CRA INTERNATIONAL, INC. Q2 FY27 Results

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. 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. 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. 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. As CRA’s credit facility approached its final year before maturity, we looked to the capital markets to maintain financial flexibility and support CRA’s continuing long-term growth. We are pleased to welcome BMO and M&T Bank to CRA’s team of banking partners, which has long included Bank of America and Citizens Financial Group, as well as Eastern Bank and Beacon Bank & Trust. With the support of this expanded bank group, the credit facility will enable CRA to continue investing in the business for profitable growth in the years ahead.