Q4 2025 Crawford & Co Earnings Call

March 3, 2026

Speaker #2: Good morning. My name is Carly, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Co 4th Quarter & Full Year 2025 Earnings Release Conference Call.

Speaker #2: In conjunction with this call, a supplementary financial presentation is available on our website at www.crawco.com. Under the Investor Relations section, all lines have been placed on mute to prevent any background noise.

Speaker #2: After the speakers' remarks, there will be a question-and-answer period. Instructions will follow at that time. Should anyone need assistance at any time during the conference, please press star, then zero, and an operator will assist you.

Speaker #2: As a reminder, ladies and gentlemen, this conference is being recorded today, Tuesday, March 3, 2026, now I would like to introduce Tammy Stevenson, Crawford & Co General Counsel.

Speaker #3: Thank you, Carly. Some of the matters to be discussed in this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties.

Tami Stevenson: Thank you, Carly. Some of the matters to be discussed in this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties. These statements may relate to, among other things, our expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses, expectations regarding our anticipated contributions to our underfunded defined benefit pension plans, collectibility of our build and unbilled accounts receivable, financial results from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreement, our long-term capital resource and liquidity requirements, and our ability to pay dividends in the future. The company's actual results achieved in future quarters could differ materially from the results that may be implied by such forward-looking statements.

Speaker #3: These statements may relate to, among other things, our expected future operating results and financial condition. Our ability to grow our revenues and reduce our operating expenses.

Speaker #3: Expectations regarding our anticipated contributions to our underfunded defined benefit pension plans, collectibility of our billed and unbilled accounts receivable, and financial results from our recently completed acquisitions.

Speaker #3: Our continued compliance with the financial and other covenants contained in our financing agreement. Our long-term capital resource and liquidity requirements and our ability to pay dividends in the future.

Speaker #3: The company's actual results achieved and future quarters could differ materially from the results that may be implied by such forward-looking statements. The company undertakes no obligation to publicly release revisions to any forward-looking statements made in this conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events.

Tami Stevenson: The company undertakes no obligation to publicly release revisions to any forward-looking statements made in this conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events. In addition, you're reminded that operating results for any historical period are not necessarily indicative of results to be expected for any future period. For a complete discussion regarding factors which could affect the company's financial performance, please refer to the company's Form 10-K for the year ended 31 December 2025, filed with the Securities and Exchange Commission, particularly the information under the headings Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations, as well as subsequent company filings with the SEC. This presentation also includes certain non-GAAP financial measures as defined under SEC rules.

Speaker #3: In addition, you're reminded that operating results for any historical period are not necessarily indicative of results to be expected for any future period. For a complete discussion regarding factors which could affect the company's financial performance, please refer to the company's Form 10-K for the year-end to December 31, 2025, filed with the Securities and Exchange Commission.

Speaker #3: Particularly, the information under the headings risk factors, and management's discussion and analysis of financial condition and results of operations. As well as subsequent company filings with the SEC.

Speaker #3: This presentation also includes certain non-GAAP financial measures as defined under SEC rules. As required, a reconciliation is provided for those measures to the most directly comparable GAAP measures.

Tami Stevenson: As required, a reconciliation is provided for those measures to the most directly comparable GAAP measures. I would now like to introduce Mr. Bruce Swayne, Interim Chief Executive Officer of Crawford & Company. Bruce?

Speaker #3: I would now like to introduce Mr. Bruce Swain, Interim Chief Executive Officer of Crawford & Company. Bruce?

Speaker #4: Thank you, Tammy. Good morning and welcome to our 4th Quarter & Full Year 2025 Earnings Call. I'm glad to join you on my first earnings call since being appointed Interim President and CEO, and I'm honored to have the opportunity to lead our company.

W. Bruce Swain, Jr.: Thank you, Tami. Good morning, and welcome to our Q4 and full year 2025 Earnings Call. I'm glad to join you on my first earnings call since being appointed Interim President and CEO, and I'm honored to have the opportunity to lead our company. Joining me today is Holly Boudreau, our Chief Financial Officer, and Tami Stevenson, our General Counsel. We are pleased to have Holly join us on her first earnings call. She has been with Crawford since 2013 and was previously Senior Vice President of Tax, Treasury, and Finance Transformation. Holly's tenure with the company and our succession planning process has supported a seamless transition. Let me start with a brief reminder of the role we play in the claims process.

Bruce Swain: Thank you, Tami. Good morning, and welcome to our Q4 and full year 2025 Earnings Call. I'm glad to join you on my first earnings call since being appointed Interim President and CEO, and I'm honored to have the opportunity to lead our company. Joining me today is Holly Boudreau, our Chief Financial Officer, and Tami Stevenson, our General Counsel. We are pleased to have Holly join us on her first earnings call. She has been with Crawford since 2013 and was previously Senior Vice President of Tax, Treasury, and Finance Transformation. Holly's tenure with the company and our succession planning process has supported a seamless transition. Let me start with a brief reminder of the role we play in the claims process.

Speaker #4: Joining me today is Holly Boudreaux, our Chief Financial Officer, and Tammy Stevenson, our General Counsel. We are pleased to have Holly join us on our first earnings call.

Speaker #4: She has been with Crawford since 2013 and was previously Senior Vice President of Tax, Treasury, and Finance Transformation. Holly's tenure with the company and our succession planning process has supported a seamless transition.

Speaker #4: Let me start with a brief reminder of the role we play in the claims process. Crawford is a global provider of claims management and outsourcing solutions, serving insurers, corporations, and public entities with expertise across the full spectrum of claims.

W. Bruce Swain, Jr.: Crawford is a global provider of claims management and outsourcing solutions, serving insurers, corporations, and public entities with expertise across the full spectrum of claims. Our purpose is to restore lives, businesses, and communities and support our clients by delivering trusted, efficient claims solutions when they need us most. Now turning to our results. Overall, we delivered solid performance in a benign weather year. Revenue was down slightly compared to full year 2024, but we improved our operating earnings and margins. Our core non-weather business delivered strong results, while our weather-related segments encountered a challenging landscape with lower claims activity due to the lack of severe storms throughout the year. This was particularly evident in the Q4, where we faced a tough comparison to 2024, which included over $30 million in revenue from the claims activity related to Hurricanes Helene and Milton.

Bruce Swain: Crawford is a global provider of claims management and outsourcing solutions, serving insurers, corporations, and public entities with expertise across the full spectrum of claims. Our purpose is to restore lives, businesses, and communities and support our clients by delivering trusted, efficient claims solutions when they need us most. Now turning to our results. Overall, we delivered solid performance in a benign weather year. Revenue was down slightly compared to full year 2024, but we improved our operating earnings and margins. Our core non-weather business delivered strong results, while our weather-related segments encountered a challenging landscape with lower claims activity due to the lack of severe storms throughout the year. This was particularly evident in the Q4, where we faced a tough comparison to 2024, which included over $30 million in revenue from the claims activity related to Hurricanes Helene and Milton.

Speaker #4: Our purpose is to restore lives, businesses, and communities, and support our clients by delivering trusted, efficient claim solutions when they need us most. Now turning to our results.

Speaker #4: Overall, we delivered solid performance in a benign weather year. Revenue was down slightly compared to full year 2024, but we improved our operating earnings and margins.

Speaker #4: Our core non-weather business delivered strong results, while our weather-related segments encountered a challenging landscape with lower claims activity due to the lack of severe storms throughout the year.

Speaker #4: This was particularly evident in the 4th Quarter, where we faced a tough comparison to 2024, which included over $30 million in revenue from the claims activity related to hurricanes Helene and Milton.

W. Bruce Swain, Jr.: However, the benefits of our diversified business model, coupled with disciplined expense management, and focused operational execution, enabled us to end 2025 with a strong balance sheet, near record cash flow, and excellent liquidity. Crawford & Company remains strongly positioned in the marketplace with a business model that leverages our global reach and specialized expertise to manage claims of all types and sizes. We have operations in over 70 countries and a team of approximately 10,000 professionals handling over $20 billion in claims annually. We have an 85-year history in the industry and have demonstrated success securing the trust of leading insurers, corporations, and partners.

Bruce Swain: However, the benefits of our diversified business model, coupled with disciplined expense management, and focused operational execution, enabled us to end 2025 with a strong balance sheet, near record cash flow, and excellent liquidity. Crawford & Company remains strongly positioned in the marketplace with a business model that leverages our global reach and specialized expertise to manage claims of all types and sizes. We have operations in over 70 countries and a team of approximately 10,000 professionals handling over $20 billion in claims annually. We have an 85-year history in the industry and have demonstrated success securing the trust of leading insurers, corporations, and partners.

Speaker #4: However, the benefits of our diversified business model coupled with disciplined expense management and focused operational execution enabled us to end 2025 with a strong balance sheet near record cash flow and excellent liquidity.

Speaker #4: Crawford & Company remains strongly positioned in the marketplace, with a business model that leverages our global reach and specialized expertise to manage claims of all types and sizes.

Speaker #4: We have operations in over 70 countries and a team of approximately 10,000 professionals handling over $20 billion in claims annually. We have an 85-year history in the industry and have demonstrated success securing the trust of leading insurers' corporations and partners.

W. Bruce Swain, Jr.: We place client success at the center of everything we do and believe our deep experience and global presence, combined with our ability to offer reliable, tailored solutions across a diverse market, gives us a distinct advantage in the claims management industry. Our growth opportunities stem from our ability to address several macro trends impacting the global claims management industry. First, the increasing complexity of risk is expanding the major and complex loss market. Clients are looking for partners with deep technical expertise, global coordination, and the ability to manage high-severity, complex claims efficiently. Crawford's Global Technical Services team is among the leaders in this market, with the capabilities and demonstrated track record of service excellence that position us well in this segment. Second, with the start of 2026, we have streamlined our global operating structure. I'll provide more detail on this change later in the call.

Bruce Swain: We place client success at the center of everything we do and believe our deep experience and global presence, combined with our ability to offer reliable, tailored solutions across a diverse market, gives us a distinct advantage in the claims management industry. Our growth opportunities stem from our ability to address several macro trends impacting the global claims management industry. First, the increasing complexity of risk is expanding the major and complex loss market. Clients are looking for partners with deep technical expertise, global coordination, and the ability to manage high-severity, complex claims efficiently. Crawford's Global Technical Services team is among the leaders in this market, with the capabilities and demonstrated track record of service excellence that position us well in this segment. Second, with the start of 2026, we have streamlined our global operating structure. I'll provide more detail on this change later in the call.

Speaker #4: We place client success at the center of everything we do. And believe our deep experience and global presence, combined with our ability to offer reliable, tailored solutions across a diverse market, gives us a distinct advantage in the claims management industry.

Speaker #4: Our growth opportunities stem from our ability to address several macro trends impacting the global claims management industry. First, the increasing complexity of risk is expanding the major and complex loss market.

Speaker #4: Clients are looking for partners with deep technical expertise, global coordination, and the ability to manage high-severity, complex claims efficiently. Crawford's global technical services team is among the leaders in this market.

Speaker #4: With the capabilities and demonstrated track record of service excellence that position us well in this segment. Second, with the start of 2026, we have streamlined our global operating structure.

Speaker #4: I'll provide more detail on this change later in the call, but at a high level, we have moved Canada under our International operations and established a new U.S.

W. Bruce Swain, Jr.: At a high level, we have moved Canada under our international operations and established a new US operating structure to improve operational efficiency, enhance client outcomes, and support scalable growth. By aligning our businesses under a streamlined client-centric structure, we believe we will have faster execution, better collaboration, and a more unified and differentiated value proposition to the markets we serve. Third, our industry-leading expertise and technology capabilities continue to enhance our competitive position. Investments in people, systems, and data enable us to deliver better outcomes for clients, deepen relationships, and capture profitable market share. Fourth, natural disasters continue to drive global demand for claims services. The timing and severity of events will always vary, as we saw in 2025, but the underlying long-term trend towards more frequent and complex loss events should drive demand for Crawford's technical expertise and global reach.

Bruce Swain: At a high level, we have moved Canada under our international operations and established a new US operating structure to improve operational efficiency, enhance client outcomes, and support scalable growth. By aligning our businesses under a streamlined client-centric structure, we believe we will have faster execution, better collaboration, and a more unified and differentiated value proposition to the markets we serve. Third, our industry-leading expertise and technology capabilities continue to enhance our competitive position. Investments in people, systems, and data enable us to deliver better outcomes for clients, deepen relationships, and capture profitable market share. Fourth, natural disasters continue to drive global demand for claims services. The timing and severity of events will always vary, as we saw in 2025, but the underlying long-term trend towards more frequent and complex loss events should drive demand for Crawford's technical expertise and global reach.

Speaker #4: Operating structure to improve operational efficiency, enhance client outcomes, and support scalable growth. By aligning our businesses under a streamlined, client-centric structure, we believe we will have faster execution, better collaboration, and a more unified and differentiated value proposition to the markets we serve.

Speaker #4: Third, our industry-leading expertise and technology capabilities continue to enhance our competitive position. Investments in people, systems, and data enable us to deliver better outcomes for clients, deepen relationships, and capture profitable market share.

Speaker #4: Fourth, natural disasters continue to drive global demand for claim services. The timing and severity of events will always vary as we saw in 2025, but the underlying long-term trend towards more frequent and complex loss events should drive demand for Crawford's technical expertise and global reach.

W. Bruce Swain, Jr.: Finally, the claims environment grows more complex every day, spanning medical management, regulatory requirements, and multi-party coordination. As a result, clients are increasingly turning to experienced third-party administrators, such as Broadspire, to manage their needs. Broadspire has the scale, expertise, and technology to support carriers and self-insured clients as they seek better outcomes in a more demanding claims environment. Together, these drivers represent a favorable environment for us to accelerate our long-term growth and create sustainable value. Now I'll provide a more detailed look at our full year results. As I mentioned earlier, we delivered solid execution and achieved meaningful progress in many areas during 2025, although our overall performance reflected a mixed claims environment. Revenue of $1.27 billion was largely consistent year-over-year, despite reduced U.S. property claims activity related to the benign weather experience throughout the year.

Bruce Swain: Finally, the claims environment grows more complex every day, spanning medical management, regulatory requirements, and multi-party coordination. As a result, clients are increasingly turning to experienced third-party administrators, such as Broadspire, to manage their needs. Broadspire has the scale, expertise, and technology to support carriers and self-insured clients as they seek better outcomes in a more demanding claims environment. Together, these drivers represent a favorable environment for us to accelerate our long-term growth and create sustainable value. Now I'll provide a more detailed look at our full year results. As I mentioned earlier, we delivered solid execution and achieved meaningful progress in many areas during 2025, although our overall performance reflected a mixed claims environment. Revenue of $1.27 billion was largely consistent year-over-year, despite reduced U.S. property claims activity related to the benign weather experience throughout the year.

Speaker #4: And finally, the claims environment grows more complex every day, spanning medical management, regulatory requirements, and multi-party coordination. As a result, clients are increasingly turning to experienced third-party administrators such as Broadspire to manage their needs.

Speaker #4: Broadspire has the scale, expertise, and technology to support carriers and self-insured clients as they seek better outcomes in a more demanding claims environment. Together, these drivers represent a favorable environment for us to accelerate our long-term growth and create sustainable value.

Speaker #4: Now I'll provide a more detailed look at our full-year results. As I mentioned earlier, we delivered solid execution and achieved meaningful progress in many areas during 2025, although our overall performance reflected a mixed claims environment.

Speaker #4: Revenue of $1.27 billion was largely consistent year over year, despite reduced U.S. property claims activity. Related to the benign weather experienced throughout the year.

W. Bruce Swain, Jr.: At the same time, we achieved record results in our non-weather-dependent businesses with Broadspire and international operations both delivering record annual revenues, underscoring the strength of our balanced portfolio. From a profitability standpoint, consolidated operating earnings increased by just over 10% to $82.3 million, driven by improved performance in North America Loss Adjusting, international operations, and Broadspire. Broadspire delivered record operating earnings again this year, reinforcing its role as a core profit engine for Crawford. Our consolidated operating margin expanded to 6.5% for full year 2025. Our non-GAAP EPS was $0.91 for both CRDA and CRDB, increasing over 2024 earnings. Crawford added $98 million in new business in 2025, demonstrating the appeal of our value-added solutions, commitment to service excellence, and the strength of our reputation in the marketplace.

Bruce Swain: At the same time, we achieved record results in our non-weather-dependent businesses with Broadspire and international operations both delivering record annual revenues, underscoring the strength of our balanced portfolio. From a profitability standpoint, consolidated operating earnings increased by just over 10% to $82.3 million, driven by improved performance in North America Loss Adjusting, international operations, and Broadspire. Broadspire delivered record operating earnings again this year, reinforcing its role as a core profit engine for Crawford. Our consolidated operating margin expanded to 6.5% for full year 2025. Our non-GAAP EPS was $0.91 for both CRDA and CRDB, increasing over 2024 earnings. Crawford added $98 million in new business in 2025, demonstrating the appeal of our value-added solutions, commitment to service excellence, and the strength of our reputation in the marketplace.

Speaker #4: At the same time, we achieved record results in our non-weather-dependent businesses with Broadspire and international operations both delivering record annual revenues underscoring the strength of our balanced portfolio.

Speaker #4: From a profitability standpoint, consolidated operating earnings increased by just over 10% to $82.3 million. Driven by improved performance in North America loss-adjusting, international operations, and Broadspire.

Speaker #4: Broadspire delivered record operating earnings again this year reinforcing its role as a core profit engine for Crawford. Our consolidated operating margin expanded to $6.5% for full year 2025.

Speaker #4: Our non-GAAP EPS was $0.91 for both CRDA and CRDB, increasing over 2024 earnings. Crawford added $0.98 million in new business in 2025, demonstrating the appeal of our value-added solutions, commitment to service excellence, and the strength of our reputation in the marketplace.

W. Bruce Swain, Jr.: We remain intent on continuously improving our go-to-market strategy with a disciplined focus on growing profitable market share. Our operating cash flow for 2025 was $102 million, improving $50 million over 2024. This is an important indicator of the strength of our business, providing us the ability to invest in our people, technology, and market-leading client solutions, all while maintaining a strong balance sheet. The company's strong liquidity and very low leverage ratio of 1.39 times EBITDA highlights our disciplined approach to capital management and provides us with enhanced financial flexibility. Our company has built a strong foundation through our disciplined approach to deploying capital with a commitment to investing back in the business to deliver long-term growth and returning value to shareholders through our quarterly dividend and opportunistic share repurchases.

Bruce Swain: We remain intent on continuously improving our go-to-market strategy with a disciplined focus on growing profitable market share. Our operating cash flow for 2025 was $102 million, improving $50 million over 2024. This is an important indicator of the strength of our business, providing us the ability to invest in our people, technology, and market-leading client solutions, all while maintaining a strong balance sheet. The company's strong liquidity and very low leverage ratio of 1.39 times EBITDA highlights our disciplined approach to capital management and provides us with enhanced financial flexibility. Our company has built a strong foundation through our disciplined approach to deploying capital with a commitment to investing back in the business to deliver long-term growth and returning value to shareholders through our quarterly dividend and opportunistic share repurchases.

Speaker #4: We remain intent on continuously improving our go-to-market strategy with a disciplined focus on growing profitable market share. Our operating cash flow for 2025 was $102 million, improving $50 million over 2024.

Speaker #4: This is an important indicator of the strength of our business, providing us the ability to invest in our people, technology, and market-leading client solutions, all while maintaining a strong balance sheet.

Speaker #4: The company strong liquidity and very low leverage ratio of 1.39 times EBITDA highlights our disciplined approach to capital management and provides us with enhanced financial flexibility.

Speaker #4: Our company has built a strong foundation through our disciplined approach to deploying capital. With a commitment to investing back in the business to deliver long-term growth and returning value to shareholders through our quarterly dividend and opportunistic share repurchases.

W. Bruce Swain, Jr.: Additionally, we continue to evaluate inorganic growth opportunities for growth, including targeted M&A and acquihires to expand our capabilities, scale, and reach. During 2025, we paid an annual dividend of $0.29 per share, having increased the quarterly dividend to $0.075 per share in the 2025 Q3, and we repurchased over 690,000 shares of CRDA and CRDB in the Q4 of 2025. With that, let me turn the call over to Holly for a deeper look at our Q4 financial performance.

Bruce Swain: Additionally, we continue to evaluate inorganic growth opportunities for growth, including targeted M&A and acquihires to expand our capabilities, scale, and reach. During 2025, we paid an annual dividend of $0.29 per share, having increased the quarterly dividend to $0.075 per share in the 2025 Q3, and we repurchased over 690,000 shares of CRDA and CRDB in the Q4 of 2025. With that, let me turn the call over to Holly for a deeper look at our Q4 financial performance.

Speaker #4: Additionally, we continue to evaluate inorganic growth opportunities for growth. Including targeted M&A and Aqua hires to expand our capabilities, scale, and reach. During 2025, we paid an annual dividend of $0.29 per share, having increased the quarterly dividend to $7.5 per share in the 2025 third quarter.

Speaker #4: And we repurchased over $690,000 shares of CRDA and CRDB in the fourth quarter of 2025. With that, let me turn the call over to Holly for a deeper look at our fourth-quarter financial performance.

Holly Boudreau: Thank you, Bruce. It is a pleasure to be here speaking with you for the first time in my role as CFO. I've had the privilege of working alongside Bruce since 2013, and we will continue to focus on strong financial discipline, driving strategic growth, and creating value for our shareholders. In Q4 2025, international operations contributed 36% of quarterly revenues. Broadspire, our US-based third-party administration business, represented 33% of quarterly revenues. North America Loss Adjusting accounted for 23% of revenues. Platform Solutions accounted for 8% of revenues. Beginning with international operations, as we expected and mentioned on the last call, international operations saw some moderation in Q4 2025 results, primarily related to the absence of one-time benefits we realized in Q4 2024 and softer results in Latin America.

Speaker #5: Thank you, Bruce. It is a pleasure to be here, speaking with you for the first time in my role as CFO. I've had the privilege of working alongside Bruce since 2013, and we will continue to focus on strong financial discipline, driving strategic growth, and creating value for our shareholders.

Speaker #5: In fourth quarter 2025, international operations contributed $36% of quarterly revenues. Broadspire, our U.S.-based third-party administration business, represented $33% of quarterly revenues. North America loss-adjusting accounted for $23% of revenues, and platform solutions accounted for 8% of revenues.

Speaker #5: Beginning with international operations, as we expected, Ann mentioned on the last call, international operations saw some moderation in fourth quarter 2025 results. This was primarily related to the absence of one-time benefits we realized in the fourth quarter of 2024 and softer results in Latin America.

Holly Boudreau: Revenue in Q4 2025 was flat as compared to the prior year. Operating earnings decreased $1.9 million or 22.3%. Despite these headwinds during the quarter, we continued to see strong demand across key markets, including the UK, Europe, Australia, and Asia. As we move forward, we remain focused on prioritizing efficiency initiatives, evaluating and implementing strategic pricing actions, and reallocating resources from non-core businesses to sharpen our focus on high growth areas. In February 2026, we finalized the sale of our Crawford Legal Services operations in the UK and our 80% interest in our legal services business in Chile. With these sales, we have fully exited the legal advisory services businesses, which generated lower margin revenues of $16.2 million in 2025, allowing us to focus on our core operations.

Speaker #5: Revenue in the fourth quarter of 2025 was flat as compared to the prior year, and operating earnings decreased $1.9 million or $22.3%. Despite these headwinds during the quarter, we continued to see strong demand across key markets, including the U.K., Europe, Australia, and Asia.

Speaker #5: As we move forward, we remain focused on prioritizing efficiency initiatives, evaluating and implementing strategic pricing actions, and reallocating resources from non-core businesses to sharpen our focus on high-growth areas.

Speaker #5: In February 2026, we finalized the sale of our Crawford Legal Services operations in the U.K., and our 80% interest in our legal services business in Chile.

Speaker #5: With these sales, we have fully exited the legal advisory services businesses, which generated lower margin revenues of $16.2 million in 2025. This allows us to focus on our core operations.

Holly Boudreau: Broadspire delivered quarterly revenues of $101.5 million and operating earnings of $13.2 million, growth of 3.9% and 30.2% respectively, reflecting continued strong demand for the high-quality technology-enabled solutions we provide. 2025 was a record year for revenue and operating earnings for the segment, driven by Broadspire's continued execution and client-focused service model. We are uniquely positioned to capitalize on growing demands for outsourced claims administration as increasing claims complexity positions Broadspire for growth. Client retention remains strong at 94%, underscoring the durability of our relationships and the differentiated value proposition that Broadspire provides to its clients. In North America Loss Adjusting, revenues decreased 11.8% year-over-year, reflecting the absence of revenues associated with Hurricane Helene and Milton recognized in Q4 2024.

Speaker #5: Broadspire delivered quarterly revenues of $101.5 million, and operating earnings of $13.2 million. Growth of 3.9% and 30.2%, respectively. Reflecting continued strong demand for the high-quality, technology-enabled solutions we provide.

Speaker #5: 2025 was a record year for revenue and operating earnings for the segment. Driven by Broadspire's continued execution and client-focused service model. We are uniquely positioned to capitalize on growing demands for outsourced claims administration, as increasing claims complexity positions Broadspire for growth.

Speaker #5: Client retention remains strong in 94%, underscoring the durability of our relationship and the differentiated value propositions that Broadspire provides to its clients. In North America loss-adjusting, revenues decreased $11.8% year over year, reflecting the absence of revenues associated with Hurricane Helene and Milton recognized in the fourth quarter of 2024.

Holly Boudreau: However, the segment achieved a 17.7% increase in operating earnings compared to the prior year period, primarily driven by improvements in our Canadian business. Operating margins increased 142 basis points, reflecting our commitment to improving operational efficiencies. Our North America Loss Adjusting business enjoys a strong reputation for its major and complexTesting capabilities. One of our competitive advantages is our ability to attract and retain the best professionals in the industry. Platform Solutions' Q4 revenue was $25.1 million, decreasing from 56.5% from the prior year. Performance in the segment was impacted by a lack of severe weather and shifting market dynamics. Storm activity in the Q4 of 2025 was down sharply compared to 2024, when storm-related claims activity contributed significant revenues associated with Hurricanes Helene and Milton.

Speaker #5: However, the segment achieved a 17.7% increase in operating earnings, compared to the prior year period. Primarily driven by improvements in our Canadian business. Operating margins increased $142 basis points, reflecting our commitment to improving operational efficiencies.

Speaker #5: Our North America loss-adjusting business enjoys a strong reputation for its major and complex adjusting capabilities, and one of our competitive advantages is our ability to attract and retain the best professionals in the industry.

Speaker #5: Platform solutions fourth quarter revenue was $25.1 million, decreasing from $56.5% from the prior year. Performance in the segment was impacted by a lack of severe weather and shifting market dynamics.

Speaker #5: Storm activity in the fourth quarter of 2025 was down sharply compared to 2024, when storm-related claims activity contributed significant revenues associated with Hurricane Helene and Milton.

Holly Boudreau: As we've discussed previously, Platform Solutions is the segment most directly impacted by catastrophe-driven activity, and periods of low storm severity can have a pronounced impact on results. We saw some carrier clients shift claims activities in-house as they reduced reliance on outsourced providers in a moderate claims environment. With carriers currently reporting record levels of profitability, many are leveraging this period of relatively benign weather to streamline operations and internalize more claims activity, reducing their dependency on external suppliers. We remain focused on the elements we can control, which include continuing to evolve our service offerings, delivering high-quality claims services, expanding our brand recognition in the global market, and driving operational efficiency. Adding context to the weather-related impacts of the company, Q4 2025 saw an approximately 22% decline in US severe storm support compared to the prior year.

Speaker #5: As we've discussed previously, platform solutions is the segment most directly impacted by catastrophe-driven activity, and periods of low storm severity can have a pronounced impact on results.

Speaker #5: In addition, we saw some carrier-client shift claims activities in-house as they reduced reliance on outsourced providers in a moderate claims environment. With carriers currently reporting record levels of profitability, many are leveraging this period of relatively benign weather to streamline operations and internalize more claims activity.

Speaker #5: Reducing their dependency on external suppliers. We remain focused on the elements we can control, which include continued to evolve our service offerings, delivering high-quality claims services, expanding our recognition in the global market, and driving operational efficiencies.

Speaker #5: Adding context to the weather-related impacts of the company, the fourth quarter of 2025 saw an approximately 22% decline in U.S. severe storm support compared to the prior year.

Holly Boudreau: This translated into a roughly 33% reduction in weather-related revenues to Crawford in the quarter. Importantly, non-weather-related revenues remained consistent year-over-year, providing balance and highlighting the strength of our operating model. Looking ahead with our visibility today, we are expecting a subdued Q1 in 2026, which includes some moderation in Broadspire due to advanced hires for new business, as well as investment in early career resources. As discussed in the past, the prior year Q1 contained non-recurring carryover hurricanes from Helene and Milton that will not repeat in 2026. Additionally, the effects of Winter Storm Fern and Gianna, which impacted a large part of the US, are not producing significant claims activity for the company. While weather-driven results can and often will vary quarter-to-quarter, the company remains well positioned to respond at scale when demand returns.

Speaker #5: This translated into a roughly $33% reduction in weather-related revenues to Crawford in the quarter. Importantly, non-weather-related revenues remain consistent year over year, providing balance and highlighting the strength of our operating model.

Speaker #5: Looking ahead with our visibility today, we are expecting a subdued first quarter in 2026, which includes some moderation in Broadspire due to advanced timing for new business, as well as investment in early-career resources.

Speaker #5: As discussed in the past, the prior year first quarter contained non-recurring carryover hurricanes from Helene and Milton that will not repeat in 2026. Additionally, the effects of winter storms Fern and Gianna, which impacted a large part of the United States, are not producing significant claims activity for the company.

Speaker #5: While weather-driven results can and often will vary quarter to quarter, the company remains well-positioned to respond at scale when demand returns. And now for a look at our consolidated results.

Holly Boudreau: Now for a look at our consolidated results. In the Q4 2025, company-wide revenues before reimbursements were $308.5 million, a decrease of 11.2% compared to the prior year period. Foreign exchange rates increased revenues before reimbursement by $3.6 million or 1.2%. GAAP net loss attributable to shareholders totaled $7.2 million, compared to net income of $5.7 million in the same period of 2024. GAAP diluted EPS in the Q4 2025 was a loss per share of $0.15 for both CRDA and CRDB, a decrease from earnings of $0.11 for CRDA and $0.12 for CRDB in the 2024 period.

Speaker #5: In the 2025 fourth quarter, company-wide revenue for reimbursements were $308.5 million. A decrease of $11.2% compared to the prior year period. Foreign exchange rates increased revenues before reimbursement by 3.6 million, or 1.2%.

Speaker #5: GAAP net loss attributable to shareholders totaled $7.2 million, compared to net income of $5.7 million, in the same period of 2024. GAAP diluted EPS in the 2025 fourth quarter was a loss per share of 15 cents for both CRDA and CRDB, a decrease from earnings of $11 for CRDA and $0.12 for CRDB in the 2024 period.

Holly Boudreau: On a non-GAAP basis, diluted EPS was $0.15 for both CRDA and CRDB, decreasing from $0.19 for both share classes in the prior year period. The company's non-GAAP operating earnings totaled $15.8 million in the 2025 Q4 or 5.1% of revenues, compared to $18.7 million or 5.4% of revenues in the prior year period. Consolidated adjusted EBITDA was $23.9 million in the 2025 Q4 or 7.7% of revenues, decreasing from $27.9 million or 8% of revenues in the 2024 Q4. The company's cash and cash equivalents as of 31 December 2025 totaled $64.1 million compared to $55.4 million at 31 December 2024.

Speaker #5: On a non-GAAP basis, diluted EPS was 15 cents for both CRDA and CRDB, decreasing from $0.19 for both share classes in the prior year period.

Speaker #5: The company's non-GAAP operating earnings totaled $15.8 million in the 2025 fourth quarter, or $5.1% of revenues, compared to $18.7 or $5.4% of revenues in the prior year period.

Speaker #5: Consolidated adjusted EBITDA was $23.9 million in the 2025 fourth quarter, or 7.7% of revenues, decreasing from $27.9 million or 8% of revenues in the 2024 quarter.

Speaker #5: The company's cash and cash equivalents as of December 31, 2025, totaled $64.1 million, compared to $55.4 million at December 31, 2024. Total receivables were $242.6 million as of December 31, 2025, down $30.5 million from the 2024 year-end.

Holly Boudreau: Total receivables were $242.6 million as of 31 December 2025, down $30.5 million from the 2024 year-end. The company's total debt outstanding as of 31 December 2025 totaled $189.1 million, down $29 million from 31 December 2024. Net debt was $125 million as of 31 December 2025, while our US pension liability was $17.9 million, reflecting a funded ratio of 94%. We made no discretionary contributions to our US defined benefit pension plan during Q4 2025. Cash flow provided by operating activities for 2025 was $101.8 million, with free cash flow of $63.3 million.

Speaker #5: The company's total debt outstanding as of December 31, 2025, totaled $189.1 million, down $29 million from December 31, 2024. Net debt was $125 million as of December 31, 2025, while our U.S.

Speaker #5: Pension liability was $17.9 million, reflecting a funded ratio of 94%. We made no discretionary contributions to our U.S.-defined benefit pension plan during the fourth quarter of 2025.

Speaker #5: Cash flow provided by operating activities for 2025 was $101.8 million, with free cash flow of $63.3 million. This compares to $51.6 million in operating cash flow in 2024, with free cash flow of $10 million.

Holly Boudreau: This compares to $51.6 million in operating cash flow in 2024, with free cash flow of $10 million. This significant improvement in operating and free cash flow in 2025 was primarily due to improved operating earnings and improved working capital levels. Unallocated corporate costs were $6.8 million in the 2025 Q4 compared to costs of $8 million in the 2024 period. The decrease was due to a reduction in professional fees, partially offset by higher compensation costs.

Speaker #5: The significant improvement in operating and free cash flow in 2025 was primarily due to improved operating earnings and improved working capital levels. Unallocated corporate costs were $6.8 million in the 2025 fourth quarter, compared to costs of $8 million in the 2024 period.

Speaker #5: The decrease was due to a reduction in professional fees, partially offset by higher compensation costs. During 2025 fourth quarter, non-service pension costs were $2.4 million, consistent with the same period of 2024.

Holly Boudreau: During Q4 2025, non-service pension costs were $2.4 million, consistent with the same period of 2024. We recognized $14 million of pre-tax restructuring and other costs in Q4, or $0.22 per share, primarily related to asset impairment, lease termination expenses, severance, and the non-cash loss on the sale of our legal services business that is in Australia. During Q4 2025, the company repurchased over 690,000 shares of CRDA and CRDB. Our board of directors authorized the addition of 2 million shares of common stock to the stock repurchase program and extended the program termination date to 31 December 2027. Now I will turn the call back over to Bruce.

Speaker #5: We recognized a $14 million of pre-tax restructuring and other costs in the fourth quarter, or $22 cents per share. Primarily related to asset impairment, lease termination expenses, severance, and the non-cash loss on the sale of our legal services business and Australia.

Speaker #5: During the fourth quarter of 2025, the company repurchased over $690,000 shares of CRDA and CRDB. Our board of directors authorized the addition of $2 million shares of common stock to the stock repurchase program and extended the program termination date to December 31, 2027.

Speaker #5: And now I will turn the call back over to Bruce.

W. Bruce Swain, Jr.: Thanks, Holly. As we look ahead, we've taken an important step to streamline our operations and sharpen our execution by moving to a new global operating structure. Effective 1 January 2026, we began operating under two operating divisions: US operations and international operations, reflecting a simplified client-centric model designed to improve speed, efficiency, and market responsiveness. By aligning our businesses under these two global operating divisions, we are strengthening collaboration across geographies and enabling our teams to move faster in serving clients. We believe this model will further strengthen our operational execution, positioning Crawford to deliver a more integrated client experience by unlocking the full power of our capabilities. This new operating structure will also necessitate a change in the reportable segments we disclose in the future. Going forward, we will report our operating results under three segments.

Bruce Swain: Thanks, Holly. As we look ahead, we've taken an important step to streamline our operations and sharpen our execution by moving to a new global operating structure. Effective 1 January 2026, we began operating under two operating divisions: US operations and international operations, reflecting a simplified client-centric model designed to improve speed, efficiency, and market responsiveness. By aligning our businesses under these two global operating divisions, we are strengthening collaboration across geographies and enabling our teams to move faster in serving clients. We believe this model will further strengthen our operational execution, positioning Crawford to deliver a more integrated client experience by unlocking the full power of our capabilities. This new operating structure will also necessitate a change in the reportable segments we disclose in the future. Going forward, we will report our operating results under three segments.

Speaker #1: Thanks, Holly. As we look ahead, we've taken an important step to streamline our operations and sharpen our execution by moving to a new global operating structure.

Speaker #1: Effective January 1, 2026, we began operating under two operating divisions: U.S. operations and international operations, reflecting a simplified client-centric model designed to improve speed, efficiency, and market responsiveness.

Speaker #1: By aligning our businesses under these two global operating divisions, we are strengthening collaboration across geographies and enabling our teams to move faster in serving clients.

Speaker #1: We believe this model will further strengthen our operational execution, positioning Crawford to deliver a more integrated client experience by unlocking the full power of our capabilities.

Speaker #1: This new operating structure will also necessitate a change in the reportable segments we disclose in the future. Going forward, we will report our operating results under three segments: U.S.

W. Bruce Swain, Jr.: U.S. property and casualty will be comprised of US Loss Adjusting, which includes Global Technical Services and Claim Solutions, along with networks which consist of the Contractor Connection and catastrophe services operations previously reported within Platform Solutions. Broadspire will remain a reportable segment and now include the subrogation operations that were previously reported within Platform Solutions. Finally, international operations will include all operations outside the US, including the Canadian operations that were previously reported within North America Loss Adjusting. Our reporting for the succeeding interim and annual periods will disclose the reportable segments under the new basis, with prior periods restated to reflect the change. We intend to issue an 8-K in the coming weeks, restating 2024 and 2025, including all quarters under the new reporting structure. To close, 2025 was a year of progress for Crawford.

Bruce Swain: U.S. property and casualty will be comprised of US Loss Adjusting, which includes Global Technical Services and Claim Solutions, along with networks which consist of the Contractor Connection and catastrophe services operations previously reported within Platform Solutions. Broadspire will remain a reportable segment and now include the subrogation operations that were previously reported within Platform Solutions. Finally, international operations will include all operations outside the US, including the Canadian operations that were previously reported within North America Loss Adjusting. Our reporting for the succeeding interim and annual periods will disclose the reportable segments under the new basis, with prior periods restated to reflect the change. We intend to issue an 8-K in the coming weeks, restating 2024 and 2025, including all quarters under the new reporting structure. To close, 2025 was a year of progress for Crawford.

Speaker #1: Property and Casualty will be comprised of U.S. Loss Adjusting, which includes Global Technical Services and Claim Solutions; along with Networks, which consist of the Contractor Connection and Catastrophe Services operations previously reported within Platform Solutions. Broadspire will remain a reportable segment, and now include the Subrogation operations that were previously reported within Platform Solutions.

Speaker #1: Finally, international operations will include all operations outside the U.S. including the Canadian operations that were previously reported within North America loss adjusting. Our reporting for the succeeding interim and annual periods will disclose the reportable segments under the new basis with prior periods restated to reflect the change.

Speaker #1: We intend to issue an AK in the coming weeks, restating 2024 and 2025, including all quarters under the new reporting structure. To close, 2025 was a year of progress for Crawford.

W. Bruce Swain, Jr.: While the Q4 reflected a more subdued claims environment, particularly related to weather activity, the year as a whole demonstrated the resilience of our business and the benefits of the actions we've taken to sharpen execution, improve productivity, and strengthen our operating discipline. We remain focused on the areas we can control, serving clients with excellence, managing costs thoughtfully, and continuing to invest in our people and technology capabilities that support sustainable growth. As we move through 2026, we will remain focused on client success. We believe our simplified operating structure will create a stronger organization by promoting an integrated service model, enhanced collaboration, and a more nimble response to our clients in the marketplace. With a balanced portfolio of weather and non-weather businesses, a strong balance sheet and liquidity, and an experienced leadership team, we are optimistic about 2026.

Bruce Swain: While the Q4 reflected a more subdued claims environment, particularly related to weather activity, the year as a whole demonstrated the resilience of our business and the benefits of the actions we've taken to sharpen execution, improve productivity, and strengthen our operating discipline. We remain focused on the areas we can control, serving clients with excellence, managing costs thoughtfully, and continuing to invest in our people and technology capabilities that support sustainable growth. As we move through 2026, we will remain focused on client success. We believe our simplified operating structure will create a stronger organization by promoting an integrated service model, enhanced collaboration, and a more nimble response to our clients in the marketplace. With a balanced portfolio of weather and non-weather businesses, a strong balance sheet and liquidity, and an experienced leadership team, we are optimistic about 2026.

Speaker #1: While the fourth quarter reflected a more subdued claims environment, particularly related to weather activity, the year as a whole demonstrated the resilience of our business and the benefits of the actions we've taken to sharpen execution, improve productivity, and strengthen our operating discipline.

Speaker #1: We remain focused on the areas we can control, serving clients with excellence, managing costs thoughtfully, and continuing to invest in our people and technology capabilities that support sustainable growth.

Speaker #1: As we move through 2026, we will remain focused on client success. We believe our simplified operating structure will create a strong organization by promoting an integrated service model, enhanced collaboration, and a more nimble response to our clients and the marketplace.

Speaker #1: With a balanced portfolio of weather and non-weather businesses, a strong balance sheet and liquidity, and an experienced leadership team, we are optimistic about 2026.

W. Bruce Swain, Jr.: Thank you for your time today and for your continued interest in Crawford. We look forward to updating you on our progress in the year ahead. Carly, please open the call for questions.

Bruce Swain: Thank you for your time today and for your continued interest in Crawford. We look forward to updating you on our progress in the year ahead. Carly, please open the call for questions.

Speaker #1: Thank you for your time today and for your continued interest in Crawford. We look forward to updating you on our progress in the year ahead.

Speaker #1: Carly, please open the call for questions.

Operator: At this time, if you would like to ask a question, press Star, then the number one on your telephone keypad. To withdraw your question, press Star one again. If you are using a speakerphone, please pick up your handset before asking your question. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Max Fritscher with Truist Securities.

Speaker #2: At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, press star one again.

Speaker #2: If you are using a speakerphone, please pick up your handset before asking your question. We’ll pause for just a moment to compile the Q&A roster.

Speaker #2: Your first question comes from Maxwell Fritzscher with Truist Securities.

Max Fritscher: Hi. Good morning. I'm calling in for Mark Hughes. Good morning. What are your latest thoughts around AI, the topic of the day? You mentioned carriers shifting to that internalized claim management. Do you see any further threat of that due to AI? On the other hand, how do you expect Crawford to benefit from the adoption of AI?

Speaker #3: Hi, good morning. I'm calling in from RQs. Good morning. What are your latest thoughts around AI, the topic of the day? You mentioned carriers shifting to the internalized claim management.

Speaker #3: Do you see any further threat of that due to AI and then on the other hand, how do you expect Crawford to benefit from the adoption of AI?

W. Bruce Swain, Jr.: Maybe answer that in two ways. I think a lot of the insourcing that we're seeing with carriers here recently in the Q4 and continuing into the 2026 Q1 is due to lower claims frequency and increased capacity within the carriers to handle those claims internally. We certainly saw that in the Q4, and we think that's going to continue in the 2026 Q1, which was what Holly was talking about and our thoughts on softness in the Q1. We're continuing to invest in AI and data-enabled tools across claims workflows to help drive operational efficiency within our business. You know, our primary focus at this point is on practical applications. We wanna improve our claim cycle times.

Bruce Swain: Maybe answer that in two ways. I think a lot of the insourcing that we're seeing with carriers here recently in the Q4 and continuing into the 2026 Q1 is due to lower claims frequency and increased capacity within the carriers to handle those claims internally. We certainly saw that in the Q4, and we think that's going to continue in the 2026 Q1, which was what Holly was talking about and our thoughts on softness in the Q1. We're continuing to invest in AI and data-enabled tools across claims workflows to help drive operational efficiency within our business. You know, our primary focus at this point is on practical applications. We wanna improve our claim cycle times.

Speaker #4: Yeah, maybe answer that in two ways. I think a lot of the insourcing that we're seeing with carriers here recently in the fourth quarter and continuing into the 2026 first quarter is due to lower claims frequency.

Speaker #4: And increased capacity within the carriers to handle those claims internally. So we certainly saw that in the fourth quarter, and we think that's going to continue in the Q1 '26 first quarter, which was what Holly was talking about and our thoughts on softness in the first quarter.

Speaker #4: As it relates to AI, yeah, we're continuing to invest in AI and data-enabled tools across claims workflows to help drive operational efficiency within our business.

Speaker #4: Our primary focus at this point is on practical applications. We want to improve our claim cycle times. We want to enhance the accuracy of the work that our professionals are doing.

W. Bruce Swain, Jr.: We wanna enhance the accuracy of the work that our professionals are doing, we wanna support adjuster productivity as well. You know, we look at AI as something that augments but not replaces our expertise. You know, particularly as claims are becoming more complex and where we look at AI in general as, you know, a thought partner that's gonna enhance human capabilities and not as a, as an easy button that's gonna replace our staff people or our adjusters.

Bruce Swain: We wanna enhance the accuracy of the work that our professionals are doing, we wanna support adjuster productivity as well. You know, we look at AI as something that augments but not replaces our expertise. You know, particularly as claims are becoming more complex and where we look at AI in general as, you know, a thought partner that's gonna enhance human capabilities and not as a, as an easy button that's gonna replace our staff people or our adjusters.

Speaker #4: And then we want to support adjuster productivity as well. So we look at AI as something that augments but does not replace our expertise, particularly as claims are becoming more complex and where professional judgment remains critical.

Speaker #4: So we look at AI in general as a thought partner that's going to enhance human capabilities and not as an easy button that's going to replace our staff people or our adjusters.

Max Fritscher: Great. Thank you. Then, on GTS, what has your experience been lately in adding headcount there and how has that differed, if at all, internationally versus North America?

Speaker #3: Great. Thank you. And then on GTS, what is your experience been lately in adding headcount there and how has that differed, if at all, internationally versus North America?

W. Bruce Swain, Jr.: Yeah, I mean, we look at the major and complex loss market, you know, Global Technical Services, as a key area of growth for us in the future. You know, we are actively looking to recruit and onboard senior adjusting talent. We call that strategy Acqui-hire, and we are active across the globe in trying to identify and bring on talent there. That will continue throughout 2026, and I think for the foreseeable few years.

Bruce Swain: Yeah, I mean, we look at the major and complex loss market, you know, Global Technical Services, as a key area of growth for us in the future. You know, we are actively looking to recruit and onboard senior adjusting talent. We call that strategy Acqui-hire, and we are active across the globe in trying to identify and bring on talent there. That will continue throughout 2026, and I think for the foreseeable few years.

Speaker #4: Yeah, I mean, we look at the major and complex loss market, global technical services, as a key area of growth for us in the future.

Speaker #4: And we are actively looking to recruit and onboard senior adjusting talent. And we call that strategy AquaHire. And we are active across the globe in trying to identify and bring on talent.

Speaker #4: There. So that will continue. And throughout '26, and I think for the foreseeable few years.

Max Fritscher: At Broadspire last quarter, you all had mentioned that RFP activity had taken a step down in Q2, ramped back up in Q3. Any update on your experience in Q4 and maybe how 2026 has started?

Speaker #3: And then at broads fire, last quarter, you all had mentioned that RFP activity had taken a step down in 2Q, ramped back up in 3Q.

Speaker #3: Any update on your experience in 4Q and maybe how 2026 has started?

W. Bruce Swain, Jr.: I mean, we've got a very strong pipeline in Broadspire, and, you know, we were happy to see, you know, almost 4% growth year-over-year in the business. While, you know, our pipeline was down a bit early in 2025, we did end the year with pretty good revenue growth. You know, it's got a relatively slow sales cycle in the TPA business, it takes some time for those things to work their way through the system. You know, we believe that, you know, in putting, you know, our clients' outcomes first and providing the market with a differentiated value proposition, that we're going to see, you know, continued organic growth in Broadspire.

Bruce Swain: I mean, we've got a very strong pipeline in Broadspire, and, you know, we were happy to see, you know, almost 4% growth year-over-year in the business. While, you know, our pipeline was down a bit early in 2025, we did end the year with pretty good revenue growth. You know, it's got a relatively slow sales cycle in the TPA business, it takes some time for those things to work their way through the system. You know, we believe that, you know, in putting, you know, our clients' outcomes first and providing the market with a differentiated value proposition, that we're going to see, you know, continued organic growth in Broadspire.

Speaker #4: Yeah, I mean, we've got a very strong pipeline in broads fire. And we were happy to see almost 4% growth year over year in the business.

Speaker #4: So while our pipeline was down a bit early in '25, we did end the year with pretty good revenue growth. Like I said, a strong pipeline.

Speaker #4: You know it's got a relatively slow sales cycle in the TPA business. So it takes some time for those things to work their way through the system.

Speaker #4: But we believe that in putting our clients' outcomes first and providing the market with a differentiated value proposition, that we're going to see continued organic growth in broads fire.

W. Bruce Swain, Jr.: As you know, that business tends to be relatively sticky with kind of mid-90% retention rates. You know, we feel very good about the future of the Broadspire business, and that's a business that really performed well in 2025 with record revenues and record operating earnings.

Bruce Swain: As you know, that business tends to be relatively sticky with kind of mid-90% retention rates. You know, we feel very good about the future of the Broadspire business, and that's a business that really performed well in 2025 with record revenues and record operating earnings.

Speaker #4: And as you know, that business tends to be relatively sticky with kind of mid-90% retention rates. So we feel very good about the future of the broads fire business.

Speaker #4: And that's a business that really performed well in 2025, with record revenues and record operating earnings.

Max Fritscher: Great. Thank you. Last one from me. Any change in workers' comp claims? Any change that you're seeing in frequency or severity there?

Speaker #3: Great. Thank you. And then last one from me. Any change in workers' comp claims? Any change that you're seeing in frequency or severity there?

W. Bruce Swain, Jr.: You know, I think we've seen, you know, obviously premium levels continue to increase with job creation and wage increases. I think we're seeing the frequency kind of on an apples-to-apples basis continue to come down slightly, and that's continuing on the kind of the multi-year trend that's been out there. Severity is certainly increasing. While frequency may be nosing down, the severity in workers' comp claims, frankly, the severity in all claims that we're handling, we're seeing as increasing.

Bruce Swain: You know, I think we've seen, you know, obviously premium levels continue to increase with job creation and wage increases. I think we're seeing the frequency kind of on an apples-to-apples basis continue to come down slightly, and that's continuing on the kind of the multi-year trend that's been out there. Severity is certainly increasing. While frequency may be nosing down, the severity in workers' comp claims, frankly, the severity in all claims that we're handling, we're seeing as increasing.

Speaker #4: You know, I think we've seen, obviously, premium levels continue to increase with job creation and wage increases. I think we're seeing the frequency, kind of on an apples-to-apples basis, continue to come down slightly.

Speaker #4: And that's continuing on the kind of the multi-year trend that's been out there. But severity is certainly increasing. So, while frequency may be nosing down, the severity in workers' comp claims—frankly, the severity in all claims that we're handling—we're seeing as increasing.

Max Fritscher: Thank you. If I may sneak one more in there. You mentioned M&A as a capital allocation priority. How would you characterize the pipeline there?

Speaker #3: Thank you. And if I may sneak one more in there. You mentioned M&A as a capital allocation priority. How would you characterize the pipeline there?

W. Bruce Swain, Jr.: You know, we are very active in evaluating opportunities. We're selective in what we end up executing on. You know, there's a lot of things that we're looking at and evaluating, and we're hopeful that during 2026, we'll be able to execute on something. We're gonna make sure it makes sense for the company and is the right asset for us. We'll be picky as we've been picky in the past.

Bruce Swain: You know, we are very active in evaluating opportunities. We're selective in what we end up executing on. You know, there's a lot of things that we're looking at and evaluating, and we're hopeful that during 2026, we'll be able to execute on something. We're gonna make sure it makes sense for the company and is the right asset for us. We'll be picky as we've been picky in the past.

Speaker #4: You know, we are very active in evaluating opportunities. We're selective in what we end up executing on. So there's a lot of things that we're looking at and evaluating.

Speaker #4: And we're hopeful that during 2026, we'll be able to execute on something. But we're going to make sure it makes sense for the company.

Speaker #4: And it's the right asset for us, so we'll be picky, as we've been picky in the past.

Max Fritscher: Great. Thank you, Bruce. Thank you, Holly.

W. Bruce Swain, Jr.: Thanks, Max.

Bruce Swain: Thanks, Max.

Operator: Thank you. Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. Your next question comes from Kevin Steinke with Barrington Research.

Holly Boudreau: Thank you.

Speaker #3: Great. Thank you, Bruce. Thank you, Holly.

Operator: Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. Your next question comes from Kevin Steinke with Barrington Research.

Speaker #4: Thanks, Matt.

Speaker #5: Thank you.

Speaker #6: Again, if you would like to ask a question, press star, followed by the number one on your telephone keypad. Your next question comes from Kevin Steinke with Barrington Research.

Kevin Steinke: Thank you, and good morning.

W. Bruce Swain, Jr.: Hey, Kevin.

Bruce Swain: Hey, Kevin.

Operator: Hey.

Holly Boudreau: Hey.

Kevin Steinke: I wanted to just make sure I understood all the factors that, you know, you expect to impact Q1 2026, and I don't know if you're able to put some quantification around it. You talked about the carryover claims from Hurricanes Helene and Milton that benefited Q1 2025, and then I guess the internalization of claims management by some carriers. I don't know if there's any more detail you can provide on that as we think about our models for Q1.

Speaker #7: Thank you. And good morning.

Speaker #4: Hey, Kevin.

Speaker #5: Hey.

Speaker #7: I wanted to just make sure I understood all the factors that you expect to impact the first quarter of 2026. And I don't know if you're able to put some quantification around it.

Speaker #7: You talked about the carryover claims from Hurricanes Helene and Milton that benefit the first quarter of 2025. And then I guess the internalization of claims management by some carriers.

Speaker #7: So I don't know if there's any more detail you can provide on that as we think about our models for the first quarter.

W. Bruce Swain, Jr.: Yeah. You know, some of that is there's a little bit of crossover between those two as well. What I would tell you is, as we think about Q1, we've seen some modest activity from Winter Storm Fern and from Gianna. That's certainly coming into the Q1. As I was telling Max, you know, there's a lot of capacity within the carriers that existed in Q4 2025 and that continued on into Q1 2026, given the absence of any significant weather activity to close the year. There's a lot of that activity that was handled in-house by the carriers. You know, last year, we saw the carryover claims from Milton and Helene. That's certainly not gonna be present this year.

Bruce Swain: Yeah. You know, some of that is there's a little bit of crossover between those two as well. What I would tell you is, as we think about Q1, we've seen some modest activity from Winter Storm Fern and from Gianna. That's certainly coming into the Q1. As I was telling Max, you know, there's a lot of capacity within the carriers that existed in Q4 2025 and that continued on into Q1 2026, given the absence of any significant weather activity to close the year. There's a lot of that activity that was handled in-house by the carriers. You know, last year, we saw the carryover claims from Milton and Helene. That's certainly not gonna be present this year.

Speaker #4: Yeah. Some of that is, there's a little bit of crossover between those two as well. What I would tell you is, as we think about the first quarter, we've seen some modest activity from Winter Storm Fern and from Giana.

Speaker #4: That's certainly coming into the first quarter. But as I was telling Max, there's a lot of capacity within the carriers. That existed in the fourth quarter of '25 and that continued on into the first quarter of '26, given the absence of any significant weather activity to close the year.

Speaker #4: So, there’s a lot of that activity that was handled in-house by the carriers. Last year, we saw the carryover claims from Milton and Helene.

W. Bruce Swain, Jr.: As I think about those two, and how they offset each other, I would say that weather-related claims will be down year-over-year as you're thinking about the Q1.

Bruce Swain: As I think about those two, and how they offset each other, I would say that weather-related claims will be down year-over-year as you're thinking about the Q1.

Speaker #4: That's certainly not going to be present this year. So as I think about those two and how they offset each other, I would say that weather-related claims will be down year over year as you're thinking about the first quarter.

Kevin Steinke: Okay. Sounds good. The discussion about carriers internalizing claims management, yeah, in this more benign weather environment, to me, is that just more of a cyclical trend where, you know, if we have some more severe weather, then their capacity gets soaked up and, they're gonna be calling on you more? I'm just wondering how sustainable you think that trend is of internalization of claims management by carriers.

Speaker #7: Okay, sounds good. And the discussion about carriers internalizing claims management in this more benign weather environment—to me, does that just seem more like a cyclical trend, where if we have some more severe weather, then their capacity gets soaked up and they're going to be calling on you more?

Speaker #7: It's just I'm just wondering how sustainable you think that trend is internalization of claims management by carriers is.

W. Bruce Swain, Jr.: I think it certainly is cyclical. If we have kind of a robust weather period, then that capacity is gonna get soaked up, and they're gonna vend claims out to independents. We've seen periods of reduced claims activity in the past with the absence of kind of headline grabbing catastrophe events. The carriers have long, large entrenched claims organizations. You know, their priority is to make sure that their own staffs are fully utilized. That's what we've seen them doing to close last year. I think that's what you're gonna see happening at the start of 2026.

Bruce Swain: I think it certainly is cyclical. If we have kind of a robust weather period, then that capacity is gonna get soaked up, and they're gonna vend claims out to independents. We've seen periods of reduced claims activity in the past with the absence of kind of headline grabbing catastrophe events. The carriers have long, large entrenched claims organizations. You know, their priority is to make sure that their own staffs are fully utilized. That's what we've seen them doing to close last year. I think that's what you're gonna see happening at the start of 2026.

Speaker #4: I think it certainly I think it certainly is cyclical. And if we have kind of a robust weather period, then that capacity is going to get soaked up and they're going to vent.

Speaker #4: Claims out to independents. So we've seen periods of reduced claims activity in the past with the absence of, kind of, headline-grabbing catastrophe events.

Speaker #4: And the carriers have large entrenched claims organizations. And their priority is to make sure that their own staffs are fully utilized. And that's what we've seen them doing to close last year.

Speaker #4: I think that's what you're going to see happening at the start of 2026. But as you know, kind of seasonality within our business tends to be in the second and third quarter.

W. Bruce Swain, Jr.: You know, as you know, kind of seasonality within our business, tends to be in Q2 and Q3, and that's when you see a lot of the severe convective storm activity, hail storms, floods and the like that, will, you know, if past trends hold, then that internal capacity is gonna get soaked up and you'll see more vending out to independents like Crawford.

Bruce Swain: You know, as you know, kind of seasonality within our business, tends to be in Q2 and Q3, and that's when you see a lot of the severe convective storm activity, hail storms, floods and the like that, will, you know, if past trends hold, then that internal capacity is gonna get soaked up and you'll see more vending out to independents like Crawford.

Speaker #4: And that's when you see a lot of the severe convective storm activity, hail storms, floods, and the like that will if past trends hold, then that internal capacity is going to get soaked up.

Speaker #4: And you'll see more venting out to independents like Crawford.

Kevin Steinke: Okay. Yeah, makes sense. With the streamlined operating structure that you talked about, maybe can you just expand a little bit on how that improves your go-to-market strategy? Maybe you talked about being more nimble, enhanced collaborations, being faster to serve clients. Kind of what were the friction points you saw before that you think have been removed and that are gonna enable you to achieve those goals that you have?

Speaker #7: Okay. Yeah. Makes sense. So with the streamlined operating structure that you talked about, maybe can you just expand a little bit on how that improves your go-to-market strategy, maybe you talked about being more nimble, enhanced collaboration, being faster to serve clients.

Speaker #7: Kind of what were the friction points you saw before that you think have been removed and that are going to enable you to achieve those goals that you have?

W. Bruce Swain, Jr.: Yeah, no, that's a good question. The benefit we're primarily going to see is in the US. You know, you know, the new international operating structure just picks up Canada, everything outside the US is in international. Within the US, we were operating under three segments previously. We had, you know, three separate go-to-market strategies. We had three separate, you know, incentive compensation plans and goals and objectives. We were approaching the market as individual businesses instead of looking at the US market and our clients and trying to understand what their goals and objectives were and what their pain points were, and how can we bring the solutions that we have in the company, which are vast.

Bruce Swain: Yeah, no, that's a good question. The benefit we're primarily going to see is in the US. You know, you know, the new international operating structure just picks up Canada, everything outside the US is in international. Within the US, we were operating under three segments previously. We had, you know, three separate go-to-market strategies. We had three separate, you know, incentive compensation plans and goals and objectives. We were approaching the market as individual businesses instead of looking at the US market and our clients and trying to understand what their goals and objectives were and what their pain points were, and how can we bring the solutions that we have in the company, which are vast.

Speaker #4: Yeah. No, that's a good question. And the benefit we're primarily going to see is in the US. So the new international operating structure just picks up Canada and so everything outside the US is in international.

Speaker #4: But within the US, we were operating under three segments. Previously, so we had three separate go-to-market strategies. We had three separate incentive compensation plans and goals and objectives.

Speaker #4: And we were approaching the market as individual businesses instead of looking at the US market and our clients and trying to understand what their goals and objectives were.

Speaker #4: And what their pain points were and how can we bring the solutions that we have and the company, which are vast, how can we bring those solutions to the clients in order to help foster their growth, help reduce their cost, or help them meet their overall objectives they have from a claims perspective?

W. Bruce Swain, Jr.: How can we bring those solutions to the clients in order to, you know, help foster their growth, help reduce their cost, or help them meet their overall objectives they have from a claims perspective. We're still independent businesses, right? We still have a Broadspire business. We still have a Contractor Connection business. We still have a loss adjusting business and a GTS business. We're operating as a team, and we're approaching the market as a team and bringing the right resources to the right opportunities in the market. We think that that is going to unlock a lot of opportunity for us and help foster growth as we go forward. It's actually a change I'm very excited about.

Bruce Swain: How can we bring those solutions to the clients in order to, you know, help foster their growth, help reduce their cost, or help them meet their overall objectives they have from a claims perspective. We're still independent businesses, right? We still have a Broadspire business. We still have a Contractor Connection business. We still have a loss adjusting business and a GTS business. We're operating as a team, and we're approaching the market as a team and bringing the right resources to the right opportunities in the market. We think that that is going to unlock a lot of opportunity for us and help foster growth as we go forward. It's actually a change I'm very excited about.

Speaker #4: So we're still independent businesses, right? So we still have a broad-specter business. We still have a contractor connection business. We still have a loss-adjusting business and a GTS business.

Speaker #4: But we're operating as a team. And we're approaching the market as a team and bringing the right resources to the right opportunities in the market and we think that that is going lot of opportunity for us and help foster growth as we go forward.

Speaker #4: It's actually a change I'm very excited about.

Kevin Steinke: That sounds great, and it makes a lot of sense. Just Bruce, is, you sit in the CEO role, kind of, refresh us on how you see the organic growth strategy of the company unfolding. I know you've touched on it, various points throughout the call this morning, but just kind of from an overarching perspective, your focus on organic growth and the key areas there.

Speaker #7: That sounds great. Yeah, makes a lot of sense. And just, Bruce, you sit in the CEO role. Could you refresh us on how you see the organic growth strategy of the company unfolding?

Speaker #7: I know you've touched on, kind of from an overarching perspective, your focus on organic growth and the key areas there.

W. Bruce Swain, Jr.: Yeah. I mean, profitable market share expansion is goal number one for us as a company. We want to be relentless in focusing on organic growth as a company. That is something we do all day, every day. Our new structure should help us in that regard. You know, we're also looking at the right M&A opportunities. We'd like to complement that with some inorganic growth. We'll be selective there. You know, as it relates to organic growth, we're leaning on our differentiated value proposition in the US and the benefits we'll get out of our new operating structure to do that.

Bruce Swain: Yeah. I mean, profitable market share expansion is goal number one for us as a company. We want to be relentless in focusing on organic growth as a company. That is something we do all day, every day. Our new structure should help us in that regard. You know, we're also looking at the right M&A opportunities. We'd like to complement that with some inorganic growth. We'll be selective there. You know, as it relates to organic growth, we're leaning on our differentiated value proposition in the US and the benefits we'll get out of our new operating structure to do that.

Speaker #4: do all day, every day. And our new structure should help us in that regard. We're also looking at the right M&A opportunities. We'd like to complement that with some inorganic growth, but we'll be selective there.

Speaker #4: As it relates to organic growth, we're leaning on our differentiated value proposition in the US and the benefits we'll get out of our new operating structure to do that.

W. Bruce Swain, Jr.: We believe by putting, you know, our client success first and truly understanding what the needs and objectives of our clients are, that we'll be able to increase our market share and become more of a partner for our clients rather than handling transactional claims. We want to become a partner to our carrier and self-insured clients for the long term, and that is what we are focused on.

Bruce Swain: We believe by putting, you know, our client success first and truly understanding what the needs and objectives of our clients are, that we'll be able to increase our market share and become more of a partner for our clients rather than handling transactional claims. We want to become a partner to our carrier and self-insured clients for the long term, and that is what we are focused on.

Speaker #4: So we believe by putting our client success first and truly understanding what the needs and objectives of our clients are, that we'll be able to increase our market share.

Speaker #4: And become more of a partner for our clients rather than handling transactional claims. We want to become a partner to our carrier and self-insured clients for the long term.

Speaker #4: And that is what we are focused on.

Kevin Steinke: Okay. Very helpful. Thank you for the insight. I will turn it back over.

Speaker #7: Okay. Very helpful. Thank you for the insight. I will turn it back over.

W. Bruce Swain, Jr.: Thank you, Kevin.

Bruce Swain: Thank you, Kevin.

Operator: Your next question comes from Adam Klauber with William Blair.

Speaker #4: Thank you, Kevin.

Speaker #3: Thanks.

Speaker #1: Your next question comes from Adam Cloudberg with William Blair.

[Analyst] (William Blair): Good morning, guys. This is Jonathan on for Adam.

Jonathan Bass: Good morning, guys. This is Jonathan on for Adam.

W. Bruce Swain, Jr.: Hey, Jonathan.

Bruce Swain: Hey, Jonathan.

[Analyst] (William Blair): You guys touched on how you fully exited some legal advisory businesses internationally. I was just wondering if you were able to quantify the revenue headwind from those businesses in 2026?

Jonathan Bass: You guys touched on how you fully exited some legal advisory businesses internationally. I was just wondering if you were able to quantify the revenue headwind from those businesses in 2026?

Speaker #8: Good morning, guys. This is Jonathan On for Adam. You guys touched on the how you fully exited some legal advisory businesses internationally. I was just wondering if you were able to quantify the revenue headwind from those businesses in 2026?

Operator: Yeah, that was about $16.2 million.

Holly Boudreau: Yeah, that was about $16.2 million.

Speaker #3: Yeah. That was about 16.2 million.

[Analyst] (William Blair): Okay. Got it. Very helpful. Going back to the simplified operating structure, you know, you guys talked about how your three separate, you know, entities in North America operating all what it sounds like sort of independent of each other and how, you know, the simplified operations will be streamlined. It'll be a benefit to clients. Are you guys expecting any cost savings to come from the new structure that you can talk about?

Jonathan Bass: Okay. Got it. Very helpful. Going back to the simplified operating structure, you know, you guys talked about how your three separate, you know, entities in North America operating all what it sounds like sort of independent of each other and how, you know, the simplified operations will be streamlined. It'll be a benefit to clients. Are you guys expecting any cost savings to come from the new structure that you can talk about?

Speaker #8: Okay. Got it. Very helpful. And then going back to the simplified operating structure. You guys talked about how your three separate entities in North America operating all what it sounds like sort of independent of each other.

Speaker #8: And how the simplified operations will be streamlined. It'll be a benefit to clients. Are you guys expecting any cost savings to come from the new structure that you can talk about?

W. Bruce Swain, Jr.: We're gonna expect some cost savings. It just, you know, but that's incidental to why we made this change. We didn't make it with cost savings in mind. We made the change with, you know, operating effectiveness and a better client experience in mind. That is what's driving the change. We'll see some cost efficiencies that come out through, you know, kind of overlapping administrative functions, but it won't be material.

Bruce Swain: We're gonna expect some cost savings. It just, you know, but that's incidental to why we made this change. We didn't make it with cost savings in mind. We made the change with, you know, operating effectiveness and a better client experience in mind. That is what's driving the change. We'll see some cost efficiencies that come out through, you know, kind of overlapping administrative functions, but it won't be material.

Speaker #4: We're going to expect some cost savings. Just but that's incidental to why we made this change. We didn't make it with cost savings in mind.

Speaker #4: We made the change with operating effectiveness and a better client experience. In mind. So that is what's driving the change. We'll see some cost efficiencies that come out through kind of overlapping administrative functions, but it won't be material.

[Analyst] (William Blair): Okay. Got it. Very helpful. Thank you, guys.

Jonathan Bass: Okay. Got it. Very helpful. Thank you, guys.

W. Bruce Swain, Jr.: Okay. Thank you.

Bruce Swain: Okay. Thank you.

Speaker #8: Okay. Got it. Very helpful. Thank you, guys.

Operator: There are no further questions at this time. I'd like to turn the call back over to Mr. Swain for any closing remarks.

Speaker #4: Okay. Thank you.

Speaker #1: There are no further questions at this time. I'd like to turn the call back over to Mr. Swain for any closing remarks.

W. Bruce Swain, Jr.: Okay. Thank you, Carly. Thank you to all our employees, clients, and shareholders for your continued commitment to Crawford & Company. We hope you have a great rest of the week. Thank you.

Bruce Swain: Okay. Thank you, Carly. Thank you to all our employees, clients, and shareholders for your continued commitment to Crawford & Company. We hope you have a great rest of the week. Thank you.

Speaker #4: Okay. Thank you, Carly. And thank you to all our employees, clients, and shareholders for your continued commitment to Crawford & Company. We hope you have a great rest of the week.

Operator: Thank you for participating in today's Crawford & Company conference call. This call will be available for replay beginning at 11:30 AM Eastern Time today through 11:59 PM Eastern Time on 10 March 2026. The conference ID number for the replay is 3834263 pound. The number to dial for the replay is 1-800-770-2030. Again, the conference ID number is 3834263 pound, and the replay number is 1-800-770-2030. Thank you for participating. You may now disconnect.

Speaker #4: Thank you.

Speaker #1: Thank you for participating in today's Crawford & Company conference call. This call will be available for replay beginning at 11:30 AM Eastern Time today through 11:59 PM Eastern Time on March 10th, 2026.

Speaker #1: The conference ID number for the replay is 3834263 pound. The number to dial for the replay is 1-800-770-2030. Again, the conference ID number is 3834263 pound.

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