CRA International Reports 10.8% Revenue Growth to $185.9 Million in Latest Quarter

CRA International, Inc. reported a notable increase in financial performance for the fiscal quarter ended September 27, 2025, with revenues reaching $185.9 million, a 10.8% rise from $167.7 million in the same quarter of the previous year. Year-to-date revenues also saw an increase of 8.5%, totaling $554.6 million compared to $511.0 million for the prior year-to-date period. Despite the revenue growth, net income remained relatively stable at $11.5 million for the quarter, slightly up from $11.4 million a year earlier, while year-to-date net income increased by $9.9 million to $41.6 million.

The company's operational costs reflected a significant rise, with costs of services (excluding depreciation and amortization) increasing by 14.1% to $131.5 million for the quarter, driven primarily by higher employee compensation and client reimbursable expenses. Selling, general, and administrative expenses also rose by 7.7% to $33.7 million. As a result, the income from operations decreased to $17.2 million from $18.4 million in the prior year quarter, indicating a shift in profitability margins despite higher revenues.

CRA International has made strategic moves to enhance its market position, including a focus on expanding its consulting services. The company reported a decrease in consultant headcount to 968 from 978 year-over-year, while utilization rates improved slightly to 77%. The geographic distribution of revenues showed that international markets contributed approximately 21% of total revenues, up from 19% in the previous year, indicating a successful expansion strategy. The company also reported a significant increase in unbilled services, which rose to $91.2 million, reflecting ongoing project engagements.

In terms of financial management, CRA International has been active in share repurchases, having repurchased 21,532 shares during the quarter at an average price of $185.74. The company also announced a quarterly cash dividend of $0.57 per share, payable in December 2025, demonstrating its commitment to returning value to shareholders. As of September 27, 2025, CRA had $22.5 million in cash and cash equivalents and $95 million in borrowings under its revolving credit facility, indicating a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, CRA International anticipates continued revenue growth driven by its consulting services and strategic investments. The company expects to leverage its existing cash resources and credit facilities to meet future capital and liquidity needs, including potential acquisitions and talent acquisition efforts. However, management remains cautious about external market conditions and their potential impact on future performance, emphasizing the importance of adaptability in its operational strategies.