CRA INTERNATIONAL, INC. (CRAI): Results of Operations and Financial Condition
CRA INTERNATIONAL, INC. (CRAI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contacts: Eric Nierenberg Nicholas Manganaro Charles River Associates Sharon Merrill Advisors investor@crai.com crai@investorrelations.com 617-425-3020 617-542-5300 CHARLES RIVER ASSOCIATES (CRA) REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2026 Record Revenue
How this was made
The 30-second read
Why it matters
Traders can update models using the reported revenue, EPS, utilization, margin, and balance-sheet liquidity/credit usage, and position ahead of the conference call where management may add qualitative color (not included in the excerpt).
Market read
This is a primary earnings datapoint release with multiple measurable drivers (utilization, DSO, cash, revolver borrowings) that can affect near-term valuation and revisions.
What to watch
Working-capital dynamics matter: billed and unbilled receivables rose to $271.7M and operating cash flow was negative ($4.4M used), which can temper the earnings read-through even with higher reported profits.
Q2 fiscal 2026 revenue was $210.8 million, with GAAP operating income of $23.5 million and GAAP diluted EPS of $2.10.
Revenue, operating income, GAAP net income, non-GAAP EBITDA, utilization and operating margin were higher than the stated Q2 fiscal 2025 comparisons, while operating cash flow was negative and revolving-credit borrowings increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $210.8 million | – | – |
| Client reimbursablesGAAP | $20.1 million, or 9.5% of revenue | – | – |
| SG&A expensesGAAP | $35.3 million, or 16.7% of revenue | – | – |
| Commissions to non-employee expertsGAAP | approximately 1.3% of revenue | – | – |
| SG&A expenses excluding commissionsother | 15.5% of revenue | – | – |
| Depreciation and amortization expensesGAAP | $3.3 million, or 1.6% of revenue | – | – |
| Forgivable loan amortization, including performance award amortizationGAAP | $14.9 million, or 7.0% of revenue | – | – |
| Share-based compensation expenseGAAP | approximately $2.4 million, or 1.1% of revenue | – | – |
| Operating incomeGAAP | $23.5 million, or 11.2% of revenue | – | – |
| Operating incomenon-GAAP | $23.5 million, or 11.2% of revenue | – | – |
| Net interest expenseGAAP | $3.0 million, or 1.4% of revenue | – | – |
| Net foreign currency lossesGAAP | $0.5 million, or 0.2% of revenue | – | – |
| Income before provision for income taxesGAAP | $20,120, or 9.5% of revenue | – | – |
| Income tax provisionGAAP | $6,612 | – | – |
| Effective tax rateGAAP | 32.9% | – | – |
| Non-GAAP income before provision for income taxesnon-GAAP | $20,587, or 9.8% of revenue | – | – |
| Non-GAAP provision for income taxesnon-GAAP | $6,719 | – | – |
| Non-GAAP effective tax ratenon-GAAP | 32.6% | – | – |
| Net incomeGAAP | $13.5 million, or 6.4% of revenue, or $2.10 per diluted share | – | – |
| Net incomenon-GAAP | $13.9 million, or 6.6% of revenue, or $2.16 per diluted share | – | – |
| Non-GAAP EBITDAnon-GAAP | $26.8 million, or 12.7% of revenue | – | – |
| Utilizationother | 77% | – | – |
| Consultant headcountother | 968 | – | – |
| Adjusted net cash flows from operationsnon-GAAP | $13,800 | – | – |
Capital returns
- CRA repurchased approximately 193,000 shares of common stock during Q2 of fiscal 2026 for $27.8 million.
- During the fiscal quarter ended June 28, 2025, CRA repurchased approximately 231,000 shares of common stock for $43.2 million.
- A quarterly cash dividend of $0.57 per common share, for total dividends and dividend equivalents of $3.6 million, was paid in Q2 of fiscal 2026.
- A quarterly cash dividend of $0.49 per common share, for total dividends and dividend equivalents of $3.4 million, was paid in Q2 of fiscal 2025.
What drove it
- Revenue was $210.8 million, compared with $186.9 million for Q2 of fiscal 2025.
- Company-wide utilization was 77%, compared with 76% for Q2 of fiscal 2025.
- Consultant headcount was 968, consisting of 161 officers, 581 other senior staff and 226 junior staff.
- SG&A expenses excluding commissions were 15.5% of revenue, compared with 16.3% in Q2 of fiscal 2025.
- Non-GAAP EBITDA was $26.8 million, or 12.7% of revenue, compared with $23.3 million, or 12.4% of revenue, for Q2 of fiscal 2025.
Concerns
- Forgivable loan amortization, including performance award amortization, was $14.9 million, or 7.0% of revenue, compared with $10.2 million, or 5.5% of revenue, for Q2 of fiscal 2025.
- Net interest expense was $3.0 million, compared with $1.8 million for Q2 of fiscal 2025.
- GAAP effective tax rate was 32.9%, compared with 29.2% for Q2 of fiscal 2025.
- Net cash used in operating activities was $4.4 million.
- Billed and unbilled receivables were $271.7 million and DSO was 113 days at July 4, 2026.
- Revolving credit facility borrowings were $219.0 million at July 4, 2026.
What to watch
- Utilization and consultant headcount, including the mix of 161 officers, 581 other senior staff and 226 junior staff.
- Forgivable loan advances, which were $19,607 in Q2 2026, and their effect on GAAP operating cash flow.
- Billed and unbilled receivables, DSO, revolving-credit borrowings and remaining borrowing capacity.
- Whether SG&A expenses excluding commissions remain below the Q2 fiscal 2025 level as a percentage of revenue.
Balance sheet and cash flow
- Cash and cash equivalents was $21.4 million at July 4, 2026, compared with $19.4 million at June 28, 2025.
- Billed and unbilled receivables at July 4, 2026 were $271.7 million, compared with $235.0 million at June 28, 2025.
- Current liabilities at July 4, 2026 were $415.2 million, compared with $317.3 million at June 28, 2025.
- Total Days Sales Outstanding for Q2 of fiscal 2026 was 113 days, consisting of 68 days of billed and 45 days of unbilled, compared with 110 days for Q2 of fiscal 2025, consisting of 73 days of billed and 37 days of unbilled.
- As of July 4, 2026, there were $219.0 million in borrowings outstanding under CRA's revolving credit facility, compared with $120.0 million at June 28, 2025.
- Revolving credit facility borrowing capacity was $77.3 million at July 4, 2026.
- Net cash used in operating activities for Q2 of fiscal 2026 was $4.4 million, compared with net cash provided by operating activities of $5.9 million for Q2 of fiscal 2025.
- Capital expenditures totaled $1.6 million for Q2 of fiscal 2026, compared with $1.2 million for Q2 of fiscal 2025.
- Net cash used in investing activities was $1,646 for Q2 2026, compared with $1,189 for Q2 2025.
- Net cash used in financing activities was $5,158 for Q2 2026, compared with $11,875 for Q2 2025.
Analysis
CRA reported Q2 fiscal 2026 revenue of $210.8 million, compared with $186.9 million in Q2 fiscal 2025. Utilization was 77%, compared with 76%, while consultant headcount was 968 versus 937. The quarter-end workforce included 161 officers, 581 other senior staff and 226 junior staff.
Profitability improved on the reported operating measures. GAAP and non-GAAP operating income were both $23.5 million, or 11.2% of revenue, compared with $19.7 million, or 10.6% of revenue. Non-GAAP EBITDA was $26.8 million, or 12.7% of revenue, compared with $23.3 million, or 12.4% of revenue. SG&A expenses excluding commissions were 15.5% of revenue, compared with 16.3%.
GAAP net income was $13.5 million, or $2.10 per diluted share, compared with $12.1 million, or $1.79 per diluted share. Non-GAAP net income was $13.9 million, or $2.16 per diluted share, compared with $12.7 million, or $1.88 per diluted share. Net interest expense rose to $3.0 million from $1.8 million, and the GAAP effective tax rate was 32.9%, compared with 29.2%.
Cash conversion and working-capital funding are the principal offsets in the disclosed results. Net cash used in operating activities was $4.4 million, while adjusted net cash flows from operations were $13,800. Forgivable loan amortization was $14.9 million, or 7.0% of revenue, and forgivable loan advances were $19,607. Billed and unbilled receivables reached $271.7 million, and DSO was 113 days.
CRA ended the quarter with $21.4 million of cash and cash equivalents, $219.0 million of revolving-credit-facility borrowings and $77.3 million of borrowing capacity. The company repurchased approximately 193,000 shares for $27.8 million and paid a quarterly cash dividend of $0.57 per common share, totaling $3.6 million. No forward guidance was included in the supplied filing text.
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior outlook for comparison
- Segment revenue disclosure
- Gross profit and gross margin
- Free cash flow
- Direct executive quotes in the supplied filing text
- Complete adjusted net cash flows from operations table, which is truncated in the supplied filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The SEC 8-K includes prepared CFO remarks for CRA International’s Q2 fiscal 2026 earnings announcement (quarter ended July 4, 2026).
Ticker impact
CRA International reported Q2 FY2026 results in an 8-K, including revenue of $210.8M and non-GAAP EPS of $2.16.
Moderate upside bias if investors view utilization and margin as improving, but magnitude depends on how these figures compare with Street expectations not provided here.
This is a primary earnings disclosure with multiple performance indicators (revenue growth, utilization 77%, operating margin 11.2%, DSO 113 days, cash $21.4M). However, the article does not include guidance or consensus comparisons, limiting conviction on the size of the reaction.
Market effects
Consulting and advisory services demand and margin trends can be read through utilization and operating margin, informing peers’ near-term earnings models.
No explicit regional breakdown is provided; impact is primarily company-specific.
No global macro or international regulatory catalyst is described beyond routine FX and tax items.
Counterpoint
Margin and earnings quality could be pressured if higher SG&A as a share of revenue or higher forgivable-loan amortization offsets revenue growth.
Key entities
- companyCRA International, Inc.
Subject of the 8-K, reporting Q2 FY2026 financial results and operating metrics.
- personEric Nierenberg
CFO whose prepared remarks are included as Exhibit 99.2.
