CRA International, Inc. (CRAI) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy CRAI?
Source: SeekingAlpha
Revenue for fiscal 2025 $751.6 million, increased by 9.3% year-over-year. Reasons: Broad-based contributions across the portfolio, with legal and regulatory services increasing 10.3% and management consulting services expanding 6.4%.
Revenue growth in practices 7 practices grew their top lines, with Antitrust & Competition Economics, Energy, and Intellectual Property delivering double-digit revenue growth.
Geographical revenue growth North American operations increased by 7.3%, and international operations grew by 19.5% year-over-year.
Utilization rate 77% for fiscal 2025. Reasons: Strong utilization and overall execution.
Fourth quarter revenue Increased by 11.6% year-over-year, marking the best quarterly revenue in CRA's history. Reasons: Growth in sales pipeline, weekly average project lead flow increased by 9.3%, and new project originations increased by 7.7%.
Legal and regulatory services revenue (Q4) Increased by 14.3% year-over-year. Reasons: Antitrust & Competition Economics and Forensic Services practices led with over 20% growth.
Energy practice revenue (Q4) Increased by more than 20% year-over-year. Reasons: Strong activity around data center-driven load growth and electricity market design issues.
Non-GAAP EBITDA for fiscal 2025 $96.8 million, with a margin of 12.9%. Reasons: Effective management during market turbulence and external disruptions.
Adjusted net cash flows from operations for fiscal 2025 $108.4 million, increased by 17% year-over-year. Reasons: Strong operational performance and quality of revenue.
Capital allocation to shareholders (fiscal 2025) $61 million returned through share repurchases and dividends, representing 56% of adjusted net cash flows from operations.
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Analyst Views on CRAI
Wall Street analysts forecast CRAI stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 171.750
Low
245.00
Averages
245.00
High
245.00
Current: 171.750
Low
245.00
Averages
245.00
High
245.00
About CRAI
CRA International, Inc. is a global consulting firm specializing in providing economic, financial and management consulting services. It offers consulting services in two areas: litigation, regulatory, and financial consulting and management consulting. It provides consulting services to corporate clients and attorneys in a range of litigation and regulatory proceedings, providing research and analysis, expert testimony, and support in litigation and regulatory proceedings in all areas of finance, accounting, economics, insurance, and forensic accounting and investigations. It also uses its expertise in economics, finance, and business to offer law firms, businesses, and government agencies services. Its management consulting services include strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, new product pricing strategies, survey and market research, valuation of intellectual property and other assets and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Charles River Associates Appoints New Senior Consultant
- New Consultant Appointment: Charles River Associates has announced the addition of Dr. Steven Tadelis as a Senior Consultant in its Antitrust & Competition Economics Practice, bringing fresh perspectives and expertise in e-commerce and internet economics to the firm.
- Academic and Practical Synergy: Dr. Tadelis holds a PhD from Harvard University and has held significant economic roles at eBay and Amazon, enhancing CRA's competitive edge in antitrust cases with his extensive experience.
- Industry Influence: As a sought-after testifying expert, Dr. Tadelis's addition is expected to elevate CRA's influence in litigation related to digital markets, particularly in pricing and consumer behavior analysis.
- Global Competitive Advantage: CRA's Antitrust & Competition Economics Practice team includes economists with experience in government antitrust agencies, and Dr. Tadelis's expertise will further solidify the firm's leadership position in the global market.
See More
CRA International Reports 9.3% Revenue Growth in FY 2025
- Revenue Growth Highlight: CRA International reported a revenue of $751.6 million for fiscal 2025, reflecting a 9.3% year-over-year increase, marking the eighth consecutive year of record annual revenue, driven by strong performances in legal, regulatory services, and management consulting.
- Strong Cash Flow Performance: Adjusted net cash flows from operations increased by 17% year-over-year to $108.4 million, successfully converting 112% of non-GAAP EBITDA into cash flows, showcasing the company's efficiency in financial management.
- AI Integration Strategy: CRA's energy practice launched an AI-driven resource adequacy model known as CRA Adequacy X, emphasizing that while AI can accelerate processes, it maintains rigorous governance in complex environments, highlighting the company's commitment to technological innovation.
- Optimistic Future Outlook: Management projects fiscal 2026 revenue to range between $785 million and $805 million, showing confidence in sustained growth despite currency fluctuations, indicating the company's competitive strength and clear strategic direction.
See More
CRA International Q4 Earnings Analysis
- Earnings Highlights: CRA International reported a Q4 non-GAAP EPS of $2.06, missing expectations by $0.01, indicating pressure on profitability; however, revenue grew 11.7% year-over-year to $197 million, exceeding estimates by $6.46 million, demonstrating the company's strong competitive position in the market.
- EBITDA Stability: Non-GAAP EBITDA remained at $24.4 million, or 12.4% of revenue, down from 13.9% in Q4 of fiscal 2024, reflecting challenges in cost control that may impact future profitability.
- Currency Impact Analysis: On a constant currency basis, revenue, GAAP net income, and earnings per diluted share would have decreased by $1.4 million, $0.2 million, and $0.04, respectively, highlighting the negative effects of foreign exchange fluctuations on financial performance, which could affect investor confidence.
- Shareholder Returns: CRA returned $3.7 million to shareholders through dividend payments, maintaining a commitment to shareholders despite profitability pressures, showcasing the company's robust capital management strategy.
See More
CRA International Reports Decline in Q4 Earnings
- Earnings Decline: CRA International reported a fourth-quarter profit of $13.18 million, translating to $1.99 per share, which marks a significant drop from last year's $14.99 million and $2.18 per share, indicating pressure on profitability.
- Adjusted Earnings: Excluding special items, the company reported adjusted earnings of $13.70 million or $2.06 per share, showing slight improvement in adjusted profitability, yet overall earnings remain below last year's levels.
- Revenue Growth: The company's revenue for the fourth quarter rose by 11.6% to $196.96 million from $176.43 million last year, demonstrating some growth potential in its business operations.
- Market Reaction: Despite revenue growth, the decline in earnings may raise investor concerns regarding the company's future profitability, potentially impacting its stock performance and market confidence.
See More
CRA International Declares $0.57 Quarterly Dividend
- Quarterly Dividend Declaration: CRA International has declared a quarterly dividend of $0.57 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 1.42% reflects the company's appeal in the current market environment, potentially increasing investor interest in the stock.
- Payment Schedule: The dividend will be payable on March 20, with a record date of March 10 and an ex-dividend date also on March 10, providing investors with a clear window for dividend acquisition, thereby facilitating their investment decisions.
- Investor Attention: CRA International's presentation at the UBS Global Technology and AI Conference 2025 may further enhance market focus on its growth potential, particularly among investors interested in technology and AI sectors.
See More
Charles River Associates Appoints New Vice President
- Executive Appointment: Charles River Associates announces the addition of Margaret Loudermilk as Vice President in the Antitrust & Competition Economics Practice, leveraging her over 20 years of experience at the U.S. Department of Justice to enhance the firm's capabilities in complex competition matters.
- Rich Background: During her tenure at the DOJ, Loudermilk was involved in high-profile civil and criminal cases, including mergers and cartel investigations, and her extensive experience in antitrust economics will aid clients in navigating current regulatory expectations.
- Team Expansion: Her appointment strengthens CRA's Antitrust & Competition Economics Practice, which now includes several former senior agency economists, enhancing expertise in areas such as competition in digital markets and merger litigation.
- Educational Credentials: Loudermilk holds a BA in Economics from Boston University, an MA in Economics from Duke University, and a PhD in Economics from Michigan State University, reflecting her solid academic foundation and professional expertise.
See More
Charles River Associates Appoints New Senior Consultant
- New Consultant Appointment: Charles River Associates has announced the addition of Dr. Steven Tadelis as a Senior Consultant in its Antitrust & Competition Economics Practice, bringing fresh perspectives and expertise in e-commerce and internet economics to the firm.
- Academic and Practical Synergy: Dr. Tadelis holds a PhD from Harvard University and has held significant economic roles at eBay and Amazon, enhancing CRA's competitive edge in antitrust cases with his extensive experience.
- Industry Influence: As a sought-after testifying expert, Dr. Tadelis's addition is expected to elevate CRA's influence in litigation related to digital markets, particularly in pricing and consumer behavior analysis.
- Global Competitive Advantage: CRA's Antitrust & Competition Economics Practice team includes economists with experience in government antitrust agencies, and Dr. Tadelis's expertise will further solidify the firm's leadership position in the global market.
See More
CRA International Reports 9.3% Revenue Growth in FY 2025
- Revenue Growth Highlight: CRA International reported a revenue of $751.6 million for fiscal 2025, reflecting a 9.3% year-over-year increase, marking the eighth consecutive year of record annual revenue, driven by strong performances in legal, regulatory services, and management consulting.
- Strong Cash Flow Performance: Adjusted net cash flows from operations increased by 17% year-over-year to $108.4 million, successfully converting 112% of non-GAAP EBITDA into cash flows, showcasing the company's efficiency in financial management.
- AI Integration Strategy: CRA's energy practice launched an AI-driven resource adequacy model known as CRA Adequacy X, emphasizing that while AI can accelerate processes, it maintains rigorous governance in complex environments, highlighting the company's commitment to technological innovation.
- Optimistic Future Outlook: Management projects fiscal 2026 revenue to range between $785 million and $805 million, showing confidence in sustained growth despite currency fluctuations, indicating the company's competitive strength and clear strategic direction.
See More
CRA International Q4 Earnings Analysis
- Earnings Highlights: CRA International reported a Q4 non-GAAP EPS of $2.06, missing expectations by $0.01, indicating pressure on profitability; however, revenue grew 11.7% year-over-year to $197 million, exceeding estimates by $6.46 million, demonstrating the company's strong competitive position in the market.
- EBITDA Stability: Non-GAAP EBITDA remained at $24.4 million, or 12.4% of revenue, down from 13.9% in Q4 of fiscal 2024, reflecting challenges in cost control that may impact future profitability.
- Currency Impact Analysis: On a constant currency basis, revenue, GAAP net income, and earnings per diluted share would have decreased by $1.4 million, $0.2 million, and $0.04, respectively, highlighting the negative effects of foreign exchange fluctuations on financial performance, which could affect investor confidence.
- Shareholder Returns: CRA returned $3.7 million to shareholders through dividend payments, maintaining a commitment to shareholders despite profitability pressures, showcasing the company's robust capital management strategy.
See More
CRA International Reports Decline in Q4 Earnings
- Earnings Decline: CRA International reported a fourth-quarter profit of $13.18 million, translating to $1.99 per share, which marks a significant drop from last year's $14.99 million and $2.18 per share, indicating pressure on profitability.
- Adjusted Earnings: Excluding special items, the company reported adjusted earnings of $13.70 million or $2.06 per share, showing slight improvement in adjusted profitability, yet overall earnings remain below last year's levels.
- Revenue Growth: The company's revenue for the fourth quarter rose by 11.6% to $196.96 million from $176.43 million last year, demonstrating some growth potential in its business operations.
- Market Reaction: Despite revenue growth, the decline in earnings may raise investor concerns regarding the company's future profitability, potentially impacting its stock performance and market confidence.
See More
CRA International Declares $0.57 Quarterly Dividend
- Quarterly Dividend Declaration: CRA International has declared a quarterly dividend of $0.57 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 1.42% reflects the company's appeal in the current market environment, potentially increasing investor interest in the stock.
- Payment Schedule: The dividend will be payable on March 20, with a record date of March 10 and an ex-dividend date also on March 10, providing investors with a clear window for dividend acquisition, thereby facilitating their investment decisions.
- Investor Attention: CRA International's presentation at the UBS Global Technology and AI Conference 2025 may further enhance market focus on its growth potential, particularly among investors interested in technology and AI sectors.
See More
Charles River Associates Appoints New Vice President
- Executive Appointment: Charles River Associates announces the addition of Margaret Loudermilk as Vice President in the Antitrust & Competition Economics Practice, leveraging her over 20 years of experience at the U.S. Department of Justice to enhance the firm's capabilities in complex competition matters.
- Rich Background: During her tenure at the DOJ, Loudermilk was involved in high-profile civil and criminal cases, including mergers and cartel investigations, and her extensive experience in antitrust economics will aid clients in navigating current regulatory expectations.
- Team Expansion: Her appointment strengthens CRA's Antitrust & Competition Economics Practice, which now includes several former senior agency economists, enhancing expertise in areas such as competition in digital markets and merger litigation.
- Educational Credentials: Loudermilk holds a BA in Economics from Boston University, an MA in Economics from Duke University, and a PhD in Economics from Michigan State University, reflecting her solid academic foundation and professional expertise.
See More
