Record Q1 revenue but weaker profit at CRA International (NASDAQ: CRAI)
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
CRA International reported record first-quarter 2026 revenue of $201.0 million, up 10.5% year over year, driven by broad-based growth across eight practices and both North American and international operations. Legal & Regulatory offerings grew 11.5%, while Management Consulting rose 8.3%.
Profitability declined as net income fell to $11.1 million, down 38.2%, and diluted EPS decreased to $1.69 from $2.62. Non-GAAP net income was $13.1 million and non-GAAP EBITDA was $23.2 million, or 11.5% of revenue. Operating cash flow for the year-to-date period was negative $113.9 million, and borrowings under the revolving credit facility reached $192.0 million.
The company reaffirmed full-year 2026 guidance for revenue of $785–$805 million and a non-GAAP EBITDA margin of 12.0–13.0% on a constant currency basis. The Board declared a quarterly cash dividend of $0.57 per share, payable June 12, 2026 to shareholders of record on May 26, 2026.
Positive
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Negative
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Insights
Record revenue but weaker margins and cash flow create a mixed quarter.
CRA International delivered record Q1 2026 revenue of $201.0 million, up 10.5% year over year, with growth across most practices and geographies. Legal & Regulatory offerings grew 11.5% and Management Consulting increased 8.3%, indicating broad demand.
However, profitability compressed. GAAP net income declined to $11.1 million (5.5% margin) from $18.0 million (9.9% margin), and non-GAAP EBITDA slipped to $23.2 million, or 11.5% of revenue. Higher costs, including portfolio optimization charges and significantly higher forgivable loan amortization, weighed on margins.
Cash dynamics also shifted. Year-to-date net cash used in operating activities was $113.9 million, versus $80.0 million in the prior-year period, and revolving credit facility borrowings rose to $192.0 million as of April 4, 2026. Despite this, management reaffirmed 2026 guidance for revenue of $785–$805 million and a non-GAAP EBITDA margin of 12.0–13.0%, and declared a quarterly dividend of $0.57 per share.
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.
Key Figures
Q1 2026 Revenue: $201.0 million
Q1 2026 Net Income: $11.1 million
Q1 2026 Diluted EPS: $1.69 per share
+5 more
8 metrics
Q1 2026 Revenue
$201.0 million
Fiscal quarter ended April 4, 2026; up 10.5% year over year
Q1 2026 Net Income
$11.1 million
5.5% of revenue; down from $18.0 million in Q1 2025
Q1 2026 Diluted EPS
$1.69 per share
Compared with $2.62 per diluted share in Q1 2025
Q1 2026 Non-GAAP EBITDA
$23.2 million
11.5% of revenue versus $24.8 million, or 13.6%, a year earlier
2026 Revenue Guidance
$785–$805 million
Full-year fiscal 2026 guidance on a constant currency basis
Quarterly Dividend
$0.57 per share
Payable June 12, 2026 to shareholders of record May 26, 2026
Operating Cash Flow YTD
-$113.9 million
Net cash used in operating activities year-to-date to April 4, 2026
Revolving Credit Borrowings
$192.0 million
Outstanding under revolving credit facility as of April 4, 2026
Key Terms
non-GAAP EBITDA, constant currency basis, forgivable loan amortization, Days Sales Outstanding, +2 more
6 terms
non-GAAP EBITDA financial
"Non-GAAP EBITDA decreased 6.5% to $23.2 million, or 11.5% of revenue"
Non-GAAP EBITDA is a company's earnings before interest, taxes, depreciation and amortization that management adjusts by adding back or removing certain items that official accounting rules (GAAP) would normally include. Investors look at it to get a cleaner view of recurring operating performance—like checking a score after removing one-off events—but because companies decide which items to exclude, it can vary widely and should be evaluated alongside standard GAAP measures.
constant currency basis financial
"On a constant currency basis relative to the first quarter of fiscal 2025, revenue, GAAP net income, and earnings per diluted share would have been lower"
A "constant currency basis" is a way companies compare financial results by removing the effects of changing exchange rates between different currencies. It helps show how the business is really performing, without the confusion caused by currency value swings, much like adjusting for inflation to see true growth.
forgivable loan amortization financial
"For Q1 of fiscal 2026, forgivable loan amortization, including performance award amortization was $13.9 million"
Forgivable loan amortization is the plan for repaying the portion of a loan that must be paid back when some of the loan may later be canceled if certain conditions are met. It shows the regular payments and schedule for the non-forgiven balance, similar to a mortgage schedule, while the forgivable portion is contingent. Investors care because it affects a company’s future cash outflows and reported debt—if forgiveness happens the payment burden disappears, if not the amortization determines ongoing expenses and cash needs.
Days Sales Outstanding financial
"Total Days Sales Outstanding, or DSO, for Q1 of fiscal 2026 was 100 days"
Days Sales Outstanding (DSO) measures the average number of days a company takes to collect payment after making a sale. It tells investors how quickly sales are turning into cash—shorter DSO means the company gets paid faster and has more cash on hand, while longer DSO suggests cash is tied up with customers and increases the risk of late or lost payments; think of it like how long a borrower takes to repay a loan.
revolving credit facility financial
"As of April 4, 2026, there were $192.0 million in borrowings outstanding under CRA’s revolving credit facility"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
portfolio optimization actions financial
"Fiscal quarter ended April 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions"
Earnings Snapshot
Revenue: $201.0 million · Guidance included
Q1 2026
Revenue
$201.0 million
+10.5% year over year
Net income
$11.1 million
-38.2% year over year
Diluted EPS
$1.69
-35.5% year over year
Non-GAAP net income
$13.1 million
-14.1% year over year
Non-GAAP EBITDA
$23.2 million
-6.5% year over year
Guidance
Reaffirmed full-year fiscal 2026 guidance for revenue of $785–$805 million and a non-GAAP EBITDA margin of 12.0–13.0%, on a constant currency basis relative to fiscal 2025.
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): May 7, 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 May 7, 2026 , we issued a press release reporting our financial results for our fiscal quarter ended April 4, 2026. A copy of the press release is set forth as Exhibit 99.1 and is incorporated by reference herein. On May 7, 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, as amended (the “Exchange Act”) 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, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure.
On May 7, 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 June 12, 2026 to all shareholders of record as of May 26, 2026. A copy of the press release is set forth as Exhibit 99.3 and is incorporated by reference herein.
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 Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, 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 | May 7, 2026 earnings press release | ||||||||||
99.2 | Supplemental financial information (prepared CFO remarks) | ||||||||||
99.3 | May 7, 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: | 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 | ||||||||||
| Charles River Associates | Sharon Merrill Advisors | ||||||||||
| investor@crai.com | crai@investorrelations.com | ||||||||||
| 617-425-3020 | 617-542-5300 | ||||||||||
CHARLES RIVER ASSOCIATES (CRA) REPORTS
FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2026
Broad-based Contributions Drive Record Quarterly Revenue
BOSTON, May 7, 2026 – Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing economic, financial and management consulting services, today announced financial results for the fiscal first quarter ended April 4, 2026.
“Maintaining the momentum of a record fiscal 2025, CRA continued its strong performance into the first quarter of fiscal 2026 as revenue increased by 10.5% year over year to $201.0 million,” said Paul Maleh, CRA’s President and Chief Executive Officer. “This represents the highest quarterly revenue in the company’s history, besting the previous record set by the fourth quarter of fiscal 2025.”
“Broad-based contributions drove the quarter’s strong performance, with eight practices growing year over year. Four practices—Energy, Finance, Forensic Services, and Life Sciences—posted double-digit revenue growth, while the Antitrust & Competition Economics practice posted a new high for quarterly revenue. This strong practice performance reflected balanced growth across our portfolio, as our Legal & Regulatory offerings grew 11.5% year over year and Management Consulting offerings expanded 8.3%. We also generated growth across our geographies, with our North American operations increasing revenue by 8.5% and our international operations expanding 20.3% year over year.”
Highlights for First Quarter Fiscal 2026
•Revenue grew 10.5% year over year to $201.0 million.
•Utilization was 77% and quarter-end headcount increased 2.5% year over year.
•Net income decreased 38.2% year over year to $11.1 million, or 5.5% of revenue, compared with $18.0 million, or 9.9% of revenue, in the first quarter of fiscal 2025; non-GAAP net income decreased 14.1% year over year to $13.1 million, or 6.5% of revenue, compared with $15.3 million, or 8.4% of revenue, in the first quarter of fiscal 2025.
•Earnings per diluted share decreased 35.5% year over year to $1.69 from $2.62 in the first quarter of fiscal 2025; non-GAAP earnings per diluted share decreased 10.4% year over year to $1.99 from $2.22 in the first quarter of fiscal 2025.
•Non-GAAP EBITDA decreased 6.5% to $23.2 million, or 11.5% of revenue, compared with $24.8 million, or 13.6% of revenue, in the first quarter of fiscal 2025.
•On a constant currency basis relative to the first quarter of fiscal 2025, revenue, GAAP net income, and earnings per diluted share would have been lower by $2.6 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, $0.04 per diluted share and $0.3 million, respectively.
•CRA returned $25.3 million of capital to its shareholders, consisting of $3.8 million of dividend payments and $21.5 million for share repurchases of approximately 116,000 shares.
Management Commentary and Financial Guidance
“We are reaffirming our financial guidance for full-year fiscal 2026 of revenue in the range of $785 million to $805 million and non-GAAP EBITDA margin in the range of 12.0% to 13.0%, both on a constant currency basis relative to fiscal 2025,” said Maleh. “We are encouraged by the strong start to the year, supportive market trends, and the continued replenishing of our sales pipeline. However, we remain mindful that evolving geopolitical, global macroeconomic, and business 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 and without unreasonable effort: (i) unusual gains or charges, foreign currency exchange rates and the resulting effect of these items on CRA’s taxes and (ii) the impact of equity awards on CRA’s taxes. These items are uncertain, depend on various factors, and may have a material effect on CRA’s results computed in accordance with
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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.
Quarterly Dividend
On May 7, 2026, CRA announced a quarterly cash dividend of $0.57 per common share, payable on June 12, 2026 to shareholders of record as of May 26, 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 first-quarter 2026 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 each quarter 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.
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 Securities Exchange Act of 1934, as amended.
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
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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 employees 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 ENDED
APRIL 4, 2026 COMPARED TO MARCH 29, 2025
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | |||||||||||||||||||||||
| Revenues | $ | 200,975 | 100.0 | % | $ | 181,851 | 100.0 | % | ||||||||||||||||||
| Costs of services (exclusive of depreciation and amortization) | 145,029 | 72.2 | % | 120,354 | 66.2 | % | ||||||||||||||||||||
| Selling, general and administrative expenses | 34,523 | 17.2 | % | 32,538 | 17.9 | % | ||||||||||||||||||||
| Depreciation and amortization | 3,391 | 1.7 | % | 3,411 | 1.9 | % | ||||||||||||||||||||
| Income from operations | 18,032 | 9.0 | % | 25,548 | 14.0 | % | ||||||||||||||||||||
| Interest expense, net | (1,011) | -0.5 | % | (429) | -0.2 | % | ||||||||||||||||||||
| Foreign currency gains (losses), net | 378 | 0.2 | % | (474) | -0.3 | % | ||||||||||||||||||||
| Income before provision for income taxes | 17,399 | 8.7 | % | 24,645 | 13.6 | % | ||||||||||||||||||||
| Provision for income taxes | 6,267 | 3.1 | % | 6,643 | 3.7 | % | ||||||||||||||||||||
| Net income | $ | 11,132 | 5.5 | % | $ | 18,002 | 9.9 | % | ||||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||||
| Basic | $ | 1.71 | $ | 2.65 | ||||||||||||||||||||||
| Diluted | $ | 1.69 | $ | 2.62 | ||||||||||||||||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||||||||||||
| Basic | 6,512 | 6,775 | ||||||||||||||||||||||||
| Diluted | 6,588 | 6,862 | ||||||||||||||||||||||||
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CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS ENDED
APRIL 4, 2026 COMPARED TO MARCH 29, 2025
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | |||||||||||||||||||||||
| Revenues | $ | 200,975 | 100.0 | % | $ | 181,851 | 100.0 | % | ||||||||||||||||||
| Net income | $ | 11,132 | 5.5 | % | $ | 18,002 | 9.9 | % | ||||||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | ||||||||||||||||||||||||||
Restructuring and other (1)(2) | 1,759 | 0.9 | % | (4,170) | -2.3 | % | ||||||||||||||||||||
| Foreign currency (gains) losses, net | (378) | -0.2 | % | 474 | 0.3 | % | ||||||||||||||||||||
Tax effect on adjustments(1) | 586 | 0.3 | % | 947 | 0.5 | % | ||||||||||||||||||||
| Non-GAAP net income | $ | 13,099 | 6.5 | % | $ | 15,253 | 8.4 | % | ||||||||||||||||||
| Non-GAAP net income per share: | ||||||||||||||||||||||||||
| Basic | $ | 2.01 | $ | 2.25 | ||||||||||||||||||||||
| Diluted | $ | 1.99 | $ | 2.22 | ||||||||||||||||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||||||||||||
| Basic | 6,512 | 6,775 | ||||||||||||||||||||||||
| Diluted | 6,588 | 6,862 | ||||||||||||||||||||||||
(1) Fiscal quarter ended April 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions. | ||||||||||||||||||||||||||
(2) Fiscal quarter ended March 29, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. | ||||||||||||||||||||||||||
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CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS ENDED
APRIL 4, 2026 COMPARED TO MARCH 29, 2025
(IN THOUSANDS)
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | |||||||||||||||||||||||
| Revenues | $ | 200,975 | 100.0 | % | $ | 181,851 | 100.0 | % | ||||||||||||||||||
| Net income | $ | 11,132 | 5.5 | % | $ | 18,002 | 9.9 | % | ||||||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | ||||||||||||||||||||||||||
Restructuring and other (1)(2) | 1,759 | 0.9 | % | (4,170) | -2.3 | % | ||||||||||||||||||||
| Foreign currency (gains) losses, net | (378) | -0.2 | % | 474 | 0.3 | % | ||||||||||||||||||||
Tax effect on adjustments(1) | 586 | 0.3 | % | 947 | 0.5 | % | ||||||||||||||||||||
| Non-GAAP net income | $ | 13,099 | 6.5 | % | $ | 15,253 | 8.4 | % | ||||||||||||||||||
| Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | ||||||||||||||||||||||||||
| Interest expense, net | $ | 1,011 | 0.5 | % | $ | 429 | 0.2 | % | ||||||||||||||||||
| Provision for income taxes | 5,681 | 2.8 | % | 5,696 | 3.1 | % | ||||||||||||||||||||
| Depreciation and amortization | 3,391 | 1.7 | % | 3,411 | 1.9 | % | ||||||||||||||||||||
| Non-GAAP EBITDA | $ | 23,182 | 11.5 | % | $ | 24,789 | 13.6 | % | ||||||||||||||||||
(1) Fiscal quarter ended April 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions. | ||||||||||||||||||||||||||
(2) Fiscal quarter ended March 29, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. | ||||||||||||||||||||||||||
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CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| April 4, 2026 | January 3, 2026 | |||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 32,496 | $ | 18,210 | ||||||||||
| Accounts receivable and unbilled services, net | 233,262 | 248,862 | ||||||||||||
| Other current assets | 50,714 | 36,057 | ||||||||||||
| Total current assets | 316,472 | 303,129 | ||||||||||||
| Property and equipment, net | 36,312 | 36,713 | ||||||||||||
| Goodwill and intangible assets, net | 99,777 | 100,404 | ||||||||||||
| Right-of-use assets | 72,101 | 76,132 | ||||||||||||
| Other assets | 137,752 | 112,495 | ||||||||||||
| Total assets | $ | 662,414 | $ | 628,873 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||
| Accounts payable | $ | 24,273 | $ | 30,177 | ||||||||||
| Accrued expenses | 132,454 | 223,460 | ||||||||||||
| Current portion of lease liabilities | 17,239 | 17,223 | ||||||||||||
| Revolving line of credit | 192,000 | 34,000 | ||||||||||||
| Other current liabilities | 14,875 | 25,169 | ||||||||||||
| Total current liabilities | 380,841 | 330,029 | ||||||||||||
| Non-current portion of lease liabilities | 70,889 | 76,009 | ||||||||||||
| Other non-current liabilities | 12,294 | 9,237 | ||||||||||||
| Total liabilities | 464,024 | 415,275 | ||||||||||||
| Total shareholders’ equity | 198,390 | 213,598 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 662,414 | $ | 628,873 | ||||||||||
7
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| Fiscal Year-to-Date Period Ended | |||||||||||
| April 4, 2026 | March 29, 2025 | ||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 11,132 | $ | 18,002 | |||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
| Non-cash items, net | 10,061 | 8,112 | |||||||||
| Accounts receivable and unbilled services | 14,724 | (2,746) | |||||||||
| Working capital items, net | (149,806) | (103,362) | |||||||||
| Net cash used in operating activities | (113,889) | (79,994) | |||||||||
| Investing activities: | |||||||||||
| Purchases of property and equipment, net | (2,649) | (974) | |||||||||
| Net cash used in investing activities | (2,649) | (974) | |||||||||
| Financing activities: | |||||||||||
| Borrowings under revolving line of credit | 208,000 | 90,000 | |||||||||
| Repayments under revolving line of credit | (50,000) | (5,000) | |||||||||
| Tax withholding payments reimbursed by shares | (1,449) | (2,454) | |||||||||
| Cash dividends and dividend equivalents paid | (3,806) | (3,488) | |||||||||
| Repurchase of common stock | (21,463) | — | |||||||||
| Net cash provided by financing activities | 131,282 | 79,058 | |||||||||
| Effect of foreign exchange rates on cash and cash equivalents | (458) | 797 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 14,286 | (1,113) | |||||||||
| Cash and cash equivalents at beginning of period | 18,210 | 26,711 | |||||||||
| Cash and cash equivalents at end of period | $ | 32,496 | $ | 25,598 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | 52 | $ | (596) | |||||||
| Excise tax on share repurchases | $ | (192) | $ | 39 | |||||||
| Right-of-use assets obtained in exchange for lease obligations | $ | — | $ | 701 | |||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for taxes | $ | 1,926 | $ | 3,181 | |||||||
| Cash paid for interest | $ | 564 | $ | 131 | |||||||
| Cash paid for amounts included in operating lease liabilities | $ | 5,956 | $ | 5,714 | |||||||
8
Exhibit 99.2
CHARLES RIVER ASSOCIATES (CRA)
FIRST QUARTER FISCAL YEAR 2026
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 on May 7, 2026 at 10:00 a.m. ET. These prepared remarks will not be read on the call.
Q1 Fiscal 2026 Summary (Quarter ended April 4, 2026)
•Revenue: $201.0 million
•Net income: $11.1 million, or 5.5% of revenue; non-GAAP net income: $13.1 million, or 6.5% of revenue
•Earnings per diluted share: $1.69; non-GAAP earnings per diluted share: $1.99
•Operating margin: 9.0%; non-GAAP operating margin: 9.8%
•Non-GAAP EBITDA: $23.2 million, or 11.5% of revenue
•Effective tax rate: 36.0%; non-GAAP effective tax rate: 30.3%
•Utilization: 77%
•Consultant headcount at the end of Q1 of fiscal 2026: 971, which consists of 170 officers, 598 other senior staff and 203 junior staff
•Cash and cash equivalents: $32.5 million at April 4, 2026
•Revolving credit facility borrowing capacity: $54.2 million at April 4, 2026
Revenue
For Q1 of fiscal 2026, revenue was $201.0 million, compared with revenue of $181.9 million for Q1 of fiscal 2025.
Headcount
The following table outlines CRA’s consultant headcount at the end of the stated quarters:
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | ||||||||||||||||||||||||||||
| Officers | 170 | 164 | 164 | 159 | 156 | |||||||||||||||||||||||||||
| Other Senior Staff | 598 | 563 | 567 | 557 | 566 | |||||||||||||||||||||||||||
| Junior Staff | 203 | 232 | 237 | 221 | 225 | |||||||||||||||||||||||||||
| Total | 971 | 959 | 968 | 937 | 947 | |||||||||||||||||||||||||||
Utilization
For Q1 of fiscal 2026, company-wide utilization was 77%, compared with 76% for Q1 of fiscal 2025.
Client Reimbursables
For Q1 of fiscal 2026, client reimbursables were $19.1 million, or 9.5% of revenue, compared with $16.5 million, or 9.1% of revenue, for Q1 of fiscal 2025.
Selling, General and Administrative (SG&A) Expenses
For Q1 of fiscal 2026, SG&A expenses were $34.5 million, or 17.2% of revenue, including non-GAAP non-cash charges of $0.2 million associated with portfolio optimization actions, compared with $32.5 million, or 17.9% of revenue, for Q1 of fiscal 2025. Commissions to non-employee experts are included in SG&A expenses. These commissions represented approximately 1.5% of
1
revenue for Q1 of fiscal 2026 and 2.0% for Q1 of fiscal 2025. Excluding these commissions, SG&A expenses were 15.7% of revenue for Q1 of fiscal 2026, compared with 15.9% in Q1 of fiscal 2025.
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| $ in 000’s | April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | ||||||||||||||||||||||
| SG&A expenses | 34,523 | 17.2 | % | $ | 32,538 | 17.9 | % | |||||||||||||||||||
| Less: commissions to non-employee experts | 2,915 | 1.5 | % | 3,681 | 2.0 | % | ||||||||||||||||||||
| SG&A expenses excluding commissions | $ | 31,608 | 15.7 | % | $ | 28,857 | 15.9 | % | ||||||||||||||||||
Depreciation & Amortization
For Q1 of fiscal 2026, depreciation and amortization expenses amounted to $3.4 million, or 1.7% of revenue, compared with $3.4 million, or 1.9% of revenue, for Q1 of fiscal 2025.
Forgivable Loan Amortization
For Q1 of fiscal 2026, forgivable loan amortization, including performance award amortization was $13.9 million, or 6.9% of revenue, including non-GAAP non-cash charges of $0.1 million associated with portfolio optimization actions, compared with $3.7 million, or 2.0% of revenue, for Q1 of fiscal 2025, which reflects a non-GAAP non-cash reversal of $5.4 million associated with a previously recorded performance award.
Share-Based Compensation Expense
For Q1 of fiscal 2026, share-based compensation expense was approximately $1.4 million, or 0.7% of revenue, compared with $1.4 million, or 0.8% of revenue, for Q1 of fiscal 2025.
Operating Income
For Q1 of fiscal 2026, operating income was $18.0 million, or 9.0% of revenue, compared with operating income of $25.5 million, or 14.0% of revenue, for Q1 of fiscal 2025. Non-GAAP operating income was $19.8 million, or 9.8% of revenue, for Q1 of fiscal 2026, compared with $21.4 million, or 11.8% of revenue, for Q1 of fiscal 2025.
| Fiscal Quarter Ended | |||||||||||||||||||||||||||||
| $ in 000’s | April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | |||||||||||||||||||||||||
| Income from operations | $ | 18,032 | 9.0 | % | $ | 25,548 | 14.0 | % | |||||||||||||||||||||
| Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations: | |||||||||||||||||||||||||||||
Restructuring and other (1)(2) | 1,759 | 0.9 | % | (4,170) | (2.3) | % | |||||||||||||||||||||||
| Non-GAAP income from operations | $ | 19,791 | 9.8 | % | $ | 21,378 | 11.8 | % | |||||||||||||||||||||
(1) Fiscal quarter ended April 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions. | |||||||||||||||||||||||||||||
(2) Fiscal quarter ended March 29, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||||||||
Interest Income (Expense), net
For Q1 of fiscal 2026, net interest expense was $1.0 million, or 0.5% of revenue, compared with net interest expense of $0.4 million, or 0.2% of revenue, for Q1 of fiscal 2025.
Foreign Currency Gains (Losses), net
For Q1 of fiscal 2026, net foreign currency gains were $0.4 million, or 0.2% of revenue, compared with net foreign currency losses of $0.5 million, or 0.3% of revenue, for Q1 of fiscal 2025.
Foreign currency gains (losses), net, is comprised of net gains and losses on foreign denominated transactions and the revaluation of working capital balances.
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 | April 4, 2026 | March 29, 2025 | April 4, 2026 | March 29, 2025 | ||||||||||||||||||||||
| Tax Provision | $ | 6,267 | $ | 6,643 | $ | 5,681 | $ | 5,696 | ||||||||||||||||||
| Effective Tax Rate | 36.0 | % | 27.0 | % | 30.3 | % | 27.2 | % | ||||||||||||||||||
2
| Fiscal Quarter Ended | ||||||||||||||||||||||||||
| $ in 000’s | April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | ||||||||||||||||||||||
| Income before provision for income taxes | $ | 17,399 | 8.7 | % | $ | 24,645 | 13.6 | % | ||||||||||||||||||
| Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes | ||||||||||||||||||||||||||
Restructuring and other (1)(2) | 1,759 | 0.9 | % | (4,170) | (2.3) | % | ||||||||||||||||||||
| Foreign currency (gains) losses, net | (378) | (0.2) | % | 474 | 0.3 | % | ||||||||||||||||||||
| Non-GAAP income before provision for income taxes | $ | 18,780 | 9.3 | % | $ | 20,949 | 11.5 | % | ||||||||||||||||||
| GAAP provision for income taxes | $ | 6,267 | $ | 6,643 | ||||||||||||||||||||||
| Tax effect on non-GAAP adjustments | (586) | (947) | ||||||||||||||||||||||||
| Non-GAAP provision for income taxes | $ | 5,681 | $ | 5,696 | ||||||||||||||||||||||
(1) Fiscal quarter ended April 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions. | ||||||||||||||||||||||||||
(2) Fiscal quarter ended March 29, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. | ||||||||||||||||||||||||||
Net Income
For Q1 of fiscal 2026, net income was $11.1 million, or 5.5% of revenue, or $1.69 per diluted share, compared with net income of $18.0 million, or 9.9% of revenue, or $2.62 per diluted share, for Q1 of fiscal 2025. Non-GAAP net income for Q1 of fiscal 2026 was $13.1 million, or 6.5% of revenue, or $1.99 per diluted share, compared with $15.3 million, or 8.4% of revenue, or $2.22 per diluted share, for Q1 of fiscal 2025.
Non-GAAP EBITDA
For Q1 of fiscal 2026, non-GAAP EBITDA was $23.2 million, or 11.5% of revenue, compared with $24.8 million, or 13.6% of revenue, for Q1 of fiscal 2025.
Constant Currency Basis
For Q1 of fiscal 2026, revenue was $201.0 million, and net income was $11.1 million, or 5.5% of revenue, or $1.69 per diluted share. On a constant currency basis relative to Q1 of fiscal 2025, Q1 of fiscal 2026 revenue would have been lower by $2.6 million at $198.4 million, GAAP net income would have been lower by $0.2 million at $10.9 million, or 5.5% of revenue, and earnings per diluted share would have decreased by $0.04 to $1.65 per diluted share.
For Q1 of fiscal 2026, revenue was $201.0 million, and non-GAAP net income was $13.1 million, or 6.5% of revenue, or $1.99 per diluted share. On a constant currency basis relative to Q1 of fiscal 2025, Q1 of fiscal 2026 revenue would have been lower by $2.6 million at $198.4 million, non-GAAP net income would have been lower by $0.2 million at $12.9 million, or 6.5% of revenue, non-GAAP earnings per diluted share would have decreased by $0.04 to $1.95 per diluted share, and non-GAAP EBITDA would have been lower by $0.3 million at $22.9 million, or 11.5% 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 April 4, 2026 were $233.3 million, compared with $223.3 million at March 29, 2025. Current liabilities at April 4, 2026 were $380.8 million, compared with $270.5 million at March 29, 2025.
Total Days Sales Outstanding, or DSO, for Q1 of fiscal 2026 was 100 days, consisting of 58 days of billed and 42 days of unbilled. This compares with 107 days reported for Q1 of fiscal 2025, consisting of 65 days of billed and 42 days of unbilled.
Cash and Cash Flow
Cash and cash equivalents was $32.5 million at April 4, 2026, compared with $25.6 million at March 29, 2025.
Net cash used in operating activities for Q1 of fiscal 2026 was $113.9 million, compared with net cash used in operating activities of $80.0 million for Q1 of fiscal 2025.
As of April 4, 2026, there were $192.0 million in borrowings outstanding under CRA’s revolving credit facility. At March 29, 2025, there were $85.0 million in borrowings outstanding under CRA’s revolving credit facility.
3
Capital expenditures totaled $2.6 million for Q1 of fiscal 2026, compared with $1.0 million for Q1 of fiscal 2025.
CRA repurchased approximately 116,000 shares of common stock during Q1 of fiscal 2026 for $21.5 million. During the fiscal quarter ended March 29, 2025, CRA did not repurchase any shares under this share repurchase program.
A quarterly cash dividend of $0.57 per common share, for total dividends and dividend equivalents of $3.8 million, was paid in Q1 of fiscal 2026, compared with a quarterly cash dividend of $0.49 per common share, for total dividends and dividend equivalents of $3.5 million paid in Q1 of fiscal 2025.
GAAP Condensed Consolidated Statement of Cash Flows
CRA has derived the condensed consolidated statement of cash flow data for the fourth quarters and the years ended January 3, 2026 and December 28, 2024 from its audited financial statements appearing on Form 10-K for the fiscal year ended January 3, 2026, filed with the Securities and Exchange Commission on February 26, 2026. The condensed consolidated statement of cash flow data for the first, second and third quarters of fiscal year 2025, and the second, and third quarters of fiscal year 2024 have been derived from CRA’s unaudited financial statements appearing on Form 10-Q for each of the respective fiscal quarters as well as the consolidated statements of cash flows appearing on Form 10-K for the fiscal years ended January 3, 2026 and December 28, 2024 and have been prepared on the same basis as CRA’s audited financial statements.
| GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||||
| ($ in 000’s) | Q1 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (11,471) | $ | (113,889) | $ | 60,019 | $ | 36,547 | $ | 5,852 | ||||||||||||||||||||||
| Net cash used in investing activities | (5,543) | (2,649) | (1,055) | (650) | (1,189) | |||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | 22,382 | 131,282 | (64,733) | (32,292) | (11,875) | |||||||||||||||||||||||||||
| Effect of foreign exchange rates on cash and cash equivalents | 1,530 | (458) | 1,483 | (557) | 1,062 | |||||||||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | 6,898 | $ | 14,286 | $ | (4,286) | $ | 3,048 | $ | (6,150) | ||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 25,598 | 18,210 | 22,496 | 19,448 | 25,598 | |||||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 32,496 | $ | 32,496 | $ | 18,210 | $ | 22,496 | $ | 19,448 | ||||||||||||||||||||||
| GAAP Condensed Consolidated Statement of Cash Flows | LTM | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||||
| ($ in 000’s) | Q1 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 32,821 | $ | (79,994) | $ | 79,424 | $ | 31,584 | $ | 1,807 | ||||||||||||||||||||||
| Net cash used in investing activities | (18,367) | (974) | (10,591) | (2,986) | (3,816) | |||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | (25,851) | 79,058 | (64,629) | (29,927) | (10,353) | |||||||||||||||||||||||||||
| Effect of foreign exchange rates on cash and cash equivalents | (127) | 797 | (1,974) | 1,161 | (111) | |||||||||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | (11,524) | $ | (1,113) | $ | 2,230 | $ | (168) | $ | (12,473) | ||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 37,122 | 26,711 | 24,481 | 24,649 | 37,122 | |||||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 25,598 | $ | 25,598 | $ | 26,711 | $ | 24,481 | $ | 24,649 | ||||||||||||||||||||||
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.
| Adjusted Net Cash Flows from Operations | LTM | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||||
| ($ in 000’s) | Q1 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||||||||||||||
| GAAP net cash provided by (used in) operating activities | $ | (11,471) | $ | (113,889) | $ | 60,019 | $ | 36,547 | $ | 5,852 | ||||||||||||||||||||||
| Forgivable loan advances | 122,845 | 62,367 | 17,571 | 29,400 | 13,507 | |||||||||||||||||||||||||||
| Forgivable loan repayments | (1,383) | (50) | — | (1,333) | — | |||||||||||||||||||||||||||
| Adjusted net cash flows from operations | $ | 109,991 | $ | (51,572) | $ | 77,590 | $ | 64,614 | $ | 19,359 | ||||||||||||||||||||||
| Net revenue | $ | 770,707 | $ | 200,975 | $ | 196,963 | $ | 185,891 | $ | 186,878 | ||||||||||||||||||||||
| GAAP net cash provided by (used in) operating activities as a percentage of net revenue | (1.5) | % | -56.7 | % | 30.5 | % | 19.7 | % | 3.1 | % | ||||||||||||||||||||||
| Adjusted net cash flows from operations as a percentage of net revenue | 14.3 | % | -25.7 | % | 39.4 | % | 34.8 | % | 10.4 | % | ||||||||||||||||||||||
4
| Adjusted Net Cash Flows from Operations | LTM | Q1 | Q4 | Q3 | Q2 | |||||||||||||||||||||||||||
| ($ in 000’s) | Q1 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||||||||||||||
| GAAP net cash provided by (used in) operating activities | $ | 32,821 | $ | (79,994) | $ | 79,424 | $ | 31,584 | $ | 1,807 | ||||||||||||||||||||||
| Forgivable loan advances | 67,675 | 27,431 | 7,106 | 14,258 | 18,880 | |||||||||||||||||||||||||||
| Forgivable loan repayments | (3,361) | (600) | (2,473) | — | (288) | |||||||||||||||||||||||||||
| Adjusted net cash flows from operations | $ | 97,135 | $ | (53,163) | $ | 84,057 | $ | 45,842 | $ | 20,399 | ||||||||||||||||||||||
| Net revenue | $ | 697,476 | $ | 181,851 | $ | 176,435 | $ | 167,748 | $ | 171,442 | ||||||||||||||||||||||
| GAAP net cash provided by (used in) operating activities as a percentage of net revenue | 4.7 | % | (44.0) | % | 45.0 | % | 18.8 | % | 1.1 | % | ||||||||||||||||||||||
| Adjusted net cash flows from operations as a percentage of net revenue | 13.9 | % | (29.2) | % | 47.6 | % | 27.3 | % | 11.9 | % | ||||||||||||||||||||||
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. 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.
5
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE FISCAL QUARTERS ENDED
APRIL 4, 2026 COMPARED TO MARCH 29, 2025
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | |||||||||||||||||||||||
| April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | ||||||||||||||||||||
| Revenues | $ | 200,975 | 100.0 | % | $ | 181,851 | 100.0 | % | |||||||||||||||
| Costs of services (exclusive of depreciation and amortization) | 145,029 | 72.2 | % | 120,354 | 66.2 | % | |||||||||||||||||
| Selling, general and administrative expenses | 34,523 | 17.2 | % | 32,538 | 17.9 | % | |||||||||||||||||
| Depreciation and amortization | 3,391 | 1.7 | % | 3,411 | 1.9 | % | |||||||||||||||||
| Income from operations | 18,032 | 9.0 | % | 25,548 | 14.0 | % | |||||||||||||||||
| Interest expense, net | (1,011) | -0.5 | % | (429) | -0.2 | % | |||||||||||||||||
| Foreign currency gains (losses), net | 378 | 0.2 | % | (474) | -0.3 | % | |||||||||||||||||
| Income before provision for income taxes | 17,399 | 8.7 | % | 24,645 | 13.6 | % | |||||||||||||||||
| Provision for income taxes | 6,267 | 3.1 | % | 6,643 | 3.7 | % | |||||||||||||||||
| Net income | $ | 11,132 | 5.5 | % | $ | 18,002 | 9.9 | % | |||||||||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 1.71 | $ | 2.65 | |||||||||||||||||||
| Diluted | $ | 1.69 | $ | 2.62 | |||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||
| Basic | 6,512 | 6,775 | |||||||||||||||||||||
| Diluted | 6,588 | 6,862 | |||||||||||||||||||||
6
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS ENDED
APRIL 4, 2026 COMPARED TO MARCH 29, 2025
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| Fiscal Quarter Ended | |||||||||||||||||||||||
| April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | ||||||||||||||||||||
| Revenues | $ | 200,975 | 100.0 | % | $ | 181,851 | 100.0 | % | |||||||||||||||
| Net income | $ | 11,132 | 5.5 | % | $ | 18,002 | 9.9 | % | |||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||
Restructuring and other (1)(2) | 1,759 | 0.9 | % | (4,170) | -2.3 | % | |||||||||||||||||
| Foreign currency (gains) losses, net | (378) | -0.2 | % | 474 | 0.3 | % | |||||||||||||||||
Tax effect on adjustments(1) | 586 | 0.3 | % | 947 | 0.5 | % | |||||||||||||||||
| Non-GAAP net income | $ | 13,099 | 6.5 | % | $ | 15,253 | 8.4 | % | |||||||||||||||
| Non-GAAP net income per share: | |||||||||||||||||||||||
| Basic | $ | 2.01 | $ | 2.25 | |||||||||||||||||||
| Diluted | $ | 1.99 | $ | 2.22 | |||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||
| Basic | 6,512 | 6,775 | |||||||||||||||||||||
| Diluted | 6,588 | 6,862 | |||||||||||||||||||||
(1) Fiscal quarter ended April 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions. | |||||||||||||||||||||||
(2) Fiscal quarter ended March 29, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||
7
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS ENDED
APRIL 4, 2026 COMPARED TO MARCH 29, 2025
(IN THOUSANDS)
| Fiscal Quarter Ended | |||||||||||||||||||||||
| April 4, 2026 | As a % of Revenue | March 29, 2025 | As a % of Revenue | ||||||||||||||||||||
| Revenues | $ | 200,975 | 100.0 | % | $ | 181,851 | 100.0 | % | |||||||||||||||
| Net income | $ | 11,132 | 5.5 | % | $ | 18,002 | 9.9 | % | |||||||||||||||
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | |||||||||||||||||||||||
Restructuring and other (1)(2) | 1,759 | 0.9 | % | (4,170) | -2.3 | % | |||||||||||||||||
| Foreign currency (gains) losses, net | (378) | -0.2 | % | 474 | 0.3 | % | |||||||||||||||||
Tax effect on adjustments(1) | 586 | 0.3 | % | 947 | 0.5 | % | |||||||||||||||||
| Non-GAAP net income | $ | 13,099 | 6.5 | % | $ | 15,253 | 8.4 | % | |||||||||||||||
| Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | |||||||||||||||||||||||
| Interest expense, net | $ | 1,011 | 0.5 | % | $ | 429 | 0.2 | % | |||||||||||||||
| Provision for income taxes | 5,681 | 2.8 | % | 5,696 | 3.1 | % | |||||||||||||||||
| Depreciation and amortization | 3,391 | 1.7 | % | 3,411 | 1.9 | % | |||||||||||||||||
| Non-GAAP EBITDA | $ | 23,182 | 11.5 | % | $ | 24,789 | 13.6 | % | |||||||||||||||
(1) Fiscal quarter ended April 4, 2026 includes cash severance of $1.6 million and non-cash charges of $1.0 million associated with portfolio optimization actions. | |||||||||||||||||||||||
(2) Fiscal quarter ended March 29, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. | |||||||||||||||||||||||
8
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| April 4, 2026 | January 3, 2026 | |||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 32,496 | $ | 18,210 | ||||||||||
| Accounts receivable and unbilled services, net | 233,262 | 248,862 | ||||||||||||
| Other current assets | 50,714 | 36,057 | ||||||||||||
| Total current assets | 316,472 | 303,129 | ||||||||||||
| Property and equipment, net | 36,312 | 36,713 | ||||||||||||
| Goodwill and intangible assets, net | 99,777 | 100,404 | ||||||||||||
| Right-of-use assets | 72,101 | 76,132 | ||||||||||||
| Other assets | 137,752 | 112,495 | ||||||||||||
| Total assets | $ | 662,414 | $ | 628,873 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||
| Accounts payable | $ | 24,273 | $ | 30,177 | ||||||||||
| Accrued expenses | 132,454 | 223,460 | ||||||||||||
| Current portion of lease liabilities | 17,239 | 17,223 | ||||||||||||
| Revolving line of credit | 192,000 | 34,000 | ||||||||||||
| Other current liabilities | 14,875 | 25,169 | ||||||||||||
| Total current liabilities | 380,841 | 330,029 | ||||||||||||
| Non-current portion of lease liabilities | 70,889 | 76,009 | ||||||||||||
| Other non-current liabilities | 12,294 | 9,237 | ||||||||||||
| Total liabilities | 464,024 | 415,275 | ||||||||||||
| Total shareholders’ equity | 198,390 | 213,598 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 662,414 | $ | 628,873 | ||||||||||
9
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| Fiscal Year-to-Date Period Ended | |||||||||||
| April 4, 2026 | March 29, 2025 | ||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 11,132 | $ | 18,002 | |||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
| Non-cash items, net | 10,061 | 8,112 | |||||||||
| Accounts receivable and unbilled services | 14,724 | (2,746) | |||||||||
| Working capital items, net | (149,806) | (103,362) | |||||||||
| Net cash used in operating activities | (113,889) | (79,994) | |||||||||
| Investing activities: | |||||||||||
| Purchases of property and equipment, net | (2,649) | (974) | |||||||||
| Net cash used in investing activities | (2,649) | (974) | |||||||||
| Financing activities: | |||||||||||
| Borrowings under revolving line of credit | 208,000 | 90,000 | |||||||||
| Repayments under revolving line of credit | (50,000) | (5,000) | |||||||||
| Tax withholding payments reimbursed by shares | (1,449) | (2,454) | |||||||||
| Cash dividends and dividend equivalents paid | (3,806) | (3,488) | |||||||||
| Repurchase of common stock | (21,463) | — | |||||||||
| Net cash provided by financing activities | 131,282 | 79,058 | |||||||||
| Effect of foreign exchange rates on cash and cash equivalents | (458) | 797 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 14,286 | (1,113) | |||||||||
| Cash and cash equivalents at beginning of period | 18,210 | 26,711 | |||||||||
| Cash and cash equivalents at end of period | $ | 32,496 | $ | 25,598 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | 52 | $ | (596) | |||||||
| Excise tax on share repurchases | $ | (192) | $ | 39 | |||||||
| Right-of-use assets obtained in exchange for lease obligations | $ | — | $ | 701 | |||||||
| Supplemental cash flow information: | |||||||||||
| Cash paid for taxes | $ | 1,926 | $ | 3,181 | |||||||
| Cash paid for interest | $ | 564 | $ | 131 | |||||||
| Cash paid for amounts included in operating lease liabilities | $ | 5,956 | $ | 5,714 | |||||||
10
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, May 7, 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 June 12, 2026 to shareholders of record of CRA’s common stock as of the close of business on May 26, 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 Securities Exchange Act of 1934, as amended. 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.
1
FAQ
How did CRAI’s revenue perform in the first quarter of 2026?
CRAI’s first-quarter 2026 revenue reached $201.0 million, an increase of 10.5% from $181.9 million a year earlier. Growth was broad-based, with eight practices expanding and both Legal & Regulatory and Management Consulting offerings posting solid year-over-year gains.
What were CRAI’s Q1 2026 earnings and profit margins?
In Q1 2026, CRAI reported net income of $11.1 million, down from $18.0 million in Q1 2025. Net income margin declined to 5.5% of revenue from 9.9%, and diluted EPS fell to $1.69 from $2.62, reflecting higher costs and restructuring items.
What non-GAAP results did CRAI report for Q1 2026?
CRAI reported non-GAAP net income of $13.1 million, or 6.5% of revenue, and non-GAAP diluted EPS of $1.99 in Q1 2026. Non-GAAP EBITDA was $23.2 million, representing 11.5% of revenue, compared with $24.8 million, or 13.6%, in the prior-year quarter.
What 2026 financial guidance did CRAI reaffirm in this 8-K filing?
CRAI reaffirmed full-year fiscal 2026 guidance for revenue of $785–$805 million and a non-GAAP EBITDA margin of 12.0–13.0%. The guidance figures are presented on a constant currency basis relative to fiscal 2025 and reflect management’s current outlook for the year.
How did CRAI’s cash flow and debt position change in early 2026?
For the year-to-date period ended April 4, 2026, CRAI used $113.9 million in net cash from operating activities. Borrowings under its revolving credit facility increased to $192.0 million, compared with $85.0 million at March 29, 2025, reflecting higher funding needs.
What capital return actions did CRAI take in Q1 2026?
In Q1 2026, CRAI returned $25.3 million to shareholders, including $3.8 million in dividend payments and $21.5 million for repurchasing approximately 116,000 shares of common stock. These actions were undertaken alongside continued investment in the business.