Company: CRD-A
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000950170-25-030894
Chunk: 56

Company: CRAWFORD & CO
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1B
Chunk 56
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 staff augmentation services in 2024 and lower Contractor Connection revenues. 

Excluding indirect expenses, gross profit decreased from $51.6 million, or 22.9% of revenues before reimbursements in 2023, to $34.9 million, or 20.1% of revenues before reimbursements in 2024. This decrease was primarily due to a reduction in revenues in our Networks service line due to higher weather-related activity in the prior year periods resulting in decreased need for staff augmentation services by our clients in the 2024 periods and lower Contractor Connection revenues. 

30

Operating results for our Platform Solutions segment, including gross profit, are as shown in the following table:

    In thousands (except percentages)

    Year Ended December 31,
     
    2024

    2023

    Variance

    Revenues
     
    $
    173,671

    $
    225,459

    (23.0
    )%

    Direct expenses

    138,769

    173,874

    (20.2
    )%

    Gross profit

    34,902

    51,585

    (32.3
    )%

    Indirect expenses

    23,729

    23,044

    3.0
    %

    Total Platform Solutions Operating Earnings
     
    $
    11,173

    $
    28,541

    (60.9
    )%

    Gross profit margin

    20.1
    %

    22.9
    %

    (2.8
    )%

    Operating margin

    6.4
    %

    12.7
    %

    (6.3
    )%

Revenues before Reimbursements

Platform Solutions segment revenues are primarily derived from the property and casualty insurance company and consumer markets in the U.S. Revenues before reimbursements by service line were as follows:

    In thousands (except percentages)

    Year Ended December 31,
     
    2024

    2023

    Variance

    Contractor Connection
     
    $
    67,586

    $
    74,627

    (9.4
    )%

    Networks

    76,977

    123,859

    (37.9
    )%

    Subrogation

    29,108

    26,