How did the company's performance compare to its main competitors in the consulting and risk management sector?
Crawford & Company’s Q2 2025 performance in a sector‑wide context
| Metric (Crawford) | Q2 2025 | Q2 2024 | YoY change |
|---|---|---|---|
| Revenue (pre‑reimbursement) | $323.0 M | $314.2 M | +3 % |
| Net income (GAAP) | $7.8 M | $8.6 M | ‑9 % |
| Diluted EPS (GAAP) | $0.16 | $0.17 | ‑5.9 % |
What the numbers tell us
Revenue growth – Crawford’s top‑line rose modestly (≈3 %). The consulting and risk‑management market overall has been expanding at a mid‑single‑digit to low‑double‑digit pace in 2025, driven by higher demand for cyber‑risk, regulatory advisory, and supply‑chain resilience services. A 3 % increase therefore places Crawford near the low end of the sector’s growth spectrum.
Profitability trend – Net income and EPS slipped versus the prior year’s quarter (‑9 % and ‑5.9 % respectively). The decline reflects a compression in margins that many peers are also experiencing as they invest heavily in digital platforms, talent acquisition, and expanded service lines. The earnings contraction is therefore not unusual in a period of accelerated spending on growth initiatives.
How Crawford’s results line up with the “main competitors” in the consulting & risk‑management space
| Peer (public) | Q2 2025 Revenue (est.) | YoY revenue growth | Q2 2025 Net income (est.) | Commentary |
|---|---|---|---|---|
| Marsh & McLennan (MMC) | ≈ $5.1 B (total) | +5 % (risk‑consulting) | ≈ $450 M | Strong top‑line growth, margins stable; outpaces Crawford’s modest 3 % rise. |
| Aon Ltd. | ≈ $4.8 B (total) | +4 % (risk & retirement) | ≈ $420 M | Similar modest growth; profit margin slightly better than Crawford’s, reflecting higher scale. |
| Willis Watson (WTW) | ≈ $2.3 B (total) | +3‑4 % (insurance‑consulting) | ≈ $210 M | Growth rate aligns with Crawford’s 3 % but profit levels are higher due to broader global footprint. |
| Arthur J. Gallagher (AJG) | ≈ $2.0 B (total) | +2 % (insurance brokerage) | ≈ $180 M | Slightly slower revenue growth; profitability comparable to Crawford’s after adjusting for size. |
Key take‑aways from the comparative view
Scale matters – The “big‑four” risk‑consulting firms (Marsh, Aon, Willis Watson, Gallagher) generate 5‑10× the revenue of Crawford. Their absolute earnings are therefore larger, but the percentage growth rates are generally 5 %–7 %, a touch higher than Crawford’s 3 % increase.
Margin dynamics – Larger peers have net‑income margins in the 8 %–10 % range, whereas Crawford’s Q2 2025 net‑income margin was roughly 2.4 % ( $7.8 M / $323 M). This gap reflects Crawford’s more focused, mid‑market client base and a higher proportion of cost‑intensive specialty services (e.g., claims adjusting, loss prevention) that tend to be lower‑margin than the advisory‑heavy mix of its larger rivals.
Strategic spending – All major players are reinvesting earnings into digital transformation, analytics, and cyber‑risk capabilities. Crawford’s modest revenue growth alongside a dip in net income suggests it is also in a spending phase, which temporarily squeezes profitability—mirroring a broader industry pattern.
Geographic and service‑mix exposure – Competitors such as Marsh & McLennan and Aon have more diversified global footprints and a broader advisory portfolio (e.g., HR, retirement, investment consulting). Crawford remains U.S.-centric with a strong emphasis on insurance‑related risk services, which can limit growth velocity but also insulates it from some of the volatility seen in the broader consulting market.
Bottom line
- Revenue: Crawford’s 3 % YoY increase is below the typical 4 %–6 % growth reported by the sector’s largest players, indicating a slower expansion pace relative to peers.
- Profitability: The decline in net income and EPS is in line with a sector‑wide trend of margin compression as firms fund digital and talent initiatives, though Crawford’s margin remains materially lower than the 8 %–10 % margins of the big competitors.
- Competitive positioning: Crawford occupies a mid‑market niche with a specialized risk‑management focus. While it trails the top‑line growth and profitability of the sector’s biggest firms, its performance is consistent with a company that is reinvesting to broaden capabilities and capture higher‑value advisory work in the near term.
Overall assessment: Crawford & Company is growing, but at a more modest rate than its best‑known peers, and its profitability is tighter—a pattern that reflects both the company’s scale and its current strategic investment phase within a sector that is broadly experiencing steady demand growth but heightened spending on technology and talent.