Exhibit 99.1
| | | | | | | | | | | |
| Contacts: | | | |
| Chad Holmes | | Nicholas Manganaro | |
| Charles River Associates | | Sharon Merrill Advisors | |
| investor@crai.com | | crai@investorrelations.com | |
| 312-377-2322 | | 617-542-5300 | |
CHARLES RIVER ASSOCIATES (CRA) REPORTS
FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2025
Broad-based Contributions Drive Record Quarterly Revenue
Company Increases Revenue Guidance and Raises Lower End of Profit Guidance for Full-Year Fiscal 2025
BOSTON, July 31, 2025 – 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 June 28, 2025.
“Continued momentum in the business and demand for our services drove CRA’s quarterly revenue to $186.9 million, representing 9.0% year-over-year growth and the highest quarterly revenue in the company’s history,” said Paul Maleh, CRA’s President and Chief Executive Officer. “Broad-based contributions supported the quarter’s strong performance, with seven practices growing year over year. Our Antitrust & Competition Economics, Energy, Intellectual Property, and Labor & Employment practices each posted double-digit revenue growth. Geographically, our North American and international operations contributed to the quarter’s revenue growth, increasing 9.4% and 7.0%, respectively.”
Highlights for Second Quarter Fiscal 2025
•Revenue grew 9.0% year over year to $186.9 million.
•Utilization was 76% and quarter-end headcount decreased 3.2% year over year.
•Net income increased 85.4% year over year to $12.1 million, or 6.5% of revenue, compared with $6.5 million, or 3.8% of revenue, in the second quarter of fiscal 2024; non-GAAP net income increased 0.2% year over year to $12.7 million, or 6.8% of revenue, compared with $12.7 million, or 7.4% of revenue, in the second quarter of fiscal 2024.
•Earnings per diluted share increased 90.4% year over year to $1.79 from $0.94 in the second quarter of fiscal 2024; non-GAAP earnings per diluted share increased 2.7% year over year to $1.88 from $1.83 in the second quarter of fiscal 2024.
•Non-GAAP EBITDA increased 4.4% to $23.3 million, or 12.4% of revenue, compared with $22.3 million, or 13.0% of revenue, in the second quarter of fiscal 2024.
•On a constant currency basis relative to the second quarter of fiscal 2024, revenue, GAAP net income, and earnings per diluted share would have been lower by $1.5 million, $0.1 million and $0.03 per diluted share, respectively. Non-GAAP net income, earnings per diluted share, and non-GAAP EBITDA would have been lower by $0.1 million, $0.02 per diluted share and $0.2 million, respectively.
•CRA returned $46.6 million of capital to its shareholders, consisting of $3.4 million of dividend payments and $43.2 million for share repurchases of approximately 231,000 shares.
Management Commentary and Financial Guidance
“Through the first two quarters of fiscal 2025, on a constant currency basis relative to fiscal 2024, CRA generated total revenue of $367.6 million, the highest first-half revenue in CRA’s history, and non-GAAP EBITDA of $47.7 million, achieving a margin of 13.0%,” continued Maleh. “Reflecting the strong start to the year, we are raising our revenue guidance and increasing the lower end of our profit guidance. For full-year fiscal 2025, on a constant currency basis relative to fiscal 2024, we expect revenue in the range of $730 million to $745 million and non-GAAP EBITDA margin in the range of 12.3% to 13.0%. This new guidance compares with a prior revenue range of $715 million to $735 million and a prior non-GAAP EBITDA margin range of 12.0% to 13.0%. As a reminder our fiscal year ends on January 3, 2026, resulting in a 14th week in the fourth quarter of fiscal 2025. While we are pleased with CRA’s performance through the first half of the year, we remain mindful that uncertain global macroeconomic, business, and political conditions can affect our business and our clients.”
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 release is provided in the financial tables at the end of this release.
Quarterly Dividend
On July 31, 2025, CRA announced a quarterly cash dividend of $0.49 per common share, payable on September 12, 2025 to shareholders of record as of August 26, 2025. 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 2025 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 interim CFO, Chad Holmes, 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 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 and non‑GAAP EBITDA. 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 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 June 28, 2025 relative to the fiscal year-to-date period ended June 29, 2024, revenue and non-GAAP EBITDA would have been lower by $1.1 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 release. EBITDA and the financial measures identified in this 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 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 expanded share repurchase program, and statements using the terms “outlook,” “expect,” or similar expressions, are “forward-looking” statements as defined in Section 21 of the Exchange Act. 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 2025 on a constant currency basis relative to fiscal 2024 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; 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.
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE FISCAL QUARTERS ENDED
JUNE 28, 2025 COMPARED TO JUNE 29, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended |
| June 28,
2025 | | As a % of
Revenue | | June 29,
2024 | | As a % of
Revenue | June 28,
2025 | | As a % of
Revenue | | June 29,
2024 | | As a % of
Revenue |
| Revenues | $ | 186,878 | | | 100.0 | % | | $ | 171,442 | | | 100.0 | % | $ | 368,729 | | | 100.0 | % | | $ | 343,230 | | | 100.0 | % |
| Costs of services (exclusive of depreciation and amortization) | 128,542 | | | 68.8 | % | | 125,327 | | | 73.1 | % | 248,896 | | | 67.5 | % | | 244,206 | | | 71.1 | % |
| Selling, general and administrative expenses | 35,079 | | | 18.8 | % | | 32,016 | | | 18.7 | % | 67,617 | | | 18.3 | % | | 62,514 | | | 18.2 | % |
| Depreciation and amortization | 3,530 | | | 1.9 | % | | 2,811 | | | 1.6 | % | 6,941 | | | 1.9 | % | | 5,603 | | | 1.6 | % |
| Income from operations | 19,727 | | | 10.6 | % | | 11,288 | | | 6.6 | % | 45,275 | | | 12.3 | % | | 30,907 | | | 9.0 | % |
| | | | | | | | | | | | | | |
| Interest expense, net | (1,796) | | | -1.0 | % | | (1,483) | | | -0.9 | % | (2,225) | | | -0.6 | % | | (1,948) | | | -0.6 | % |
| Foreign currency gains (losses), net | (815) | | | -0.4 | % | | (191) | | | -0.1 | % | (1,290) | | | -0.3 | % | | (333) | | | -0.1 | % |
| Income before provision for income taxes | 17,116 | | | 9.2 | % | | 9,614 | | | 5.6 | % | 41,760 | | | 11.3 | % | | 28,626 | | | 8.3 | % |
| Provision for income taxes | 4,994 | | | 2.7 | % | | 3,076 | | | 1.8 | % | 11,636 | | | 3.2 | % | | 8,397 | | | 2.4 | % |
| Net income | $ | 12,122 | | | 6.5 | % | | $ | 6,538 | | | 3.8 | % | $ | 30,124 | | | 8.2 | % | | $ | 20,229 | | | 5.9 | % |
| | | | | | | | | | | | | | |
| Net income per share: | | | | | | | | | | | | | | |
| Basic | $ | 1.81 | | | | | $ | 0.96 | | | | $ | 4.47 | | | | | $ | 2.93 | | | |
| Diluted | $ | 1.79 | | | | | $ | 0.94 | | | | $ | 4.42 | | | | | $ | 2.90 | | | |
| | | | | | | | | | | | | | |
| Weighted average number of shares outstanding: | | | | | | | | | | | | | | |
| Basic | 6,694 | | | | | 6,834 | | | | 6,734 | | | | | 6,880 | | | |
| Diluted | 6,753 | | | | | 6,911 | | | | 6,807 | | | | | 6,961 | | | |
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS ENDED
JUNE 28, 2025 COMPARED TO JUNE 29, 2024
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fiscal Quarter Ended | | Fiscal Year-to-Date Period Ended |
| June 28,
2025 | | As a % of
Revenue | | June 29,
2024 | | As a % of
Revenue | | June 28,
2025 | | As a % of
Revenue | | June 29,
2024 | | As a % of
Revenue |
| Revenues | $ | 186,878 | | | 100.0 | % | | $ | 171,442 | | | 100.0 | % | | $ | 368,729 | | | 100.0 | % | | $ | 343,230 | | | 100.0 | % |
| | | | | | | | | | | | | | | |
| Net income | $ | 12,122 | | | 6.5 | % | | $ | 6,538 | | | 3.8 | % | | $ | 30,124 | | | 8.2 | % | | $ | 20,229 | | | 5.9 | % |
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Restructuring and other (1)(2) | — | | | — | % | | 8,176 | | | 4.8 | % | | (4,170) | | | -1.1 | % | | 8,176 | | | 2.4 | % |
| | | | | | | | | | | | | | | |
| Foreign currency (gains) losses, net | 815 | | | 0.4 | % | | 190 | | | 0.1 | % | | 1,290 | | | 0.3 | % | | 332 | | | 0.1 | % |
| Tax effect on adjustments | (214) | | | -0.1 | % | | (2,205) | | | -1.3 | % | | 733 | | | 0.2 | % | | (2,239) | | | -0.7 | % |
| Non-GAAP net income | $ | 12,723 | | | 6.8 | % | | $ | 12,699 | | | 7.4 | % | | $ | 27,977 | | | 7.6 | % | | $ | 26,498 | | | 7.7 | % |
| | | | | | | | | | | | | | | |
| Non-GAAP net income per share: | | | | | | | | | | | | | | | |
| Basic | $ | 1.90 | | | | | $ | 1.85 | | | | | $ | 4.15 | | | | | $ | 3.84 | | | |
| Diluted | $ | 1.88 | | | | | $ | 1.83 | | | | | $ | 4.10 | | | | | $ | 3.80 | | | |
| | | | | | | | | | | | | | | |
| Weighted average number of shares outstanding: | | | | | | | | | | | | | | | |
| Basic | 6,694 | | | | | 6,834 | | | | | 6,734 | | | | | 6,880 | | | |
| Diluted | 6,753 | | | | | 6,911 | | | | | 6,807 | | | | | 6,961 | | | |
| | | | | | | | | | | | | | | |
(1) Fiscal year-to-date period ended June 28, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. |
(2) Fiscal quarter and fiscal year-to-date period ended June 29, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
CRA INTERNATIONAL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE FISCAL QUARTERS ENDED
JUNE 28, 2025 COMPARED TO JUNE 29, 2024
(IN THOUSANDS)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fiscal Quarter Ended | | Fiscal Year-to-Date Period Ended |
| June 28,
2025 | | As a % of
Revenue | | June 29,
2024 | | As a % of
Revenue | | June 28,
2025 | | As a % of
Revenue | | June 29,
2024 | | As a % of
Revenue |
| Revenues | $ | 186,878 | | | 100.0 | % | | $ | 171,442 | | | 100.0 | % | | $ | 368,729 | | | 100.0 | % | | $ | 343,230 | | | 100.0 | % |
| | | | | | | | | | | | | | | |
| Net income | $ | 12,122 | | | 6.5 | % | | $ | 6,538 | | | 3.8 | % | | $ | 30,124 | | | 8.2 | % | | $ | 20,229 | | | 5.9 | % |
| Adjustments needed to reconcile GAAP net income to non-GAAP net income: | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Restructuring and other (1)(2) | — | | | — | % | | 8,176 | | | 4.8 | % | | (4,170) | | | -1.1 | % | | 8,176 | | | 2.4 | % |
| | | | | | | | | | | | | | | |
| Foreign currency (gains) losses, net | 815 | | | 0.4 | % | | 190 | | | 0.1 | % | | 1,290 | | | 0.3 | % | | 332 | | | 0.1 | % |
| Tax effect on adjustments | (214) | | | -0.1 | % | | (2,205) | | | -1.3 | % | | 733 | | | 0.2 | % | | (2,239) | | | -0.7 | % |
| Non-GAAP net income | $ | 12,723 | | | 6.8 | % | | $ | 12,699 | | | 7.4 | % | | $ | 27,977 | | | 7.6 | % | | $ | 26,498 | | | 7.7 | % |
| Adjustments needed to reconcile non-GAAP net income to non-GAAP EBITDA: | | | | | | | | | | | | | | | |
| Interest expense, net | 1,796 | | | 1.0 | % | | 1,483 | | | 0.9 | % | | 2,225 | | | 0.6 | % | | 1,948 | | | 0.6 | % |
| Provision for income taxes | 5,208 | | | 2.8 | % | | 5,281 | | | 3.1 | % | | 10,903 | | | 3.0 | % | | 10,636 | | | 3.1 | % |
| Depreciation and amortization | 3,530 | | | 1.9 | % | | 2,811 | | | 1.6 | % | | 6,941 | | | 1.9 | % | | 5,603 | | | 1.6 | % |
| Non-GAAP EBITDA | $ | 23,257 | | | 12.4 | % | | $ | 22,274 | | | 13.0 | % | | $ | 48,046 | | | 13.0 | % | | $ | 44,685 | | | 13.0 | % |
| | | | | | | | | | | | | | | |
(1) Fiscal year-to-date period ended June 28, 2025 includes $1.2 million of restructuring charges, net of the reversal of $5.4 million of non-cash charges associated with a previously recorded performance award. |
(2) Fiscal quarter and fiscal year-to-date period ended June 29, 2024 includes cash severance of $2.5M and non-cash charges of $5.7M associated with portfolio optimization actions. |
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
| | | | | | | | | | | |
| June 28,
2025 | | December 28,
2024 |
| Assets | | | |
| Cash and cash equivalents | $ | 19,448 | | | $ | 26,711 | |
| Accounts receivable and unbilled services, net | 235,025 | | | 219,548 | |
| Other current assets | 38,635 | | | 23,104 | |
| Total current assets | 293,108 | | | 269,363 | |
| | | |
| Property and equipment, net | 41,338 | | | 45,205 | |
| Goodwill and intangible assets, net | 101,399 | | | 100,953 | |
| Right-of-use assets | 83,353 | | | 81,157 | |
| Other assets | 87,579 | | | 74,761 | |
| Total assets | $ | 606,777 | | | $ | 571,439 | |
| | | |
| Liabilities and Shareholders’ Equity | | | |
| Accounts payable | $ | 24,628 | | | $ | 28,155 | |
| Accrued expenses | 139,751 | | | 181,413 | |
| Current portion of lease liabilities | 18,718 | | | 18,696 | |
| Revolving line of credit | 120,000 | | | — | |
| Other current liabilities | 14,228 | | | 23,045 | |
| Total current liabilities | 317,325 | | | 251,309 | |
| Non-current portion of lease liabilities | 85,166 | | | 84,541 | |
| Other non-current liabilities | 7,286 | | | 23,516 | |
| Total liabilities | 409,777 | | | 359,366 | |
| | | |
| Total shareholders’ equity | 197,000 | | | 212,073 | |
| Total liabilities and shareholders’ equity | $ | 606,777 | | | $ | 571,439 | |
CRA INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| | | | | | | | | | | |
| Fiscal Year-to-Date Period Ended |
| June 28,
2025 | | June 29,
2024 |
| Operating activities: | | | |
| Net income | $ | 30,124 | | | $ | 20,229 | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | |
| Non-cash items, net | 17,709 | | | 15,769 | |
| Accounts receivable and unbilled services | (11,371) | | | (18,476) | |
| Working capital items, net | (110,604) | | | (78,795) | |
| Net cash used in operating activities | (74,142) | | | (61,273) | |
| | | |
| Investing activities: | | | |
| Purchases of property and equipment, net | (2,163) | | | (3,046) | |
| Consideration paid for acquisition, net | — | | | (1,500) | |
| Net cash used in investing activities | (2,163) | | | (4,546) | |
| | | |
| Financing activities: | | | |
| | | |
| Borrowings under revolving line of credit | 132,000 | | | 93,000 | |
| Repayments under revolving line of credit | (12,000) | | | (6,000) | |
| | | |
| Tax withholding payments reimbursed by shares | (2,809) | | | (1,977) | |
| | | |
| Cash dividends paid | (6,858) | | | (5,976) | |
| Repurchase of common stock | (43,150) | | | (33,348) | |
| Net cash provided by financing activities | 67,183 | | | 45,699 | |
| Effect of foreign exchange rates on cash and cash equivalents | 1,859 | | | (817) | |
| Net decrease in cash and cash equivalents | (7,263) | | | (20,937) | |
| Cash and cash equivalents at beginning of period | 26,711 | | | 45,586 | |
| Cash and cash equivalents at end of period | $ | 19,448 | | | $ | 24,649 | |
| | | |
| Noncash investing and financing activities: | | | |
| Increase (decrease) in accounts payable and accrued expenses for property and equipment | $ | (585) | | | $ | 553 | |
| | | |
| Excise tax on share repurchases | $ | (388) | | | $ | (300) | |
| Right-of-use assets obtained in exchange for lease obligations | $ | 7,808 | | | $ | 2,329 | |
| | | |
| | | |
| Supplemental cash flow information: | | | |
| Cash paid for taxes | $ | 14,854 | | | $ | 12,681 | |
| Cash paid for interest | $ | 1,670 | | | $ | 1,533 | |
| Cash paid for amounts included in operating lease liabilities | $ | 11,515 | | | $ | 11,163 | |