Crawford & Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenues before reimbursements for the third quarter of 2026 were $321.6 million, a slight decrease from $322.2 million in the prior year quarter; year-to-date revenues were $952.6 million compared to $957.2 million in 2025.
• Net income attributable to shareholders for the third quarter was $15.0 million ($0.31 per diluted share), an increase from $12.4 million ($0.25 per diluted share) in the prior year quarter.
• Year-to-date net income attributable to shareholders was $33.4 million ($0.68 per diluted share), up 24% from $26.9 million ($0.54 per diluted share) in 2025.
• Consolidated adjusted operating earnings were $28.8 million for the quarter (up 8% from $26.6 million) and $72.0 million year-to-date (up 8% from $66.4 million).
• Consolidated adjusted EBITDA was $37.1 million for the quarter (up 2% from $36.3 million) and $97.0 million year-to-date (up 3% from $94.5 million).
• Non-GAAP net income attributable to shareholders was $17.8 million for the quarter (up 11% from $16.1 million) and $44.4 million year-to-date (up 18% from $37.6 million).
• Non-GAAP diluted earnings per share were $0.37 for the quarter (up 16% from $0.32) and $0.91 year-to-date (up 21% from $0.75 for CRD-A and 20% for CRD-B).
• Cash and cash equivalents totaled $79.0 million as of September 30, 2026, compared to $64.1 million at December 31, 2025.
• Total debt outstanding was $225.1 million as of September 30, 2026, compared to $189.1 million at December 31, 2025.
• Operating cash flow for the first nine months of 2026 was $29.0 million, down from $51.7 million in 2025, primarily due to increases in billed and unbilled receivables.
• Free cash flow for the first nine months of 2026 was $7.4 million, down from $24.1 million in 2025.
• SG&A expenses increased $2.3 million (3.2%) in the third quarter to $71.6 million, driven by cloud software costs, insurance, and bad debt expense; year-to-date SG&A decreased $4.9 million (2.2%) to $217.5 million.

Guidance and Future Outlook:

• Management expects lower claims frequency and moderating weather-related activity to pressure fourth-quarter results.
• Strategic priorities include driving profitable market-share growth, accelerating the U.S. realignment, strengthening operating discipline, and building capabilities for long-term success.
• Management expressed confidence that these actions will strengthen the competitive position and support long-term growth objectives.

Business Segments and Product Lines:

• U.S. Property and Casualty: Revenues were $76.0 million for the quarter (down 0.4%) and $222.9 million year-to-date (down 7.5%), driven by decreases in weather-related claims, staff augmentation levels in Catastrophe Services, and Contractor Connection. Operating earnings were $9.7 million for the quarter (margin 12.8%) and $24.5 million year-to-date (margin 11.0%).
• Broadspire: Revenues were $109.0 million for the quarter (down 1.5%) and $323.1 million year-to-date (up 0.2%). Quarter results were driven by reduced casualty claims and subrogation, offset by increased disability claims. Year-to-date results were driven by increases in disability claims and medical management revenues. Operating earnings were $13.0 million for the quarter (margin 11.9%) and $39.6 million year-to-date (margin 12.2%), impacted by increased software amortization and compensation costs.
• International Operations: Revenues were $136.7 million for the quarter (up 1.0%) and $406.5 million year-to-date (up 3.2%). Quarter revenue included a $4.9 million reduction from the disposition of Crawford Legal Services and a $7.9 million increase from foreign currency; excluding these, revenue decreased 1.2%. Year-to-date revenue included a $12.1 million reduction from the disposition and a $23.5 million increase from foreign currency; excluding these, revenue increased 0.4%. Operating earnings were $10.7 million for the quarter (margin 7.8%) and $25.5 million year-to-date (margin 6.3%), driven by improved results in Australia, Canada, and Latin America/Asia.

Market and Competitive Landscape:

• The company operates in more than 70 countries with significant exposure to foreign exchange fluctuations.
• Geographic revenue mix for the third quarter of 2026 was: U.S. (57.5%), U.K. (12.8%), Canada (7.8%), Australia (8.1%), Europe (5.7%), and Rest of World (8.1%).
• Management noted a mixed claims environment with weather-related activity supporting earnings in the quarter.

Risks and Challenges:

• Lower claims frequency and moderating weather-related activity are expected to negatively impact fourth-quarter results.
• Operations are subject to foreign exchange fluctuations, which can significantly impact reported revenues.
• The company faces challenges related to increases in cloud software costs, insurance, and bad debt expenses.
• A one-time $3.1 million indirect tax expense was incurred in 2025, and a $2.3 million software impairment charge occurred in the second quarter of 2026.

Management Commentary and Tone:

• Bruce Swain, President and CEO, stated that the third-quarter performance demonstrated the ability to deliver improved operating results despite a mixed claims environment.
• Management highlighted strength in client relationships, growth in the new business pipeline, and progress in improving execution across the organization.
• The tone was confident regarding long-term objectives, emphasizing disciplined cost management and strategic realignment.

Other Key Points:

• The company repurchased 1,815,458 shares of CRD-A (average cost $11.80) and 108,963 shares of CRD-B (average cost $10.25) during the first nine months of 2026.
• In the first nine months of 2025, the company repurchased 263,098 shares of CRD-A and 12,846 shares of CRD-B.
• The disposition of the Crawford Legal Services businesses reduced revenues by $4.9 million in the quarter and $12.1 million year-to-date.
• Cash dividends were $0.08 per share for the quarter and $0.23 per share year-to-date.
• Unallocated corporate costs decreased to $4.5 million in the quarter and $17.6 million year-to-date, primarily due to lower medical self-insurance and compensation expenses.
• A conference call to discuss results was scheduled for November 3, 2026, at 8:30 a.m. Eastern Time.