Financial Data and Key Metrics Changes - Revenue for fiscal 2025 increased by 9.3% to $751.6 million, marking the eighth consecutive year of record annual revenue [5] - Non-GAAP EBITDA for fiscal 2025 was $96.8 million, producing a non-GAAP EBITDA margin of 12.9% [13] - Full-year utilization was 77%, contributing to record profits as measured by net income and earnings per diluted share [6] Business Line Data and Key Metrics Changes - Legal and regulatory services revenue increased by 10.3% year-over-year, while management consulting services expanded by 6.4% [5] - In Q4, legal and regulatory services revenue rose by 14.3%, with Antitrust & Competition Economics and Forensic Services practices each delivering over 20% revenue growth [8][7] - The Energy practice also saw revenue growth of more than 20% in Q4, driven by strong activity in data center-driven load growth [12] Market Data and Key Metrics Changes - North American operations contributed to a 7.3% revenue increase, while international operations saw a 19.5% increase [5] - Worldwide M&A activity in 2025 totaled $4.6 trillion, a 49% increase compared to 2024, indicating a strong market for CRA's services [8] Company Strategy and Development Direction - The company is focusing on expanding its leadership ranks and investing in talent, promoting eight colleagues to vice president and hiring 19 new vice presidents [15] - CRA is integrating AI into its operations to enhance productivity and revenue growth, with a disciplined approach to AI adoption [20][18] - The company expects revenue for fiscal 2026 to be in the range of $785 million to $805 million, with a non-GAAP EBITDA margin of 12.0% to 13.0% [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite market volatility and external disruptions [14][21] - The company views AI as a catalyst for improved productivity and revenue growth, with ongoing investments in AI capabilities [20][18] - Management noted strong lead flow and project opportunities, particularly in the Antitrust & Competition Economics and Forensic Services practices, indicating a positive outlook for 2026 [51][39] Other Important Information - Adjusted net cash flows from operations increased by 17% year-over-year to $108.4 million, with CRA converting 112% of its non-GAAP EBITDA into adjusted net cash flows [21] - The company repaid $61 million of net borrowings under its revolving line of credit, ending the year with a cash balance of $18.2 million [22] - CRA's board authorized an expansion of its share repurchase program by $55 million, reflecting confidence in long-term prospects [24] Q&A Session Summary Question: Thoughts on revenue guidance and consultant count - Management indicated strong fiscal 2025 performance and expressed bullishness for fiscal 2026, noting that headcount growth should align with revenue growth [34][35] Question: Update on litigation activity - Management highlighted strong performance in Antitrust & Competition Economics and Forensic Services practices, with no signs of slowing down [38][39] Question: Pricing dynamics - Management reported a 3% rate increase for 2025, with expectations for low single-digit increases in 2026, indicating strong value delivery to clients [41][42] Question: AI initiatives and margin expansion - Management sees AI as a revenue enhancement opportunity rather than a direct margin expansion driver, emphasizing the importance of coordinated efforts in AI deployment [49][50] Question: Forensic Services practice growth sustainability - Management noted robust lead flow in the Forensic practice and expressed optimism for continued growth, albeit at a potentially lower rate than 20% [51] Question: Share repurchases - Management confirmed intentions to be active in share repurchases, especially given the recent stock price dislocation [59][60]

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]

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, while consulting utilization improved to 76% [7][18] 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 approximately 5%, aligning with broader legal market trends [8] - Management consulting services revenue increased by 10% year over year, driven by strong performance in energy and life sciences practices [12] Market Data and Key Metrics Changes - Worldwide M&A activity reached $885 billion during the first quarter, representing a 15% increase compared to the previous year [8] - Total case filings and court judgments increased by 132% compared to the first quarter of fiscal 2024, indicating a robust legal market [8] Company Strategy and Development Direction - The company aims to optimize its service portfolio by reconfiguring teams in targeted areas, affecting approximately 15 individuals [14] - The focus remains on expanding geographic reach and enhancing service offerings, particularly in high-demand areas such as antitrust and life sciences [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong start to fiscal 2025, reaffirming full-year financial guidance of $715 million to $725 million in revenue [16] - The company remains cautious about uncertain global macroeconomic conditions that could impact business [17] Other Important Information - The company ended the quarter with $25.6 million in cash and $85 million in borrowings, resulting in net debt of $59.4 million [19] - The effective tax rate for the first quarter was 27.2% on a non-GAAP basis, slightly down from 28% in the previous year [18] Q&A Session Summary Question: April activity and guidance confidence - Management noted that activity levels improved throughout the quarter, with trends from March continuing into April, though it is too early to declare sustained momentum [22][24] Question: Life sciences pipeline and opportunities - The life sciences practice is experiencing success across geographic and business areas, with hopes for continued momentum into Q2 and throughout 2025 [25][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, despite a recent 5% year-over-year decline [28][30] Question: External factors affecting business activity - Management indicated that various macroeconomic and geopolitical factors create uncertainty, impacting client decisions but noted a general growth across all practices [38][41] Question: Return to office trends - The company has not seen significant shifts in office participation, with employees averaging just over three days in the office per week, consistent with pre-COVID practices [45][46] Question: Restructuring details - Management refrained from providing specifics on the restructuring affecting 15 individuals, emphasizing that it does not reflect the overall health of the practices involved [52][53] Question: Antitrust demand trends - The antitrust and competition economics practice continues to see strong demand, driven by both merger-related activity and ongoing investigations [57] Question: Collaboration across practices - Collaboration across practices and geographies is common and is seen as an underreported strength of the company, enhancing service delivery to clients [60][61]