CRA International, Inc. (CRAI) Q3 2025 Earnings Call Transcript
Revenue Revenue increased by 10.8% year-over-year to $185.9 million. This growth reflects the durability of CRA's business model and was broad-based, with 7 of 11 practices growing year-over-year. Antitrust & Competition Economics, energy, finance, and intellectual property practices posted double-digit revenue growth. North American operations increased revenue by 6.8%, and international operations expanded 30.3% year-over-year, driven by Antitrust & Competition Economics and Life Sciences practices.
Profitability Non-GAAP net income, earnings per diluted share, and EBITDA increased by 12.7%, 16.4%, and 14.6%, respectively, year-over-year. This growth exceeded revenue growth and was driven by strong utilization and overall execution, with quarterly utilization reaching 77%.
Legal and Regulatory Services Revenue Revenue from CRA's legal and regulatory services increased 11.5% year-over-year. This growth was supported by activity in the broader legal market, including increased case filings and court judgments, merger-related activity, and demand for antitrust services.
Management Consulting Services Revenue Revenue increased 8% year-over-year, led by the energy practice and supported by the expansion in the Life Sciences practice. The energy practice contributed through initiatives like developing integrated resource plans and market design analysis, while the Life Sciences practice engaged in strategy for neurological assets and clinical trial design.
Capital Deployment Net cash outlays included $28.1 million to acquire and retain senior talent, $700,000 for capital expenditures, and $7.2 million returned to shareholders through dividends and share repurchases. The company announced a 16% increase in its quarterly cash dividend, supported by business growth and performance.
Consultant Headcount Consultant headcount ended at 968, a 1.0% year-over-year decrease compared to Q3 fiscal 2024, but a 3.3% sequential increase relative to Q2 fiscal 2025.
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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.
Low-Cap Industrial Stocks Face Weak EPS Revisions
- EPS Revision Analysis: As the earnings season approaches, several mid to low-cap industrial stocks have received an 'F' grade for earnings momentum, indicating significant downward pressure on analyst expectations for future earnings.
- Affected Companies: Companies such as Alight (ALIT), Alaska Air Group (ALK), and Apogee Enterprises (APOG) have all received an 'F' grade, highlighting severe challenges to their earnings outlook.
- Market Reaction Expectations: These companies may face cautious investor sentiment due to factors like heavy debt and high customer churn rates, which could negatively impact their stock performance.
- Industry Outlook: Despite the current poor EPS revision grades, the market remains optimistic about the industrial sector's prospects for 2026, potentially providing support for future investment opportunities.
CRA International CEO Paul Maleh Sells 7,500 Shares for Approximately $1.4 Million
- Transaction Overview: On December 3, 2025, CRA International CEO Paul Maleh disclosed the sale of 7,500 shares via an SEC Form 4 filing, with a total transaction value of approximately $1.4 million, indicating a consistent disposition pattern in his stock trading activities.
- Shareholding Impact: This transaction reduced Maleh's direct holdings by 6.05%, bringing his total to 116,545 shares, which represents 1.78% of the outstanding shares, reflecting his ongoing commitment to the company’s equity.
- Market Performance: CRA International's stock has surged over 18% in the past year, and the company exceeded analyst expectations in its latest financial results reported on October 3, showcasing strong financial performance and market confidence.
- Investor Interpretation: Maleh's stock sale was part of a Rule 10b5-1 trading plan, suggesting that investors should not interpret this move as a negative signal regarding the company's future performance, but rather focus on CRA International's sustained growth potential.
CRA International CEO Paul Maleh Sells 7,500 Shares for $1.4 Million
- Share Sale: On December 3, 2025, CRA International CEO Paul Maleh sold 7,500 shares for approximately $1.4 million, reducing his direct holdings to 116,545 shares post-transaction, which reflects a 38.35% decline since April 2024.
- Trading Plan: This transaction was executed under a Rule 10b5-1 trading plan, indicating that it should not be interpreted as a reflection of Maleh's confidence in the stock or the company's direction, advising investors against overreading the move.
- Market Performance: Despite Maleh's sale not being linked to the company's strong financial performance, CRA International exceeded analyst expectations in its October 3, 2025 earnings report, showcasing ongoing growth potential.
- Analyst Rating: Barrington Research rates CRA International as a buy with a price target of $245, indicating over 14% upside from current prices, which further bolsters market confidence in the company.
Everything You Should Know About the CRA (CRAI) Rating Increase to Buy
CRA International Upgrade: CRA International (CRAI) has been upgraded to a Zacks Rank #2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price.
Earnings Estimates Impact: The Zacks rating system, which is based on earnings estimate revisions, is a valuable tool for investors as it correlates strongly with near-term stock price movements, reflecting the company's improving business fundamentals.
Zacks Rank System: The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, suggesting potential for market-beating returns.
Future Earnings Projection: Analysts have raised their earnings estimates for CRA, projecting earnings of $8.22 per share for the fiscal year ending December 2025, with a 2.3% increase in the Zacks Consensus Estimate over the past three months.
Upcoming Ex-Dividend Dates for Robert Half, CRA International, and Xylem
Upcoming Ex-Dividend Dates: On 11/25/25, Robert Half Inc (RHI), CRA International Inc (CRAI), and Xylem Inc (XYL) will trade ex-dividend, with respective dividends of $0.59, $0.57, and $0.40 scheduled for payment on 12/15/25, 12/12/25, and 12/23/25.
Expected Price Adjustments: Following the ex-dividend date, RHI shares are expected to open 2.29% lower, CRAI by 0.33%, and XYL by 0.29%, based on their recent stock prices.
Dividend Aristocrats Contender: Xylem Inc is noted as a future contender for the "Dividend Aristocrats" index, having achieved over 14 years of dividend increases, while a company must reach 20 years to qualify.
Current Stock Performance: As of the latest trading, Robert Half Inc shares are down 0.9%, CRA International Inc shares are up 0.1%, and Xylem Inc shares are down 0.6%.
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.
Low-Cap Industrial Stocks Face Weak EPS Revisions
- EPS Revision Analysis: As the earnings season approaches, several mid to low-cap industrial stocks have received an 'F' grade for earnings momentum, indicating significant downward pressure on analyst expectations for future earnings.
- Affected Companies: Companies such as Alight (ALIT), Alaska Air Group (ALK), and Apogee Enterprises (APOG) have all received an 'F' grade, highlighting severe challenges to their earnings outlook.
- Market Reaction Expectations: These companies may face cautious investor sentiment due to factors like heavy debt and high customer churn rates, which could negatively impact their stock performance.
- Industry Outlook: Despite the current poor EPS revision grades, the market remains optimistic about the industrial sector's prospects for 2026, potentially providing support for future investment opportunities.
CRA International CEO Paul Maleh Sells 7,500 Shares for Approximately $1.4 Million
- Transaction Overview: On December 3, 2025, CRA International CEO Paul Maleh disclosed the sale of 7,500 shares via an SEC Form 4 filing, with a total transaction value of approximately $1.4 million, indicating a consistent disposition pattern in his stock trading activities.
- Shareholding Impact: This transaction reduced Maleh's direct holdings by 6.05%, bringing his total to 116,545 shares, which represents 1.78% of the outstanding shares, reflecting his ongoing commitment to the company’s equity.
- Market Performance: CRA International's stock has surged over 18% in the past year, and the company exceeded analyst expectations in its latest financial results reported on October 3, showcasing strong financial performance and market confidence.
- Investor Interpretation: Maleh's stock sale was part of a Rule 10b5-1 trading plan, suggesting that investors should not interpret this move as a negative signal regarding the company's future performance, but rather focus on CRA International's sustained growth potential.
CRA International CEO Paul Maleh Sells 7,500 Shares for $1.4 Million
- Share Sale: On December 3, 2025, CRA International CEO Paul Maleh sold 7,500 shares for approximately $1.4 million, reducing his direct holdings to 116,545 shares post-transaction, which reflects a 38.35% decline since April 2024.
- Trading Plan: This transaction was executed under a Rule 10b5-1 trading plan, indicating that it should not be interpreted as a reflection of Maleh's confidence in the stock or the company's direction, advising investors against overreading the move.
- Market Performance: Despite Maleh's sale not being linked to the company's strong financial performance, CRA International exceeded analyst expectations in its October 3, 2025 earnings report, showcasing ongoing growth potential.
- Analyst Rating: Barrington Research rates CRA International as a buy with a price target of $245, indicating over 14% upside from current prices, which further bolsters market confidence in the company.
Everything You Should Know About the CRA (CRAI) Rating Increase to Buy
CRA International Upgrade: CRA International (CRAI) has been upgraded to a Zacks Rank #2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price.
Earnings Estimates Impact: The Zacks rating system, which is based on earnings estimate revisions, is a valuable tool for investors as it correlates strongly with near-term stock price movements, reflecting the company's improving business fundamentals.
Zacks Rank System: The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, suggesting potential for market-beating returns.
Future Earnings Projection: Analysts have raised their earnings estimates for CRA, projecting earnings of $8.22 per share for the fiscal year ending December 2025, with a 2.3% increase in the Zacks Consensus Estimate over the past three months.
Upcoming Ex-Dividend Dates for Robert Half, CRA International, and Xylem
Upcoming Ex-Dividend Dates: On 11/25/25, Robert Half Inc (RHI), CRA International Inc (CRAI), and Xylem Inc (XYL) will trade ex-dividend, with respective dividends of $0.59, $0.57, and $0.40 scheduled for payment on 12/15/25, 12/12/25, and 12/23/25.
Expected Price Adjustments: Following the ex-dividend date, RHI shares are expected to open 2.29% lower, CRAI by 0.33%, and XYL by 0.29%, based on their recent stock prices.
Dividend Aristocrats Contender: Xylem Inc is noted as a future contender for the "Dividend Aristocrats" index, having achieved over 14 years of dividend increases, while a company must reach 20 years to qualify.
Current Stock Performance: As of the latest trading, Robert Half Inc shares are down 0.9%, CRA International Inc shares are up 0.1%, and Xylem Inc shares are down 0.6%.
