Crawford & Company (CRD-A/CRD-B) Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026. Crawford & Company is a global provider of claims management and outsourcing solutions to insurance companies and self-insured entities. Effective January 1, 2026, the Company realigned its reportable segments to U.S. Property & Casualty, Broadspire, and International Operations. The Company is an accelerated filer with shares traded on the NYSE.
Key Financial Metrics
| Metric (in thousands) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Total Revenues | $330,024 | $334,595 | $650,150 | $657,934 |
| Net Income Attributable to Shareholders | $13,448 | $7,782 | $18,353 | $14,466 |
| Diluted EPS (Class A/B) | $0.27 / $0.28 | $0.16 / $0.16 | $0.37 / $0.37 | $0.29 / $0.29 |
| Operating Cash Flow (YTD) | $23,144 (2026) vs $21,083 (2025) | |||
| Cash and Equivalents | $69,419 (as of June 30, 2026) | |||
| Total Debt (Short + Long Term) | $198,080 (as of June 30, 2026) | |||
| Working Capital | $57,429 (as of June 30, 2026) |
Material Changes vs. Prior Period
- Profitability Surge: Net income attributable to shareholders increased 73% in Q2 2026 compared to Q2 2025 ($13.4M vs $7.8M), driven by lower tax rates and reduced SG&A expenses.
- Revenue Decline: Total revenues decreased 1.4% in Q2 and 1.2% YTD compared to the prior year. Excluding foreign currency impacts, revenues before reimbursements declined 2.9% in Q2 and 3.1% YTD.
- Segment Performance:
- U.S. Property & Casualty: Revenues declined 10.2% (Q2) due to reduced weather-driven activity in Catastrophe Services and Contractor Connection.
- Broadspire: Revenues increased 1.2% (Q2) driven by growth in Claims and Medical Management.
- International Operations: Revenues increased 4.2% (Q2) primarily due to favorable foreign exchange rates; organic growth was flat to slightly negative.
- Expense Management: SG&A expenses decreased 11.1% in Q2, largely due to the absence of a $3.1M one-time indirect tax expense incurred in Q2 2025.
- Unusual Items: The Company recorded a $2.3M software impairment charge and a $1.3M loss on disposition of businesses (U.K. and Chile legal services) in the current period.
Guidance, Outlook, and Risks
- Tax Outlook: Management estimates the full-year 2026 effective income tax rate to be approximately 33% to 35%, down from 42.8% in Q2 2025 due to the prior year's one-time foreign tax expense.
- Capital Allocation: The Company repurchased 861,517 shares (CRD-A and CRD-B) for approximately $9.0M during the first six months of 2026. As of June 30, 2026, 1,260,373 shares remain available for repurchase under the current authorization.
- Liquidity: Total liquidity (cash plus borrowing capacity) stands at $356.6M. The Company maintains a revolving credit facility with $280.9M available.
- Risks: Key risks include volatility in weather-driven case volumes, foreign currency exchange fluctuations, potential impairments of goodwill/intangibles, and the impact of global economic conditions on client outsourcing decisions.
Investor Verification Checklist
- Weather Volatility: Verify the sustainability of the U.S. Property & Casualty segment given the 16.5% decline in cases received in Q2 2026.
- Software Impairment: Review the details of the $2.3M software impairment to assess if this indicates broader IT integration issues or is an isolated event.
- Foreign Exchange Sensitivity: Confirm the extent to which International Operations growth is driven by currency translation versus organic volume, as organic growth was negative in constant currency.
- Deferred Revenue: Monitor the $59.6M deferred revenue balance, particularly the portion related to lifetime claim handling, which is sensitive to case closing rates.
- Pension Obligations: Track funding requirements for the U.S. and U.K. defined benefit plans, which remain underfunded and overfunded respectively, impacting future cash flows.