Crawford & Company (CRD-A) Q2 2025 earnings summary

Executive summary

• Consolidated revenue grew 2.8% year-over-year to $323.0M in Q2 2025, with growth in North America Loss Adjusting, International Operations, and Broadspire, while Platform Solutions declined.

• Operating earnings remained stable at $22.0M, with margin improvements in International Operations and Platform Solutions, and strong new business in Broadspire.

• Net income attributable to shareholders was $7.8M, down from $8.6M in Q2 2024; diluted EPS was $0.16 for both share classes, down from $0.17.

• Dividend increased to $0.075 per share for both share classes, reflecting confidence in financial strength and liquidity.

• Leverage ratio remains low at 1.75x EBITDA, supporting continued investment and capital returns.

Financial highlights

• Revenues before reimbursements were $323.0M, up 2.8% year-over-year; total Q2 revenues $334.6M, up from $326.9M.

• Adjusted EBITDA was $31.4M, with a margin of 9.7%, consistent with last year.

• Free cash flow improved to $2.6M from negative $26.7M in the prior year; cash from operations for the first half was $21.1M.

• Cash and cash equivalents at June 30, 2025, were $58.5M; total debt $225.4M; net debt $166.9M.

• GAAP net income was $7.8M, down 9% year-over-year; non-GAAP net income for Q2 was $11.2M, down 10% year-over-year.

Outlook and guidance

• Management expects the effective tax rate for 2025 to be approximately 30% to 32% after known discrete items.

• Lower U.S. property claims frequency is expected to normalize over 12–18 months as reinsurance pricing stabilizes.

• Continued investment in technology, talent, and insurtech capabilities to support future growth.

• Margin improvement in Broadspire expected more meaningfully in the next year as new business ramps up.

• Dividend payments and capital allocation will be assessed based on earnings, cash flows, and funding requirements.