Q2 Fiscal 2026
Filed Aug 6, 2026Q2 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.