and the long term growth opportunity ahead for Crawford. Our second quarter results reflect continued execution across our global platform, strong performance in key segments and progress on our journey towards margin improvement.

[Rohit Verma, President, CEO & Director at Crawford & Company]

With a solid balance sheet, a robust business model and a highly experienced team, we remain focused on delivering for our clients, deepening strategic partnerships and continuing to drive value for our shareholders. Thank you for your time today. Angeline, please open the call for questions.

[Operator]

Thank you. Your first question comes from Maxwell Fritzsche with Truist Securities. Please go ahead.

[Maxwell Fritscher, Equity Research Associate at Truist Securities]

Hi, good morning. I'm on for Mark Hughes. Did you call out the specific GTS growth number? If not, what what was the exact number there? And what what has been your experience lately with with adding headcount in in GTS?

[Rohit Verma, President, CEO & Director at Crawford & Company]

I'll let Bruce, get to you on the number. But, you know, our experience continues to be very strong in terms of adding expertise. As you know, we had a target of adding 200 back in, 2023, and we we hit that target well before time. Since then, we've continued to add resources to to our to our GTS unit in The US as well as globally. Our GTS US had, you know, modest growth this year mainly because of the suppressed frequency of of of weather claims.

[Rohit Verma, President, CEO & Director at Crawford & Company]

But overall, we are very pleased with the trajectory of of what's happening with with GTS both in The US as well as as well as globally.

[W. Bruce Swain, CFO at Crawford & Company]

Yeah. I don't have the specific GTS growth number, but I would tell you that substantially all of our growth in North America loss adjusting is coming from the the GTS business.

[Maxwell Fritscher, Equity Research Associate at Truist Securities]

Great. Thank you. And then do you have any observations you could share with us on on how the weather has trended thus far into three q? Obviously, no big Southeastern storms. But probably speaking, what are you observing?

[Rohit Verma, President, CEO & Director at Crawford & Company]

Yeah. The weather continues to be, you know, sort of flat to last year. I think the biggest thing that we continue to see is the suppressed frequency of claims being filed in US property. And we believe, as I said on the call, generally related to, excuse me, the affordability challenges that we're seeing with insurance in The US market where, deductibles have increased and, and pricing on insurance has increased, and that is dissuading, filing of any claims, or comparable claims, I should say, or similar weather events as we've seen in the prior years.

[Maxwell Fritscher, Equity Research Associate at Truist Securities]

Thank you. Understood. And then in regards to workers' comp, are you are you seeing any change in severity or frequency there? Any signs of of emerging medical inflation?

[Rohit Verma, President, CEO & Director at Crawford & Company]

No. I mean, nothing nothing out of the ordinary. I mean, the workers' comp claims continue to be a similar trend as we've seen in the past. And then, you know, you're seeing the general inflation in medical cost that we've seen on a year to year basis, but nothing that I would say is off trend.

[Maxwell Fritscher, Equity Research Associate at Truist Securities]

Great. Thank you very much.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Thank you, Max. Angeline, do we have another question?

[Tami Stevenson, General Counsel at Crawford & Company]

Angeline?

[Rohit Verma, President, CEO & Director at Crawford & Company]

Have we lost the operator?

[Tami Stevenson, General Counsel at Crawford & Company]

I think we may have lost. Folks, give us just one minute. Angelique?

[Operator]

Apologies. One moment.

[Tami Stevenson, General Counsel at Crawford & Company]

We're waiting for the next person that is in queue for question, Angeline.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Angeline, we're waiting for the next person, please.

[Operator]

Sure. Your next question comes from Kevin Stricki with Barrington. Please go ahead.

[Kevin Steinke, Managing Director at Barrington Research Associates]

Hey. Good morning. Hi, Kevin. Just wanted to I just wanted to follow-up on the discussion about lower property claims frequency in The US related to affordability. And you mentioned that you expect that to be temporary and stabilize over the next twelve to eighteen months just based on, you know, industry adjusting, I guess.

[Kevin Steinke, Managing Director at Barrington Research Associates]

But so could you just dig into that Sure. Comment a little bit more and and why you expect that?

[Rohit Verma, President, CEO & Director at Crawford & Company]

Sure. Kevin, as you're very familiar with that, the insurance industry has overall been experiencing what would be termed as a hard market for property over the last, I would say, three to five years. The reinsurance rates are particularly hardened as a result of it. And we have seen significant severity in the property space coming from wildfires as well as severe convective storms and and to some extent, hurricane activity. That created some pressure in terms of pricing.

[Rohit Verma, President, CEO & Director at Crawford & Company]

And many of the carriers responded with higher deductibles and higher pricing. You can actually see that now in the results that we're seeing from the carriers as far as their property loss ratios are concerned. The most recent reinsurance renewals that we've been watching seem to have softened quite a bit, and and we believe that that'll continue to soften unless we see some major storm activity. As they continue to soften, we believe market dynamics will play out and pricing will start to ease up and deductibles will start to come down, which will then trigger back the sort of normalization of claims frequency. And we believe that it could take anywhere from twelve to eighteen months for this dynamic to play out.

[Rohit Verma, President, CEO & Director at Crawford & Company]

So that's the reason why we're thinking that the claims frequency should return back to normalcy because market dynamics will eventually play out as reinsurance pricing eases up.

[Kevin Steinke, Managing Director at Barrington Research Associates]

Okay. Thanks. That's that's helpful. Also wanted to ask about Broadspire. Talked about the continued new business momentum there and and some continued investments in staffing and technology to to meet that demand and business momentum.

[Kevin Steinke, Managing Director at Barrington Research Associates]

I just kinda wondering where we are in the cycle of those investments relative to margins and if we start to see margins or if we continue to see margins improve as we move through the back half of the year as you you know, revenue growth ramps up and you, you know, you leverage those investments?

[Rohit Verma, President, CEO & Director at Crawford & Company]

Yeah. I think, Kevin, margin from from my perspective has been well within the tolerance range of, you know, 100 to 200 basis points going up or down. So we believe that this is a very normal margin fluctuation for us in, in in Broadspire as we go through the investment cycles. We have quite a lot of new business, that we expect to start early part of next year and some at late later part of this year. And and those and where we've been staffing for that.

[Rohit Verma, President, CEO & Director at Crawford & Company]

As you know, a key element of, of service in this business is making sure that we have solid staff, that is trained and ready to go as new clients are onboarded. And that's what leads to a higher level of NPS that we continue to see and a higher level of retention that we see in this business. I expect that, you know, we would probably stay on that same investment journey, and it'll be more like next year when we start to see some of the results of this. But as we continue to add new business, we will continue to add the staffing. I think that the margin fluctuation somewhere between, say, 13 to 16% is where we will we will fluctuate.

[Kevin Steinke, Managing Director at Barrington Research Associates]

Okay. Yeah. That makes sense. Appreciate that. I also wanted to ask about international operations.

[Kevin Steinke, Managing Director at Barrington Research Associates]

Can you just also discuss the new business momentum there that you mentioned? Maybe dig into that a little bit more, and then I had a follow-up on international as well.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Absolutely. As you know, international has continuously been a turnaround story for us for the last three years or four years, I would say, as we've tried to change the mix of business and improve the margin as a result of that mix post COVID. When we look at the international business and the growth that we've seen, which is about 7% in in revenue, it's largely been coming from our operations in in UK as well as as well as Europe. Both those regions, we believe we have significant headroom still to grow. We've also seen a return, in our Asia business, a return to revenue growth in our Asia business.

[Rohit Verma, President, CEO & Director at Crawford & Company]

But largely, I believe that our largest more near term opportunities lie in, in Europe as well as UK, and we'll continue to see that.

[Kevin Steinke, Managing Director at Barrington Research Associates]

Okay. Great. And then you also, mentioned in your comments, potential margin fluctuation in international. Is that is there something specific we should be thinking about there, or is that just kinda typical quarter to quarter potential volatility?

[Rohit Verma, President, CEO & Director at Crawford & Company]

I would say it's typical quarter to volatility. I mean, if you compare our margin this year to last year, it's about 140 basis points better. And and that's been sort of a continuous trend for us to to move the margin up. However, as we look at quarter to quarter, you know, there are weather fluctuations. There are investment fluctuations.

[Rohit Verma, President, CEO & Director at Crawford & Company]

There are some technology fluctuations, and I think those things will drive the margins. So I think we were just trying to make sure that there was an understanding of that.

[Kevin Steinke, Managing Director at Barrington Research Associates]

Okay. Great. And then lastly, maybe if you can touch on capital allocation a bit more. You raised the dividend, which was nice to see. Didn't repurchase any shares, but, you know, I assume you still might have an appetite for that.

[Kevin Steinke, Managing Director at Barrington Research Associates]

You know, market conditions are favorable, but any any more comments on how you intend to approach I'll

[Rohit Verma, President, CEO & Director at Crawford & Company]

I'll probably start and then let Bruce comment on that. Look, our first priority for capital allocation, as you know, has always been to invest in our margin for the long term growth and profitability and the health of the health of the business. That'll always be the first priority. That you'll see that in the form of CapEx, you'll see that in the form of any acquisitions that we make, but that'll always remain the first priority. Then when we looked at our cash flow, the health of our business, the quality of earnings, the growth prospects in the business, we felt that and our and our leverage position, we felt very comfortable that, you know, putting up half a cent increase was was well within our comfort zone to do, and that's the reason why we why we did that.

[Rohit Verma, President, CEO & Director at Crawford & Company]

And we have been sickling signaling this to you and others that we have a real desire to continue to have not just revenue and earnings growth, but then implied dividend growth from that. As far as share repurchase is concerned, as you know, we are buyers of shares when it's below our intrinsic value. We still have 1,100,000.0 shares left in our authorization. So far, our approach has been to be opportunistic to to buy large blocks of business that come in the market. We haven't seen any of that come in.

[Rohit Verma, President, CEO & Director at Crawford & Company]

And and as a result of that, you didn't see us, buy any shares, this quarter. So I don't know, Bruce, if there's anything else you wanna add to that.

[W. Bruce Swain, CFO at Crawford & Company]

I think maybe the only other thing to to add to that is, you know, while, you know, organic growth is our primary strategy, we also want to look at inorganic growth opportunities and feel we've got the balance sheet strength and liquidity to be opportunistic out in the marketplace if there are compelling assets that that come on the market. So while we haven't, you know, done any m and a this year, that doesn't mean we're not out there scouting for businesses that could add value to the company's platform.

[Rohit Verma, President, CEO & Director at Crawford & Company]

And we have been doing much more acqui hires, which is, you know, sort of acquisition of teams as opposed to acquisition of companies or legal entities.

[W. Bruce Swain, CFO at Crawford & Company]

Yeah. And that's where a lot of the GTS growth has come from.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Yep.

[Kevin Steinke, Managing Director at Barrington Research Associates]

Okay. Great. Thanks again for all the insights.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Thank you, Kevin. Thank you, Kevin. Always a pleasure.

[Operator]

There seem to be no further questions at this time. I'd now like to turn the call back over to Mr. Verma for closing remarks. Please go ahead.

[Rohit Verma, President, CEO & Director at Crawford & Company]

Thank you, Angeline, and thank you to all our employees, clients, shareholders for your continued commitment to Crawford and Company. Thank you, and God bless.

[Operator]

Thank you for the participation in today's Crawford and Company conference call. This call will be available for replay beginning at 11:30 a. M. Eastern Standard Time today through 11:59 p. M.

[Operator]

Eastern Standard Time on 08/12/2025. The conference ID number for the replay is 35518Pound, and the number to dial for the replay is +1 (888) 660-6264. Thank you, and you may now disconnect. Have a great day.

Participants

Executives

• Tami Stevenson, General Counsel
• Rohit Verma, President, CEO & Director
• W. Bruce Swain, CFO

Analysts

• Maxwell Fritscher, Equity Research Associate at Truist Securities
• Kevin Steinke, Managing Director at Barrington Research Associates