Financial Data and Key Metrics Changes - Revenue in the second quarter increased by 9% year over year to $186.9 million, with non-GAAP net income, EPS, and EBITDA surpassing the record-setting 2024 by 6%, 8%, and 8% respectively [5][6][14] - Year-to-date revenue on a constant currency basis reached $367.6 million, with non-GAAP EBITDA of $47.7 million resulting in a margin of 13% [13][14] - The company is raising its revenue guidance for the full fiscal year 2025 to a range of $730 million to $745 million, compared to the previous range of $715 million to $735 million [14] Business Line Data and Key Metrics Changes - Seven of the eleven practices experienced year-over-year growth, with antitrust and competition economics, energy, intellectual property, and labor and employment practices each posting double-digit revenue growth [5][6] - Revenue from legal and regulatory services increased by nearly 11%, supported by a significant rise in total case filings and court judgments [7] - The energy practice continues to see strong demand, particularly in utilities, driven by changes in federal renewable incentives and increased electricity demand from data centers [11][12] Market Data and Key Metrics Changes - Worldwide M&A activity reached nearly $2 trillion during 2025, an increase of 33% compared to the previous year, marking the strongest opening period for deal-making since 2022 [8] - The antitrust and competition economics practice achieved its highest quarterly revenue, reflecting strong demand in both North America and internationally [27] Company Strategy and Development Direction - The company is focused on maximizing long-term value per share and is committed to strategic priorities, as evidenced by recent leadership promotions aimed at enhancing corporate support for high-value strategic initiatives [19][46] - The company is cautious about pursuing larger acquisitions unless they align with long-term strategic goals, emphasizing a focus on strategic fit rather than chasing revenue [43] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the company's future, citing strong lead flow activity and continuity in delivering profitable revenue growth [25] - There is awareness of potential disruptions from geopolitical factors, but overall visibility into the business remains stable [25] Other Important Information - The company concluded the quarter with $19.4 million in cash and $120 million in borrowings, resulting in a net debt of $100.6 million [17] - During the second quarter, the company returned $46.6 million to shareholders through dividends and share repurchases [18] Q&A Session Summary Question: Drivers behind the guidance raise and visibility levels - Management highlighted strong performance in 2025 and continuity from fiscal 2024, with no significant changes in visibility despite potential geopolitical disruptions [24][25] Question: Changes in M&A regulatory needs and deal sizes - The antitrust practice reported strong demand, with no noticeable shifts in deal sizes or complexity, and continued engagement in large prominent matters [27][28] Question: Pricing environment and rate increases - Rate increases for fiscal 2025 have been successfully implemented, with clients continuing to demand value alongside efficiency in service delivery [31][32] Question: Share repurchase activity timing - Most share repurchase activity occurred in Q2, with a significant portion executed in the latter part of the quarter [34] Question: Energy practice scaling and inorganic growth - The energy practice is focusing on internal growth and skill set enhancement, with ongoing exploration for strategic acquisitions [42][43] Question: Management appointments and their purpose - New roles aim to enhance corporate support for strategic initiatives, raising the value of services provided to consulting colleagues [46] Question: Hiring trends and college recruitment - The company is welcoming over 100 recent graduates, maintaining a typical hiring class size while focusing on growth in specific practices [48][50]

Group 1: Earnings Performance - CRA International (CRAI) reported quarterly earnings of $1.88 per share, exceeding the Zacks Consensus Estimate of $1.83 per share, and showing an increase from $1.83 per share a year ago, representing an earnings surprise of +2.73% [1] - The company posted revenues of $186.88 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.00%, and up from $171.44 million year-over-year [2] - CRA has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Group 2: Stock Performance and Outlook - CRA shares have declined approximately 7.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.84 on revenues of $177.55 million, and for the current fiscal year, it is $8.00 on revenues of $723.24 million [7] Group 3: Industry Context - The Consulting Services industry, to which CRA belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for CRA is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Q2 Fiscal Year 2025 Overview [Executive Summary of Financial Results](index=1&type=section&id=1.1%20Executive%20Summary%20of%20Financial%20Results) CRA reported strong Q2 FY25 results with significant revenue growth and improved GAAP net income, driven by increased utilization and higher client reimbursables, while non-GAAP net income remained stable Q2 Fiscal 2025 Key Financial Highlights: | Metric | Q2 FY25 | Q2 FY24 | | :--------------------------------- | :-------- | :-------- | | Revenue | $186.9 million | $171.4 million | | Net income (GAAP) | $12.1 million | $6.5 million | | Net income (non-GAAP) | $12.7 million | $12.7 million | | Net income per diluted share (GAAP) | $1.79 | $0.94 | | Net income per diluted share (non-GAAP) | $1.88 | $1.83 | | Operating margin (GAAP & non-GAAP) | 10.6% | 6.6% (GAAP), 11.4% (non-GAAP) | | Non-GAAP EBITDA | $23.3 million | $22.3 million | | Effective tax rate (GAAP) | 29.2% | 32.0% | | Effective tax rate (non-GAAP) | 29.0% | 29.4% | | Cash and cash equivalents | $19.4 million | $24.6 million | | Revolving credit facility borrowing capacity | $126.5 million | N/A | [Key Operational Highlights](index=1&type=section&id=1.2%20Key%20Operational%20Highlights) Operational performance in Q2 FY25 showed increased utilization and client reimbursables, despite a slight decrease in total consultant headcount compared to the prior year - Companywide utilization increased to **76% in Q2 FY25** from 74% in Q2 FY24[6](index=6&type=chunk) Consultant Headcount Trends: | Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :---------------- | :------ | :------ | :------ | :------ | :------ | | Officers | 159 | 156 | 151 | 156 | 157 | | Other Senior Staff | 557 | 566 | 552 | 560 | 531 | | Junior Staff | 221 | 225 | 243 | 262 | 280 | | **Total** | **937** | **947** | **946** | **978** | **968** | - Client reimbursables grew to **$19.6 million (10.5% of revenue)** in Q2 FY25, up from $16.4 million (9.5% of revenue) in Q2 FY24[7](index=7&type=chunk) Detailed Income Statement Analysis [Revenue](index=1&type=section&id=2.1%20Revenue) Revenue for Q2 Fiscal 2025 showed a solid year-over-year increase, reflecting continued business growth Revenue Performance: | Period | Revenue (in millions) | | :----- | :-------------------- | | Q2 FY25 | $186.9 | | Q2 FY24 | $171.4 | | **YoY Change** | **+9.0%** | [Operating Expenses](index=1&type=section&id=2.2%20Operating%20Expenses) Operating expenses showed mixed trends, with SG&A remaining stable as a percentage of revenue (excluding commissions), while depreciation and amortization increased, and forgivable loan and share-based compensation amortization decreased [Selling, General and Administrative (SG&A) Expenses](index=1&type=section&id=2.2.1%20Selling,%20General%20and%20Administrative%20(SG%26A)%20Expenses) SG&A expenses increased in absolute terms but remained relatively stable as a percentage of revenue, with commissions to non-employee experts slightly increasing their share SG&A Expenses Breakdown: | Metric | Q2 FY25 (in $000s) | % of Revenue | Q2 FY24 (in $000s) | % of Revenue | | :--------------------------------- | :------------------ | :----------- | :------------------ | :----------- | | SG&A expenses | $35,079 | 18.8% | $32,016 | 18.7% | | Less: commissions to non-employee experts | $4,576 | 2.4% | $3,816 | 2.2% | | SG&A expenses excluding commissions | $30,503 | 16.3% | $28,200 | 16.4% | [Depreciation & Amortization](index=2&type=section&id=2.2.2%20Depreciation%20%26%20Amortization) Depreciation and amortization expenses increased both in absolute terms and as a percentage of revenue year-over-year Depreciation & Amortization Expenses: | Period | Amount (in millions) | % of Revenue | | :----- | :------------------- | :----------- | | Q2 FY25 | $3.5 | 1.9% | | Q2 FY24 | $2.8 | 1.6% | [Forgivable Loan Amortization](index=2&type=section&id=2.2.3%20Forgivable%20Loan%20Amortization) Forgivable loan amortization significantly decreased in Q2 FY25 compared to the prior year, positively impacting profitability Forgivable Loan Amortization: | Period | Amount (in millions) | % of Revenue | | :----- | :------------------- | :----------- | | Q2 FY25 | $10.2 | 5.5% | | Q2 FY24 | $14.4 | 8.4% | [Share-Based Compensation Expense](index=2&type=section&id=2.2.4%20Share-Based%20Compensation%20Expense) Share-based compensation expense decreased in Q2 FY25, both in absolute terms and as a percentage of revenue Share-Based Compensation Expense: | Period | Amount (in millions) | % of Revenue | | :----- | :------------------- | :----------- | | Q2 FY25 | $1.0 | 0.5% | | Q2 FY24 | $1.4 | 0.8% | [Operating Income](index=2&type=section&id=2.3%20Operating%20Income) GAAP operating income saw a substantial increase year-over-year, primarily due to the absence of significant restructuring charges present in the prior year, while non-GAAP operating income remained stable Operating Income Performance: | Metric | Q2 FY25 (in $000s) | % of Revenue | Q2 FY24 (in $000s) | % of Revenue | | :--------------------------------- | :------------------ | :----------- | :------------------ | :----------- | | Income from operations (GAAP) | $19,727 | 10.6% | $11,288 | 6.6% | | Non-GAAP income from operations | $19,727 | 10.6% | $19,464 | 11.4% | | Restructuring and other adjustments (Q2 FY24) | — | —% | $8,176 | 4.8% | [Other Income (Expense), Net](index=2&type=section&id=2.4%20Other%20Income%20(Expense),%20Net) Net interest expense and foreign currency losses both increased in Q2 FY25, contributing to a higher overall non-operating expense [Interest Income (Expense), net](index=2&type=section&id=2.4.1%20Interest%20Income%20(Expense),%20net) Net interest expense increased slightly in Q2 FY25 compared to the prior year Net Interest Expense: | Period | Amount (in millions) | % of Revenue | | :----- | :------------------- | :----------- | | Q2 FY25 | $1.8 | 1.0% | | Q2 FY24 | $1.5 | 0.9% | [Foreign Currency Gains (Losses), net](index=2&type=section&id=2.4.2%20Foreign%20Currency%20Gains%20(Losses),%20net) Net foreign currency losses increased significantly in Q2 FY25, indicating a larger negative impact from currency fluctuations Net Foreign Currency Gains (Losses): | Period | Amount (in millions) | % of Revenue | | :----- | :------------------- | :----------- | | Q2 FY25 | $(0.8) | 0.4% (Loss) | | Q2 FY24 | $(0.2) | 0.1% (Loss) | [Income Taxes](index=2&type=section&id=2.5%20Income%20Taxes) Both GAAP and non-GAAP effective tax rates decreased in Q2 FY25, leading to a higher GAAP tax provision on increased pre-tax income Income Tax Provision and Effective Tax Rates: | Metric | Q2 FY25 | Q2 FY24 | | :------------------- | :------ | :------ | | GAAP Tax Provision | $4,994 | $3,076 | | GAAP Effective Tax Rate | 29.2% | 32.0% | | Non-GAAP Tax Provision | $5,208 | $5,281 | | Non-GAAP Effective Tax Rate | 29.0% | 29.4% | [Net Income and EPS](index=3&type=section&id=2.6%20Net%20Income%20and%20EPS) GAAP net income and diluted EPS significantly improved year-over-year, while non-GAAP net income remained consistent, and non-GAAP diluted EPS saw a slight increase Net Income and EPS Performance: | Metric | Q2 FY25 | % of Revenue | Q2 FY24 | % of Revenue | | :--------------------------------- | :-------- | :----------- | :-------- | :----------- | | Net income (GAAP) | $12.1 million | 6.5% | $6.5 million | 3.8% | | Net income per diluted share (GAAP) | $1.79 | N/A | $0.94 | N/A | | Non-GAAP net income | $12.7 million | 6.8% | $12.7 million | 7.4% | | Non-GAAP net income per diluted share | $1.88 | N/A | $1.83 | N/A | [Non-GAAP EBITDA](index=3&type=section&id=2.7%20Non-GAAP%20EBITDA) Non-GAAP EBITDA increased in absolute terms but slightly decreased as a percentage of revenue in Q2 FY25 Non-GAAP EBITDA: | Period | Amount (in millions) | % of Revenue | | :----- | :------------------- | :----------- | | Q2 FY25 | $23.3 | 12.4% | | Q2 FY24 | $22.3 | 13.0% | [Constant Currency Basis Analysis](index=3&type=section&id=2.8%20Constant%20Currency%20Basis%20Analysis) The analysis on a constant currency basis indicates that foreign exchange rate fluctuations had a minor positive impact on reported revenue, net income, and EBITDA for Q2 FY25 Impact of Constant Currency on Q2 FY25 Results (vs. Q2 FY24 rates): | Metric | Reported Q2 FY25 | Constant Currency Q2 FY25 (Adjusted) | Difference | | :--------------------------------- | :--------------- | :----------------------------------- | :--------- | | Revenue | $186.9 million | $185.4 million | -$1.5 million | | GAAP Net Income | $12.1 million | $12.0 million | -$0.1 million | | GAAP EPS (diluted) | $1.79 | $1.76 | -$0.03 | | Non-GAAP Net Income | $12.7 million | $12.6 million | -$0.1 million | | Non-GAAP EPS (diluted) | $1.88 | $1.86 | -$0.02 | | Non-GAAP EBITDA | $23.3 million | $23.1 million | -$0.2 million | Balance Sheet and Cash Flow Review [Key Balance Sheet Metrics](index=3&type=section&id=3.1%20Key%20Balance%20Sheet%20Metrics) Key balance sheet metrics show an increase in receivables and current liabilities, while Days Sales Outstanding remained consistent year-over-year Key Balance Sheet Metrics: | Metric | June 28, 2025 | June 29, 2024 | | :--------------------------------- | :-------------- | :-------------- | | Billed and unbilled receivables | $235.0 million | $216.6 million | | Current liabilities | $317.3 million | $252.7 million | | Total Days Sales Outstanding (DSO) | 110 days | 110 days | | - Billed DSO | 73 days | 70 days | | - Unbilled DSO | 37 days | 40 days | [Cash and Cash Flow](index=3&type=section&id=3.2%20Cash%20and%20Cash%20Flow) Cash and cash equivalents decreased, but net cash provided by operating activities improved significantly. The company increased its borrowings under the revolving credit facility [GAAP Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=3.2.1%20GAAP%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The GAAP cash flow statement shows an increase in net cash provided by operating activities for Q2 FY25, despite a decrease in overall cash and cash equivalents Q2 Cash Flow Highlights: | Metric | Q2 FY25 | Q2 FY24 | | :--------------------------------- | :-------- | :-------- | | Cash and cash equivalents (period end) | $19.4 million | $24.6 million | | Net cash provided by operating activities | $5.9 million | $1.8 million | | Outstanding borrowings (revolving credit) | $120.0 million | $87.0 million | | Capital expenditures | $1.2 million | $2.3 million | GAAP Condensed Consolidated Statement of Cash Flows (in $000s): | Metric | LTM Q2 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :--------------------------------- | :---------- | :------ | :-------- | :-------- | :-------- | | Net cash provided by (used in) operating activities | $36,866 | $5,852 | $(79,994) | $79,424 | $31,584 | | Net cash used in investing activities | $(15,740) | $(1,189) | $(974) | $(10,591) | $(2,986) | | Net cash provided by (used in) financing activities | $(27,373) | $(11,875) | $79,058 | $(64,629) | $(29,927) | | Net increase (decrease) in cash and cash equivalents | $(5,201) | $(6,150) | $(1,113) | $2,230 | $(168) | | Cash and cash equivalents at end of period | $19,448 | $19,448 | $25,598 | $26,711 | $24,481 | [Adjusted Net Cash Flows from Operations](index=6&type=section&id=3.2.2%20Adjusted%20Net%20Cash%20Flows%20from%20Operations) Adjusted net cash flows from operations, which account for forgivable loan advances and repayments, show a stronger operational cash generation capacity compared to GAAP figures Adjusted Net Cash Flows from Operations (in $000s): | Metric | LTM Q2 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :--------------------------------- | :---------- | :------ | :-------- | :-------- | :-------- | | GAAP net cash provided by (used in) operating activities | $36,866 | $5,852 | $(79,994) | $79,424 | $31,584 | | Forgivable loan advances | $62,302 | $13,507 | $27,431 | $7,106 | $14,258 | | Forgivable loan repayments | $(3,073) | — | $(600) | $(2,473) | — | | Adjusted net cash flows from operations | $96,095 | $19,359 | $(53,163) | $84,057 | $45,842 | | Adjusted net cash flows from operations as a percentage of net revenue | 13.5% | 10.4% | (29.2)% | 47.6% | 27.3% | [Shareholder Capital Allocation](index=3&type=section&id=3.3%20Shareholder%20Capital%20Allocation) CRA continued its commitment to shareholder returns through increased share repurchases and higher quarterly cash dividends [Share Repurchases](index=3&type=section&id=3.3.1%20Share%20Repurchases) The company significantly increased its share repurchase activity in Q2 FY25 compared to the prior year Common Stock Repurchases: | Period | Shares Repurchased (approx.) | Value (in millions) | | :----- | :--------------------------- | :------------------ | | Q2 FY25 | 231,000 | $43.2 | | Q2 FY24 | 140,000 | $24.1 | [Dividends](index=5&type=section&id=3.3.2%20Dividends) CRA increased its quarterly cash dividend per common share in Q2 FY25 Quarterly Cash Dividends: | Period | Dividend per Share | Total Dividends (in millions) | | :----- | :----------------- | :---------------------------- | | Q2 FY25 | $0.49 | $3.4 | | Q2 FY24 | $0.42 | $2.9 | [Non-GAAP Financial Measures Explanation](index=6&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section explains the rationale and definitions for the non-GAAP financial measures used by CRA, emphasizing their role in supplementing GAAP results for a clearer understanding of ongoing operations, financial condition, and cash flows, and for internal management purposes - Non-GAAP financial measures are provided to supplement GAAP results, offering additional insight into CRA's ongoing operating results, financial condition, and cash flows[35](index=35&type=chunk) - Non-GAAP adjusted net cash flows from operations are used by management to assess the company's ability to fund talent acquisition, office expansions, debt repayment, and shareholder distributions[35](index=35&type=chunk) - Non-GAAP EBITDA is defined as net income before interest expense (net), provision for income taxes, and depreciation and amortization, further adjusted for certain non-core operating performance items like restructuring costs and foreign currency gains/losses[36](index=36&type=chunk) Appendices: Condensed Consolidated Financial Statements [Condensed Consolidated Statements of Operations](index=7&type=section&id=5.1%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the GAAP condensed consolidated statements of operations, detailing revenues, costs, and profitability for the fiscal quarters and year-to-date periods ended June 28, 2025, and June 29, 2024 GAAP Condensed Consolidated Statements of Operations (in $000s, except per share data): | Metric | Q2 2025 | % of Revenue | Q2 2024 | % of Revenue | YTD 2025 | % of Revenue | YTD 2024 | % of Revenue | | :--------------------------------- | :------ | :----------- | :------ | :----------- | :------- | :----------- | :------- | :----------- | | Revenues | $186,878 | 100.0% | $171,442 | 100.0% | $368,729 | 100.0% | $343,230 | 100.0% | | Costs of services | $128,542 | 68.8% | $125,327 | 73.1% | $248,896 | 67.5% | $244,206 | 71.1% | | SG&A expenses | $35,079 | 18.8% | $32,016 | 18.7% | $67,617 | 18.3% | $62,514 | 18.2% | | Depreciation and amortization | $3,530 | 1.9% | $2,811 | 1.6% | $6,941 | 1.9% | $5,603 | 1.6% | | Income from operations | $19,727 | 10.6% | $11,288 | 6.6% | $45,275 | 12.3% | $30,907 | 9.0% | | Net income | $12,122 | 6.5% | $6,538 | 3.8% | $30,124 | 8.2% | $20,229 | 5.9% | | Diluted EPS | $1.79 | N/A | $0.94 | N/A | $4.42 | N/A | $2.90 | N/A | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=5.2%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of GAAP net income to non-GAAP net income and non-GAAP EBITDA, highlighting adjustments for restructuring, foreign currency, and tax effects for both quarterly and year-to-date periods Reconciliation of Non-GAAP Financial Measures (in $000s, except per share data): | Metric | Q2 2025 | % of Revenue | Q2 2024 | % of Revenue | YTD 2025 | % of Revenue | YTD 2024 | % of Revenue | | :--------------------------------- | :------ | :----------- | :------ | :----------- | :------- | :----------- | :------- | :----------- | | GAAP Net income | $12,122 | 6.5% | $6,538 | 3.8% | $30,124 | 8.2% | $20,229 | 5.9% | | Adjustments (Restructuring, FX, Tax effect) | $601 | 0.3% | $6,161 | 3.6% | $(2,147) | -0.6% | $6,270 | 1.8% | | Non-GAAP Net income | $12,723 | 6.8% | $12,699 | 7.4% | $27,977 | 7.6% | $26,498 | 7.7% | | Non-GAAP Diluted EPS | $1.88 | N/A | $1.83 | N/A | $4.10 | N/A | $3.80 | N/A | | Interest expense, net | $1,796 | 1.0% | $1,483 | 0.9% | $2,225 | 0.6% | $1,948 | 0.6% | | Provision for income taxes (Non-GAAP) | $5,208 | 2.8% | $5,281 | 3.1% | $10,903 | 3.0% | $10,636 | 3.1% | | Depreciation and amortization | $3,530 | 1.9% | $2,811 | 1.6% | $6,941 | 1.9% | $5,603 | 1.6% | | Non-GAAP EBITDA | $23,257 | 12.4% | $22,274 | 13.0% | $48,046 | 13.0% | $44,685 | 13.0% | [Condensed Consolidated Balance Sheets](index=10&type=section&id=5.3%20Condensed%20Consolidated%20Balance%20Sheets) This section provides the condensed consolidated balance sheets, outlining assets, liabilities, and shareholders' equity as of June 28, 2025, and December 28, 2024 Condensed Consolidated Balance Sheets (in $000s): | Metric | June 28, 2025 | December 28, 2024 | | :--------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $19,448 | $26,711 | | Accounts receivable and unbilled services, net | $235,025 | $219,548 | | Total current assets | $293,108 | $269,363 | | Total assets | $606,777 | $571,439 | | Total current liabilities | $317,325 | $251,309 | | Revolving line of credit | $120,000 | — | | Total liabilities | $409,777 | $359,366 | | Total shareholders' equity | $197,000 | $212,073 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=5.4%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the GAAP condensed consolidated statements of cash flows for the fiscal year-to-date periods ended June 28, 2025, and June 29, 2024, detailing cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in $000s): | Metric | YTD June 28, 2025 | YTD June 29, 2024 | | :--------------------------------- | :---------------- | :---------------- | | Net income | $30,124 | $20,229 | | Net cash used in operating activities | $(74,142) | $(61,273) | | Net cash used in investing activities | $(2,163) | $(4,546) | | Net cash provided by financing activities | $67,183 | $45,699 | | Net decrease in cash and cash equivalents | $(7,263) | $(20,937) | | Cash and cash equivalents at end of period | $19,448 | $24,649 | | Cash paid for taxes | $14,854 | $12,681 | | Cash paid for interest | $1,670 | $1,533 |

Company Overview - CRA International (CRAI) shares increased by 3% to $202.84 in the last trading session, with a notable volume of shares traded, contributing to a total gain of 9% over the past four weeks [1] - The stock is experiencing strong momentum, characterized by record-breaking performance and broad-based practice growth [1] Earnings Expectations - CRA is projected to report quarterly earnings of $1.83 per share, unchanged from the same quarter last year, with expected revenues of $179.7 million, reflecting a 4.8% increase year-over-year [2] - The consensus EPS estimate for CRA has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - CRA operates within the Zacks Consulting Services industry, which includes other companies like Stantec (STN), whose shares rose by 1.2% to $111.81 in the last trading session, with a 3.5% return over the past month [4] - Stantec's consensus EPS estimate has also remained unchanged at $0.98, representing a 19.5% increase from the previous year [5]

Group 1 - The article provides an initial impression of CRA International (NASDAQ: CRAI), highlighting its shareholder-friendly policies and profitability metrics, but notes concerns regarding its high price-to-earnings (P/E) ratio of approximately 25x, which leaves little margin for error [1] - The author previously rated CRAI stock as a Hold, indicating a cautious stance on the investment due to the valuation concerns despite the company's positive attributes [1] Group 2 - The article does not contain any specific financial data or performance metrics related to CRA International beyond the P/E ratio mentioned [1]

Summary of CRA International (CRAI) Conference Call - June 11, 2025 Company Overview - **Company Name**: Charles River Associates (CRAI) - **Industry**: Consulting, specifically in legal and regulatory consulting and management consulting - **Revenue Breakdown**: Legal and regulatory consulting accounts for approximately 80% of revenue, while management consulting makes up the remaining 20% [5][6] Key Points and Arguments - **Company History**: CRA is celebrating its 60th anniversary, founded by professors from MIT and Harvard, focusing on delivering academic-quality research to the business world [5] - **Employee Retention**: CRA has a strong retention rate, with less than 10% turnover among top revenue generators over the past five years, indicating a positive work environment [9] - **Client Base**: CRA has worked with 85 of the Fortune 100 companies in the past two years and 98 of the Amlaw 100 law firms, showcasing its strong market position [12][13] - **Financial Performance**: Over the past ten years, CRA has seen a sixfold increase in stock price and a 2.5 times growth in revenue, with consistent performance across various time frames [15] - **Capital Allocation**: CRA has a strategy of returning excess capital to shareholders primarily through share repurchases, with a significant reduction in shares outstanding over the past decade [29] - **Shareholder Yield**: The current shareholder yield is approximately 6%, reflecting a growing market value for CRA [30] Growth and Market Dynamics - **Headcount and Talent Acquisition**: CRA is adding headcount in both legal regulatory and management consulting areas, despite a temporary flattening due to excess capacity in life sciences [34][36] - **Growth Factors**: Economic uncertainty and M&A activity levels are potential limiting factors for growth. CRA has historically performed well across various macroeconomic environments [37][38] - **Promising Segments**: The antitrust and competition economics practice, forensic practice, and energy practice are highlighted as areas with significant growth potential [41][43] Capital Structure and Acquisition Strategy - **Willingness to Take on Debt**: CRA is open to taking on debt for the right acquisition opportunities, emphasizing that any debt would be based on the asset's value rather than for share repurchases [46][48] - **Active Acquisition Pipeline**: There is an active pipeline for acquisitions, with CRA positioned to benefit from industry disruptions and seeking to attract the right candidates for growth [49] Conclusion - **Future Outlook**: CRA's success is attributed to its collective talent and the ability to adapt to changing market conditions. The company is well-positioned for future growth and continues to celebrate its legacy while looking ahead [52]

Core Viewpoint - CRA International (CRAI) is showing potential for investment as it has reached a significant support level and surpassed the 200-day moving average, indicating a long-term bullish trend [1]. Technical Analysis - The 200-day simple moving average is a critical indicator for establishing market trends, and CRAI has recently rallied by 11% over the past four weeks, currently holding a Zacks Rank of 2 (Buy) [2]. - The combination of the recent price rally and the favorable Zacks Rank suggests that CRAI may be poised for further upward movement [2]. Earnings Estimates - Positive earnings estimate revisions strengthen the bullish outlook for CRAI, with three upward revisions compared to none downward for the current fiscal year, leading to an increase in the consensus estimate [3]. - Investors are encouraged to monitor CRAI for potential gains in the near future, given its key technical levels and positive earnings revisions [3].

Core Viewpoint - CRA International (CRAI) is showing potential for investment as it has recently reached a key support level and surpassed the 50-day moving average, indicating a short-term bullish trend [1]. Technical Analysis - The 50-day simple moving average is a significant indicator for traders and analysts, used to identify support and resistance levels, and is considered crucial for signaling trends [2]. - Over the past four weeks, CRAI's stock has increased by 9.5%, and it currently holds a Zacks Rank 2 (Buy), suggesting further upward movement [2]. Earnings Estimates - There have been three upward revisions in CRAI's earnings estimates for the current fiscal year, with no downward revisions, indicating strong investor confidence in the bullish trend [3]. - The consensus earnings estimate has also increased, further supporting the positive outlook for CRAI [3].

Group 1: CRA International, Inc. (CRAI) Q1 2025 Results - CRAI reported adjusted EPS of $2.22, exceeding the Zacks Consensus Estimate by 15% and increasing 13.3% year over year [1] - Revenues reached $182 million, beating the consensus mark by 3.5% and rising 6% from the previous year [1] Group 2: Operational Metrics - The company achieved a utilization rate of 76%, with a 5% decrease in headcount year over year [2] - Non-GAAP EBITDA increased by 10.6% year over year to $24.8 million, with a non-GAAP EBITDA margin improvement of 58 basis points to 13.6% [2] Group 3: Cash Flow and Dividends - CRAI ended the quarter with cash and cash equivalents of $25.6 million, down from $26.7 million in the prior quarter [3] - The company generated $80 million from operating activities and reported capital expenditures of $974 million [3] - CRAI paid out $3.5 million in dividends during the quarter [3] Group 4: 2025 Outlook - CRAI provided 2025 revenue guidance in the range of $715 million to $735 million, with a non-GAAP EBITDA margin expected between 12% and 13% [4] - The company currently holds a Zacks Rank 3 (Hold) [4]

Financial Data and Key Metrics Changes - Revenue increased by 5.9% year over year to $181.9 million, marking the highest quarterly revenue in the company's history [5] - Non-GAAP net income, earnings per diluted share, and EBITDA increased year over year by 11%, 13%, and 11% respectively, each setting a new quarterly record [6] - Consultant headcount decreased by 5% compared to the first quarter of fiscal 2024, remaining flat sequentially [7][18] - Consulting utilization improved year over year to 76% [7] Business Line Data and Key Metrics Changes - Four practices (energy, finance, intellectual property, and life sciences) posted double-digit revenue growth, while the antitrust and competition economics practice achieved a new high for quarterly revenue [6] - Revenue from legal and regulatory services increased by roughly 5%, aligning with broader legal market trends [9] - Management consulting services revenue increased by 10% year over year, driven by strong performance in energy and life sciences practices [13] Market Data and Key Metrics Changes - Worldwide M&A activity reached $885 billion during the first quarter of fiscal 2025, representing a 15% increase compared to the previous year [9] - Total case filings and court judgments increased by 132% compared to the first quarter of fiscal 2024 [9] Company Strategy and Development Direction - The company aims to optimize its service portfolio by reconfiguring teams in targeted areas, affecting approximately 15 individuals [16] - The company is focused on maintaining a strong pipeline of projects and is optimistic about the life sciences practice's growth potential [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the journey to a record-setting Q1 was not linear, with a slow start in January followed by increased activity in February and March [23] - The company reaffirmed its full-year financial guidance for fiscal 2025, expecting revenue in the range of $715 million to $725 million and a non-GAAP EBITDA margin of 12% to 13% [17] Other Important Information - The company concluded the quarter with $25.6 million in cash and $85 million in borrowings under its revolving credit facility, resulting in net debt of $59.4 million [20] - The company will celebrate its sixtieth anniversary by ringing the opening bell for NASDAQ on June 2 [67] Q&A Session Summary Question: April activity and guidance confidence - Management observed that trends from March have continued into April, but it is too early to declare sustained success [24] Question: Life sciences pipeline opportunities - The life sciences practice is experiencing success geographically and across business concentration areas, with hopes for continued momentum [26] Question: Headcount growth and retention - The company is focused on optimizing investments and expects headcount growth to align with revenue growth in the medium to long term [30][32] Question: External factors affecting business activity - Management noted that various macro and geopolitical factors create uncertainty, impacting client decisions [41] Question: Industry verticals showing activity - All parts of the portfolio are growing, contributing to strong financial results [44] Question: Return to office trends - There has been no significant shift in office participation, with colleagues averaging just over three days a week in the office [47] Question: Restructuring details - The restructuring affected 15 individuals, aimed at optimizing the portfolio without indicating general health issues in the practices [56] Question: Antitrust demand trends - The antitrust and competition economics practice continues to see strong demand, driven by both merger-related activity and investigations [59] Question: Collaboration across practices - Collaboration across practices and geographies is common and is expected to grow as client needs become more complex [62]