Record 2025 revenue as Charles River (NASDAQ: CRAI) boosts dividend and buybacks
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Charles River Associates reported another year of record results, with full-year fiscal 2025 revenue up 9.3% to $751.6 million and GAAP net income rising 17.4% to $54.8 million, or $8.14 per diluted share. Non-GAAP EBITDA increased to $96.8 million, a 12.9% margin.
Fourth-quarter revenue grew 11.6% to $197.0 million, while net income slipped to $13.2 million and diluted EPS to $1.99 as margins tightened. The company returned $60.9 million to shareholders in 2025 through $13.8 million of dividends and $47.1 million of share repurchases.
For fiscal 2026, CRA guides to revenue of $785–$805 million and a non-GAAP EBITDA margin of 12.0–13.0% on a constant-currency basis. The board raised the quarterly dividend to $0.57 per share and expanded the share repurchase authorization by $55.0 million, on top of $10.9 million remaining.
Positive
- Strong 2025 performance and outlook: Revenue grew 9.3% to $751.6 million and GAAP EPS rose to $8.14, with 2026 guidance targeting $785–$805 million of revenue and 12.0–13.0% non-GAAP EBITDA margin.
- Robust shareholder returns: The company paid $13.8 million in dividends, repurchased $47.1 million of stock in 2025, raised the quarterly dividend to $0.57, and expanded buybacks by $55.0 million.
Negative
- Margin and cash-flow pressure: Q4 2025 operating margin declined to 10.5% and full-year operating cash flow fell to $22.4 million from $49.7 million, while revolving credit borrowings reached $34.0 million.
Insights
Record 2025 revenue and EPS growth, solid 2026 guidance, but softer margins and cash flow.
CRA International delivered its eighth straight year of record revenue, with full-year fiscal 2025 sales of $751.6 million and GAAP net income of $54.8 million, or $8.14 per diluted share. Non-GAAP EBITDA reached $96.8 million, a 12.9% margin, while utilization held at a healthy 77%.
Quarterly trends were mixed. Q4 revenue climbed 11.6% year over year to $197.0 million, but GAAP net income fell to $13.2 million and operating margin eased to 10.5%. Operating cash flow for 2025 dropped to $22.4 million from $49.7 million, as working capital consumed cash and billed and unbilled receivables increased to $248.9 million.
Management’s 2026 outlook calls for revenue of $785–$805 million and a non-GAAP EBITDA margin of 12.0–13.0% on a constant-currency basis, implying continued growth despite a return to a 52-week year and higher non-cash forgivable loan amortization. Capital return remains a clear focus, with a quarterly dividend of $0.57 per share and a $55.0 million expansion of the repurchase program, in addition to $10.9 million already available.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): February 26, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission file number) | (IRS employer identification no.) | ||||||
| (Address of principal executive offices) | (Zip code) | ||||||||||||||||
| Registrant's telephone number, including area code: | | ||||||||||
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 26, 2026, we issued a press release reporting our financial results for our fiscal quarter and fiscal year ended January 3, 2026. A copy of the press release is set forth as Exhibit 99.1 and is incorporated by reference herein. On February 26, 2026, we also posted on our website supplemental financial information, including prepared CFO remarks. A copy of the supplemental financial information is set forth as Exhibit 99.2 and incorporated by reference herein.
The information contained in Item 2.02 of this report and Exhibits 99.1 and 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure.
On February 26, 2026, we announced that our Board of Directors declared a quarterly cash dividend on our common stock of $0.57 per share to be paid on March 20, 2026 to all shareholders of record as of March 10, 2026. A copy of the press release is set forth as Exhibit 99.3 and is incorporated by reference herein.
Also on February 26, 2026, we announced that our Board of Directors authorized a $55.0 million expansion to our existing share repurchase program, in addition to the $10.9 million currently remaining under the program.
The information contained in Item 7.01 of this report and Exhibit 99.3 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Number | Title | ||||||||||
99.1 | February 26, 2026 earnings press release | ||||||||||
99.2 | Supplemental financial information (prepared CFO remarks) | ||||||||||
99.3 | February 26, 2026 dividend press release | ||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CRA INTERNATIONAL, INC. | ||||||||
Dated: February 26, 2026 | By: | /s/ ERIC NIERENBERG | ||||||
| Eric Nierenberg | ||||||||
| Executive Vice President, Chief Financial Officer and Treasurer | ||||||||
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Exhibit 99.1
| Contacts: | |||||||||||
| Eric Nierenberg | Nicholas Manganaro | ||||||||||
| Chief Financial Officer | Sharon Merrill Advisors | ||||||||||
| Charles River Associates | crai@investorrelations.com | ||||||||||
| 617-425-3020 | 617-542-5300 | ||||||||||
CHARLES RIVER ASSOCIATES (CRA) REPORTS
FOURTH-QUARTER AND FULL-YEAR 2025 FINANCIAL RESULTS
Fourth Quarter Revenue Increases 11.6% Year Over Year
Broad-based Contributions Drive Record Revenue and Profitability in Fiscal 2025
Board Expands Share Repurchase Authorization by $55 Million
BOSTON, February 26, 2026 – Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing economic, financial and management consulting services, today announced financial results for the fourth quarter and fiscal year ended January 3, 2026.
“For the eighth consecutive year, CRA established a new record for annual revenue,” said Paul Maleh, CRA’s President and Chief Executive Officer. “Strong top-line growth drove record profitability as net income, earnings per diluted share, and EBITDA each set a new annual high. For the fourth quarter, we continued to see strength across our portfolio of services as total revenue increased 11.6% year over year to $197.0 million. Four practices—Antitrust & Competition Economics, Energy, Forensic Services, and Labor & Employment—led the way, with each generating double-digit revenue growth, while our Life Sciences and Risk, Investigations & Analytics practices also expanded revenue year over year. Geographically, our North American and international operations both supported the quarter’s revenue expansion, increasing 9.4% and 21.9%, respectively.”
Highlights for Fourth Quarter Fiscal 2025
•Revenue grew 11.6% year over year to $197.0 million.
•Utilization was 78% and quarter-end headcount increased 1.4% year over year.
•Net income decreased 12.0% year over year to $13.2 million, or 6.7% of revenue, compared with $15.0 million, or 8.5% of revenue, in the fourth quarter of fiscal 2024; non-GAAP net income decreased 2.1% year over year to $13.7 million, or 7.0% of revenue, compared with $14.0 million, or 7.9% of revenue, in the fourth quarter of fiscal 2024.
•Earnings per diluted share decreased 8.7% year over year to $1.99 from $2.18 in the fourth quarter of fiscal 2024; non-GAAP earnings per diluted share increased 1.5% year over year to $2.06 from $2.03 in the fourth quarter of fiscal 2024.
•Non-GAAP EBITDA remained relatively unchanged at $24.4 million, or 12.4% of revenue, compared with 13.9% of revenue in the fourth quarter of fiscal 2024.
•On a constant currency basis relative to the fourth quarter of fiscal 2024, revenue, GAAP net income, and earnings per diluted share would have been lower by $1.4 million, $0.2 million, and $0.04 per diluted share, respectively. Non-GAAP net income, non-GAAP earnings per diluted share, and non-GAAP EBITDA, would have been lower, by $0.2 million, $0.03 per diluted share, and $0.4 million, respectively.
•CRA returned $3.7 million of capital to its shareholders via dividend payments.
Highlights for Full-Year Fiscal 2025
•Revenue grew 9.3% year over year to $751.6 million while company-wide utilization was 77%.
•GAAP net income increased 17.4% year over year to $54.8 million, or 7.3% of revenue, or $8.14 per diluted share, compared with $46.7 million, or 6.8% of revenue, or $6.74 per diluted share for the full year fiscal 2024. Non-GAAP net income increased 5.2% year over year to $55.3 million, or 7.4% of revenue, or $8.23 per diluted share, compared with $52.6 million, or 7.7% of revenue, or $7.60 per diluted share for the full year fiscal 2024.
•Non-GAAP EBITDA grew 7.1% to $96.8 million, or 12.9% of revenue, compared with $90.4 million, or 13.2% of revenue, in fiscal 2024.
•On a constant currency basis relative to fiscal 2024, revenue, GAAP net income, and earnings per diluted share would have been lower by $3.9 million, $0.7 million, and $0.10 per diluted share, respectively. Non-GAAP net income, non-GAAP
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earnings per diluted share, and non-GAAP EBITDA would have been lower by $0.7 million, $0.11 per diluted share, and $0.9 million, respectively.
•For fiscal 2025, CRA returned $60.9 million of capital to its shareholders, consisting of $13.8 million in dividend payments and $47.1 million in share repurchases of approximately 252,000 shares.
Management Commentary and Financial Guidance
“Our fiscal 2025 financial performance reflects our continued strength in the marketplace, and we are looking to continue our broad-based profitable growth in the years ahead,” said Maleh. “For full-year fiscal 2026, on a constant-currency basis relative to fiscal 2025, we expect revenue in the range of $785 million to $805 million, and non-GAAP EBITDA margin in the range of 12.0% to 13.0%.”
“Based on current forecasts, we expect that currency effects will decrease our reported revenue by roughly $5 million and will decrease our reported EBITDA by less than $1 million when stated on a constant currency basis. In addition, non-cash forgivable loan amortization, which is reflected as an expense when presenting EBITDA metrics, is expected to increase approximately $15 million, or more than 30% year over year, in fiscal 2026 due to the increase in talent investments completed in fiscal 2025. Finally, as a reminder, fiscal 2026 returns to CRA’s typical 52-week year, whereas fiscal 2025 contained an extra week and resulted in a 53-week year. While we are pleased with CRA’s strong performance in 2025, we remain mindful that uncertain global macroeconomic, business, and political conditions can affect our business.”
CRA does not provide reconciliations of its annual non-GAAP EBITDA margin guidance to GAAP net income margin because the Company is unable to estimate with reasonable certainty unusual gains or charges, foreign currency exchange rates, and the resulting effect of these items, and of equity awards, on CRA’s taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on CRA’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this press release is provided in the financial tables at the end of this press release.
Share Repurchase Expansion and Quarterly Dividend
On February 26, 2026, CRA’s Board of Directors authorized a $55.0 million expansion of the Company’s existing share repurchase program, in addition to the $10.9 million currently remaining under the program. CRA may repurchase shares of its common stock in the open market or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. The timing, amount and extent to which CRA repurchases shares will depend upon market conditions and other factors it may consider in its sole discretion.
The Board of Directors also authorized a quarterly cash dividend of $0.57 per common share, payable on March 20, 2026 to shareholders of record as of March 10, 2026. CRA expects to continue paying quarterly dividends, the declaration, timing and amounts of which remain subject to the discretion of CRA’s Board of Directors.
Conference Call Information and Prepared CFO Remarks
CRA will host a conference call today at 10:00 a.m. ET to discuss its fourth-quarter and fiscal-year 2025 financial results. To listen to the live call, please visit the “Investor Relations” section of CRA’s website at http://www.crai.com, or dial (877) 709-8155 or (201) 689-8881. An archived version of the webcast will be available on CRA’s website for one year.
In combination with this press release, CRA has posted prepared remarks by its CFO Eric Nierenberg under “Quarterly Earnings” in the “Investor Relations” section on CRA’s website at http://www.crai.com. These remarks are offered to provide the investment community with additional background on CRA’s financial results prior to the start of the conference call.
About Charles River Associates (CRA)
Charles River Associates® is a leading global consulting firm specializing in economic, financial, and management consulting services. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout the world. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at www.crai.com. Follow us on LinkedIn, Instagram, and Facebook.
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NON-GAAP FINANCIAL MEASURES
In this press release, CRA has supplemented the presentation of its financial results calculated in accordance with U.S. generally accepted accounting principles or “GAAP” with the following financial measures that are not calculated in accordance with GAAP: non‑GAAP net income, non‑GAAP earnings per diluted share, non‑GAAP EBITDA and non-GAAP EBITDA margin. CRA believes that the non-GAAP financial measures described in this press release are important to management and investors because these measures supplement the understanding of CRA’s ongoing operating results and financial condition. In addition, these non-GAAP measures are used by CRA in its budgeting process, and the non-GAAP adjustments are made to the performance measures for some of CRA’s performance-based compensation.
As used herein, CRA defines non-GAAP EBITDA as net income before interest expense (net), provision for income taxes, and depreciation and amortization further adjusted for the impact of certain items that we do not consider indicative of our core operating performance, such as non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. Non-GAAP net income and non-GAAP earnings per diluted share also exclude non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. This press release also presents certain current fiscal period financial measures on a “constant currency” basis in order to isolate the effect that foreign currency exchange rate fluctuations can have on CRA’s financial results. These constant currency measures are determined by recalculating the current fiscal period local currency financial measure using the specified corresponding prior fiscal period’s foreign exchange rates.
All of the non-GAAP financial measures referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in this press release. The financial measures identified in this press release as “non-GAAP” are reconciled to their GAAP comparable measures in the financial tables appended to the end of this press release. In evaluating these non-GAAP financial measures, note that the non-GAAP financial measures used by CRA may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
SAFE HARBOR STATEMENT
Statements in this press release concerning our future business, operating results and financial condition, including those concerning guidance on future revenue and non-GAAP EBITDA margin, the impact of exchange rate fluctuations on our financial results, our expectations regarding continued growth, our expectations regarding the payment of any future quarterly dividends and the level and extent of any purchases under our expanded share repurchase program, and statements using the terms “outlook,” “expect,” or similar expressions, are “forward-looking” statements as defined in Section 21 of the Exchange Act. These statements are based upon our current expectations and various underlying assumptions. Although we believe there is a reasonable basis for these statements and assumptions, and these statements are expressed in good faith, these statements are subject to a number of additional factors and uncertainties. Our actual revenue and non-GAAP EBITDA margin in fiscal 2026 on a constant currency basis relative to fiscal 2025 could differ materially from the guidance presented herein, and our actual performance and results may differ materially from the performance and results contained in or implied by the forward-looking statements made herein, due to many important factors. These factors include, but are not limited to, the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions; the timing of engagements for our services; the effects of competitive services and pricing; the development and use of artificial intelligence; our ability to attract and retain key employee or non-employee experts; the inability to integrate and utilize existing consultants and personnel; the decline or reduction in project work or activity; global economic conditions including less stable political and economic environments; foreign currency exchange rate fluctuations; unanticipated expenses and liabilities; risks inherent in international operations; changes in tax law or accounting standards, rules, and regulations; our ability to collect on forgivable loans should any become due; and professional and other legal liability or settlements. Additional risks and uncertainties are discussed in our periodic filings with the Securities and Exchange Commission under the heading “Risk Factors.” The inclusion of such forward-looking information should not be regarded as our representation that the future events, plans, or expectations contemplated will be achieved. Except as may be required by law, we undertake no obligation to update any forward-looking statements after the date of this press release, and we do not intend to do so.
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CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 196,963 | 100.0 | % | $ | 176,435 | 100.0 | % | $ | 751,583 | 100.0 | % | $ | 687,414 | 100.0 | % | |||||||||||||||||||||||||||||||
| Cost of services (exclusive of depreciation and amortization) | 138,924 | 70.5 | % | 120,541 | 68.3 | % | 519,288 | 69.1 | % | 479,936 | 69.8 | % | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 33,689 | 17.1 | % | 31,266 | 17.7 | % | 135,031 | 18.0 | % | 125,050 | 18.2 | % | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,712 | 1.9 | % | 3,174 | 1.8 | % | 14,140 | 1.9 | % | 11,677 | 1.7 | % | |||||||||||||||||||||||||||||||||||
| Income from operations | 20,638 | 10.5 | % | 21,454 | 12.2 | % | 83,124 | 11.1 | % | 70,751 | 10.3 | % | |||||||||||||||||||||||||||||||||||
| Interest expense, net | (1,383) | -0.7 | % | (1,013) | -0.6 | % | (5,358) | -0.7 | % | (4,417) | -0.6 | % | |||||||||||||||||||||||||||||||||||
| Foreign currency gains (losses), net | (667) | -0.3 | % | 1,145 | 0.6 | % | (1,193) | -0.2 | % | (92) | — | % | |||||||||||||||||||||||||||||||||||
| Income before provision for income taxes | 18,588 | 9.4 | % | 21,586 | 12.2 | % | 76,573 | 10.2 | % | 66,242 | 9.6 | % | |||||||||||||||||||||||||||||||||||
| Provision for income taxes | 5,403 | 2.7 | % | 6,599 | 3.7 | % | 21,791 | 2.9 | % | 19,589 | 2.8 | % | |||||||||||||||||||||||||||||||||||
| Net income | $ | 13,185 | 6.7 | % | $ | 14,987 | 8.5 | % | $ | 54,782 | 7.3 | % | $ | 46,653 | 6.8 | % | |||||||||||||||||||||||||||||||
| Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 2.01 | $ | 2.21 | $ | 8.23 | $ | 6.82 | |||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.99 | $ | 2.18 | $ | 8.14 | $ | 6.74 | |||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 6,547 | 6,763 | 6,641 | 6,821 | |||||||||||||||||||||||||||||||||||||||||||
| Diluted | 6,627 | 6,866 | 6,714 | 6,908 | |||||||||||||||||||||||||||||||||||||||||||
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CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 196,963 | 100.0 | % | $ | 176,435 | 100.0 | % | $ | 751,583 | 100.0 | % | $ | 687,414 | 100.0 | % | |||||||||||||||||||||||||||||||
| Net income | $ | 13,185 | 6.7 | % | $ | 14,987 | 8.5 | % | $ | 54,782 | 7.3 | % | $ | 46,653 | 6.8 | % | |||||||||||||||||||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | -0.1 | % | — | — | % | (190) | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1)(2) | — | — | % | — | — | % | (462) | -0.1 | % | 8,176 | 1.2 | % | |||||||||||||||||||||||||||||||||||
| Foreign currency (gains) losses, net | 667 | 0.3 | % | (1,145) | -0.6 | % | 1,193 | 0.2 | % | 92 | — | % | |||||||||||||||||||||||||||||||||||
| Tax effect on adjustments | (150) | -0.1 | % | 340 | 0.2 | % | (183) | — | % | (2,126) | -0.3 | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP net income | $ | 13,702 | 7.0 | % | $ | 13,992 | 7.9 | % | $ | 55,330 | 7.4 | % | $ | 52,605 | 7.7 | % | |||||||||||||||||||||||||||||||
| Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 2.09 | $ | 2.06 | $ | 8.31 | $ | 7.69 | |||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 2.06 | $ | 2.03 | $ | 8.23 | $ | 7.60 | |||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 6,547 | 6,763 | 6,641 | 6,821 | |||||||||||||||||||||||||||||||||||||||||||
| Diluted | 6,627 | 6,866 | 6,714 | 6,908 | |||||||||||||||||||||||||||||||||||||||||||
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. | |||||||||||||||||||||||||||||||||||||||||||||||
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CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS)
| Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 196,963 | 100.0 | % | $ | 176,435 | 100.0 | % | $ | 751,583 | 100.0 | % | $ | 687,414 | 100.0 | % | |||||||||||||||||||||||||||||||
| Net income | $ | 13,185 | 6.7 | % | $ | 14,987 | 8.5 | % | $ | 54,782 | 7.3 | % | $ | 46,653 | 6.8 | % | |||||||||||||||||||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | -0.1 | % | — | — | % | (190) | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1)(2) | — | — | % | — | — | % | (462) | -0.1 | % | 8,176 | 1.2 | % | |||||||||||||||||||||||||||||||||||
| Foreign currency (gains) losses, net | 667 | 0.3 | % | (1,145) | -0.6 | % | 1,193 | 0.2 | % | 92 | — | % | |||||||||||||||||||||||||||||||||||
| Tax effect on adjustments | (150) | -0.1 | % | 340 | 0.2 | % | (183) | — | % | (2,126) | -0.3 | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP net income | $ | 13,702 | 7.0 | % | $ | 13,992 | 7.9 | % | $ | 55,330 | 7.4 | % | $ | 52,605 | 7.7 | % | |||||||||||||||||||||||||||||||
| Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 1,383 | 0.7 | % | 1,013 | 0.6 | % | 5,358 | 0.7 | % | 4,417 | 0.6 | % | |||||||||||||||||||||||||||||||||||
| Provision for income taxes | 5,553 | 2.8 | % | 6,259 | 3.5 | % | 21,974 | 2.9 | % | 21,715 | 3.2 | % | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,712 | 1.9 | % | 3,174 | 1.8 | % | 14,140 | 1.9 | % | 11,677 | 1.7 | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP EBITDA | $ | 24,350 | 12.4 | % | $ | 24,438 | 13.9 | % | $ | 96,802 | 12.9 | % | $ | 90,414 | 13.2 | % | |||||||||||||||||||||||||||||||
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. | |||||||||||||||||||||||||||||||||||||||||||||||
6
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| January 3, 2026 | December 28, 2024 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 18,210 | $ | 26,711 | |||||||
| Accounts receivable and unbilled services, net | 248,862 | 219,548 | |||||||||
| Other current assets | 36,057 | 23,104 | |||||||||
| Total current assets | 303,129 | 269,363 | |||||||||
| Property and equipment, net | 36,713 | 45,205 | |||||||||
| Goodwill and intangible assets, net | 100,404 | 100,953 | |||||||||
| Right-of-use assets | 76,132 | 81,157 | |||||||||
| Other assets | 112,495 | 74,761 | |||||||||
| Total assets | $ | 628,873 | $ | 571,439 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Accounts payable | $ | 30,177 | $ | 28,155 | |||||||
| Accrued expenses | 223,460 | 181,413 | |||||||||
| Current portion of lease liabilities | 17,223 | 18,696 | |||||||||
| Revolving line of credit | 34,000 | — | |||||||||
| Other current liabilities | 25,169 | 23,045 | |||||||||
| Total current liabilities | 330,029 | 251,309 | |||||||||
| Non-current portion of lease liabilities | 76,009 | 84,541 | |||||||||
| Other non-current liabilities | 9,237 | 23,516 | |||||||||
| Total liabilities | 415,275 | 359,366 | |||||||||
| Total shareholders’ equity | 213,598 | 212,073 | |||||||||
| Total liabilities and shareholders’ equity | $ | 628,873 | $ | 571,439 | |||||||
7
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| Year Ended | |||||||||||
| January 3, 2026 | December 28, 2024 | ||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 54,782 | $ | 46,653 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses: | |||||||||||
| Non-cash items, net | 34,976 | 29,316 | |||||||||
| Accounts receivable and unbilled services | (25,673) | (22,197) | |||||||||
| Working capital items, net | (41,661) | (4,037) | |||||||||
| Net cash provided by operating activities | 22,424 | 49,735 | |||||||||
| Investing activities: | |||||||||||
| Purchases of property and equipment | (3,868) | (16,623) | |||||||||
| Consideration paid for acquisitions, net | — | (1,500) | |||||||||
| Net cash used in investing activities | (3,868) | (18,123) | |||||||||
| Financing activities: | |||||||||||
| Borrowings under revolving line of credit | 132,000 | 102,000 | |||||||||
| Repayments under revolving line of credit | (98,000) | (102,000) | |||||||||
| Tax withholding payments reimbursed by shares | (2,862) | (3,209) | |||||||||
| Cash dividends paid | (13,831) | (12,300) | |||||||||
| Repurchase of common stock | (47,149) | (33,348) | |||||||||
| Net cash used in financing activities | (29,842) | (48,857) | |||||||||
| Effect of foreign exchange rates on cash and cash equivalents | 2,785 | (1,630) | |||||||||
| Net increase (decrease) in cash and cash equivalents | (8,501) | (18,875) | |||||||||
| Cash and cash equivalents at beginning of period | 26,711 | 45,586 | |||||||||
| Cash and cash equivalents at end of period | $ | 18,210 | $ | 26,711 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (449) | $ | 598 | |||||||
| Excise tax on share repurchases | $ | (415) | $ | (270) | |||||||
| Asset retirement obligations | $ | — | $ | 191 | |||||||
| Right-of-use assets obtained in exchange for lease obligations | $ | 8,460 | $ | 10,084 | |||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for taxes | $ | 26,459 | $ | 21,444 | |||||||
| Cash paid for interest | $ | 4,659 | $ | 4,145 | |||||||
| Cash paid for amounts included in operating lease liabilities | $ | 24,826 | $ | 20,963 | |||||||
8
Exhibit 99.2
CHARLES RIVER ASSOCIATES (CRA)
FOURTH QUARTER AND FISCAL YEAR 2025
EARNINGS ANNOUNCEMENT
PREPARED CFO REMARKS
CRA is providing these prepared remarks by CFO Eric Nierenberg in combination with its press release. These remarks are offered to provide the investment community with additional information on CRA’s financial results prior to the start of the conference call.
As previously announced, the conference call will be held February 26, 2026 at 10:00 a.m. ET. These prepared remarks will not be read on the call.
Q4 Fiscal 2025 Summary (Quarter ended January 3, 2026)
•Revenue: $197.0 million
•Net income: $13.2 million, or 6.7% of revenue; non-GAAP net income: $13.7 million, or 7.0% of revenue
•Earnings per diluted share: $1.99; and non-GAAP net income per diluted share: $2.06
•Operating margin and non-GAAP operating margin: 10.5%
•Non-GAAP EBITDA: $24.4 million, or 12.4% of revenue
•Effective tax rate: 29.1%; non-GAAP effective tax rate: 28.8%
•Utilization: 78%
•Consultant headcount at the end of Q4 of fiscal 2025: 959, which consists of 164 officers, 563 other senior staff and 232 junior staff
•Cash and cash equivalents: $18.2 million at January 3, 2026
•Revolving credit facility borrowing capacity: $162.2 million at January 3, 2026
Fiscal Year 2025 Summary (Fiscal Year ended January 3, 2026)
•Revenue: $751.6 million
•Net income: $54.8 million, or 7.3% of revenue; non-GAAP net income: $55.3 million, or 7.4% of revenue
•Earnings per diluted share: $8.14; non-GAAP net income per diluted share: $8.23
•Operating margin: 11.1%; non-GAAP operating margin: 11.0%
•Non-GAAP EBITDA: $96.8 million, or 12.9% of revenue
•Effective tax rate: 28.5% ; non-GAAP effective tax rate: 28.4%
•Utilization: 77%
Revenue
For Q4 of fiscal 2025, revenue was $197.0 million, compared with $176.4 million for Q4 of fiscal 2024.
For the full year fiscal 2025, revenue was $751.6 million, compared with $687.4 million for the full year fiscal 2024.
1
Headcount
The following table outlines CRA’s consultant headcount at the end of the stated quarters:
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | ||||||||||||||||||||||||||||
| Officers | 164 | 164 | 159 | 156 | 151 | |||||||||||||||||||||||||||
| Other Senior Staff | 563 | 567 | 557 | 566 | 552 | |||||||||||||||||||||||||||
| Junior Staff | 232 | 237 | 221 | 225 | 243 | |||||||||||||||||||||||||||
| Total | 959 | 968 | 937 | 947 | 946 | |||||||||||||||||||||||||||
Utilization
For Q4 of fiscal 2025 and Q4 of fiscal 2024, company-wide utilization was 78%.
For the full year fiscal 2025, company-wide utilization was 77%, compared with 75% for the full year fiscal 2024.
Client Reimbursables
For Q4 of fiscal 2025, client reimbursables were $18.6 million, or 9.4% of revenue, compared with $17.7 million, or 10.0% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, client reimbursables were $72.5 million, or 9.6% of revenue, compared with $65.7 million, or 9.6% of revenue, for the full year fiscal 2024.
Selling, General and Administrative (SG&A) Expenses
For Q4 of fiscal 2025, SG&A expenses were $33.7 million, or 17.1% of revenue, compared with $31.3 million, or 17.7% of revenue, for Q4 of fiscal 2024. Commissions to non-employee experts are included in SG&A expenses. These commissions represented approximately 1.0% of revenue for Q4 of fiscal 2025, compared with 1.8% in Q4 of fiscal 2024. Excluding these commissions, SG&A expenses were 16.1% of revenue for Q4 of fiscal 2025, compared with 15.9% in Q4 of fiscal 2024.
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||
| SG&A expenses | $ | 33,689 | 17.1 | % | $ | 31,266 | 17.7 | % | ||||||||||||||||||
| Less: commissions to non-employee experts | 2,053 | 1.0 | % | 3,192 | 1.8 | % | ||||||||||||||||||||
| SG&A expenses excluding commissions | $ | 31,636 | 16.1 | % | $ | 28,074 | 15.9 | % | ||||||||||||||||||
For the full year fiscal 2025, SG&A expenses were $135.0 million, or 18.0% of revenue, compared with $125.1 million, or 18.2% of revenue, for the full year fiscal 2024. Commissions to non-employee experts are included in SG&A expenses. These commissions represented approximately 1.8% of revenue for full year fiscal 2025, compared with 2.1% in full year fiscal 2024. Excluding these commissions, SG&A expenses were 16.1% of revenue for the full year fiscal 2025 and for the full year fiscal 2024, respectively.
| Fiscal Year Ended | ||||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||
| SG&A expenses | $ | 135,031 | 18.0 | % | $ | 125,050 | 18.2 | % | ||||||||||||||||||
| Less: commissions to non-employee experts | 13,735 | 1.8 | % | 14,642 | 2.1 | % | ||||||||||||||||||||
| SG&A expenses excluding commissions | $ | 121,296 | 16.1 | % | $ | 110,408 | 16.1 | % | ||||||||||||||||||
Depreciation & Amortization
For Q4 of fiscal 2025, depreciation and amortization expenses amounted to $3.7 million, or 1.9% of revenue, compared with $3.2 million, or 1.8% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, depreciation and amortization expenses amounted to $14.1 million, or 1.9% of revenue, compared with $11.7 million, or 1.7% of revenue, for the full year fiscal 2024.
Forgivable Loan Amortization
For Q4 of fiscal 2025, forgivable loan amortization was $14.0 million, or 7.1% of revenue, compared with $9.7 million, or 5.5% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, forgivable loan amortization was $39.4 million, or 5.2% of revenue, compared with $42.0 million, or 6.1% of revenue, for the full year fiscal 2024.
2
Share-Based Compensation Expense
For Q4 of fiscal 2025, share-based compensation expense was approximately $1.9 million, or 1.0% of revenue, compared with $1.5 million, or 0.9% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, share-based compensation expense was approximately $5.9 million, or 0.8% of revenue, compared with $5.3 million, or 0.8% of revenue, for the full year fiscal 2024.
Operating Income
For Q4 of fiscal 2025, income from operations was $20.6 million, or 10.5% of revenue, compared with income from operations of $21.5 million, or 12.2% of revenue, for Q4 of fiscal 2024. Non-GAAP income from operations was $20.6 million, or 10.5% of revenue, for Q4 of fiscal 2025, compared with $21.3 million, or 12.1% of revenue, for Q4 of fiscal 2024.
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||
| Income from operations | $ | 20,638 | 10.5 | % | $ | 21,454 | 12.2 | % | ||||||||||||||||||
| Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | ||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | (0.1) | % | ||||||||||||||||||||
| Non-GAAP income from operations | $ | 20,638 | 10.5 | % | $ | 21,264 | 12.1 | % | ||||||||||||||||||
For the full year fiscal 2025, income from operations was $83.1 million, or 11.1% of revenue, compared with income from operations of $70.8 million, or 10.3% of revenue, for the full year fiscal 2024. Non-GAAP income from operations was $82.7 million, or 11.0% of revenue, for the full year fiscal 2025, compared with $78.7 million, or 11.5% of revenue, for the full year fiscal 2024.
| Fiscal Year Ended | |||||||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | |||||||||||||||||||||||||
| Income from operations | $ | 83,124 | 11.1 | % | $ | 70,751 | 10.3 | % | |||||||||||||||||||||
| Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | |||||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | — | % | |||||||||||||||||||||||
Restructuring (1)(2) | (462) | (0.1) | % | 8,176 | 1.2 | % | |||||||||||||||||||||||
| Non-GAAP income from operations | $ | 82,662 | 11.0 | % | $ | 78,737 | 11.5 | % | |||||||||||||||||||||
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||||||||
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. | |||||||||||||||||||||||||||||
Interest Income (Expense), net
For Q4 of fiscal 2025, net interest expense was $1.4 million, or 0.7% of revenue, compared with net interest expense of $1.0 million, or 0.6% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, net interest expense was $5.4 million, or 0.7% of revenue, compared with net interest expense of $4.4 million, or 0.6% of revenue, for the full year fiscal 2024.
Foreign Currency Gains (Losses), net
For Q4 of fiscal 2025, net foreign currency losses were $0.7 million, or 0.3% of revenue, compared with net foreign currency gains of $1.1 million, or 0.6% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, net foreign currency losses were $1.2 million, or 0.2% of revenue, compared with net foreign currency losses of $0.1 million, or less than 0.1% of revenue, for the full year fiscal 2024.
Foreign currency gains (losses), net, is comprised of net gains and losses on foreign denominated transactions and the revaluation of working capital balances.
3
Income Taxes
The following table outlines CRA’s income tax provision recorded and the resulting effective tax rates:
| GAAP | Non-GAAP | |||||||||||||||||||||||||
| Fiscal Quarter Ended | Fiscal Quarter Ended | |||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||
| Tax Provision | $ | 5,403 | $ | 6,599 | $ | 5,553 | $ | 6,259 | ||||||||||||||||||
| Effective Tax Rate | 29.1 | % | 30.6 | % | 28.8 | % | 30.9 | % | ||||||||||||||||||
| GAAP | Non-GAAP | |||||||||||||||||||||||||
| Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | December 28, 2024 | January 3, 2026 | December 28, 2024 | ||||||||||||||||||||||
| Tax Provision | $ | 21,791 | $ | 19,589 | $ | 21,974 | $ | 21,715 | ||||||||||||||||||
| Effective Tax Rate | 28.5 | % | 29.6 | % | 28.4 | % | 29.2 | % | ||||||||||||||||||
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||
| Income before provision for income taxes | $ | 18,588 | 9.4 | % | $ | 21,586 | 12.2 | % | ||||||||||||||||||
| Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes | ||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | (0.1) | % | ||||||||||||||||||||
| Foreign currency (gains) losses, net | 667 | 0.3 | % | (1,145) | (0.6) | % | ||||||||||||||||||||
| Non-GAAP income before provision for income taxes | $ | 19,255 | 9.8 | % | $ | 20,251 | 11.5 | % | ||||||||||||||||||
| GAAP provision for income taxes | $ | 5,403 | $ | 6,599 | ||||||||||||||||||||||
| Tax effect on non-GAAP adjustments | 150 | (340) | ||||||||||||||||||||||||
| Non-GAAP provision for income taxes | $ | 5,553 | $ | 6,259 | ||||||||||||||||||||||
| Fiscal Year Ended | ||||||||||||||||||||||||||
| $ in 000’s | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||
| Income before provision for income taxes | $ | 76,573 | 10.2 | % | $ | 66,242 | 9.6 | % | ||||||||||||||||||
| Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes | ||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | — | % | ||||||||||||||||||||
Restructuring (1)(2) | (462) | (0.1) | % | 8,176 | 1.2 | % | ||||||||||||||||||||
| Foreign currency (gains) losses, net | 1,193 | 0.2 | % | 92 | — | % | ||||||||||||||||||||
| Non-GAAP income before provision for income taxes | $ | 77,304 | 10.3 | % | $ | 74,320 | 10.8 | % | ||||||||||||||||||
| GAAP provision for income taxes | $ | 21,791 | $ | 19,589 | ||||||||||||||||||||||
| Tax effect on non-GAAP adjustments | 183 | 2,126 | ||||||||||||||||||||||||
| Non-GAAP provision for income taxes | $ | 21,974 | $ | 21,715 | ||||||||||||||||||||||
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award. | ||||||||||||||||||||||||||
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. | ||||||||||||||||||||||||||
Net Income
For Q4 of fiscal 2025, net income was $13.2 million, or 6.7% of revenue, or $1.99 per diluted share, compared with net income of $15.0 million, or 8.5% of revenue, or $2.18 per diluted share, for Q4 of fiscal 2024. Non-GAAP net income for Q4 of fiscal 2025 was $13.7 million, or 7.0% of revenue, or $2.06 per diluted share, compared with $14.0 million, or 7.9% of revenue, or $2.03 per diluted share, for Q4 of fiscal 2024.
For the full year fiscal 2025, net income was $54.8 million, or 7.3% of revenue, or $8.14 per diluted share, compared with net income of $46.7 million, or 6.8% of revenue, or $6.74 per diluted share, for the full year fiscal 2024. Non-GAAP net income for the full year
4
fiscal 2025 was $55.3 million, or 7.4% of revenue, or $8.23 per diluted share, compared with $52.6 million, or 7.7% of revenue, or $7.60 per diluted share, for the full year fiscal 2024.
Non-GAAP EBITDA
For Q4 of fiscal 2025 and for Q4 of fiscal 2024, non-GAAP EBITDA was $24.4 million, or 12.4% of revenue for Q4 of fiscal 2025, compared with 13.9% of revenue for Q4 of fiscal 2024.
For the full year fiscal 2025, non-GAAP EBITDA was $96.8 million, or 12.9% of revenue, compared with $90.4 million, or 13.2% of revenue, for the full year fiscal 2024.
Constant Currency Basis
For Q4 of fiscal 2025, revenue was $197.0 million, and net income was $13.2 million, or 6.7% of revenue, or $1.99 per diluted share. On a constant currency basis relative to Q4 of fiscal 2024, Q4 of fiscal 2025 revenue would have been lower by $1.4 million at $195.6 million; GAAP net income would have decreased by $0.2 million to $13.0 million, or 6.6% of revenue; and earnings per diluted share would have decreased by $0.04 to $1.95 per diluted share.
For Q4 of fiscal 2025, revenue was $197.0 million and non-GAAP net income was $13.7 million, or 7.0% of revenue, or $2.06 per diluted share. On a constant currency basis relative to Q4 of fiscal 2024, Q4 of fiscal 2025 revenue would have been lower by $1.4 million at $195.6 million; non-GAAP net income would have decreased by $0.2 million to $13.5 million, or 6.8% of revenue; non-GAAP earnings per diluted share would have decreased by $0.03 to $2.03 per diluted share; and non-GAAP EBITDA would have been lower by $0.4 million at $24.0 million, or 12.3% of revenue.
Full year fiscal 2025, revenue was $751.6 million, and net income was $54.8 million, or 7.3% of revenue, or $8.14 per diluted share. On a constant currency basis relative to full year fiscal 2024, full year fiscal 2025 revenue would have been lower by $3.9 million at $747.7 million; GAAP net income would have decreased by $0.7 million to $54.1 million, or 7.2% of revenue; and earnings per diluted share would have decreased by $0.10 to $8.04 per diluted share.
Full year fiscal 2025, revenue was $751.6 million and non-GAAP net income was $55.3 million, or 7.4% of revenue, or $8.23 per diluted share. On a constant currency basis relative to full year fiscal 2024, full year fiscal 2025 revenue would have been lower by $3.9 million at $747.7 million; non-GAAP net income would have decreased by $0.7 million to $54.6 million, or 7.3% of revenue; non-GAAP earnings per diluted share would have decreased by $0.11 to $8.12 per diluted share; and non-GAAP EBITDA would have been lower by $0.9 million at $95.9 million, or 12.8% of revenue.
A description of the process for calculating the measures presented on a constant currency basis is contained under the heading “Non-GAAP Financial Measures” below.
Key Balance Sheet Metrics
Billed and unbilled receivables at January 3, 2026 were $248.9 million, compared with $219.5 million at December 28, 2024. Current liabilities at January 3, 2026 were $330.0 million, compared with $251.3 million at December 28, 2024.
Total Days Sales Outstanding, or DSO, for Q4 of fiscal 2025 was 108 days, consisting of 78 days of billed and 30 days of unbilled. This compares with 106 days reported for Q4 of fiscal 2024, consisting of 76 days of billed and 30 days of unbilled.
Cash and Cash Flow
Cash and cash equivalents were $18.2 million at January 3, 2026, compared with $26.7 million at December 28, 2024.
Net cash provided by operating activities for Q4 of fiscal 2025 was $60.0 million, compared with net cash provided by operating activities of $79.4 million for Q4 of fiscal 2024. For the full year fiscal 2025, net cash provided by operating activities was $22.4 million, compared with $49.7 million for the full year 2024.
As of January 3, 2026, there was $34.0 million in outstanding borrowing under CRA’s revolving credit facility, compared with no outstanding borrowings at December 28, 2024.
Capital expenditures totaled $1.1 million for Q4 of fiscal 2025, compared with $10.6 million for Q4 of fiscal 2024. Capital expenditures totaled $3.9 million during full year fiscal 2025, compared with $16.6 million during full year fiscal 2024.
During the full year fiscal 2025, approximately 252,000 shares of common stock were repurchased for $47.1 million, compared with the full year fiscal 2024 when approximately 206,000 shares of common stock repurchased for $33.3 million, including transaction costs.
A quarterly cash dividend of $0.57 per common share, for total dividends and dividend equivalents of $3.7 million were paid in Q4 of fiscal 2025, compared with a quarterly cash dividend of $0.49 per common share, for total dividends and dividend equivalents of $3.4
5
million paid in Q4 of fiscal 2024. During the full year fiscal 2025, $13.8 million of dividends and dividend equivalents were paid, compared with $12.3 million paid during the full year fiscal 2024.
GAAP Condensed Consolidated Statement of Cash Flows
CRA has derived the condensed consolidated statement of cash flow data for the fourth quarters and the years ended January 3, 2026 and December 28, 2024 from its audited financial statements appearing on Form 10-K for the fiscal year ended January 3, 2026, filed with the Securities and Exchange Commission on February 26, 2026. The condensed consolidated statement of cash flow data for the first, second and third quarters of fiscal years 2025 and 2024 have been derived from CRA’s unaudited financial statements appearing on Form 10-Q for each of the respective fiscal quarters, as well as the consolidated statements of cash flows appearing on Form 10-K for the fiscal years ended January 3, 2026 and December 28, 2024, and have been prepared on the same basis as CRA’s audited financial statements.
| GAAP Condensed Consolidated Statement of Cash Flows | FY | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||
| ($ in 000’s) | 2025 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 22,424 | $ | 60,019 | $ | 36,547 | $ | 5,852 | $ | (79,994) | ||||||||||||||||||||||
| Net cash used in investing activities | (3,868) | (1,055) | (650) | (1,189) | (974) | |||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | (29,842) | (64,733) | (32,292) | (11,875) | 79,058 | |||||||||||||||||||||||||||
| Effect of foreign exchange rates on cash and cash equivalents | 2,785 | 1,483 | (557) | 1,062 | 797 | |||||||||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | (8,501) | $ | (4,286) | $ | 3,048 | $ | (6,150) | $ | (1,113) | ||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 26,711 | 22,496 | 19,448 | 25,598 | 26,711 | |||||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 18,210 | $ | 18,210 | $ | 22,496 | $ | 19,448 | $ | 25,598 | ||||||||||||||||||||||
| GAAP Condensed Consolidated Statement of Cash Flows | FY | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||
| ($ in 000’s) | 2024 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 49,735 | $ | 79,424 | $ | 31,584 | $ | 1,807 | $ | (63,080) | ||||||||||||||||||||||
| Net cash used in investing activities | (18,123) | (10,591) | (2,986) | (3,816) | (730) | |||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | (48,857) | (64,629) | (29,927) | (10,353) | 56,052 | |||||||||||||||||||||||||||
| Effect of foreign exchange rates on cash and cash equivalents | (1,630) | (1,974) | 1,161 | (111) | (706) | |||||||||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | (18,875) | $ | 2,230 | $ | (168) | $ | (12,473) | $ | (8,464) | ||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 45,586 | 24,481 | 24,649 | 37,122 | 45,586 | |||||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 26,711 | $ | 26,711 | $ | 24,481 | $ | 24,649 | $ | 37,122 | ||||||||||||||||||||||
Non-GAAP Adjusted Net Cash Flows from Operations
Below are the quarterly and last twelve-month reconciliations of GAAP net cash provided by (used in) operating activities for each of the periods presented to non-GAAP adjusted net cash flows from operations. The reconciling items are forgivable loan advances and repayments for each period, which are reported as a component of GAAP net cash provided by (used in) operating activities, along with other non-recurring cash items.
| Non-GAAP Adjusted Net Cash Flows from Operations | FY | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||
| ($ in 000’s) | 2025 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||
| GAAP net cash provided by (used in) operating activities | $ | 22,424 | $ | 60,019 | $ | 36,547 | $ | 5,852 | $ | (79,994) | ||||||||||||||||||||||
| Forgivable loan advances | 87,909 | 17,571 | 29,400 | 13,507 | 27,431 | |||||||||||||||||||||||||||
| Forgivable loan repayments | (1,933) | — | (1,333) | — | (600) | |||||||||||||||||||||||||||
| Non-GAAP adjusted net cash flows from operations | $ | 108,400 | $ | 77,590 | $ | 64,614 | $ | 19,359 | $ | (53,163) | ||||||||||||||||||||||
| Net revenue | $ | 751,583 | $ | 196,963 | $ | 185,891 | $ | 186,878 | $ | 181,851 | ||||||||||||||||||||||
| GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 3.0 | % | 30.5 | % | 19.7 | % | 3.1 | % | (44.0) | % | ||||||||||||||||||||||
| Non-GAAP adjusted net cash flows from operations as a percentage of net revenue | 14.4 | % | 39.4 | % | 34.8 | % | 10.4 | % | (29.2) | % | ||||||||||||||||||||||
| Non-GAAP Adjusted Net Cash Flows from Operations | FY | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||||
| ($ in 000’s) | 2024 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||||||||||||||
| GAAP net cash provided by (used in) operating activities | $ | 49,735 | $ | 79,424 | $ | 31,584 | $ | 1,807 | $ | (63,080) | ||||||||||||||||||||||
| Forgivable loan advances | 45,494 | 7,106 | 14,258 | 18,880 | 5,250 | |||||||||||||||||||||||||||
| Forgivable loan repayments | (2,761) | (2,473) | — | (288) | — | |||||||||||||||||||||||||||
| Non-GAAP adjusted net cash flows from operations | $ | 92,468 | $ | 84,057 | $ | 45,842 | $ | 20,399 | $ | (57,830) | ||||||||||||||||||||||
| Net revenue | $ | 687,414 | $ | 176,435 | $ | 167,748 | $ | 171,442 | $ | 171,789 | ||||||||||||||||||||||
6
| GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 7.2 | % | 45.0 | % | 18.8 | % | 1.1 | % | (36.7) | % | ||||||||||||||||||||||
| Non-GAAP adjusted net cash flows from operations as a percentage of net revenue | 13.5 | % | 47.6 | % | 27.3 | % | 11.9 | % | (33.7) | % | ||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES
In these remarks, CRA has supplemented the presentation of its financial results calculated in accordance with U.S. generally accepted accounting principles or “GAAP” with the following financial measures that were not calculated in accordance with GAAP: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP EBITDA, non-GAAP income from operations (and non-GAAP operating margin), non-GAAP provision for income taxes (and non-GAAP effective tax rate), SG&A expenses excluding commissions and non-GAAP adjusted net cash flows from operations. CRA believes that these non-GAAP financial measures are important to management and investors because these measures supplement the understanding of CRA’s ongoing operating results, financial condition and cash flows. Non-GAAP adjusted net cash flows from operations is used by management to assess CRA’s ability to fund items such as the acquisition of talent, office expansions, debt repayment and distributions to shareholders. In addition, non-GAAP net income and non-GAAP EBITDA are used by CRA in its budgeting process, and the non-GAAP adjustments described below are made to the performance measures for some of CRA’s performance-based compensation.
As used herein, CRA defines non-GAAP EBITDA as net income before interest expense (net), provision for income taxes, and depreciation and amortization further adjusted for the impact of certain items that we do not consider indicative of its core operating performance, such as non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. Non-GAAP net income, non-GAAP income from operations and non-GAAP provision for income taxes also exclude non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. The adjustments made to non-GAAP adjusted net cash flows from operations add back forgivable loan issuances, net of repayments, along with other non-recurring cash items. These remarks also present certain current fiscal period financial measures on a “constant currency” basis in order to isolate the effect that foreign currency exchange rate fluctuations can have on CRA’s financial results. These constant currency measures are determined by recalculating the current fiscal period local currency financial measure using the specified corresponding prior fiscal period’s foreign exchange rates.
All of the non-GAAP financial measures referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in these remarks. EBITDA and the financial measures identified in these remarks as “non-GAAP” are reconciled to their GAAP comparable measures either in these remarks or in the attached financial tables. In evaluating these non-GAAP financial measures, note that the non-GAAP financial measures used by CRA may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
7
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 196,963 | 100.0 | % | $ | 176,435 | 100.0 | % | $ | 751,583 | 100.0 | % | $ | 687,414 | 100.0 | % | |||||||||||||||||||||||||||||||
| Cost of services (exclusive of depreciation and amortization) | 138,924 | 70.5 | % | 120,541 | 68.3 | % | 519,288 | 69.1 | % | 479,936 | 69.8 | % | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 33,689 | 17.1 | % | 31,266 | 17.7 | % | 135,031 | 18.0 | % | 125,050 | 18.2 | % | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,712 | 1.9 | % | 3,174 | 1.8 | % | 14,140 | 1.9 | % | 11,677 | 1.7 | % | |||||||||||||||||||||||||||||||||||
| Income from operations | 20,638 | 10.5 | % | 21,454 | 12.2 | % | 83,124 | 11.1 | % | 70,751 | 10.3 | % | |||||||||||||||||||||||||||||||||||
| Interest expense, net | (1,383) | -0.7 | % | (1,013) | -0.6 | % | (5,358) | -0.7 | % | (4,417) | -0.6 | % | |||||||||||||||||||||||||||||||||||
| Foreign currency gains (losses), net | (667) | -0.3 | % | 1,145 | 0.6 | % | (1,193) | -0.2 | % | (92) | — | % | |||||||||||||||||||||||||||||||||||
| Income before provision for income taxes | 18,588 | 9.4 | % | 21,586 | 12.2 | % | 76,573 | 10.2 | % | 66,242 | 9.6 | % | |||||||||||||||||||||||||||||||||||
| Provision for income taxes | 5,403 | 2.7 | % | 6,599 | 3.7 | % | 21,791 | 2.9 | % | 19,589 | 2.8 | % | |||||||||||||||||||||||||||||||||||
| Net income | $ | 13,185 | 6.7 | % | $ | 14,987 | 8.5 | % | $ | 54,782 | 7.3 | % | $ | 46,653 | 6.8 | % | |||||||||||||||||||||||||||||||
| Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 2.01 | $ | 2.21 | $ | 8.23 | $ | 6.82 | |||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.99 | $ | 2.18 | $ | 8.14 | $ | 6.74 | |||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 6,547 | 6,763 | 6,641 | 6,821 | |||||||||||||||||||||||||||||||||||||||||||
| Diluted | 6,627 | 6,866 | 6,714 | 6,908 | |||||||||||||||||||||||||||||||||||||||||||
8
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 196,963 | 100.0 | % | $ | 176,435 | 100.0 | % | $ | 751,583 | 100.0 | % | $ | 687,414 | 100.0 | % | |||||||||||||||||||||||||||||||
| Net income | $ | 13,185 | 6.7 | % | $ | 14,987 | 8.5 | % | $ | 54,782 | 7.3 | % | $ | 46,653 | 6.8 | % | |||||||||||||||||||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | -0.1 | % | — | — | % | (190) | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1)(2) | — | — | % | — | — | % | (462) | -0.1 | % | 8,176 | 1.2 | % | |||||||||||||||||||||||||||||||||||
| Foreign currency (gains) losses, net | 667 | 0.3 | % | (1,145) | -0.6 | % | 1,193 | 0.2 | % | 92 | — | % | |||||||||||||||||||||||||||||||||||
| Tax effect on adjustments | (150) | -0.1 | % | 340 | 0.2 | % | (183) | — | % | (2,126) | -0.3 | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP net income | $ | 13,702 | 7.0 | % | $ | 13,992 | 7.9 | % | $ | 55,330 | 7.4 | % | $ | 52,605 | 7.7 | % | |||||||||||||||||||||||||||||||
| Non-GAAP net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 2.09 | $ | 2.06 | $ | 8.31 | $ | 7.69 | |||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 2.06 | $ | 2.03 | $ | 8.23 | $ | 7.60 | |||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic | 6,547 | 6,763 | 6,641 | 6,821 | |||||||||||||||||||||||||||||||||||||||||||
| Diluted | 6,627 | 6,866 | 6,714 | 6,908 | |||||||||||||||||||||||||||||||||||||||||||
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. | |||||||||||||||||||||||||||||||||||||||||||||||
9
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS)
| Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||
| January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | January 3, 2026 | As a % of Revenue | December 28, 2024 | As a % of Revenue | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 196,963 | 100.0 | % | $ | 176,435 | 100.0 | % | $ | 751,583 | 100.0 | % | $ | 687,414 | 100.0 | % | |||||||||||||||||||||||||||||||
| Net income | $ | 13,185 | 6.7 | % | $ | 14,987 | 8.5 | % | $ | 54,782 | 7.3 | % | $ | 46,653 | 6.8 | % | |||||||||||||||||||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash valuation change in contingent consideration | — | — | % | (190) | -0.1 | % | — | — | % | (190) | — | % | |||||||||||||||||||||||||||||||||||
Restructuring (1)(2) | — | — | % | — | — | % | (462) | -0.1 | % | 8,176 | 1.2 | % | |||||||||||||||||||||||||||||||||||
| Foreign currency (gains) losses, net | 667 | 0.3 | % | (1,145) | -0.6 | % | 1,193 | 0.2 | % | 92 | — | % | |||||||||||||||||||||||||||||||||||
| Tax effect on adjustments | (150) | -0.1 | % | 340 | 0.2 | % | (183) | — | % | (2,126) | -0.3 | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP net income | $ | 13,702 | 7.0 | % | $ | 13,992 | 7.9 | % | $ | 55,330 | 7.4 | % | $ | 52,605 | 7.7 | % | |||||||||||||||||||||||||||||||
| Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 1,383 | 0.7 | % | 1,013 | 0.6 | % | 5,358 | 0.7 | % | 4,417 | 0.6 | % | |||||||||||||||||||||||||||||||||||
| Provision for income taxes | 5,553 | 2.8 | % | 6,259 | 3.5 | % | 21,974 | 2.9 | % | 21,715 | 3.2 | % | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,712 | 1.9 | % | 3,174 | 1.8 | % | 14,140 | 1.9 | % | 11,677 | 1.7 | % | |||||||||||||||||||||||||||||||||||
| Non-GAAP EBITDA | $ | 24,350 | 12.4 | % | $ | 24,438 | 13.9 | % | $ | 96,802 | 12.9 | % | $ | 90,414 | 13.2 | % | |||||||||||||||||||||||||||||||
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. | |||||||||||||||||||||||||||||||||||||||||||||||
10
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| January 3, 2026 | December 28, 2024 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 18,210 | $ | 26,711 | |||||||
| Accounts receivable and unbilled services, net | 248,862 | 219,548 | |||||||||
| Other current assets | 36,057 | 23,104 | |||||||||
| Total current assets | 303,129 | 269,363 | |||||||||
| Property and equipment, net | 36,713 | 45,205 | |||||||||
| Goodwill and intangible assets, net | 100,404 | 100,953 | |||||||||
| Right-of-use assets | 76,132 | 81,157 | |||||||||
| Other assets | 112,495 | 74,761 | |||||||||
| Total assets | $ | 628,873 | $ | 571,439 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Accounts payable | $ | 30,177 | $ | 28,155 | |||||||
| Accrued expenses | 223,460 | 181,413 | |||||||||
| Current portion of lease liabilities | 17,223 | 18,696 | |||||||||
| Revolving line of credit | 34,000 | — | |||||||||
| Other current liabilities | 25,169 | 23,045 | |||||||||
| Total current liabilities | 330,029 | 251,309 | |||||||||
| Non-current portion of lease liabilities | 76,009 | 84,541 | |||||||||
| Other non-current liabilities | 9,237 | 23,516 | |||||||||
| Total liabilities | 415,275 | 359,366 | |||||||||
| Total shareholders’ equity | 213,598 | 212,073 | |||||||||
| Total liabilities and shareholders’ equity | $ | 628,873 | $ | 571,439 | |||||||
11
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| Year Ended | |||||||||||
| January 3, 2026 | December 28, 2024 | ||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 54,782 | $ | 46,653 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses: | |||||||||||
| Non-cash items, net | 34,976 | 29,316 | |||||||||
| Accounts receivable and unbilled services | (25,673) | (22,197) | |||||||||
| Working capital items, net | (41,661) | (4,037) | |||||||||
| Net cash provided by operating activities | 22,424 | 49,735 | |||||||||
| Investing activities: | |||||||||||
| Purchases of property and equipment | (3,868) | (16,623) | |||||||||
| Consideration paid for acquisitions, net | — | (1,500) | |||||||||
| Net cash used in investing activities | (3,868) | (18,123) | |||||||||
| Financing activities: | |||||||||||
| Borrowings under revolving line of credit | 132,000 | 102,000 | |||||||||
| Repayments under revolving line of credit | (98,000) | (102,000) | |||||||||
| Tax withholding payments reimbursed by shares | (2,862) | (3,209) | |||||||||
| Cash dividends paid | (13,831) | (12,300) | |||||||||
| Repurchase of common stock | (47,149) | (33,348) | |||||||||
| Net cash used in financing activities | (29,842) | (48,857) | |||||||||
| Effect of foreign exchange rates on cash and cash equivalents | 2,785 | (1,630) | |||||||||
| Net increase (decrease) in cash and cash equivalents | (8,501) | (18,875) | |||||||||
| Cash and cash equivalents at beginning of period | 26,711 | 45,586 | |||||||||
| Cash and cash equivalents at end of period | $ | 18,210 | $ | 26,711 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (449) | $ | 598 | |||||||
| Excise tax on share repurchases | $ | (415) | $ | (270) | |||||||
| Asset retirement obligations | $ | — | $ | 191 | |||||||
| Right-of-use assets obtained in exchange for lease obligations | $ | 8,460 | $ | 10,084 | |||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for taxes | $ | 26,459 | $ | 21,444 | |||||||
| Cash paid for interest | $ | 4,659 | $ | 4,145 | |||||||
| Cash paid for amounts included in operating lease liabilities | $ | 24,826 | $ | 20,963 | |||||||
12
Exhibit 99.3
| Contacts: | |||||||||||
| Eric Nierenberg | Nicholas Manganaro | ||||||||||
| Charles River Associates | Sharon Merrill Advisors | ||||||||||
| investor@crai.com | crai@investorrelations.com | ||||||||||
| 617-425-3020 | 617-542-5300 | ||||||||||
CHARLES RIVER ASSOCIATES (CRA) DECLARES QUARTERLY CASH DIVIDEND OF $0.57 PER COMMON SHARE
BOSTON, February 26, 2026 – Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing economic, financial and management consulting services, today announced that its Board of Directors has declared a quarterly cash dividend of $0.57 per common share to be paid on March 20, 2026 to shareholders of record of CRA’s common stock as of the close of business on March 10, 2026. The Company expects to continue paying quarterly dividends, the declaration, timing and amounts of which remain subject to the discretion of CRA’s Board of Directors.
About Charles River Associates (CRA)
Charles River Associates® is a leading global consulting firm specializing in economic, financial and management consulting services. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout the world. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at www.crai.com. Follow us on LinkedIn, Instagram, and Facebook.
SAFE HARBOR STATEMENT
Statements in this press release concerning our expectations regarding the payment of future quarterly dividends are “forward-looking” statements as defined in Section 21 of the Exchange Act. These statements are based upon our current expectations and various underlying assumptions. Although we believe there is a reasonable basis for these statements and assumptions, and these statements are expressed in good faith, these statements are subject to a number of additional factors and uncertainties. These factors include, but are not limited to, the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions; the timing of engagements for our services; the effects of competitive services and pricing; the development and use of artificial intelligence; our ability to attract and retain key employee or non-employee experts; the inability to integrate and utilize existing consultants and personnel; the decline or reduction in project work or activity; global economic conditions including less stable political and economic environments; foreign currency exchange rate fluctuations; unanticipated expenses and liabilities; risks inherent in international operations; changes in tax law or accounting standards, rules, and regulations; our ability to collect on forgivable loans should any become due; and professional and other legal liability or settlements. Additional risks and uncertainties are discussed in our periodic filings with the Securities and Exchange Commission under the heading “Risk Factors.” The inclusion of such forward-looking information should not be regarded as our representation that the future events, plans, or expectations contemplated will be achieved. Except as may be required by law, we undertake no obligation to update any forward-looking statements after the date of this press release, and we do not intend to do so.
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FAQ
How did CRAI perform financially in full-year 2025?
CRAI delivered record 2025 results, with revenue of $751.6 million and GAAP net income of $54.8 million. Diluted earnings per share were $8.14, and non-GAAP EBITDA reached $96.8 million, representing a 12.9% margin on strong 77% utilization.
What were CRAI’s key fourth-quarter 2025 results?
In Q4 2025, CRAI’s revenue grew 11.6% year over year to $197.0 million. Net income was $13.2 million, or $1.99 per diluted share, while non-GAAP EBITDA was $24.4 million, a 12.4% margin, as utilization held at 78%.
What guidance did CRAI provide for fiscal 2026?
For fiscal 2026, CRAI expects revenue between $785 million and $805 million on a constant-currency basis. Management also targets a non-GAAP EBITDA margin of 12.0% to 13.0%, while noting higher forgivable loan amortization and a return to a 52-week year.
What does CRAI’s balance sheet look like after 2025?
At January 3, 2026, CRAI had total assets of $628.9 million and shareholders’ equity of $213.6 million. Cash and cash equivalents were $18.2 million, billed and unbilled receivables totaled $248.9 million, and borrowings under the revolving credit facility were $34.0 million.