CRA International Reports 9% Revenue Growth to $186.9 Million for Quarter Ended June 28, 2025

CRA International, Inc. reported a notable increase in financial performance for the fiscal quarter ended June 28, 2025, with revenues reaching $186.9 million, a 9.0% rise from $171.4 million in the same quarter of the previous year. Year-to-date revenues also saw a significant increase, totaling $368.7 million compared to $343.2 million for the prior year-to-date period, marking a 7.4% growth. The company's net income for the quarter was $12.1 million, up from $6.5 million a year earlier, resulting in a diluted earnings per share of $1.79, compared to $0.94 in the prior year.

The increase in revenues was attributed to higher utilization rates, which improved to 76% from 74% year-over-year, despite a decrease in consultant headcount from 968 to 937. The company noted that revenues from fixed-price projects decreased slightly, representing 16% of net revenues in the current quarter compared to 17% in the previous year. Costs of services, excluding depreciation and amortization, increased by 2.6% to $128.5 million, primarily due to higher employee compensation and client reimbursable expenses, although the percentage of costs relative to revenues decreased to 68.8% from 73.1%.

In terms of operational developments, CRA International's selling, general, and administrative expenses rose by 9.7% to $35.1 million, driven by increased legal and professional service fees, commissions, and other operational costs. The effective tax rate for the quarter was 29.2%, down from 32.0% in the previous year, reflecting changes in state tax laws and a less significant true-up adjustment. The company also reported a comprehensive income of $15.9 million for the quarter, compared to $6.2 million in the prior year.

On the balance sheet, total assets increased to $606.8 million from $571.4 million at the end of the previous fiscal year, with cash and cash equivalents at $19.4 million. The company has a revolving credit facility of $250 million, with $120 million drawn as of June 28, 2025. CRA International's management expressed confidence in its liquidity position, stating that current cash, cash equivalents, and available credit will be sufficient to meet operational needs for at least the next 12 months.

Looking ahead, CRA International anticipates continued growth driven by its consulting services, with a focus on maintaining operational efficiency and managing costs. The company plans to leverage its existing resources and credit facilities to support potential acquisitions and share repurchase programs, while also committing to regular dividend payments to shareholders.