CRAI Jumps 20% in 3 Months as Demand Broadens Across Key Practices
Charles River Associates (CRAI) shares rose about 20% over three months. In Q2, revenue grew 12.8% to $210.8 million, with gains across most practices. Management raised fiscal 2026 constant-currency revenue guidance to $805-$820 million and kept a 12%-13% non-GAAP EBITDA margin outlook, while higher costs and working-capital pressure affect cash conversion.
How this was made
The 30-second read
Why it matters
Raised revenue guidance and broad practice growth improve the operating case, but higher talent-related costs and weaker cash conversion increase the risk that earnings quality lags revenue momentum.
Market read
A guidance increase plus broad-based practice growth is a near-term positive catalyst, but cash conversion and margin pressure are the key swing factors for traders.
What to watch
Receivables elevation and revolver borrowings are emphasized; traders may want to monitor whether lead-flow converts into cash faster than margins deteriorate.
Background
The article frames CRAI’s recent share performance alongside Q2 operating momentum, pipeline indicators, and an updated fiscal 2026 guidance range.
Ticker impact
CRA International raised fiscal 2026 constant-currency revenue guidance to $805-$820 million after Q2 revenue grew 12.8% to $210.8 million.
Bias modestly positive, with follow-through dependent on collections and margin stabilization.
The article provides specific Q2 growth, practice breadth, and guidance numbers, alongside concrete cost and cash-conversion headwinds (DSO 113 days, revolver borrowings, operating cash use).
Market effects
Signals continued demand breadth in advisory/consulting practices, but highlights cash-conversion sensitivity that can matter for peers’ margin quality.
No explicit regional demand or macro linkage beyond general consulting backdrop.
Limited; the disclosure is company-specific with no stated cross-border catalyst.
Counterpoint
The stock’s 20% run may already price in demand strength, while the working-capital and margin deterioration could cap upside if collections lag.
Key entities
- companyCRA International, Inc.
Subject of the article, reporting Q2 revenue growth, pipeline metrics, and raised fiscal 2026 guidance while flagging margin and working-capital pressures.
- companyHuron Consulting Group Inc.
Peer mentioned for context on revenue growth; no separate news disclosed in the article.
- companyFTI Consulting, Inc.
Peer mentioned for context on revenue growth; no separate news disclosed in the article.
