Crawford & Company (CRD-A) Q3 2025 earnings summary

Executive summary

• Net income rose 31% year-over-year to $12.4 million in Q3 2025, with diluted EPS up to $0.25 for both share classes and non-GAAP EPS up 45% to $0.32; revenues before reimbursements declined 2% to $322.2 million, but Broadspire and International Operations achieved record quarterly revenues and margin expansion across all segments.

• Operating earnings increased to $26.6 million (up 21.8%), and adjusted EBITDA grew 23% to $36.3 million, with margin improvements in all segments.

• Added $29 million in new business in Q3, bringing the year-to-date total to $78 million.

• Strong balance sheet with cash and cash equivalents of $68.8 million and a leverage ratio of 1.64x EBITDA.

• Quarterly dividend of $0.075 per share paid and active share repurchase program continued, with board authorizing an additional 2 million shares for repurchase through 2027.

Financial highlights

• Q3 2025 revenues before reimbursements were $322.2 million (down 2.2% YoY); non-GAAP revenues excluding FX were $318.8 million (down 3% YoY).

• Net income attributable to shareholders was $12.4 million (up 31% YoY); non-GAAP net income was $16.1 million (up 48% YoY).

• GAAP diluted EPS was $0.25 (up from $0.19); non-GAAP diluted EPS was $0.32 (up from $0.22).

• Adjusted EBITDA was $36.3 million (11.3% of revenues), up from $29.6 million (9%).

• Free cash flow for the nine months ended September 30, 2025, was $24.1 million, a $42.5 million improvement year-over-year.

Outlook and guidance

• Expect continued lower claims activity and absence of significant weather events to impact Q4 results; do not anticipate repeating the $30 million revenue lift from last year’s hurricanes.

• Anticipate a return to more typical claims activity and weather-related revenue over the next 12–18 months.

• International segment expected to moderate in Q4 due to absence of prior year one-time benefits, but long-term trajectory remains strong.

• Management expects the effective tax rate for 2025 to be approximately 34% to 36%.

• No material changes to critical accounting policies or market risk exposures are anticipated.