CRA is providing these prepared remarks by CFO Eric Nierenberg in combination with its press release. These remarks are offered to provide the investment community with additional information on CRA’s financial results prior to the start of the conference call.
As previously announced, the conference call will be held February 26, 2026 at 10:00 a.m. ET. These prepared remarks will not be read on the call.
Q4 Fiscal 2025 Summary (Quarter ended January 3, 2026)
•Revenue: $197.0 million
•Net income: $13.2 million, or 6.7% of revenue; non-GAAP net income: $13.7 million, or 7.0% of revenue
•Earnings per diluted share: $1.99; and non-GAAP net income per diluted share: $2.06
•Operating margin and non-GAAP operating margin: 10.5%
•Non-GAAP EBITDA: $24.4 million, or 12.4% of revenue
For Q4 of fiscal 2025, revenue was $197.0 million, compared with $176.4 million for Q4 of fiscal 2024.
For the full year fiscal 2025, revenue was $751.6 million, compared with $687.4 million for the full year fiscal 2024.
1
Headcount
The following table outlines CRA’s consultant headcount at the end of the stated quarters:
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2024
Officers
164
164
159
156
151
Other Senior Staff
563
567
557
566
552
Junior Staff
232
237
221
225
243
Total
959
968
937
947
946
Utilization
For Q4 of fiscal 2025 and Q4 of fiscal 2024, company-wide utilization was 78%.
For the full year fiscal 2025, company-wide utilization was 77%, compared with 75% for the full year fiscal 2024.
Client Reimbursables
For Q4 of fiscal 2025, client reimbursables were $18.6 million, or 9.4% of revenue, compared with $17.7 million, or 10.0% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, client reimbursables were $72.5 million, or 9.6% of revenue, compared with $65.7 million, or 9.6% of revenue, for the full year fiscal 2024.
Selling, General and Administrative (SG&A) Expenses
For Q4 of fiscal 2025, SG&A expenses were $33.7 million, or 17.1% of revenue, compared with $31.3 million, or 17.7% of revenue, for Q4 of fiscal 2024. Commissions to non-employee experts are included in SG&A expenses. These commissions represented approximately 1.0% of revenue for Q4 of fiscal 2025, compared with 1.8% in Q4 of fiscal 2024. Excluding these commissions, SG&A expenses were 16.1% of revenue for Q4 of fiscal 2025, compared with 15.9% in Q4 of fiscal 2024.
Fiscal Quarter Ended
$ in 000’s
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
SG&A expenses
$
33,689
17.1
%
$
31,266
17.7
%
Less: commissions to non-employee experts
2,053
1.0
%
3,192
1.8
%
SG&A expenses excluding commissions
$
31,636
16.1
%
$
28,074
15.9
%
For the full year fiscal 2025, SG&A expenses were $135.0 million, or 18.0% of revenue, compared with $125.1 million, or 18.2% of revenue, for the full year fiscal 2024. Commissions to non-employee experts are included in SG&A expenses. These commissions represented approximately 1.8% of revenue for full year fiscal 2025, compared with 2.1% in full year fiscal 2024. Excluding these commissions, SG&A expenses were 16.1% of revenue for the full year fiscal 2025 and for the full year fiscal 2024, respectively.
Fiscal Year Ended
$ in 000’s
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
SG&A expenses
$
135,031
18.0
%
$
125,050
18.2
%
Less: commissions to non-employee experts
13,735
1.8
%
14,642
2.1
%
SG&A expenses excluding commissions
$
121,296
16.1
%
$
110,408
16.1
%
Depreciation & Amortization
For Q4 of fiscal 2025, depreciation and amortization expenses amounted to $3.7 million, or 1.9% of revenue, compared with $3.2 million, or 1.8% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, depreciation and amortization expenses amounted to $14.1 million, or 1.9% of revenue, compared with $11.7 million, or 1.7% of revenue, for the full year fiscal 2024.
Forgivable Loan Amortization
For Q4 of fiscal 2025, forgivable loan amortization was $14.0 million, or 7.1% of revenue, compared with $9.7 million, or 5.5% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, forgivable loan amortization was $39.4 million, or 5.2% of revenue, compared with $42.0 million, or 6.1% of revenue, for the full year fiscal 2024.
2
Share-Based Compensation Expense
For Q4 of fiscal 2025, share-based compensation expense was approximately $1.9 million, or 1.0% of revenue, compared with $1.5 million, or 0.9% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, share-based compensation expense was approximately $5.9 million, or 0.8% of revenue, compared with $5.3 million, or 0.8% of revenue, for the full year fiscal 2024.
Operating Income
For Q4 of fiscal 2025, income from operations was $20.6 million, or 10.5% of revenue, compared with income from operations of $21.5 million, or 12.2% of revenue, for Q4 of fiscal 2024. Non-GAAP income from operations was $20.6 million, or 10.5% of revenue, for Q4 of fiscal 2025, compared with $21.3 million, or 12.1% of revenue, for Q4 of fiscal 2024.
Fiscal Quarter Ended
$ in 000’s
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
Income from operations
$
20,638
10.5
%
$
21,454
12.2
%
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations:
Non-cash valuation change in contingent consideration
—
—
%
(190)
(0.1)
%
Non-GAAP income from operations
$
20,638
10.5
%
$
21,264
12.1
%
For the full year fiscal 2025, income from operations was $83.1 million, or 11.1% of revenue, compared with income from operations of $70.8 million, or 10.3% of revenue, for the full year fiscal 2024. Non-GAAP income from operations was $82.7 million, or 11.0% of revenue, for the full year fiscal 2025, compared with $78.7 million, or 11.5% of revenue, for the full year fiscal 2024.
Fiscal Year Ended
$ in 000’s
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
Income from operations
$
83,124
11.1
%
$
70,751
10.3
%
Adjustments needed to reconcile GAAP income from operations to non-GAAP income from operations:
Non-cash valuation change in contingent consideration
—
—
%
(190)
—
%
Restructuring (1)(2)
(462)
(0.1)
%
8,176
1.2
%
Non-GAAP income from operations
$
82,662
11.0
%
$
78,737
11.5
%
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award.
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions.
Interest Income (Expense), net
For Q4 of fiscal 2025, net interest expense was $1.4 million, or 0.7% of revenue, compared with net interest expense of $1.0 million, or 0.6% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, net interest expense was $5.4 million, or 0.7% of revenue, compared with net interest expense of $4.4 million, or 0.6% of revenue, for the full year fiscal 2024.
Foreign Currency Gains (Losses), net
For Q4 of fiscal 2025, net foreign currency losses were $0.7 million, or 0.3% of revenue, compared with net foreign currency gains of $1.1 million, or 0.6% of revenue, for Q4 of fiscal 2024.
For the full year fiscal 2025, net foreign currency losses were $1.2 million, or 0.2% of revenue, compared with net foreign currency losses of $0.1 million, or less than 0.1% of revenue, for the full year fiscal 2024.
Foreign currency gains (losses), net, is comprised of net gains and losses on foreign denominated transactions and the revaluation of working capital balances.
3
Income Taxes
The following table outlines CRA’s income tax provision recorded and the resulting effective tax rates:
GAAP
Non-GAAP
Fiscal Quarter Ended
Fiscal Quarter Ended
$ in 000’s
January 3, 2026
December 28, 2024
January 3, 2026
December 28, 2024
Tax Provision
$
5,403
$
6,599
$
5,553
$
6,259
Effective Tax Rate
29.1
%
30.6
%
28.8
%
30.9
%
GAAP
Non-GAAP
Fiscal Year Ended
Fiscal Year Ended
$ in 000’s
January 3, 2026
December 28, 2024
January 3, 2026
December 28, 2024
Tax Provision
$
21,791
$
19,589
$
21,974
$
21,715
Effective Tax Rate
28.5
%
29.6
%
28.4
%
29.2
%
Fiscal Quarter Ended
$ in 000’s
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
Income before provision for income taxes
$
18,588
9.4
%
$
21,586
12.2
%
Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes
Non-cash valuation change in contingent consideration
—
—
%
(190)
(0.1)
%
Foreign currency (gains) losses, net
667
0.3
%
(1,145)
(0.6)
%
Non-GAAP income before provision for income taxes
$
19,255
9.8
%
$
20,251
11.5
%
GAAP provision for income taxes
$
5,403
$
6,599
Tax effect on non-GAAP adjustments
150
(340)
Non-GAAP provision for income taxes
$
5,553
$
6,259
Fiscal Year Ended
$ in 000’s
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
Income before provision for income taxes
$
76,573
10.2
%
$
66,242
9.6
%
Adjustments needed to reconcile GAAP income before provision for income taxes to non-GAAP income before provision for income taxes
Non-cash valuation change in contingent consideration
—
—
%
(190)
—
%
Restructuring (1)(2)
(462)
(0.1)
%
8,176
1.2
%
Foreign currency (gains) losses, net
1,193
0.2
%
92
—
%
Non-GAAP income before provision for income taxes
$
77,304
10.3
%
$
74,320
10.8
%
GAAP provision for income taxes
$
21,791
$
19,589
Tax effect on non-GAAP adjustments
183
2,126
Non-GAAP provision for income taxes
$
21,974
$
21,715
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award.
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions.
Net Income
For Q4 of fiscal 2025, net income was $13.2 million, or 6.7% of revenue, or $1.99 per diluted share, compared with net income of $15.0 million, or 8.5% of revenue, or $2.18 per diluted share, for Q4 of fiscal 2024. Non-GAAP net income for Q4 of fiscal 2025 was $13.7 million, or 7.0% of revenue, or $2.06 per diluted share, compared with $14.0 million, or 7.9% of revenue, or $2.03 per diluted share, for Q4 of fiscal 2024.
For the full year fiscal 2025, net income was $54.8 million, or 7.3% of revenue, or $8.14 per diluted share, compared with net income of $46.7 million, or 6.8% of revenue, or $6.74 per diluted share, for the full year fiscal 2024. Non-GAAP net income for the full year
4
fiscal 2025 was $55.3 million, or 7.4% of revenue, or $8.23 per diluted share, compared with $52.6 million, or 7.7% of revenue, or $7.60 per diluted share, for the full year fiscal 2024.
Non-GAAP EBITDA
For Q4 of fiscal 2025 and for Q4 of fiscal 2024, non-GAAP EBITDA was $24.4 million, or 12.4% of revenue for Q4 of fiscal 2025, compared with 13.9% of revenue for Q4 of fiscal 2024.
For the full year fiscal 2025, non-GAAP EBITDA was $96.8 million, or 12.9% of revenue, compared with $90.4 million, or 13.2% of revenue, for the full year fiscal 2024.
Constant Currency Basis
For Q4 of fiscal 2025, revenue was $197.0 million, and net income was $13.2 million, or 6.7% of revenue, or $1.99 per diluted share. On a constant currency basis relative to Q4 of fiscal 2024, Q4 of fiscal 2025 revenue would have been lower by $1.4 million at $195.6 million; GAAP net income would have decreased by $0.2 million to $13.0 million, or 6.6% of revenue; and earnings per diluted share would have decreased by $0.04 to $1.95 per diluted share.
For Q4 of fiscal 2025, revenue was $197.0 million and non-GAAP net income was $13.7 million, or 7.0% of revenue, or $2.06 per diluted share. On a constant currency basis relative to Q4 of fiscal 2024, Q4 of fiscal 2025 revenue would have been lower by $1.4 million at $195.6 million; non-GAAP net income would have decreased by $0.2 million to $13.5 million, or 6.8% of revenue; non-GAAP earnings per diluted share would have decreased by $0.03 to $2.03 per diluted share; and non-GAAP EBITDA would have been lower by $0.4 million at $24.0 million, or 12.3% of revenue.
Full year fiscal 2025, revenue was $751.6 million, and net income was $54.8 million, or 7.3% of revenue, or $8.14 per diluted share. On a constant currency basis relative to full year fiscal 2024, full year fiscal 2025 revenue would have been lower by $3.9 million at $747.7 million; GAAP net income would have decreased by $0.7 million to $54.1 million, or 7.2% of revenue; and earnings per diluted share would have decreased by $0.10 to $8.04 per diluted share.
Full year fiscal 2025, revenue was $751.6 million and non-GAAP net income was $55.3 million, or 7.4% of revenue, or $8.23 per diluted share. On a constant currency basis relative to full year fiscal 2024, full year fiscal 2025 revenue would have been lower by $3.9 million at $747.7 million; non-GAAP net income would have decreased by $0.7 million to $54.6 million, or 7.3% of revenue; non-GAAP earnings per diluted share would have decreased by $0.11 to $8.12 per diluted share; and non-GAAP EBITDA would have been lower by $0.9 million at $95.9 million, or 12.8% of revenue.
A description of the process for calculating the measures presented on a constant currency basis is contained under the heading “Non-GAAP Financial Measures” below.
Key Balance Sheet Metrics
Billed and unbilled receivables at January 3, 2026 were $248.9 million, compared with $219.5 million at December 28, 2024. Current liabilities at January 3, 2026 were $330.0 million, compared with $251.3 million at December 28, 2024.
Total Days Sales Outstanding, or DSO, for Q4 of fiscal 2025 was 108 days, consisting of 78 days of billed and 30 days of unbilled. This compares with 106 days reported for Q4 of fiscal 2024, consisting of 76 days of billed and 30 days of unbilled.
Cash and Cash Flow
Cash and cash equivalents were $18.2 million at January 3, 2026, compared with $26.7 million at December 28, 2024.
Net cash provided by operating activities for Q4 of fiscal 2025 was $60.0 million, compared with net cash provided by operating activities of $79.4 million for Q4 of fiscal 2024. For the full year fiscal 2025, net cash provided by operating activities was $22.4 million, compared with $49.7 million for the full year 2024.
As of January 3, 2026, there was $34.0 million in outstanding borrowing under CRA’s revolving credit facility, compared with no outstanding borrowings at December 28, 2024.
Capital expenditures totaled $1.1 million for Q4 of fiscal 2025, compared with $10.6 million for Q4 of fiscal 2024. Capital expenditures totaled $3.9 million during full year fiscal 2025, compared with $16.6 million during full year fiscal 2024.
During the full year fiscal 2025, approximately 252,000 shares of common stock were repurchased for $47.1 million, compared with the full year fiscal 2024 when approximately 206,000 shares of common stock repurchased for $33.3 million, including transaction costs.
A quarterly cash dividend of $0.57 per common share, for total dividends and dividend equivalents of $3.7 million were paid in Q4 of fiscal 2025, compared with a quarterly cash dividend of $0.49 per common share, for total dividends and dividend equivalents of $3.4
5
million paid in Q4 of fiscal 2024. During the full year fiscal 2025, $13.8 million of dividends and dividend equivalents were paid, compared with $12.3 million paid during the full year fiscal 2024.
GAAP Condensed Consolidated Statement of Cash Flows
CRA has derived the condensed consolidated statement of cash flow data for the fourth quarters and the years ended January 3, 2026 and December 28, 2024 from its audited financial statements appearing on Form 10-K for the fiscal year ended January 3, 2026, filed with the Securities and Exchange Commission on February 26, 2026. The condensed consolidated statement of cash flow data for the first, second and third quarters of fiscal years 2025 and 2024 have been derived from CRA’s unaudited financial statements appearing on Form 10-Q for each of the respective fiscal quarters, as well as the consolidated statements of cash flows appearing on Form 10-K for the fiscal years ended January 3, 2026 and December 28, 2024, and have been prepared on the same basis as CRA’s audited financial statements.
GAAP Condensed Consolidated Statement of Cash Flows
FY
Q4
Q3
Q2
Q1
($ in 000’s)
2025
2025
2025
2025
2025
Net cash provided by (used in) operating activities
$
22,424
$
60,019
$
36,547
$
5,852
$
(79,994)
Net cash used in investing activities
(3,868)
(1,055)
(650)
(1,189)
(974)
Net cash provided by (used in) financing activities
(29,842)
(64,733)
(32,292)
(11,875)
79,058
Effect of foreign exchange rates on cash and cash equivalents
2,785
1,483
(557)
1,062
797
Net increase (decrease) in cash and cash equivalents
$
(8,501)
$
(4,286)
$
3,048
$
(6,150)
$
(1,113)
Cash and cash equivalents at beginning of period
26,711
22,496
19,448
25,598
26,711
Cash and cash equivalents at end of period
$
18,210
$
18,210
$
22,496
$
19,448
$
25,598
GAAP Condensed Consolidated Statement of Cash Flows
FY
Q4
Q3
Q2
Q1
($ in 000’s)
2024
2024
2024
2024
2024
Net cash provided by (used in) operating activities
$
49,735
$
79,424
$
31,584
$
1,807
$
(63,080)
Net cash used in investing activities
(18,123)
(10,591)
(2,986)
(3,816)
(730)
Net cash provided by (used in) financing activities
(48,857)
(64,629)
(29,927)
(10,353)
56,052
Effect of foreign exchange rates on cash and cash equivalents
(1,630)
(1,974)
1,161
(111)
(706)
Net increase (decrease) in cash and cash equivalents
$
(18,875)
$
2,230
$
(168)
$
(12,473)
$
(8,464)
Cash and cash equivalents at beginning of period
45,586
24,481
24,649
37,122
45,586
Cash and cash equivalents at end of period
$
26,711
$
26,711
$
24,481
$
24,649
$
37,122
Non-GAAP Adjusted Net Cash Flows from Operations
Below are the quarterly and last twelve-month reconciliations of GAAP net cash provided by (used in) operating activities for each of the periods presented to non-GAAP adjusted net cash flows from operations. The reconciling items are forgivable loan advances and repayments for each period, which are reported as a component of GAAP net cash provided by (used in) operating activities, along with other non-recurring cash items.
Non-GAAP Adjusted Net Cash Flows from Operations
FY
Q4
Q3
Q2
Q1
($ in 000’s)
2025
2025
2025
2025
2025
GAAP net cash provided by (used in) operating activities
$
22,424
$
60,019
$
36,547
$
5,852
$
(79,994)
Forgivable loan advances
87,909
17,571
29,400
13,507
27,431
Forgivable loan repayments
(1,933)
—
(1,333)
—
(600)
Non-GAAP adjusted net cash flows from operations
$
108,400
$
77,590
$
64,614
$
19,359
$
(53,163)
Net revenue
$
751,583
$
196,963
$
185,891
$
186,878
$
181,851
GAAP net cash provided by (used in) operating activities as a percentage of net revenue
3.0
%
30.5
%
19.7
%
3.1
%
(44.0)
%
Non-GAAP adjusted net cash flows from operations as a percentage of net revenue
14.4
%
39.4
%
34.8
%
10.4
%
(29.2)
%
Non-GAAP Adjusted Net Cash Flows from Operations
FY
Q4
Q3
Q2
Q1
($ in 000’s)
2024
2024
2024
2024
2024
GAAP net cash provided by (used in) operating activities
$
49,735
$
79,424
$
31,584
$
1,807
$
(63,080)
Forgivable loan advances
45,494
7,106
14,258
18,880
5,250
Forgivable loan repayments
(2,761)
(2,473)
—
(288)
—
Non-GAAP adjusted net cash flows from operations
$
92,468
$
84,057
$
45,842
$
20,399
$
(57,830)
Net revenue
$
687,414
$
176,435
$
167,748
$
171,442
$
171,789
6
GAAP net cash provided by (used in) operating activities as a percentage of net revenue
7.2
%
45.0
%
18.8
%
1.1
%
(36.7)
%
Non-GAAP adjusted net cash flows from operations as a percentage of net revenue
13.5
%
47.6
%
27.3
%
11.9
%
(33.7)
%
NON-GAAP FINANCIAL MEASURES
In these remarks, CRA has supplemented the presentation of its financial results calculated in accordance with U.S. generally accepted accounting principles or “GAAP” with the following financial measures that were not calculated in accordance with GAAP: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP EBITDA, non-GAAP income from operations (and non-GAAP operating margin), non-GAAP provision for income taxes (and non-GAAP effective tax rate), SG&A expenses excluding commissions and non-GAAP adjusted net cash flows from operations. CRA believes that these non-GAAP financial measures are important to management and investors because these measures supplement the understanding of CRA’s ongoing operating results, financial condition and cash flows. Non-GAAP adjusted net cash flows from operations is used by management to assess CRA’s ability to fund items such as the acquisition of talent, office expansions, debt repayment and distributions to shareholders. In addition, non-GAAP net income and non-GAAP EBITDA are used by CRA in its budgeting process, and the non-GAAP adjustments described below are made to the performance measures for some of CRA’s performance-based compensation.
As used herein, CRA defines non-GAAP EBITDA as net income before interest expense (net), provision for income taxes, and depreciation and amortization further adjusted for the impact of certain items that we do not consider indicative of its core operating performance, such as non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. Non-GAAP net income, non-GAAP income from operations and non-GAAP provision for income taxes also exclude non-cash amounts relating to valuation changes in contingent consideration, acquisition-related costs, foreign currency (gains) losses, net, restructuring costs and related tax effects. The adjustments made to non-GAAP adjusted net cash flows from operations add back forgivable loan issuances, net of repayments, along with other non-recurring cash items. These remarks also present certain current fiscal period financial measures on a “constant currency” basis in order to isolate the effect that foreign currency exchange rate fluctuations can have on CRA’s financial results. These constant currency measures are determined by recalculating the current fiscal period local currency financial measure using the specified corresponding prior fiscal period’s foreign exchange rates.
All of the non-GAAP financial measures referred to above should be considered in conjunction with, and not as a substitute for, the GAAP financial information presented in these remarks. EBITDA and the financial measures identified in these remarks as “non-GAAP” are reconciled to their GAAP comparable measures either in these remarks or in the attached financial tables. In evaluating these non-GAAP financial measures, note that the non-GAAP financial measures used by CRA may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
7
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Fiscal Quarter Ended
Fiscal Year-to-Date Period Ended
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
Revenues
$
196,963
100.0
%
$
176,435
100.0
%
$
751,583
100.0
%
$
687,414
100.0
%
Cost of services (exclusive of depreciation and amortization)
138,924
70.5
%
120,541
68.3
%
519,288
69.1
%
479,936
69.8
%
Selling, general and administrative expenses
33,689
17.1
%
31,266
17.7
%
135,031
18.0
%
125,050
18.2
%
Depreciation and amortization
3,712
1.9
%
3,174
1.8
%
14,140
1.9
%
11,677
1.7
%
Income from operations
20,638
10.5
%
21,454
12.2
%
83,124
11.1
%
70,751
10.3
%
Interest expense, net
(1,383)
-0.7
%
(1,013)
-0.6
%
(5,358)
-0.7
%
(4,417)
-0.6
%
Foreign currency gains (losses), net
(667)
-0.3
%
1,145
0.6
%
(1,193)
-0.2
%
(92)
—
%
Income before provision for income taxes
18,588
9.4
%
21,586
12.2
%
76,573
10.2
%
66,242
9.6
%
Provision for income taxes
5,403
2.7
%
6,599
3.7
%
21,791
2.9
%
19,589
2.8
%
Net income
$
13,185
6.7
%
$
14,987
8.5
%
$
54,782
7.3
%
$
46,653
6.8
%
Net income per share:
Basic
$
2.01
$
2.21
$
8.23
$
6.82
Diluted
$
1.99
$
2.18
$
8.14
$
6.74
Weighted average number of shares outstanding:
Basic
6,547
6,763
6,641
6,821
Diluted
6,627
6,866
6,714
6,908
8
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Fiscal Quarter Ended
Fiscal Year-to-Date Period Ended
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
Revenues
$
196,963
100.0
%
$
176,435
100.0
%
$
751,583
100.0
%
$
687,414
100.0
%
Net income
$
13,185
6.7
%
$
14,987
8.5
%
$
54,782
7.3
%
$
46,653
6.8
%
Adjustments needed to reconcile GAAP net income to non-GAAP net income:
Non-cash valuation change in contingent consideration
—
—
%
(190)
-0.1
%
—
—
%
(190)
—
%
Restructuring (1)(2)
—
—
%
—
—
%
(462)
-0.1
%
8,176
1.2
%
Foreign currency (gains) losses, net
667
0.3
%
(1,145)
-0.6
%
1,193
0.2
%
92
—
%
Tax effect on adjustments
(150)
-0.1
%
340
0.2
%
(183)
—
%
(2,126)
-0.3
%
Non-GAAP net income
$
13,702
7.0
%
$
13,992
7.9
%
$
55,330
7.4
%
$
52,605
7.7
%
Non-GAAP net income per share:
Basic
$
2.09
$
2.06
$
8.31
$
7.69
Diluted
$
2.06
$
2.03
$
8.23
$
7.60
Weighted average number of shares outstanding:
Basic
6,547
6,763
6,641
6,821
Diluted
6,627
6,866
6,714
6,908
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award.
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions.
9
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS AND FISCAL YEAR-TO-DATE PERIODS ENDED
JANUARY 3, 2026 COMPARED TO DECEMBER 28, 2024
(IN THOUSANDS)
Fiscal Quarter Ended
Fiscal Year-to-Date Period Ended
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
January 3, 2026
As a % of Revenue
December 28, 2024
As a % of Revenue
Revenues
$
196,963
100.0
%
$
176,435
100.0
%
$
751,583
100.0
%
$
687,414
100.0
%
Net income
$
13,185
6.7
%
$
14,987
8.5
%
$
54,782
7.3
%
$
46,653
6.8
%
Adjustments needed to reconcile GAAP net income to non-GAAP net income:
Non-cash valuation change in contingent consideration
—
—
%
(190)
-0.1
%
—
—
%
(190)
—
%
Restructuring (1)(2)
—
—
%
—
—
%
(462)
-0.1
%
8,176
1.2
%
Foreign currency (gains) losses, net
667
0.3
%
(1,145)
-0.6
%
1,193
0.2
%
92
—
%
Tax effect on adjustments
(150)
-0.1
%
340
0.2
%
(183)
—
%
(2,126)
-0.3
%
Non-GAAP net income
$
13,702
7.0
%
$
13,992
7.9
%
$
55,330
7.4
%
$
52,605
7.7
%
Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA:
Interest expense, net
1,383
0.7
%
1,013
0.6
%
5,358
0.7
%
4,417
0.6
%
Provision for income taxes
5,553
2.8
%
6,259
3.5
%
21,974
2.9
%
21,715
3.2
%
Depreciation and amortization
3,712
1.9
%
3,174
1.8
%
14,140
1.9
%
11,677
1.7
%
Non-GAAP EBITDA
$
24,350
12.4
%
$
24,438
13.9
%
$
96,802
12.9
%
$
90,414
13.2
%
(1) Fiscal year-to-date ended January 3, 2026 includes restructuring and separation benefits totaling $4.9M, comprised of $3.8M in cash and $1.1M in non-cash charges; net of the reversal of $5.4M of non-cash charges associated with a previously recorded performance award.
(2) Fiscal year-to-date ended December 28, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions.
10
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
January 3, 2026
December 28, 2024
Assets
Cash and cash equivalents
$
18,210
$
26,711
Accounts receivable and unbilled services, net
248,862
219,548
Other current assets
36,057
23,104
Total current assets
303,129
269,363
Property and equipment, net
36,713
45,205
Goodwill and intangible assets, net
100,404
100,953
Right-of-use assets
76,132
81,157
Other assets
112,495
74,761
Total assets
$
628,873
$
571,439
Liabilities and Shareholders’ Equity
Accounts payable
$
30,177
$
28,155
Accrued expenses
223,460
181,413
Current portion of lease liabilities
17,223
18,696
Revolving line of credit
34,000
—
Other current liabilities
25,169
23,045
Total current liabilities
330,029
251,309
Non-current portion of lease liabilities
76,009
84,541
Other non-current liabilities
9,237
23,516
Total liabilities
415,275
359,366
Total shareholders’ equity
213,598
212,073
Total liabilities and shareholders’ equity
$
628,873
$
571,439
11
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Year Ended
January 3, 2026
December 28, 2024
Operating activities:
Net income
$
54,782
$
46,653
Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses:
Non-cash items, net
34,976
29,316
Accounts receivable and unbilled services
(25,673)
(22,197)
Working capital items, net
(41,661)
(4,037)
Net cash provided by operating activities
22,424
49,735
Investing activities:
Purchases of property and equipment
(3,868)
(16,623)
Consideration paid for acquisitions, net
—
(1,500)
Net cash used in investing activities
(3,868)
(18,123)
Financing activities:
Borrowings under revolving line of credit
132,000
102,000
Repayments under revolving line of credit
(98,000)
(102,000)
Tax withholding payments reimbursed by shares
(2,862)
(3,209)
Cash dividends paid
(13,831)
(12,300)
Repurchase of common stock
(47,149)
(33,348)
Net cash used in financing activities
(29,842)
(48,857)
Effect of foreign exchange rates on cash and cash equivalents
2,785
(1,630)
Net increase (decrease) in cash and cash equivalents
(8,501)
(18,875)
Cash and cash equivalents at beginning of period
26,711
45,586
Cash and cash equivalents at end of period
$
18,210
$
26,711
Noncash investing and financing activities:
Increase (decrease) in accounts payable and accrued expenses for property and equipment
$
(449)
$
598
Excise tax on share repurchases
$
(415)
$
(270)
Asset retirement obligations
$
—
$
191
Right-of-use assets obtained in exchange for lease obligations
$
8,460
$
10,084
Supplemental cash flow information:
Cash paid for taxes
$
26,459
$
21,444
Cash paid for interest
$
4,659
$
4,145
Cash paid for amounts included in operating lease liabilities
