CRAWFORD & CO

Previous wording

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with (i) our unaudited condensed consolidated financial statements and accompanying notes thereto for the three and six months ended June 30, 2026 and 2025, and as of June 30, 2026, and December 31, 2025, contained in Item 1 of this Quarterly Report on Form 10-Q, and (ii) our Annual Report on Form 10-K for the year ended December 31, 2025. As described in Note 1, "Basis of Presentation," the financial results of our operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines are included in our consolidated financial statements on a two-month delayed basis (fiscal year-end of October 31) as permitted by U.S. generally accepted accounting principles ("GAAP") in order to provide sufficient time for accumulation of their results.

Current wording

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with (i) our unaudited condensed consolidated financial statements and accompanying notes thereto for the three and nine months ended September 30, 2026 and 2025, and as of September 30, 2026, and December 31, 2025, contained in Item 1 of this Quarterly Report on Form 10-Q, and (ii) our Annual Report on Form 10-K for the year ended December 31, 2025. As described in Note 1, "Basis of Presentation," the financial results of our operations outside of the U.S., Canada, the Caribbean, and certain subsidiaries in the Philippines are included in our consolidated financial statements on a two-month delayed basis (fiscal year-end of October 31) as permitted by U.S. generally accepted accounting principles ("GAAP") in order to provide sufficient time for accumulation of their results.

Previous wording

Consolidated revenues before reimbursements decreased $1.6 million, or (0.5)%, for the three months ended June 30, 2026, compared with the same period of 2025. This decrease was primarily driven by lower volumes in our U.S. Property & Casualty reportable segment, as well as revenue reductions due to the disposal of the Crawford Legal Services businesses in our International Operations reportable segment. Changes in foreign exchange rates increased our consolidated revenues before reimbursements by $7.7 million, or 2.4%, for the three months ended June 30, 2026 and increased revenues by $15.5 million, or 2.5%, for the six months ended June 30, 2026, as compared with the prior year periods. To illustrate this impact, segment revenues are presented below, using a constant exchange rate, for the three and six months ended June 30, 2026.

Current wording

Consolidated revenues before reimbursements decreased $0.5 million, or (0.2)%, for the three months ended September 30, 2026, compared with the same period of 2025. This decrease was primarily driven by lower volumes in our U.S. Property & Casualty reportable segment, a reduction in revenues within our Broadspire reportable segment, as well as revenue reductions due to the disposal of the Crawford Legal Services businesses in our International Operations reportable segment. Changes in foreign exchange rates increased our consolidated revenues before reimbursements by $7.9 million, or 2.4%, for the three months ended September 30, 2026 and increased revenues by $23.5 million, or 2.4%, for the nine months ended September 30, 2026, as compared with the prior year periods. To illustrate this impact, segment revenues are presented below, using a constant exchange rate, for the three and nine months ended September 30, 2026.

Previous wording

Excluding foreign currency impacts, consolidated revenues before reimbursements decreased $9.3 million, or (2.9)%, for the three months ended June 30, 2026 and decreased $19.6 million, or (3.1)%, for the six months ended June 30, 2026 compared with the same periods of 2025. Revenues from the U.S. Property & Casualty segment decreased in the 2026 second quarter and year to date period primarily due to a continued decrease in staff augmentation and weather-driven services within our Catastrophe Services and Contractor Connection businesses. Revenues from the Broadspire segment increased for each of the 2026 periods due to an increase in Claims and Medical Management revenues, partially offset by a reduction in Subrogation revenues. Excluding foreign currency impacts, revenues from the International Operations segment decreased in the 2026 second quarter compared with the same period in 2025 due to reductions in the U.K. and Latin America, partially offset by revenue increases in Australia, Canada, and Asia. Excluding foreign currency impacts, revenues from the International Operations segment decreased in the six months ended June 30, 2026 as compared to the same period in 2025 due to reductions in the U.K., Europe, and Latin America, partially offset by revenue increases in Australia, Canada, and Asia.

Current wording

Excluding foreign currency impacts, consolidated revenues before reimbursements decreased $8.5 million, or (2.6)%, for the three months ended September 30, 2026 and decreased $28.1 million, or (2.9)%, for the nine months ended September 30, 2026 compared with the same periods of 2025. Revenues from the U.S. Property & Casualty segment decreased in the 2026 third quarter and year to date period primarily due to a continued decrease in staff augmentation and weather-driven services within our Catastrophe Services and Contractor Connection businesses. Revenues from the Broadspire segment decreased in all service lines in the 2026 third quarter compared with the same period in 2025. Revenues from the Broadspire segment increased for the nine months ended September 30, 2026 compared to the prior year period due to increases in the Claims Management and Medical Management service lines, offset by a decrease in Subrogation revenues. Excluding foreign currency impacts, revenues from the International Operations segment decreased in the 2026 third quarter compared with the same period in 2025 due to reductions in the U.K., Australia, Latin America, Europe and Asia, partially offset by revenue increases in Canada. Excluding foreign currency impacts, revenues from the International Operations segment decreased in the nine months ended September 30, 2026 as compared to the same period in 2025 due to reductions in the U.K., Europe, and Latin America, partially offset by revenue increases in Australia, Canada, and Asia.

Previous wording

Overall, there were slight increases in cases received of 0.1% and 0.4% for the three and six months ended June 30, 2026, respectively. Within our U.S. Property & Casualty segment, cases decreased for the three and six months ended June 30, 2026 as a result of a weather-related reduction in all service lines. There was a slight decrease in cases within our Broadspire segment for the three months ended June 30, 2026 as compared to the prior year period due to a decline in Subrogation cases. For the six months ended June 30, 2026, Broadspire cases increased due primarily to increases in new disability clients within our Claims Management service line, partially offset by a decline in Subrogation cases and decreased casualty claims within our Claims Management service line. Cases within our International Operations segment increased for the three and six months ended June 30, 2026, as compared to the prior year period, primarily due to an increase in high-frequency, low-severity cases in Spain.

Current wording

Overall, there were increases in cases received of 6.0% and 2.2% for the three and nine months ended September 30, 2026, respectively. Within our U.S. Property & Casualty segment, cases decreased slightly for the three months ended September 30, 2026 as a result of weather-related reductions in Catastrophe Services and Global Technical Services, partially offset by increases in Claims Solutions and Contractor Connection. Cases decreased for the nine months ended September 30, 2026 as a result of a weather-related reduction in all service lines within our U.S. Property & Casualty segment. There was a slight increase in cases within our Broadspire segment for the three months ended September 30, 2026 as compared to the prior year period due to an increase in cases within our Subrogation service line as well as new disability clients within our Claims Management, partially offset by decreased casualty claims within our Claims Management service line and decreased utilization review claims within our Medical Management Service Line. For the nine months ended September 30, 2026, Broadspire cases increased due primarily to increases in new disability clients within our Claims Management service line, partially offset by a decline in Subrogation cases and decreased casualty claims within our Claims Management service line. Cases within our International Operations segment increased for the three and nine months ended September 30, 2026, as compared to the prior year period, primarily due to an increase in high-frequency, low-severity cases in Spain and an increase in weather related claims in Canada.

Previous wording

Cases received are presented below by segment for the three and six months ended June 30, 2026 and 2025:

Current wording

Cases received are presented below by segment for the three and nine months ended September 30, 2026 and 2025:

Previous wording

To illustrate exposure to the impact of changes in foreign currencies, revenues before reimbursements are presented below by denominated currency for the three and six months ended June 30, 2026:

Current wording

To illustrate exposure to the impact of changes in foreign currencies, revenues before reimbursements are presented below by denominated currency for the three and nine months ended September 30, 2026:

Previous wording

Costs of services provided, before reimbursements, increased $1.7 million, or 0.8%, for the three months ended June 30, 2026 and increased $1.2 million, or 0.3%, for the six months ended June 30, 2026, as compared to the 2025 periods. As a percentage of revenues before reimbursements, costs of services decreased consistent with the decrease in revenues.

Current wording

Costs of services provided, before reimbursements, decreased $5.4 million, or (2.4)%, for the three months ended September 30, 2026 primarily due to lower operating costs in the International Operations segment. Costs of services provided, before reimbursements decreased $4.2 million, or (0.6)%, for the nine months ended September 30, 2026, as compared to the 2025 period. As a percentage of revenues before reimbursements, the decrease in costs of services was consistent with the decrease in revenues.

Previous wording

Selling, general, and administrative ("SG&A") expenses decreased $8.7 million, or (11.1)%, in the three months ended June 30, 2026 and $7.1 million, or (4.7)%, for the six months ended June 30, 2026 as compared with the 2025 periods. The decrease was primarily due to a $3.1 million one-time indirect tax expense in the 2025 second quarter and lower compensation costs, partially offset by a $2.3 million software impairment charge.

Current wording

Selling, general, and administrative expenses (“SG&A”) increased $2.3 million, or 3.2%, in the three months ended September 30, 2026 as compared with the 2025 period, primarily due to increases in cloud software costs, E&O insurance, and bad debt expense. SG&A decreased $4.9 million, or (2.2)%, during the nine months ended September 30, 2026 compared with the same period in 2025. The decrease was primarily due to a $3.1 million one-time indirect tax expense incurred in 2025 and lower compensation costs, partially offset by a $2.3 million software impairment charge in the second quarter of 2026.

Previous wording

Operating results for our U.S. Property & Casualty, Broadspire, and International Operations segments reconciled to net income before income taxes and net income attributable to shareholders of Crawford & Company were follows:

Current wording

Operating results for our U.S. Property & Casualty, Broadspire, and International Operations segments reconciled to net income before income taxes and net income attributable to shareholders of Crawford & Company were as follows:

Previous wording

Operating earnings in our U.S. Property & Casualty segment totaled $7.2 million, or 9.7% of revenues before reimbursements, for the three months ended June 30, 2026, compared with 2025 operating earnings of $7.5 million, or 9.0% of revenues before reimbursements. For the six months ended June 30, 2026, our U.S. Property & Casualty segment reported operating earnings of $14.8 million, or 10.1% of revenues before reimbursements, compared with 2025 operating earnings of $17.2 million, or 10.5% of revenues before reimbursements. The decrease in operating earnings in the three and six months ended June 30, 2026 as compared to the prior year periods was driven by a decline in revenues within the Catastrophe Services and Contractor Connection service lines, offsetting benefits from reduced centralized indirect support costs.

Current wording

Operating earnings in our U.S. Property & Casualty segment totaled $9.7 million, or 12.8% of revenues before reimbursements, for the three months ended September 30, 2026, compared with 2025 operating earnings of $9.8 million, or 12.9% of revenues before reimbursements. For the nine months ended September 30, 2026, our U.S. Property & Casualty segment reported operating earnings of $24.5 million, or 11.0% of revenues before reimbursements, compared with 2025 operating earnings of $27.0 million, or 11.2% of revenues before reimbursements. The decrease in operating earnings in the three and nine months ended September 30, 2026 as compared to the prior year periods was driven by a decline in revenues within Catastrophe Services, offsetting benefits from reduced centralized indirect support costs.

Previous wording

Excluding centralized indirect support costs, gross profit decreased from $21.3 million, or 25.8% of revenues before reimbursements in 2025, to $19.2 million, or 25.9% of revenues before reimbursements, in the three months ended June 30, 2026. For the six months ended June 30, 2026, gross profit decreased from $44.4 million or 26.9% of revenues before reimbursements in 2025 to $39.8 million, or 27.1% of revenues before reimbursements, primarily due to revenue declines within the Catastrophe Services and Contractor Connection service lines.

Current wording

Excluding centralized indirect support costs, gross profit decreased from $22.6 million, or 29.6% of revenues before reimbursements in 2025, to $21.3 million, or 28.0% of revenues before reimbursements, in the three months ended September 30, 2026. For the nine months ended September 30, 2026, gross profit decreased from $67.0 million or 27.8% of revenues before reimbursements in 2025 to $61.1 million, or 27.4% of revenues before reimbursements, primarily due to revenue declines within the Catastrophe Services and Contractor Connection service lines, partially offset by a reduction in office rent and software amortization.

Previous wording

U.S. Property & Casualty segment revenues are primarily derived from the property and casualty insurance company markets within the U.S. Revenues before reimbursements by service line for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

U.S. Property & Casualty segment revenues are primarily derived from the property and casualty insurance company markets within the U.S. Revenues before reimbursements by service line for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Revenues before reimbursements from our U.S. Property & Casualty segment totaled $74.1 million in the three months ended June 30, 2026, compared with $82.5 million in the 2025 period. This decrease was primarily driven by a continued decrease in weather-driven services within our Catastrophe Services and Contractor Connection businesses. There was a decrease in segment unit volume, measured principally by cases received, of (16.5)% for the three months ended June 30, 2026, compared with the 2025 period. This includes a decrease in low value inspection services cases, of 4,150 or (4.5)%. The decrease in revenues in our Catastrophe Services business of $(5.4) million, or (6.6)%, for which there are minimal cases, is primarily due to a continued decrease in staff augmentation and weather-driven services. During the second quarter of 2025, there was an increase in complex claims of 2,250, or 2.4%, within Global Technical Services for which revenue is expected to be recognized in future periods. Changes in product mix and in the rates charged for those services accounted for a 6.0% revenue increase for the three months ended June 30, 2026 compared with the same period in 2025.

Current wording

Revenues before reimbursements from our U.S. Property & Casualty segment totaled $222.9 million in the nine months ended September 30, 2026, compared with $240.9 million in the 2025 period. This decrease was primarily driven by a continued decrease in weather-driven services within our Catastrophe Services and Contractor Connection businesses. There was a decrease in segment unit volume, measured principally by cases received, of (11.9)% for the nine months ended September 30, 2026, compared with the 2025 period. This includes a decrease in low value inspection services cases, of 15,600 or (5.5)%. There was a decrease in revenues of $(11.5) million, or (4.8)%, for certain clients within our Catastrophe Services business which have minimal cases due primarily to a continued decrease in staff augmentation and weather-driven services. Changes in product mix and in the rates charged for those services accounted for a 3.7% revenue increase for the nine months ended September 30, 2026 compared with the same period in 2025.

Previous wording

Reimbursements for out-of-pocket expenses incurred in our U.S. Property & Casualty segment, which are included in total Company revenues, were $1.6 million and $1.8 million for each of the three months ended June 30, 2026 and 2025, respectively. Reimbursements were $3.4 million and $3.6 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Reimbursements for out-of-pocket expenses incurred in our U.S. Property & Casualty segment, which are included in total Company revenues, were $1.5 million for each of the three months ended September 30, 2026 and 2025. Reimbursements were $4.8 million and $5.1 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

U.S. Property & Casualty segment unit volumes by service line, measured by cases received, for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

U.S. Property & Casualty segment unit volumes by service line, measured by cases received, for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Overall, there was a decrease in cases of (16.5)% in the three months ended June 30, 2026, compared to the same period in 2025. Global Technical Services declined primarily due to 2,250 cases received in the prior year for a specific complex event and a decrease in claim referrals from specialized programs. The decrease in Claims Solutions volumes in the 2026 second quarter was primarily due to the decrease in low value inspection services of 4,150 cases. There were decreases in Contractor Connection and Catastrophe Services in the 2026 second quarter primarily due to less weather-driven activity, as compared with the 2025 period.

Current wording

Overall, there was a decrease in cases of (1.7)% in the three months ended September 30, 2026, compared to the same period in 2025. There were decreases in our Catastrophe Services business in the 2026 third quarter primarily due to less weather-driven activity, as compared with the 2025 period. The increase in Claims Solutions volumes in the 2026 third quarter was primarily due to increases in U.S. Loss Adjusting and an increase in low value inspection services.

Previous wording

There was a decrease in cases of (16.7)% for the six months ended June 30, 2026, compared to the same period in 2025. Global Technical Services declined primarily due to 2,550 cases received in the prior year for a specific complex event and a decrease in claim referrals from specialized programs. The decrease in Claims Solutions volumes in the 2026 second quarter was primarily due to the decrease in low value inspection services of 14,900 cases. There were decreases in Contractor Connection and Catastrophe Services for the six months ended June 30, 2026 primarily due to less weather-driven activity, as compared with the 2025 period.

Current wording

There was a decrease in cases of (11.9)% for the nine months ended September 30, 2026, compared to the same period in 2025. Global Technical Services declined primarily due to cases received in the prior year for a specific complex event and a decrease in claim referrals from specialized programs. The decrease in Claims Solutions volumes in the 2026 year to date period was primarily due to the decrease in low value inspection services of 13,000 cases. There were decreases in our Contractor Connection and Catastrophe Services businesses for the nine months ended September 30, 2026 primarily due to less weather-driven activity, as compared with the 2025 period.

Previous wording

The most significant expense in our U.S. Property & Casualty segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. As a percentage of revenues before reimbursements, these expenses were 61.2% for the three months ended June 30, 2026 compared with 61.8% for the 2025 period. For the six months ended June 30, 2026, these expenses were 61.9% compared with 61.8% for the 2025 period. The total dollar amount of these expenses decreased to $45.3 million for the three months ended June 30, 2026 from $51.0 million for the comparable 2025 period, and were $91.0 million for the six months ended June 30, 2026, decreasing from $101.8 million in 2025. The decreases were primarily in line with the reduction of revenues, driven by the reduction of costs associated with Catastrophe Services, as well as a reduction of claims within Claims Solution and Global Technical Services for each of the periods presented. There was an average of 1,631 full-time equivalent employees in this segment in the six months ended June 30, 2026 compared with an average of 1,817 in the 2025 period.

Current wording

The most significant expense in our U.S. Property & Casualty segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. As a percentage of revenues before reimbursements, these expenses were 61.7% for the three months ended September 30, 2026 compared with 61.9% for the 2025 period. These expenses were 61.8% for each of the nine months ended September 30, 2026 and September 30, 2025. The total dollar amount of these expenses decreased to $46.9 million for the three months ended September 30, 2026 from $47.2 million for the comparable 2025 period, and were $137.9 million for the nine months ended September 30, 2026, decreasing from $149.0 million in 2025. The slight decline in expenses for the three months ended September 30, 2026 was in line with the decrease in revenues, primarily driven by lower activity within Catastrophe Services, partially offset by increases in the other service lines. The decreases for the year to date period were also primarily in line with the reduction of revenues, driven primarily by the reduction of costs associated with Catastrophe Services and Contractor Connection service lines. There was an average of 1,634 full-time equivalent employees in this segment in the nine months ended September 30, 2026 compared with an average of 1,781 in the 2025 period.

Previous wording

U.S. Property & Casualty expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $21.6 million for the three months ended June 30, 2026 compared with $24.0 million for the 2025 period. As a percentage of revenues before reimbursements, these expenses were 29.1% for the three months ended June 30, 2026 compared with 29.2% for the 2025 period. For the six months ended June 30, 2026, these expenses were $41.2 million, compared with $45.7 million for the 2025 period. As a percentage of revenues before reimbursements, these expenses were 28.0% for the six months ended June 30, 2026 compared with 27.7% for the 2025 period. The decrease in expenses for the three and six months ended June 30, 2026 as compared to the prior year periods was due to reductions in software amortization and centralized indirect support costs.

Current wording

U.S. Property & Casualty expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor were $19.4 million for the three months ended September 30, 2026 compared with $19.3 million for the 2025 period. As a percentage of revenues before reimbursements, these expenses were 25.5% for the three months ended September 30, 2026 compared with 25.3% for the 2025 period. For the nine months ended September 30, 2026, these expenses were $60.6 million, compared with $64.9 million for the 2025 period. As a percentage of revenues before reimbursements, these expenses were 27.2% for the nine months ended September 30, 2026 compared with 27.0% for the 2025 period. The decrease in expenses for the nine months ended September 30, 2026 as compared to the prior year period was due to reductions in software amortization and centralized indirect support costs, partially offset by a prior year reduction in allowance for estimated credit losses.

Previous wording

Excluding centralized indirect support costs, second quarter gross profit increased from $34.2 million, or 31.6% of revenues before reimbursements, in 2025 to $35.1 million, or 32.1% of revenues before reimbursements in 2026. For the six months ended June 30, 2026, gross profit decreased from $66.8 million, or 31.5% of revenues before reimbursements in 2025, to $66.5 million, or 31.0% of revenues before reimbursements. The increase for the 2026 second quarter was due to growth in disability claims and medical management revenues. The slight decrease for the year-to-date period was due to an increase in software amortization.

Current wording

Excluding centralized indirect support costs, third quarter gross profit decreased from $34.9 million, or 31.5% of revenues before reimbursements, in 2025 to $32.6 million, or 29.9% of revenues before reimbursements in 2026. For the nine months ended September 30, 2026, gross profit decreased from $101.7 million, or 31.5% of revenues before reimbursements in 2025, to $99.1 million, or 30.7% of revenues before reimbursements. The decrease for the 2026 third quarter was due to a decline in Casualty revenues partly offset with growth in the disability business and increased software amortization costs. The decrease in the year-to-date period was due to increased compensation and software amortization costs.

Previous wording

Operating results for our Broadspire segment, including gross profit, for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

Operating results for our Broadspire segment, including gross profit, for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Broadspire revenues are derived from the property, casualty and disability insurance and self-insured markets in the U.S. Revenues before reimbursements by service line for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

Broadspire revenues are derived from the property, casualty and disability insurance and self-insured markets in the U.S. Revenues before reimbursements by service line for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Revenues before reimbursements from our Broadspire segment totaled $109.4 million in the three months ended June 30, 2026 compared with $108.2 million in the 2025 period. This increase was primarily due to an increase in cases in the Claims Management and Medical Management service lines. There was a slight decrease in segment unit volume, measured principally by cases received, of (0.1)% for the three months ended June 30, 2026 compared with the same period of 2025. There was an increase of high-frequency, low-severity claims within our Claims Management service line of 6,300, or 4.2%, primarily related to new disability clients. Revenues were negatively impacted by a $(1.1) million decrease in revenues within our Claims Management service line related to income earned which offsets the costs of managing the funds maintained to administer claims for our customers, for which no cases are received, or (1.0)% decrease in revenues. There was also a $1.4 million increase in revenues within our Medical Management service line for which no cases are received, or a 1.3% increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 5.2% revenue increase for the 2026 second quarter compared with the 2025 period.

Current wording

Revenues before reimbursements from our Broadspire segment totaled $109.0 million in the three months ended September 30, 2026 compared with $110.6 million in the 2025 period. Revenues declined in each of the Claims Management, Medical Management, and Subrogation service lines. There was a slight increase in segment unit volume, measured principally by cases received, of 0.3% for the three months ended September 30, 2026 compared with the same period of 2025. There was an increase of high-frequency, low-severity claims within our Claims Management service line of 5,575, or 3.9%, primarily related to new disability clients. Revenues were negatively impacted by a $(1.0) million decrease in revenues within our Claims Management service line related to income earned which offsets the costs of managing the funds maintained to administer claims for our customers, for which no cases are received, or (0.9)% decrease in revenues. There was also a $(0.3) million decrease in revenues within our Medical Management service line for which no cases are received, or a (0.3)% decrease in revenues. Changes in product mix and in the rates charged for those services accounted for a 3.1% revenue increase for the 2026 third quarter compared with the 2025 period.

Previous wording

For the six months ended June 30, 2026, revenues before reimbursements from our Broadspire segment totaled $214.2 million compared with $211.8 million in the 2025 period. This increase was primarily due to an increase in cases in the Claims Management and Medical Management service lines. There was an increase in segment unit volume, measured principally by cases received, of 4.2% for the six months ended June 30, 2026 compared with the same period of 2025. This was primarily due to an increase of high-frequency, low-severity claims within our Claims Management service line of 21,200, or 7.1%, primarily related to new disability clients. Revenues were negatively impacted by a $(2.1) million decrease in revenues within our Claims Management service line related to income earned which offsets the costs of managing the funds maintained to administer claims for our customers, for which no cases are received, or (1.0)% decrease in revenues. There was also a $1.7 million increase in revenues within our Medical Management service line for which no cases are received, or a 0.8% increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 4.2% revenue increase for the six months ended June 30, 2026 compared with the 2025 period.

Current wording

For the nine months ended September 30, 2026, revenues before reimbursements from our Broadspire segment totaled $323.1 million compared with $322.4 million in the 2025 period. This increase was primarily due to an increase in cases in the Claims Management and Medical Management service lines, partially offset by a decline in the Subrogation service line. There was an increase in segment unit volume, measured principally by cases received, of 2.9% for the nine months ended September 30, 2026 compared with the same period of 2025. This was primarily due to an increase of high-frequency, low-severity claims within our Claims Management service line of 26,800, or 6.0%, primarily related to new disability clients. Revenues were negatively impacted by a $(3.1) million decrease in revenues within our Claims Management service line related to income earned which offsets the costs of managing the funds maintained to administer claims for our customers, for which no cases are received, or (0.9)% decrease in revenues. There was also a $1.4 million increase in revenues within our Medical Management service line for which no cases are received, or a 0.4% increase in revenues. Changes in product mix and in the rates charged for those services accounted for a 3.8% revenue increase for the nine months ended September 30, 2026 compared with the 2025 period.

Previous wording

Revenue variance components for our Broadspire segment, for the three and six months ended June 30, 2026 are summarized as follows:

Current wording

Revenue variance components for our Broadspire segment, for the three and nine months ended September 30, 2026 are summarized as follows:

Previous wording

Reimbursements for out-of-pocket expenses incurred in our Broadspire segment were $0.7 million for each of the three months ended June 30, 2026 and 2025. Reimbursements were $1.4 million and $1.5 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Reimbursements for out-of-pocket expenses incurred in our Broadspire segment were $0.7 million for each of the three months ended September 30, 2026 and 2025. Reimbursements were $2.1 million and $2.4 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Broadspire unit volumes by service line, as measured by cases received, for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

Broadspire unit volumes by service line, as measured by cases received, for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Overall case volumes decreased (0.1)% for the three months ended June 30, 2026 due primarily to a decline in Subrogation cases due to the loss of a customer, a reduction in utilization management claims within Medical Management, and decreased casualty claims within our Claims Management service line, offset by increases in new disability clients within our Claims Management service line.

Current wording

Overall case volumes slightly increased 0.3% for the three months ended September 30, 2026 due to new disability clients within our Claims Management service line, as well as an increase in our Subrogation service line. These increases were partially offset by a reduction in utilization management cases within Medical Management, and decreased casualty claims within our Claims Management service line.

Previous wording

There was an increase in cases of 4.2% in the six months ended June 30, 2026, compared to the same period in 2025, due primarily to increases in new disability clients within our Claims Management service line, partially offset by a decline in Subrogation cases due to the loss of a customer and decreased casualty claims within our Claims Management service line.

Current wording

There was an increase in cases of 2.9% in the nine months ended September 30, 2026, compared to the same period in 2025, due primarily to increases in new disability clients within our Claims Management service line and medical unit claims within our Medical Management service line. These increases were partially offset by a decline in Subrogation cases due to the loss of a customer and decreased casualty claims within our Claims Management service line.

Previous wording

The most significant expense in our Broadspire segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. These expenses totaled $60.6 million for the three months ended June 30, 2026, compared to $60.7 million for the 2025 period. As a percent of the related revenues before reimbursements, these expenses decreased from 56.1% in the 2025 second quarter to 55.4% in the 2026 second quarter. For the six months ended June 30, 2026, these expenses totaled $120.9 million, compared to $119.0 million in 2025. For the six months ended June 30, 2026, these expenses, as a percent of the related revenues before reimbursements, increased from 56.2% for the six months ended June 30, 2025 to 56.5% for the 2026 period. The increase in costs as a percentage of revenues before reimbursements for the 2026 three and six month periods was primarily due to increased employees and average wages related to the increase in revenues, as well as product mix changes. Average full-time equivalent employees in this segment totaled 2,931 in the six months ended June 30, 2026, compared with 2,860 in the 2025 period.

Current wording

The most significant expense in our Broadspire segment is the compensation of employees, including related payroll taxes and fringe benefits, and the payments to outsourced service providers that augment the functions performed by our employees. These expenses totaled $62.0 million for the three months ended September 30, 2026, compared to $62.8 million for the 2025 period. As a percent of the related revenues before reimbursements, these expenses increased from 56.8% in the 2025 third quarter to 56.9% in the 2026 third quarter. For the nine months ended September 30, 2026, these expenses totaled $183.0 million, compared to $181.9 million in 2025. For the nine months ended September 30, 2026, these expenses, as a percent of the related revenues before reimbursements, increased from 56.4% for the nine months ended September 30, 2025 to 56.6% for the 2026 period. The slight decrease in costs for the three month period directly relates to the decrease in revenues as compared to the prior year period. The increase in costs for the 2026 nine month period was primarily due to increased employees and average wages related to the increase in revenues, as well as product mix changes. Average full-time equivalent employees in this segment totaled 2,918 in the nine months ended September 30, 2026, compared with 2,874 in the 2025 period.

Previous wording

Broadspire segment expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor as a percent of revenues before reimbursements decreased slightly to 30.3% for the three months ended June 30, 2026, from 30.8% in the 2025 period. The amount of these expenses decreased slightly from $33.3 million for the three months ended June 30, 2025 to $33.1 million in 2026. These expenses were $66.6 million for each of the six months ended June 30, 2026 and 2025. As a percentage of revenues before reimbursements, these expenses were 31.1% for the six months ended June 30, 2026, compared with 31.4% for the 2025 period. The slight decrease in the 2026 three and six months ended June 30, 2026 expenses as a percentage of revenues before reimbursements was due to improved operating leverage and lower centralized indirect support costs.

Current wording

Broadspire segment expenses other than reimbursements, direct compensation, fringe benefits, and non-employee labor as a percent of revenues before reimbursements increased to 31.2% for the three months ended September 30, 2026, from 29.4% in the 2025 period. The amount of these expenses increased from $32.5 million for the three months ended September 30, 2025 to $34.0 million in 2026. These expenses were $100.6 million for the nine months ended September 30, 2026, compared to $99.1 million for the nine months ended September 30, 2025. As a percentage of revenues before reimbursements, these expenses were 31.1% for the nine months ended September 30, 2026, compared with 30.7% for the 2025 period. The increase in expenses in total and as a percentage of revenues before reimbursements for the three and nine months ended September 30, 2026 as compared to the prior year periods was primarily due to an increase in software amortization costs.

Previous wording

Operating earnings in our International Operations segment were $10.9 million, or 7.9% of revenues before reimbursements, for the three months ended June 30, 2026, compared with $7.3 million, or 5.5% of revenues before reimbursements, in the 2025 period. For the six months ended June 30, 2026, our International Operations segment reported operating earnings of $14.9 million, or 5.5% of revenues before reimbursements, compared with operating earnings of $9.6 million, or 3.7% of revenues before reimbursements in 2025. The increase in operating earnings in the three months ended June 30, 2026 as compared to 2025 was primarily due to improved operating results in Canada, Australia and Asia, partially offset by a reduction in operating earnings within the U.K. and Europe. The increase in operating earnings for the six months ended June 30, 2026 as compared to 2025 was primarily due to improved operating results in Canada, Australia, and Asia, partially offset by a reduction in operating earnings within the U.K., Europe, and Latin America.

Current wording

Operating earnings in our International Operations segment were $10.7 million, or 7.8% of revenues before reimbursements, for the three months ended September 30, 2026, compared with $7.7 million, or 5.7% of revenues before reimbursements, in the 2025 period. For the nine months ended September 30, 2026, our International Operations segment reported operating earnings of $25.5 million, or 6.3% of revenues before reimbursements, compared with operating earnings of $17.2 million, or 4.4% of revenues before reimbursements in 2025. The increase in operating earnings in the three months ended September 30, 2026 compared to the prior year was primarily due to improved operating results in Canada, Australia, Asia, and Latin America, partially offset by a reduction in operating earnings within the U.K. and Europe. The increase in operating earnings in the nine months ended September 30, 2026 compared to the prior year was primarily due to improved operating results in Canada, Australia, and Asia, partially offset by a reduction in operating earnings within the U.K. and Europe.

Previous wording

Excluding centralized indirect support costs, gross profit increased slightly from $27.0 million, or 20.4% of revenues before reimbursements in 2025, to $30.9 million, or 22.4% of revenues before reimbursements, in the three months ended June 30, 2026. For the six months ended June 30, 2026, gross profit increased from $49.3 million, or 19.1% of revenues before reimbursements in 2025, to $53.4 million, or 19.8% of revenues before reimbursements. The increase in gross profit in the three months ended June 30, 2026 as compared to 2025 was primarily due to improved operating results in Canada, Australia and Asia, partially offset by a reduction in operating earnings within the U.K. and Europe. The increase in gross profit for the six months ended June 30, 2026 as compared to 2025 was primarily due to improved operating results in Canada, Australia, and Asia, partially offset by a reduction in earnings within the U.K., Europe, and Latin America.

Current wording

Excluding centralized indirect support costs, gross profit increased from $27.0 million, or 20.0% of revenues before reimbursements in 2025, to $30.1 million, or 22.0% of revenues before reimbursements, in the three months ended September 30, 2026. For the nine months ended September 30, 2026, gross profit increased from $76.3 million, or 19.4% of revenues before reimbursements in 2025, to $83.5 million, or 20.5% of revenues before reimbursements. The increase in gross profit in the three months ended September 30, 2026 as compared to 2025 was primarily due to improved operating results in Canada, Australia, and Asia. The increase in gross profit for the nine months ended September 30, 2026 as compared to 2025 was primarily due to improved operating results in Canada, Australia, and Asia, partially offset by a reduction in earnings within the U.K, Europe, and Latin America.

Previous wording

Operating results for our International Operations segment, including gross profit, for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

Operating results for our International Operations segment, including gross profit, for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

International Operations segment revenues are primarily derived from the global property and casualty insurance company markets in the U.K, Europe, Australia, Canada, Asia and Latin America. Revenues before reimbursements by major region, based on actual exchange rates and using a constant exchange rate, for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

International Operations segment revenues are primarily derived from the global property and casualty insurance company markets in the U.K., Europe, Australia, Canada, Asia and Latin America. Revenues before reimbursements by major region, based on actual exchange rates and using a constant exchange rate, for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Revenues before reimbursements from our International Operations segment totaled $269.8 million in the six months ended June 30, 2026, compared with $258.5 million in the 2025 period. The change in exchange rates increased our International Operations segment revenues by approximately 6.0%, or $15.5 million, for the six months ended June 30, 2026 as compared with the 2025 period. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $254.3 million for the six months ended June 30, 2026. There was an increase in segment unit volume, measured principally by cases received, of 8.2% for the six months ended June 30, 2026, compared with the 2025 period. There was a net increase in high-frequency, low-severity cases of 21,400, or 7.7%, primarily in Spain, Canada, Finland and the Netherlands, partially offset by a decreases in Germany and Brazil. In addition, revenues decreased by $(7.4) million or (2.9)% in the current year due to the disposition of Crawford Legal Services businesses. In Australia, storm related cases recorded in the prior year second quarter with revenues recorded in future periods decreased by 6,000, or (2.2)%. Changes in product mix and in the rates charged for those services accounted for a (1.4)% revenue decrease for the six months ended June 30, 2026 compared with the same period in 2025.

Current wording

Revenues before reimbursements from our International Operations segment totaled $136.7 million in the three months ended September 30, 2026, compared with $135.3 million in the 2025 period. The change in exchange rates increased our International Operations segment revenues by approximately 5.8%, or $7.9 million, for the three months ended September 30, 2026 as compared with the 2025 period. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $128.8 million for the three months ended September 30, 2026. There was an increase in segment unit volume, measured principally by cases received, of 18.2% for the three months ended September 30, 2026, compared with the 2025 period. There was a net increase in high-frequency, low-severity cases of 16,500, or 13.1%, primarily in Spain, Canada, and the Netherlands. In addition, revenues decreased by $(4.9) million or (3.7)% in the current year due to the disposition of Crawford Legal Services businesses. Within the U.K. there was a decrease in higher-value third-party administration claims, which led to a $(3.5) million, or (2.6)% decrease in revenues. In Australia, revenues were earned in the prior year third quarter on 3,500 storm related cases, or 2.8%, recorded in prior quarters. Changes in product mix and in the rates charged for those services accounted for a (0.8)% revenue decrease for the three months ended September 30, 2026 compared with the same period in 2025.

Previous wording

Revenues before reimbursements from our International Operations segment totaled $138.0 million in the three months ended June 30, 2026, compared with $132.3 million in the 2025 period. The change in exchange rates increased our International Operations segment revenues by approximately 5.8%, or $7.7 million, for the three months ended June 30, 2026 as compared with the 2025 period. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $130.3 million for the three months ended June 30, 2026. There was an increase in segment unit volume, measured principally by cases received, of 11.6% for the three months ended June 30, 2026, compared with the 2025 period. There was a net increase in high-frequency, low-severity cases of 17,900, or 13.2%, primarily in Spain, Canada, and the Netherlands, partially offset by a decreases in Germany and Brazil. In addition, revenues decreased by $(4.2) million or (3.2)% in the current year due to the disposition of Crawford Legal Services businesses. In Australia, storm related cases recorded in the prior year second quarter with revenues recorded in future periods decreased by 6,000, or (4.4)%. Changes in product mix and in the rates charged for those services accounted for a (1.2)% revenue decrease for the three months ended June 30, 2026 compared with the same period in 2025.

Current wording

Revenues before reimbursements from our International Operations segment totaled $406.5 million in the nine months ended September 30, 2026, compared with $393.8 million in the 2025 period. The change in exchange rates increased our International Operations segment revenues by approximately 5.9%, or $23.5 million, for the nine months ended September 30, 2026 as compared with the 2025 period. Absent foreign exchange rate fluctuations, International Operations segment revenues would have been $383.1 million for the nine months ended September 30, 2026. There was an increase in segment unit volume, measured principally by cases received, of 11.3% for the nine months ended September 30, 2026, compared with the 2025 period. There was a net increase in high-frequency, low-severity cases of 37,900, or 9.4%, primarily in Spain and Canada. In addition, revenues decreased by $(12.1) million or (3.1)% in the current year due to the disposition of Crawford Legal Services businesses. Within the U.K. there was a decrease in higher-value third-party administration claims, which led to a $(6.1) million, or (1.5)% decrease in revenues. In Australia, storm related cases recorded in the prior year second quarter with revenues recorded in future periods decreased by 2,500, or (0.6)%. Changes in product mix and in the rates charged for those services accounted for a (0.6)% revenue decrease for the nine months ended September 30, 2026 compared with the same period in 2025.

Previous wording

Excluding the impact of foreign currencies, revenues decreased in the U.K. for the three and six month periods due to a reduction in higher-value third-party administration claims as well as a reduction in legal services. There was an increase in revenues in Europe in the 2026 periods, compared with 2025, due to new clients in Spain, Norway, and the Netherlands, partially offset by a reduction in flood related revenues in the Middle East. There was an increase in Australia in the three and six months ended June 30, 2026, compared with the prior year periods, due to increased weather-related activity, partially offset by the sale of the legal services division. Canada increased in each period due to a new client in third-party administration. There was an increase in revenues in Asia for the three and six month periods, compared with 2025, due to earthquakes in Thailand in 2025 that continue to generate revenues in the current year, as well as improved results in Malaysia. The decrease in revenues in Latin America in the 2026 periods was primarily driven by a reduction in weather-related cases in Chile.

Current wording

Excluding the impact of foreign currencies, revenues decreased in the U.K. for the three and nine month periods due to a reduction in higher-value third-party administration claims as well as a reduction in legal services. There was a decrease in revenues in Europe in the 2026 periods, compared with 2025, due to a reduction in flood related revenues in the Middle East. There was a decrease in Australia in the three months ended September 30, 2026, compared to the prior year period, due to the sale of the legal services business. For the nine months ended September 30, 2026, compared with the prior year periods, revenues increased within Australia due to increased weather-related activity, partially offset by the sale of the legal services business. Canada increased in each period due to a new client in third-party administration, as well as increased weather-related activity during the third quarter. There was a decrease in revenues in Asia for the three month period, compared with 2025, due to earthquakes in Thailand in 2025. These earthquake claims have continued to result in revenues in 2026, resulting in the increase in revenues within Asia for the nine months ended September 30, 2026 over the 2025 period. The decrease in revenues in Latin America in the 2026 periods was primarily driven by a reduction in weather-related cases in Chile as well as the exit of the legal services business.

Previous wording

Revenue variance components for our International Operations segment, for the three and six months ended June 30, 2026 are summarized as follows:

Current wording

Revenue variance components for our International Operations segment, for the three and nine months ended September 30, 2026 are summarized as follows:

Previous wording

Reimbursements for out-of-pocket expenses incurred in our International Operations segment, which are included in total Company revenues, were $6.3 million and $9.1 million for the three months ended June 30, 2026 and 2025, respectively. Reimbursements were $14.7 million and $17.8 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Reimbursements for out-of-pocket expenses incurred in our International Operations segment, which are included in total Company revenues, were $6.2 million and $8.2 million for the three months ended September 30, 2026 and 2025, respectively. Reimbursements were $20.8 million and $26.0 million for the nine months ended September 30, 2026 and 2025, respectively.