CRD

Are there any notable changes in operating expenses, SG&A, or EBITDA that could affect profitability?

Created August 06, 2025 at 07:46 PM

Short answer:

The brief news release you shared does not contain any figures or commentary on operating expenses, SG&A (selling‑, general‑, and administrative) costs, or EBITDA for the second quarter of 2025 (or for the comparable 2024 quarter). Because those line‑items are missing, we cannot directly identify “notable changes” that might be influencing Crawford & Company’s profitability from the information provided.

Why the missing data matters

Metric	Why it matters for profitability
Operating expenses (including cost of goods sold, production costs, etc.)	Directly affect gross margin. A rise or fall in these expenses will either compress or expand the margin on each dollar of revenue.
SG&A	Impacts the “operating margin” (EBIT). Higher SG&A can erode earnings even when top‑line growth is modest; lower SG&A can offset weaker revenue.
EBITDA (Earnings before interest, taxes, depreciation & amortization)	A common proxy for cash‑flow generation and a key gauge of profitability for investors and lenders. Changes in EBITDA signal shifts in the company’s ability to service debt, fund growth, or return capital to shareholders.

Without the actual dollar amounts (or percentage changes) for these items, any assessment of their impact would be speculative.

What we can infer from the limited data

Data point from the release	Potential implication (cautiously interpreted)
Revenue before reimbursements grew 3 % to $323.0 M (vs. $314.2 M a year ago).	Top‑line growth is modest. If cost structure stayed flat, profit would improve; if costs rose faster than revenue, margins could actually shrink.
Net income fell from $8.6 M (≈ $0.17 per diluted share) to $7.8 M (≈ $0.16 per diluted share).	Despite higher revenue, net income declined, suggesting that expenses (operating, SG&A, interest, depreciation, taxes, or other non‑operating items) increased enough to offset the revenue gain. The net‑income drop of about 9 % (or $0.01 per share) is a clue that cost‑side dynamics shifted, but we lack the granularity to pinpoint which cost buckets drove the change.
GAAP C (the line is cut off).	Likely the release was about to disclose GAAP‑adjusted figures such as operating expense, SG&A, or EBITDA, but the excerpt stops before those details appear.

Take‑away: The fact that net income fell while revenue rose hints at higher expenses somewhere in the income statement, but we cannot say whether the driver was operating costs, SG&A, higher depreciation/amortization, interest expense, tax rate changes, or a combination thereof.

How you could get a definitive answer

Locate the full earnings press release – The Business Wire article almost certainly contains a “Financial Highlights” table that lists:
- Operating expenses (or cost of goods sold)
- SG&A expense
- EBITDA (or EBITDA margin)
- Other non‑GAAP adjustments
Review the SEC Form 10‑Q for Q2 2025 – Companies are required to file a quarterly report that includes a complete statement of cash flows, income statement, and footnotes. Those filings break out operating expenses, SG&A, and EBITDA in detail.
Listen to the earnings call (if available) – Management often discusses the drivers behind expense changes, e.g., “higher staffing costs due to a new service line” or “increased travel and marketing spend.”
Check analyst commentary – Brokerage research notes frequently highlight “SG&A expense grew 5 % YoY” or “EBITDA margin expanded to 4.2 % from 3.9 %.”

What to watch for once you have the numbers

Scenario	How it would affect profitability
Operating expenses ↑ faster than revenue (e.g., cost of goods sold +5 % vs. revenue +3 %)	Gross margin compresses, net income falls even with higher sales.
SG&A ↑ modestly (e.g., +2 % YoY) while revenue ↑ 3 %	Operating margin may stay flat; net income could still dip if other costs rise.
EBITDA margin expands (e.g., from 3.5 % to 4.0 %) despite lower net income	Suggests non‑operating items (e.g., higher tax rate or interest expense) are the primary drag on net income, not core operating performance.
EBITDA margin contracts (e.g., from 4.0 % to 3.2 %)	Indicates operating profitability is weakening, a red flag for cash‑flow generation.

Bottom line

From the excerpt you posted: No explicit data on operating expenses, SG&A, or EBITDA is available, so we cannot point to “notable changes” in those line items.
What the net‑income decline despite revenue growth suggests: Some cost component(s) rose enough to offset the 3 % revenue increase, but the exact source is unknown without the full financial tables.
Next step: Retrieve the complete Crawford & Company Q2 2025 earnings release (or the SEC 10‑Q filing) to examine the detailed expense breakdown and EBITDA figures. Only then can we definitively answer whether there were notable changes that could affect profitability.