CRAI

CRA International’s second quarter saw revenue and non-GAAP earnings per share both surpass Wall Street expectations, but the market responded with some caution. Management attributed the company’s performance to double-digit growth across several core practices, including Energy, Life Sciences, and Forensic Services, as well as strong contributions from Antitrust & Competition Economics. CEO Paul Maleh pointed out that both North American and international operations contributed to the top-line growth, stating that “eight practices grew year-over-year, representing 95% of the company’s total revenue for the second quarter.” Is now the time to buy CRAI? Find out in our full research report (it’s free). Revenue: $210.8 million vs analyst estimates of $198.9 million (12.8% year-on-year growth, 6% beat) Adjusted EPS: $2.16 vs analyst estimates of $2.15 (0.6% beat) Adjusted EBITDA: $26.82 million vs analyst estimates of $25.27 million (12.7% margin, 6.1% beat) Operating Margin: 11.2%, in line with the same quarter last year Market Capitalization: $1.06 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Nicholas (William Blair) asked about persistent growth in management consulting and sustainability of demand. CEO Paul Maleh responded that both Life Sciences and Energy are seeing historically high conversion rates and strong inbound opportunities. Andrew Nicholas (William Blair) inquired about the Department of Justice’s changes to merger reviews. Maleh answered that targeted reviews could increase the value of economic expertise, but no impact has been observed yet. Andrew Nicholas (William Blair) pressed for modeling details on the impact of the prior year’s extra week and the new credit facility. Maleh clarified that the extra week added 100-150 basis points to growth and that the expanded facility provides operational flexibility. Marc Riddick (Sidoti & Company) asked about visibility into future demand and catalysts supporting raised guidance. Maleh noted record levels of new project opportunities but acknowledged the challenge of forecasting from unprecedented performance peaks. Kevin Steinke (Barrington Research) sought detail on drivers of double-digit growth in Forensic Services, Intellectual Property, and Finance. Maleh cited AI-driven complexity in forensics and consistent performance in IP and Finance without specific micro-drivers. In the coming quarters, our team will monitor (1) whether Life Sciences and Energy practices can sustain their high double-digit growth rates, (2) the pace at which recently hired senior consultants become significant contributors, and (3) the impact of ongoing regulatory changes and global M&A activity on antitrust advisory demand. Execution on pipeline conversion and managing talent ramp will also be important markers of success. CRA currently trades at $168.51, down from $176.60 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:00 a.m. ET President and Chief Executive Officer - Paul Maleh Chief Financial Officer - Eric Nierenberg Chief Corporate Development Officer - Chad Holmes Operator: Good day, everyone, and welcome to Charles River Associates' Second Quarter 2026 Conference Call. Please note that today's call is being recorded. The company's earnings release and prepared CFO remarks are posted on the Investor Relations section of CRA's website at crai.com. With us today are CRA's President and Chief Executive Officer, Paul Maleh; Chief Financial Officer, Eric Nierenberg; and Chief Corporate Development Officer, Chad Holmes. At this time, I'd like to turn the call over to Dr. Nierenberg for opening remarks. Eric, please go ahead. Eric Nierenberg: Thank you, Rob, and good morning, everyone. Please note that the statements made during this conference call, including guidance on future revenue and non-GAAP EBITDA margin, and any other statements concerning the future business, operating results or financial condition of CRA, including those statements using the terms expect, outlook or similar terms are forward-looking statements as defined in Section 21 of the Exchange Act. Information contained in these forward-looking statements is based on management's current expectations and is inherently uncertain. Actual performance and results may differ materially from those expressed or implied in these statements due to many important factors, including the level of demand for our services as a result of changes in general and industry-specific economic conditions. Additional information regarding these factors is included in today's release and in CRA's periodic reports, including our most recently filed Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC. CRA undertakes no obligation to update these forward-looking statements after the date of this call to reflect new information or developments. Additionally, we will refer to some non-GAAP financial measures and certain measures presented on a constant currency basis on this call. Everyone is encouraged to refer to today's release and related CFO remarks for reconciliations of these non-GAAP financial measures to their GAAP comparable measures and descriptions of the calculation of EBITDA and measures presented on a constant currency basis. I will now turn it over to Paul for his report. Paul? Paul Maleh: Thanks, Eric, and good morning, everyone. Thank you for joining us today. Building on 8 consecutive years of record annual revenue and a best-ever first quarter to start fiscal 2026, we delivered revenue of $210.8 million in the second quarter. This represents year-over-year growth of 12.8% and the highest quarterly revenue in CRA's history. Broad-based contributions once again characterized CRA's financial performance, reflecting both the quality and the depth of the portfolio. Eight practices grew year-over-year, representing 95% of the company's total revenue for the second quarter. Six practices: Energy, Finance, Forensic Services, Intellectual Property, Life Sciences and Risk, Investigations & Analytics posted double-digit revenue growth, while the Antitrust & Competition Economics practice established a new high for quarterly revenue. Additionally, our North American and international operations contributed to the quarter's revenue growth, increasing 8.7% and 32.9%, respectively. This top line performance translated into the highest second quarter profits in the company's history as non-GAAP net income, earnings per diluted share and EBITDA grew by 9%, 14.9% and 15.3%, respectively. During the second quarter, we welcomed more than 60 new consultants as headcount increased 3.3% compared to the second quarter of 2025, while consultant utilization ticked up to 77% versus 76% in the second quarter of 2025. The increases in overall consultant headcount and utilization were supported by the continued replenishing of our sales pipeline. Average weekly project lead flow and new project originations remained strong, with each metric showing double-digit growth relative to the second quarter of 2025. Revenue in the second quarter from CRA's Legal & Regulatory services increased by 10.1%. This growth was supported in trends in the broader legal market as total case filings and total court judgments increased 11% and 5%, respectively, compared to the second quarter of 2025. Turning to the M&A market. Worldwide M&A activity totaled $2.85 trillion during the first half of 2026, an increase of 50% compared to the year-ago levels and making it the strongest opening period for dealmaking since such records began in 1980. The second quarter of 2026 totaled $1.6 trillion, an increase of 31% compared to the first quarter of this year, surpassing $1 trillion for the fourth consecutive quarter and making it the largest quarter of worldwide M&A activity on record. Against this backdrop, CRA's Antitrust & Competition Economics practice posted its sixth straight record quarter, capitalizing on ongoing merger-related activity and continued demand for antitrust services. During the quarter, CRA was retained by Fivetran, the data foundation for AI, to advise on its merger with dbt Labs, the creator of dbt or data build tool and the leader in standards for AI-ready structured data. The CRA team provided economic assistance to Fivetran on the competition and regulatory compliance aspects of the transaction in the United States. The parties announced the completion of their merger on June 1, 2026, which brings together 2 category-defining platforms to advance a new era of trusted open data infrastructure for AI at scale. Our Finance practice continued to be active in complex commercial disputes and investigations during the quarter. In bankruptcy matters, we were active in disputes involving liability management transactions. In one such matter, the Serta Simmons Bedding litigation had a court ruling on July 7, awarding more than $400 million in damages and prejudgment interest to CRA's clients. In its ruling, the court specifically relied on the testimony of CRA senior consultant, Marti Murray, calling her analysis more persuasive than the opposing expert. The implications of the Serta ruling have been discussed widely in the press, including multiple articles in The Wall Street Journal, Bloomberg Law, Law360 and elsewhere. In Q2, CRA's Forensic Services practice grew over 20% year-over-year and established a new high for quarterly revenue while responding to numerous types of crisis management events experienced by our clients. For example, when over 8,000 universities experienced an outage with Canvas software during a critical week of exams, our team was rapidly deployed to respond and review the information at risk to assist with getting the software back online. Elsewhere, CRA's Intellectual Property practice advised on multiple high-stakes litigation and valuation matters, covering a broad range of industry and legal forums. For example, CRA was engaged by a global smartphone manufacturer facing patent infringement claims in the Eastern District of Texas. The matter involved WiFi and cellular hand-off features on the smartphone in question. CRA's engagement team performed multiple analyses to rebut the plaintiff's damages claim at trial -- damages claim. At trial, the jury rejected the plaintiff's claim of more than $100 million and awarded just $3 million, consistent with CRA's expert opinion at trial. In another matter, a CRA expert testified in high-stakes international arbitration involving a patent dispute between 2 leading telecommunication firms. The arbitration panel awarded the royalty rate that CRA's expert opined to, saving the client millions of dollars. During the second quarter, the Risk, Investigations & Analytics practice worked on a number of large investigative advisory and damage-related expert assignments as revenue grew more than 20% year-over-year. For example, a CRA team investigated and will serve as forensic accounting experts in a civil litigation regarding a fraudulent misrepresentation claim in the private aviation sector. As part of the assignment, the team performed document review, investigative research and analyzed bank account records and financial documentation to trace the flow of funds and substantiate the existence of alleged payments and liabilities owed. The team also investigated the defendants' representation related to assets sold to plaintiffs. Turning to our Management Consulting services. Both the Energy and Life Sciences practice delivered revenue growth in excess of 20% year-over-year. CRA's Energy practice continued to achieve strong results across a diverse range of clients, including utilities, private equity investors, electric system operators and large energy consumers. During the second quarter, the practice advised the executive leadership team of one of the nation's largest utilities on the development of its Utility of the Future strategy, addressing the growth of distributed energy resources, rapidly increasing demand from data centers, and opportunities for new utility products and services. The practice was also selected by PJM, the electric system operator serving the mid-Atlantic and portions of the Midwest, for a multiyear engagement to develop enhanced data center load forecasts, as unprecedented demand growth creates new challenges for system planning and investment. In parallel, CRA's Energy practice continued to advise data center developers and operators on siting, power procurement and the development strategies across the United States, while helping other large energy consumers navigate increasingly complex and rapidly-evolving energy markets. In our Life Sciences practice, we continued to help our clients build their strategies across the life cycle at both the franchise and product level. For one large pharmaceutical multinational, we have been working with their R&D team to help find new opportunities in a broad disease category. CRA's efforts leveraged industry-specific AI tools to analyze markets and innovation dynamics, portfolio positions and recent licensing and acquisition activity to identify potential areas of focus. For another large pharmaceutical multinational, we are continuing to support their global launch strategy for a potential blockbuster oncology product. CRA's work focused on branded value propositions and message testing for health care professionals and patients. Overall, I'm grateful to all of my colleagues for their hard work during the second quarter in helping our clients address their most important challenges. To start fiscal 2026 -- the start of fiscal 2026 represents the best first half of revenue and non-GAAP EBITDA in CRA's history. In the first half of the year, on a constant currency basis relative to fiscal 2025, CRA generated total revenue of $408.8 million and non-GAAP EBITDA of $49.7 million, resulting in a margin of 12.2%. Given our strong first half results and healthy pipeline, we are increasing our annual revenue guidance and reaffirming our profit margin guidance. For full year 2026, on a constant currency basis relative to fiscal 2025, we expect revenue in the range of $805 million to $820 million, and non-GAAP EBITDA margin in the range of 12.0% to 13.0%. This new revenue guidance compares with the prior range of $785 million to $805 million. We expect that the constant currency adjustment will decrease CRA's reported annual revenue by approximately $2.5 million and CRA's reported annual EBITDA by less than $250,000 in fiscal 2026. This implies that the constant currency adjustment for the second half of fiscal 2026 will increase reported revenue by approximately $500,000 and reported EBITDA by $100,000. As previously reported, noncash forgivable loan amortization, which is reflected as an expense when presenting EBITDA metrics, is expected to increase in fiscal 2026 by approximately $15 million, reflecting investments in talent to drive profitable growth. Noncash forgivable loan amortization increased by more than $9 million in the first half of this year relative to the first half of fiscal 2025, implying an increase of slightly more than $5 million is expected during the second half of fiscal 2026 relative to the second half of fiscal 2025. Finally, as a reminder, fiscal 2026 returns to CRA's typical 52-week year, whereas fiscal 2025 contained an extra week in the fourth quarter and resulted in a 53-week year. We continue to be encouraged by the strong start to the year, supportive market trends and continued replenishing of our sales pipeline. However, we remain mindful that evolving geopolitical, global macroeconomic and business conditions can affect our business. With that, I'll turn the call over to Chad, and then Eric for a few additional comments. Chad? Chad Holmes: Thanks, Paul. Hello, everyone. I want to update you on our capital and capital deployment during the quarter. We concluded the quarter with $21.4 million of cash and $219 million of borrowings under our revolving credit facility, resulting in net debt of $197.6 million. The borrowings were used to manage working capital needs during the first 2 quarters, including the funding of annual bonus payments as we have done in prior years. In addition to the normal bonus cycle, the second quarter of 2026 saw net cash outlays of $18.2 million for talent investments and $1.6 million for traditional capital expenditures. During the second quarter, we returned $31.4 million of capital to our shareholders, consisting of $3.6 million of dividend payments and $27.8 million for repurchases of approximately 193,000 shares at an average price of $144 per share. Year-to-date, we have spent $49.3 million repurchasing a total of 309,000 shares at an average price of $160 per share. This reflects the long-standing confidence of the Board and management team in the cash-generating ability of the business and their belief that the company's fundamental value exceeds the prevailing stock price. We currently have $16.6 million available under our share repurchase program. We concluded the second quarter of fiscal 2026 with total liquidity of $98.7 million, consisting of $21 million (sic) [ $21.4 million ] of cash and cash equivalents and a further $77.3 million of available capacity on our line of credit in place at quarter's end. Earlier today, we announced an increase and extension to CRA's existing credit facility as it approached the final year before maturity. The expanded facility will run for 5 years with an aggregate principal amount of up to $400 million, consisting of a $75 million term loan and a $325 million revolving credit facility, which includes a seasonal flex that provides CRA with the option to reduce the facility by $75 million during periods when working capital demands are lower. The expanded facility replaces CRA's existing credit facility which was scheduled to mature in August of 2027, and reflects both CRA's growth since the prior facility was established in 2022 and management's bullish views on CRA's prospect in the years ahead. With that, I'll turn the call over to Eric for a few final comments. Eric? Eric Nierenberg: Thanks, Chad. As a reminder, more expansive commentary on our financial results is available on the Investor Relations section of our website under Prepared CFO remarks. Before we get to questions, let me provide a few additional metrics related to our performance in the second quarter of fiscal 2026. In terms of consultant headcount, we ended the quarter at 968, consisting of 161 officers, 581 other senior staff and 226 junior staff. This represents a 3.3% year-over-year increase from the 937 consultant headcount reported at the end of Q2 fiscal 2025. Non-GAAP selling, general and administrative expenses, excluding the 1.3% attributable to commissions to nonemployee experts, was 15.5% of revenue for the second quarter of fiscal 2026, compared with 16.3% a year ago. The effective tax rate for the second quarter of fiscal 2026 on a non-GAAP basis was 32.6%, compared with 29.0% on a non-GAAP basis for the second quarter of fiscal 2025. The increase is primarily due to an increase in nondeductible executive compensation, partially offset by a remeasurement of deferred tax assets related to changes in current year state apportionment. For the remainder of the year, we expect the effective tax rate to be in the range of 33% to 34%, resulting in a full year tax rate range of 32% to 33%. Turning to the balance sheet. DSO stood at 113 days at the end of the second quarter, compared with 100 days at the end of the first quarter of fiscal 2026. DSO in the second quarter consisted of 68 days of billed and 45 days of unbilled. That concludes our prepared remarks. We will now open the call for questions. Rob, please go ahead. Operator: [Operator Instructions] Our first question comes from Andrew Nicholas with William Blair. Andrew Nicholas: First question was just on the -- thanks, Paul. The management consulting strength in the quarter was really impressive. I think it was 25%, 26% growth. Can you unpack that a little bit more? What are the areas of that business that are presumably growing at really, really high rates? And maybe if you could speak to the sustainability, maybe not of that growth, but just of persistent demand into that business line in particular. Paul Maleh: Sure. So Life Sciences and the Energy practice both grew in excess of 20% year-over-year. I think they delivered similar type of year-over-year growth in Q1. So it has been persistent now for the last, let's say, 2 or 3 quarters for both. The other thing I could add in terms of expected persistence is that they're both enjoying a nice inbound of new opportunities and converting those new opportunities at historically high conversion rates there. So the near to medium term looks quite positive for both of those practices. Within Life Sciences, they're enjoying both pricing and market access work and also work on their litigation-related matters. So really nice distribution even across that practice. And in the Energy practice, the utility industry right now in the United States is experiencing change like it has never seen before. So we're getting a large degree of inbounds, as I mentioned, from the utilities, from private investors, from tech companies on that. And that doesn't seem to be dissipating or declining by any means for it. So quite happy with what we put in the bank for the first half, and we remain bullish in the second half for those 2 practices. Andrew Nicholas: Perfect. That's helpful. And then on the antitrust business, I think the DOJ recently announced changes with the goal of, I think, accelerating some of the merger reviews, reducing information requests. Just wondering how you're thinking about those changes and the potential impact on your business and whether or not you've seen any impact to date from those changes. Paul Maleh: So I will start with the last question. To date, we haven't seen any kind of impact either positive or negative, I would say, at this stage. My understanding is that the change is intended to make merger reviews more targeted and less burdensome on it. It's not to eliminate antitrust scrutiny. So with that said, if the reviews become more focused, it could actually increase the value of getting the economics right early on in the proceedings. Andrew Nicholas: And then if I could just kind of squeeze in a couple of modeling items. I guess, 2-parter, one on the extra week. How should we think about the potential headwind there? I know it's obviously at the end of the year, so I'm not sure whether or not to assume normal utilization there or if it's a little bit of a lighter week that got added last quarter. And then on the increased revolver, if you could just kind of speak to interest expense and your broader plans for leveraging that revolver through year-end. Paul Maleh: Sure. So the updated revenue guidance, if you look at the midpoint of the range, really implies a pretty consistent quarterly revenue for CRA through 2026. I raised the extra week in Q4 of 2025 just in case people want to do their modeling in terms of year-over-year growth rates. The extra week in 2025 was unusually heavy for holiday time. So I would say on a growth rate basis, it probably had about 100 to 150 basis point impact, and not just the straight annual value -- average annual value of an extra week on that. And then I think you were asking me about the new credit facility. Andrew Nicholas: Interest expense -- yes. Paul Maleh: Sure. We're really excited to get this done, right? It's been 4 years. We're entering into the fifth year of the term that we signed back in 2022. We are more than 40% larger as an enterprise during that time. And if I do say so, we are experiencing a period of accelerated growth. So the Board, management, we wanted to make sure to maintain maximum flexibility to help us fund the intra-year operations of the firm with it. And the term component of that was just really one that assisted us and our banking partners in providing that maximum flexibility. But the $75 million is pretty minimal in the grand scheme of our working capital needs. Operator: Our next question comes from Marc Riddick with Sidoti & Company. Marc Riddick: So I wanted to start with the, certainly, broad-based strength that you're seeing in a lot of areas. I was wondering if you could talk a little bit about how you're viewing the visibility. Certainly, there is a comfort level as far as in raising the guide. I guess maybe relative to what you've seen historically, Paul, can you talk a little bit about the level of visibility that you have currently and comfort levels of some those catalysts and drivers? Paul Maleh: So I'm pretty bullish as with respect to CRA and with respect to where the portfolio sits and what they've been delivering on that. If I were to say what is giving me any pause, is that every quarter, I am trying to forecast off of a level that we've never achieved before. Never achieved on the financial results that we're reporting, right, 8 consecutive years, continue to have "This quarter is a record." "That quarter is a record." So we are forecasting off peaks. Now the good news is I'm also experiencing peak levels of new project opportunities and new high levels of new projects being converted to revenue-generating assignments there. So I feel good as to where things are stacking up, but I can't say we have had experience at these levels. Thus is the cost of being successful, I guess. Marc Riddick: And that actually kind of leads me to sort of the next part of this, I guess, is, yes, we're seeing the strength of utilization of 77%, and I know normally, historically, I know you've had some commentary as -- if you are approaching 80% or so. So I was maybe wondering if you could spend some time sort of discussing that and comfort levels as to utilization levels and ranges that you would be comfortable with, and maybe sort of how that might play into hiring trends, whether that's on a senior level or accelerating college students or the like. Paul Maleh: Sure. A lot there. Let me try to see if I could address it. Marc Riddick: Sorry, I kept going there for a bit. Paul Maleh: No worries. In 2024 and 2025, we did not see any net expansion really of our headcount. What we were doing during those years is moving capacity from one part of the organization that maybe wasn't delivering at revenue levels that we would have expected, to areas that are growing and in need of more resources. So the revenue-generating capacity, the firm increased, but not necessarily the headcount. We made a lot of progress in that portfolio optimization where, to the point in 2026 we're back to adding net heads to the portfolio. We're up 3.3% in Q2. And if attrition stays consistent with what we've been observing, I think we'll be in that mid-single-digit expansion of heads by year-end. But more to come on that front. With respect to going forward, medium term, I've always said that headcount has to move -- or revenue moves consistently with headcount expansion. I think CRA in the medium term wants to be growing heads mid-single digits on it. With respect to the utilization, I believe that even at headcount growth in the mid-single digits, we should be in the mid to upper 70s on the utilization front. You're going to always get some variability on the utilization front, particularly, say, during quarters 2, quarters 3. Why is that? Because we are having both some of our junior resources heading back to school and also welcoming a lot of new university hires. So that transitional friction sometimes puts downward pressure on the utilization in those particular quarters. But on average for the year, our feeling of mid to upper 70s utilization holds true. Marc Riddick: Great. And then, I guess maybe last one for me, I was wondering if you could talk a little bit about strength internationally and some of the drivers there, and if there are some things under the hood that maybe we don't get to discuss as much about. But that international has been pretty good for a bit now, and so I was wondering if you could talk a little bit about that strength there. Paul Maleh: It's been more than pretty good. It's been pretty amazing, quite frankly. When I see the numbers, I turn to my colleagues and I say, is this right? Because a couple of things to talk about the strength. One, it's Life Sciences and it's our Antitrust & Competition Economics practice both killing it in our international operations. The second thing I will highlight is it's all organic, right? There's been no group hires, there's been no acquisitions. This is my colleagues doing a phenomenal job to develop the people internal in their pyramid, to raise them to revenue-generating levels and expanding their market share. I can't tell you at what level, but I'm pretty sure European consulting operations aren't growing in the 30% to 40% range. So we're pretty pleased. And all the credit goes to my colleagues, both in the Life Sciences and the competition practice in Europe. Operator: Our next question comes from Kevin Steinke with Barrington Research. Kevin Steinke: I wanted to start off by asking about some of your other practices that maybe we haven't touched on as much today. But besides the Antitrust & Competition Economics and Life Sciences, which are 2 of your largest practices, you also noted double-digit growth in Forensic Services, which is among your top 3 largest practices. I think that continues the trend that you also experienced in the first quarter. So maybe can you touch on the drivers of growth there? Paul Maleh: Sure. A couple of quarters ago, we talked about the impact of AI, and I'm regularly asked about how AI is affecting our business. And we used a few words that I think best captures what's going on at CRA, in that AI is a productivity enhancer and a demand amplifier. Being a demand amplifier doesn't mean that this is all revenue that we have created because we use AI tools. Sometimes it's the complexity that AI is introducing into our markets. For example, in forensics, AI makes CRA more efficient, makes corporate America more efficient. It also makes the hackers a lot better at causing havoc at companies across the globe. So it's hard to say that AI hasn't had this perverse impact on demand in the cyber incident response work for the forensic practice. So they're seeing a surge there. They're seeing many of these hackers quite sophisticated in their use of these tools, and it does not seem to be waning right now. Kevin Steinke: Great. You also mentioned Intellectual Property and Finance as growing double-digit in the quarter? I mean, I guess any drivers you might highlight in terms of the demand picture there right now in those practices? Paul Maleh: I can't really highlight. We have talked about in the Intellectual Property space the whole concept of property rights and protection of those rights. That's going to continue to be a high-priority item for businesses around the globe, and we're seeing just that happen. I can't point to any particular micro-driver there, or Finance. They're just doing a good job getting in the marketplace and getting their share or better of the cases out there. I think this is Finance's second quarter in a row of posting double-digit revenue growth. So the consistency and the persistence that my colleagues are demonstrating really should be commended. Kevin Steinke: Okay. Great. In terms of adding senior talent, just if you could provide an update on maybe what your success has been on that front thus far this year in terms of bringing on senior talent with existing books of business and how that might be contributing to your outlook for this year. And then just what the pipeline looks like as well. Paul Maleh: Yes. When talking about new senior talent, I have to start with the nearly 30 new vice presidents that we welcomed into CRA during 2025. We're thrilled with our new colleagues. And we're pretty excited that, to date, through 2 quarters of 2026, they're ahead of expectations with respect to their ramp and revenue contribution. So we're really happy with that. And there's no reason that ramp should not continue in the quarters ahead. So we're thrilled with that contribution. We were able to add some senior level resources during Q1 and Q2. With respect to the guidance, usually, in-year hires are expected to contribute minimally to that current year, because we know it takes a little time for the ramp of those individuals and then to enjoy their full contribution. So I don't build in contributions from inorganic additions typically when I'm in that year. Kevin Steinke: Right. That makes sense. Okay. Maybe as you mentioned the 30 new vice presidents brought in, in 2025, assuming a fair number of those had existing books of business already, what's the outlook for them once they get onto the CRA platform in terms of are they able to increase their revenue generation as part of your firm relative to what they were able to do before? It seems like in the past, that's been kind of a key part of the organic growth story. Paul Maleh: Absolutely has been a key part of the organic growth. It's not -- when we talk about organic growth, it's not just the same-store sales expansion within the business. It's also making sure we provide a more fruitful platform for our new senior colleagues to integrate into CRA. And we're pretty proud of the track record that once these senior colleagues get inside the CRA platform, they generate at levels higher than they experienced in prior professional institutions. So that's the goal, right? You try to have a nice, balanced contribution between the company and the individual. And I think my practice colleagues have done a really good job at that, irrespective of whether it's in legal, regulatory and management consulting. Typically, the things that sometimes slow ramp is many of these senior colleagues have restricted covenants, whether they are straight out noncompetes or non-solicitation of clients. So they have to burn through many of those covenants before they get to historical levels of ramp. So it's not as much the integration at times, but more as to the restrictions that typically run about 12 months post joining CRA. Operator: We have reached the end of the question-and-answer session. I'd now like to turn the call back over to Paul Maleh for closing comments. Paul Maleh: I would like to thank you for joining us today. We appreciate your interest in CRA and the support you have provided the company over the years. We will be participating in investor meetings and conferences over the coming months and look forward to updating you on our progress on our third quarter call. This concludes today's call. Thank you, everyone. Operator: This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation. Before you buy stock in Cra International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cra International wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. 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CRA International (CRAI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. CRA International (CRAI) has been active on several fronts recently. The company reported second quarter and first half 2026 earnings, refinanced and expanded its credit facility, affirmed its dividend, and continued buying back shares. See our latest analysis for CRA International. CRA International’s share price has pulled back in the short term, with a 1 day share price return of down 4.05% and a 7 day return of down 6.06%. However, the 90 day share price return of 20.38% and 5 year total shareholder return of 95.51% point to momentum that has been building over a longer period. If CRA International’s recent moves have you thinking about where else growth and capital returns might emerge, this could be a good moment to broaden your search and check out 19 top founder-led companies CRA International’s share price has cooled after a strong multi quarter run, even as earnings, buybacks and a larger credit facility reshape the story. Has most of the upside already played out, or does the valuation still leave room ahead? CRA International’s most followed narrative pegs fair value at $252.50 a share, well above the recent $169.31 close. This frames the current debate around how much future growth and capital returns are already reflected in the price. Read the complete narrative. Want to see what sits behind that confidence in CRA International? The narrative leans on steady revenue expansion, firmer margins and a richer future earnings multiple. Curious which assumptions really carry the valuation. Result: Fair Value of $252.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the CRA International narrative could be tested if M&A and antitrust activity slows for an extended period or if heavy buybacks and net debt start to constrain flexibility. Find out about the key risks to this CRA International narrative. If the mix of optimism and caution around CRA International leaves you on the fence, this is a good time to review the details yourself and move quickly to form your own view by weighing its 2 key rewards and 3 important warning signs If CRA International has sharpened your focus on quality, do not stop here. The right watchlist starts with a few clear, well defined ideas. Use the Simply Wall St screener to quickly spot fresh opportunities that fit your style before they move beyond reach. Target potential mispricings by reviewing 52 high quality undervalued stocks that combine strong fundamentals with prices that may not fully reflect their qualities. Strengthen your income stream by scanning 8 dividend fortresses that aim to pair higher yields with resilient business profiles. Prioritise sleep at night holdings by assessing 83 resilient stocks with low risk scores built around more measured risk scores and sturdier financial profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CRAI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Record Revenue Drives Company’s Best-Ever Second Quarter Results Company Increases Revenue Guidance and Reaffirms Profit Margin Guidance for Full-Year Fiscal 2026 BOSTON, August 06, 2026--(BUSINESS WIRE)--Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing economic, financial and management consulting services, today announced financial results for the fiscal second quarter ended July 4, 2026. "Continued momentum in the business and demand for our services drove CRA’s quarterly revenue to $210.8 million, representing 12.8% year-over-year growth," said Paul Maleh, CRA’s President and Chief Executive Officer. "This record top-line performance translated into the highest second quarter profits in the company’s history as measured by net income, earnings per diluted share and EBITDA." "Broad-based contributions fueled the quarter’s strong performance, with eight practices growing year over year. Six practices—Energy, Finance, Forensic Services, Intellectual Property, Life Sciences, and Risk, Investigations & Analytics—posted double-digit revenue growth, while the Antitrust & Competition Economics practice posted a new high for quarterly revenue. This strong practice performance reflected contributions across our portfolio, with Legal & Regulatory offerings growing 10.1% year over year and Management Consulting services increasing 25.5%. We also expanded across our geographies, with North American operations increasing revenue by 8.7% and international operations growing 32.9% year over year." Highlights for Second Quarter Fiscal 2026 Revenue grew 12.8% year over year to $210.8 million. Utilization was 77% and quarter-end headcount increased 3.3% year over year. Net income increased 11.4% year over year to $13.5 million, or 6.4% of revenue, compared with $12.1 million, or 6.5% of revenue, in the second quarter of fiscal 2025; non-GAAP net income increased 9.0% year over year to $13.9 million, or 6.6% of revenue, compared with $12.7 million, or 6.8% of revenue, in the second quarter of fiscal 2025. Earnings per diluted share increased 17.3% year over year to $2.10 from $1.79 in the second quarter of fiscal 2025; non-GAAP earnings per diluted share increased 14.9% year over year to $2.16 from $1.88 in the second quarter of fiscal 2025. Non-GAAP EBITDA increased 15.3% to $26.8 million, or 12.7% of revenue, compared with $23.3 million, or 12.4% of revenue, in the second quarter of fiscal 2025. On a constant currency basis relative to the second quarter of fiscal 2025, revenue would have been lower by $0.4 million, while GAAP net income, and earnings per diluted share would have remained unchanged. Non-GAAP net income would have been lower by $0.1 million, while non-GAAP earnings per diluted share and non-GAAP EBITDA would have remained unchanged. CRA returned $31.4 million of capital to its shareholders, consisting of $3.6 million of dividend payments and $27.8 million for share repurchases of approximately 193,000 shares at an average price of $144 per share. Management Commentary and Financial Guidance "Through the first two quarters of fiscal 2026, on a constant currency basis relative to fiscal 2025, CRA generated total revenue of $408.8 million and non-GAAP EBITDA of $49.7 million, achieving a margin of 12.2%. These revenue and profit dollars represent the highest first-half performance in CRA’s history," said Maleh. "Reflecting the strong start to the year, we are raising our revenue guidance and reaffirming our profit margin guidance. For full-year fiscal 2026, on a constant currency basis relative to fiscal 2025, we expect revenue in the range of $805 million to $820 million and non-GAAP EBITDA margin in the range of 12.0% to 13.0%. This new revenue guidance compares with a prior range of $785 million to $805 million." "We expect that the constant currency adjustment will decrease CRA’s reported annual revenue by approximately $2.5 million and will decrease CRA’s reported annual EBITDA by less than $250,000 for fiscal 2026. As previously reported, non-cash forgivable loan amortization, which is reflected as an expense when presenting EBITDA metrics, is expected to increase in fiscal 2026 by approximately $15 million, reflecting investments in talent to drive profitable growth. Finally, as a reminder, fiscal 2026 returns to CRA’s typical 52-week year, whereas fiscal 2025 contained an extra week in the fourth quarter and resulted in a 53-week year. We are encouraged by the strong start to the year, and by supportive market trends, and a continued replenishing of our sales pipeline. Of course, we remain mindful that evolving geopolitical, global macroeconomic, and business conditions can affect our business." CRA does not provide reconciliations of its annual non-GAAP EBITDA margin guidance to GAAP net income margin because the Company is unable to estimate with reasonable certainty and without unreasonable effort: (i) unusual gains or charges, foreign currency exchange rates and the resulting effect of these items on CRA’s taxes and (ii) the impact of equity awards on CRA’s taxes. These items are uncertain, depend on various factors, and may have a material effect on CRA’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this press release is provided in the financial tables at the end of this press release. Credit Facility On August 6, 2026, CRA announced the successful refinancing to increase and extend its existing credit facility as it approached the final year before maturity. The expanded facility will run for five years with an aggregate principal amount of up to $400 million, consisting of a $75 million term loan and a $325 million revolving credit facility. The revolving credit facility includes a seasonal flex that provides CRA with the option to reduce the facility by $75 million during periods when working capital demands are typically lower. Quarterly Dividend On August 6, 2026, CRA announced a quarterly cash dividend of $0.57 per common share, payable on September 14, 2026 to shareholders of record as of August 25, 2026. CRA expects to continue paying quarterly dividends, the declaration, timing and amounts of which remain subject to the discretion of CRA’s Board of Directors. Conference Call Information and Prepared CFO Remarks CRA will host a conference call today at 10:00 a.m. ET to discuss its second-quarter 2026 financial results. To listen to the live call, please visit the "Investor Relations" section of CRA’s website at http://www.crai.com, or dial (877) 709-8155 or (201) 689-8881. An archived version of the webcast will be available on CRA’s website for one year. In combination with this press release, CRA has posted prepared remarks by its CFO, Eric Nierenberg, under "Quarterly Earnings" in the "Investor Relations" section on CRA’s website at http://www.crai.com. These remarks are offered each quarter to provide the investment community with additional background on CRA’s financial results prior to the start of the conference call. About Charles River Associates (CRA) Charles River Associates® is a leading global consulting firm specializing in economic, financial, and management consulting services. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout the world. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at www.crai.com. Follow us on LinkedIn, Instagram, and Facebook. NON-GAAP FINANCIAL MEASURES In this press release, 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 are not calculated in accordance with GAAP: non‑GAAP net income, non‑GAAP earnings per diluted share, non‑GAAP EBITDA and non-GAAP EBITDA margin. CRA believes that the non-GAAP financial measures described in this press release are important to management and investors because these measures supplement the understanding of CRA’s ongoing operating results and financial condition. In addition, these non-GAAP measures are used by CRA in its budgeting process, and the non-GAAP adjustments 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 our 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 and non-GAAP earnings per diluted share 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. This press release also presents 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. On a constant currency basis for the fiscal year-to-date period ended July 4, 2026 relative to the fiscal year-to-date period ended June 28, 2025, revenue and non-GAAP EBITDA would have been lower by $3.0 million and $0.3 million, respectively. 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 this press release. The financial measures identified in this press release as "non-GAAP" are reconciled to their GAAP comparable measures in the financial tables appended to the end of this press release. 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. SAFE HARBOR STATEMENT Statements in this press release concerning our future business, operating results and financial condition, including those concerning guidance on future revenue and non-GAAP EBITDA, non-GAAP EBITDA margin, the impact of exchange rate fluctuations on our financial results, our expectations regarding continued growth, our expectations regarding the payment of any future quarterly dividends and the level and extent of any purchases under our share repurchase program, and statements using the terms "outlook," "expect," or similar expressions, are "forward-looking" statements as defined in Section 21 of the Securities Exchange Act of 1934, as amended. These statements are based upon our current expectations and various underlying assumptions. Although we believe there is a reasonable basis for these statements and assumptions, and these statements are expressed in good faith, these statements are subject to a number of additional factors and uncertainties. Our actual revenue and non-GAAP EBITDA margin in fiscal 2026 on a constant currency basis relative to fiscal 2025, as well as our actual non-cash forgivable loan amortization, could differ materially from the guidance presented herein, and our actual performance and results may differ materially from the performance and results contained in or implied by the forward-looking statements made herein, due to many important factors. These factors include, but are not limited to, the possibility that the demand for our services may decline as a result of changes in general and industry-specific economic conditions; the timing of engagements for our services; the effects of competitive services and pricing; the development and use of artificial intelligence; our ability to attract and retain key employees or non-employee experts; the inability to integrate and utilize existing consultants and personnel; the decline or reduction in project work or activity; global economic conditions including less stable political and economic environments; foreign currency exchange rate fluctuations; financing risks, including the availability of, and costs associated with, sources of liquidity; unanticipated expenses and liabilities; risks inherent in international operations; changes in tax law or accounting standards, rules, and regulations; our ability to collect on forgivable loans should any become due; and professional and other legal liability or settlements. Additional risks and uncertainties are discussed in our periodic filings with the Securities and Exchange Commission under the heading "Risk Factors." The inclusion of such forward-looking information should not be regarded as our representation that the future events, plans, or expectations contemplated will be achieved. Except as may be required by law, we undertake no obligation to update any forward-looking statements after the date of this press release, and we do not intend to do so. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806978330/en/ Contacts Eric NierenbergCharles River [email protected] 617-425-3020 Nicholas ManganaroSharon Merrill [email protected] 617-542-5300

Interested in Charles River Associates? Here are five stocks we like better. Record Q2 performance: Revenue rose 12.8% year over year to $210.8 million, while non-GAAP EPS increased 14.9% and EBITDA grew 15.3%. Growth was broad-based, with eight practices representing 95% of revenue posting year-over-year gains. Strong demand and international expansion: International revenue surged 32.9% organically, while project lead flow and originations each grew at double-digit rates. Utilization improved to 77%, and CRA plans to increase headcount at a mid-single-digit pace by year-end. Raised outlook and expanded financing: CRA increased its fiscal 2026 constant-currency revenue forecast to $805 million-$820 million while maintaining its 12%-13% EBITDA margin target. The company also expanded its credit facility to $400 million and returned $31.4 million to shareholders during the quarter. Charles River Associates (NASDAQ:CRAI) reported record second-quarter revenue and profit metrics, citing broad-based growth across its consulting portfolio, higher utilization and continued strength in its pipeline of new projects. Revenue for the second quarter of fiscal 2026 was $210.8 million, up 12.8% from a year earlier and the highest quarterly revenue in the company’s history, President and Chief Executive Officer Paul Maleh said on the company’s earnings call. Eight practices, representing 95% of quarterly revenue, grew year over year. Energy, Finance, Forensic Services, Intellectual Property, Life Sciences, and Risk, Investigations & Analytics posted double-digit revenue growth, while Antitrust & Competition Economics recorded a quarterly revenue high. → 3 Drone Stocks That Should Soar After the Summer Slump North American revenue increased 8.7%, while international revenue rose 32.9%. Maleh said the international performance was driven primarily by Life Sciences and Antitrust & Competition Economics and was entirely organic rather than the result of acquisitions or group hires. The company said non-GAAP net income increased 9% year over year, while non-GAAP diluted earnings per share rose 14.9% and EBITDA increased 15.3%, resulting in what Maleh described as CRA’s highest second-quarter profits on record. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Consultant headcount reached 968 at quarter-end, up 3.3% from 937 a year earlier. The total included 161 officers, 581 other senior staff and 226 junior staff. Utilization increased to 77% from 76% in the prior-year quarter. Maleh said average weekly project lead flow and new project originations each posted double-digit growth compared with the second quarter of 2025. He said the company had spent 2024 and 2025 reallocating capacity toward higher-growth parts of the portfolio and has returned to net hiring in 2026. CRA expects to expand headcount at a mid-single-digit rate by year-end if attrition remains consistent, he said. → Jersey Mike's Serves Fresh Gains After IPO Stumble Non-GAAP selling, general and administrative expense, excluding commissions paid to nonemployee experts, was 15.5% of revenue, down from 16.3% a year earlier. The company’s non-GAAP effective tax rate was 32.6%, compared with 29.0% in the prior-year quarter. CFO Eric Nierenberg said CRA expects a 33% to 34% tax rate for the remainder of 2026 and a full-year range of 32% to 33%. Legal & Regulatory services revenue rose 10.1%. Maleh pointed to broader legal-market trends, including an 11% increase in total case filings and a 5% increase in total court judgments from the second quarter of 2025. The Antitrust & Competition Economics practice delivered its sixth consecutive record quarter amid strong merger activity. Maleh said worldwide M&A activity reached $2.85 trillion in the first half of 2026, up 50% year over year, with the second quarter’s $1.6 trillion total representing a quarterly record. CRA advised Fivetran on competition and regulatory compliance matters in the U.S. related to its merger with dbt Labs, which closed June 1. Forensic Services revenue grew more than 20% and established a quarterly record, according to Maleh. He said demand included crisis-management work, including a response to an outage affecting more than 8,000 universities using Canvas software. During the question-and-answer session, Maleh said the practice is also seeing a surge in cyber incident-response work as hackers increasingly use artificial intelligence tools. Risk, Investigations & Analytics also grew more than 20%, while Energy and Life Sciences each grew more than 20%. The Energy practice was selected by PJM for a multiyear engagement to develop enhanced data-center load forecasts and continued advising utilities, data-center developers and major energy users. Maleh said utilities are facing substantial change tied to distributed energy resources and rising data-center power demand. In Life Sciences, CRA supported pharmaceutical clients on research and development opportunities, global launch strategy, value propositions and message testing. Maleh said the practice’s demand has been sustained across pricing and market-access work as well as litigation-related matters. For the first half of fiscal 2026, CRA generated constant-currency revenue of $408.8 million and non-GAAP EBITDA of $49.7 million, for a 12.2% margin. Based on its first-half results and pipeline, the company raised its full-year constant-currency revenue outlook to $805 million to $820 million from a prior range of $785 million to $805 million. It reaffirmed its full-year non-GAAP EBITDA margin guidance of 12.0% to 13.0%. The company said currency effects are expected to reduce reported annual revenue by roughly $2.5 million and annual EBITDA by less than $250,000. CRA also noted that fiscal 2026 is a 52-week year, compared with a 53-week fiscal 2025. Maleh said the extra week in the fourth quarter of 2025 had an estimated 100- to 150-basis-point impact on year-over-year growth comparisons. Chief Corporate Development Officer Chad Holmes said CRA ended the quarter with $21.4 million in cash, $219 million of revolving-credit borrowings and net debt of $197.6 million. The company returned $31.4 million to shareholders during the quarter through $3.6 million in dividends and $27.8 million in repurchases of about 193,000 shares at an average price of $144 per share. CRA also announced an expanded five-year credit facility with aggregate borrowing capacity of up to $400 million, including a $75 million term loan and a $325 million revolving credit facility. Holmes said the arrangement replaces a facility scheduled to mature in August 2027 and provides added flexibility for working-capital needs and future growth. Charles River Associates (NASDAQ: CRAI) is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients' needs. The firm's service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Charles River Associates Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved the highest quarterly revenue in company history, driven by 12.8% year-over-year growth with 95% of the portfolio contributing to the expansion. Capitalized on record-breaking global M&A activity, which reached $1.6 trillion in Q2, fueling a sixth consecutive record quarter for the Antitrust & Competition Economics practice. Leveraged 'demand amplification' from AI complexity, particularly in Forensic Services where sophisticated cyber threats have increased the need for incident response and crisis management. Realized significant international growth of 32.9%, primarily through organic expansion in European Life Sciences and Antitrust practices without relying on acquisitions. Optimized the consultant portfolio by shifting capacity to high-growth areas, resulting in a return to net headcount growth of 3.3% and improved utilization of 77%. Benefited from a robust legal environment where total case filings and court judgments increased by 11% and 5% respectively, supporting a 10.1% rise in Legal & Regulatory services. Increased full-year 2026 revenue guidance to a range of $805 million to $820 million, reflecting a strong first-half performance and a healthy sales pipeline. Maintained non-GAAP EBITDA margin guidance of 12.0% to 13.0%, despite an expected $15 million increase in noncash forgivable loan amortization related to talent investments. Anticipates mid-single-digit headcount expansion by year-end, assuming attrition remains consistent with current observations. Expects utilization to remain in the mid-to-upper 70s range, though management noted potential 'transitional friction' in Q3 as new university hires are integrated. Assumes consistent quarterly revenue through the remainder of 2026, while noting that Q4 2026 will face a difficult year-over-year comparison due to the extra week in fiscal 2025. Expanded the credit facility to $400 million with a 5-year term to provide maximum flexibility for an enterprise that has grown over 40% since 2022. Returned $31.4 million to shareholders in Q2 through dividends and the repurchase of approximately 193,000 shares. Noted a rise in the non-GAAP effective tax rate to 32.6%, primarily driven by an increase in nondeductible executive compensation. Reported a DSO increase to 113 days from 100 days in the prior quarter, consisting of 68 days billed and 45 days unbilled. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the growth to unprecedented changes in the U.S. utility industry and high conversion rates for new project opportunities. The Energy practice is seeing high demand from utilities, private equity, and tech companies regarding data center load forecasts and 'Utility of the Future' strategies. Management has seen no material impact to date but suggested that more targeted, less burdensome reviews could increase the value of getting economic analysis right early in the process. The changes are viewed as a shift in focus rather than an elimination of antitrust scrutiny. The nearly 30 vice presidents hired in 2025 are currently performing ahead of revenue expectations. Management noted that while restrictive covenants typically limit contribution for the first 12 months, hires generally achieve higher productivity on the CRA platform than at previous firms.

BOSTON, August 06, 2026--(BUSINESS WIRE)--Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing economic, financial and management consulting services, today announced that its Board of Directors has declared a quarterly cash dividend of $0.57 per common share to be paid on September 14, 2026 to shareholders of record of CRA’s common stock as of the close of business on August 25, 2026. The Company expects to continue paying quarterly dividends, the declaration, timing and amounts of which remain subject to the discretion of CRA’s Board of Directors. About Charles River Associates (CRA) Charles River Associates® is a leading global consulting firm specializing in economic, financial and management consulting services. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout the world. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at www.crai.com. Follow us on LinkedIn, Instagram, and Facebook. SAFE HARBOR STATEMENT Statements in this press release concerning our expectations regarding the payment of future quarterly dividends are "forward-looking" statements as defined in Section 21 of the Securities Exchange Act of 1934, as amended. These statements are based upon our current expectations and various underlying assumptions. Although we believe there is a reasonable basis for these statements and assumptions, and these statements are expressed in good faith, these statements are subject to a number of additional factors and uncertainties. These factors include, but are not limited to, the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions; the timing of engagements for our services; the effects of competitive services and pricing; the development and use of artificial intelligence; our ability to attract and retain key employee or non-employee experts; the inability to integrate and utilize existing consultants and personnel; the decline or reduction in project work or activity; global economic conditions including less stable political and economic environments; foreign currency exchange rate fluctuations; unanticipated expenses and liabilities; risks inherent in international operations; changes in tax law or accounting standards, rules, and regulations; our ability to collect on forgivable loans should any become due; and professional and other legal liability or settlements. Additional risks and uncertainties are discussed in our periodic filings with the Securities and Exchange Commission under the heading "Risk Factors." The inclusion of such forward-looking information should not be regarded as our representation that the future events, plans, or expectations contemplated will be achieved. Except as may be required by law, we undertake no obligation to update any forward-looking statements after the date of this press release, and we do not intend to do so. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806213477/en/ Contacts Eric NierenbergCharles River [email protected] 617-425-3020 Nicholas ManganaroSharon Merrill [email protected] 617-542-5300

CRA International (CRAI) came out with quarterly earnings of $2.16 per share, beating the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $1.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.89%. A quarter ago, it was expected that this consulting firm would post earnings of $2.02 per share when it actually produced earnings of $1.99, delivering a surprise of -1.49%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. CRA, which belongs to the Zacks Consulting Services industry, posted revenues of $210.82 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.29%. This compares to year-ago revenues of $186.88 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CRA shares have lost about 12% since the beginning of the year versus the S&P 500's gain of 12.8%. While CRA has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CRA was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.16 on $197.87 million in revenues for the coming quarter and $8.52 on $800.44 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consulting Services is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Stantec (STN), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This engineering firm is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of +17.4%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. Stantec's revenues are expected to be $1.3 billion, up 13% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Charles River Associates (CRAI) : Free Stock Analysis Report Stantec Inc. (STN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Information Services Group (III) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.11%. A quarter ago, it was expected that this market advisory service company would post earnings of $0.08 per share when it actually produced earnings of $0.09, delivering a surprise of +12.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. ISG, which belongs to the Zacks Consulting Services industry, posted revenues of $65.49 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.36%. This compares to year-ago revenues of $61.56 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ISG shares have lost about 24.2% since the beginning of the year versus the S&P 500's gain of 13%. While ISG has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ISG was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $63.88 million in revenues for the coming quarter and $0.37 on $251.73 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consulting Services is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. CRA International (CRAI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This consulting firm is expected to post quarterly earnings of $2.12 per share in its upcoming report, which represents a year-over-year change of +12.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CRA International's revenues are expected to be $198.35 million, up 6.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Information Services Group, Inc. (III) : Free Stock Analysis Report Charles River Associates (CRAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hackett Group (HCKT) came out with quarterly earnings of $0.34 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this consulting company would post earnings of $0.35 per share when it actually produced earnings of $0.34, delivering a surprise of -2.86%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Hackett Group, which belongs to the Zacks Consulting Services industry, posted revenues of $68.34 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.81%. This compares to year-ago revenues of $77.63 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hackett Group shares have lost about 42.4% since the beginning of the year versus the S&P 500's gain of 11%. While Hackett Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hackett Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.40 on $72.3 million in revenues for the coming quarter and $1.50 on $281.47 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consulting Services is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, CRA International (CRAI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This consulting firm is expected to post quarterly earnings of $2.12 per share in its upcoming report, which represents a year-over-year change of +12.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CRA International's revenues are expected to be $198.35 million, up 6.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hackett Group, Inc. (HCKT) : Free Stock Analysis Report Charles River Associates (CRAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research