Crawford & Co-B | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 322.17 M

Revenue: As of FY2025 Q3, the actual value is USD 322.17 M, missing the estimate of USD 344.35 M.

EPS: As of FY2025 Q3, the actual value is USD 0.25, missing the estimate of USD 0.27.

EBIT: As of FY2025 Q3, the actual value is USD 21.99 M.

Financial Metrics by Segment

Segment Revenue

• North America Loss Adjusting: Revenue decreased by 2.9% to $77.0 million, primarily due to a decline in property claims in the U.S.
• International Operations: Revenue grew by 6.7% to $112.9 million, with broad-based growth across the UK, Europe, Asia, and Australia.
• Broadspire: Revenue increased by 4.4% to $103.4 million, driven by continued growth in client demand and case volumes.
• Platform Solutions: Revenue decreased by 36% to $28.9 million, affected by ongoing weather-related declines in the CAT and Contractor Connection business lines.

Operational Metrics

• Net Income: Increased by 31% to $12.4 million.
• Operating Earnings: Consolidated operating earnings increased by 21.8% to $26.6 million, with margin expansion in all segments.
• Operating Margin: Improved by 170 basis points to 8.3%.
• Adjusted EBITDA: Increased by 23% to $36.3 million, with an adjusted EBITDA margin of 11.3%.

Cash Flow

• Operating Cash Flow: Cash flows from operating activities were $51.7 million, a significant increase from the previous period.
• Free Cash Flow: Improved to $24.1 million from a negative $18.4 million in the prior period.

Unique Metrics

• Leverage Ratio: Remained low at 1.64x EBITDA, significantly below the industry average.
• Dividend: Paid a quarterly dividend of $0.075 per share for both CRD-A and CRD-B.

Outlook / Guidance

Crawford & Company anticipates continued growth driven by its diversified global business model and strategic partnerships. The company is committed to investing in long-term growth through capital expenditures and mergers and acquisitions, while maintaining strong liquidity and a disciplined approach to capital allocation. The outlook remains positive with a focus on expanding market presence and leveraging next-generation Insurtech capabilities.