v3.26.1
Revenues and Allowances
 3 Months Ended
Apr. 04, 2026
Revenue from Contract with Customer [Abstract]  
Revenues and Allowances Revenues and Allowances
The contracts CRA enters into and operates under specify whether the projects are billed on a time-and-materials or a fixed-price basis. Time-and-materials contracts are typically used for litigation, regulatory, and financial consulting projects while fixed-price contracts are principally used for management consulting projects. In general, project costs are classified in costs of services and are based on the direct salary of CRA’s employee consultants on the engagement, plus all direct expenses incurred to complete the project, including any amounts billed to CRA by its non-employee experts.
Disaggregation of Revenue
The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands):
Fiscal Quarter Ended
Type of ContractApril 4,
2026		March 29,
2025
Consulting services revenues:
Fixed-price$35,820 $30,329 
Time-and-materials165,155 151,522 
Total$200,975 $181,851 
Revenues have been attributed to locations based on the location of the legal entity generating the revenues.
Fiscal Quarter Ended
Geographic BreakdownApril 4,
2026		March 29,
2025
Consulting services revenues:
United States$160,013 $149,714 
United Kingdom28,025 23,124 
Other12,937 9,013 
Total$200,975 $181,851 
Reserves for Variable Consideration and Credit Risk
Revenues from CRA's consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. Variable consideration reserves are based on specific price concessions and those expected to be extended to CRA customers estimated by CRA's historical realization rates. Reserves for variable consideration are recorded as a component of the allowances for accounts receivable and unbilled services on the condensed consolidated balance sheet. Adjustments to the reserves for variable consideration are included in revenues on the condensed consolidated statement of operations.
CRA also maintains allowances for accounts receivable and unbilled services for estimated losses resulting from clients’ failure to make required payments. Under ASC Topic 326, Financial Instruments—Credit Losses, CRA estimates allowances based on historical charge-off rates, adjusted for days sales outstanding and expected changes to clients’ financial conditions during the anticipated collection period. Bad debt expense, net of recoveries of previously written off allowances, is recorded as a component of selling, general and administrative expenses on the condensed consolidated statement of operations.
The following table presents CRA's bad debt expense, net of recoveries of previously written-off allowances (in thousands):
Fiscal Quarter Ended
April 4,
2026		March 29,
2025
Bad debt expense (recovery), net$(107)$433 
Reimbursable Expenses
Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including those relating to travel, out-of-pocket expenses, outside consultants and other third-party vendor expenses. CRA recovers substantially all these costs. The following expenses are subject to reimbursement (in thousands):
Fiscal Quarter Ended
April 4,
2026		March 29,
2025
Reimbursable expenses$19,057 $16,506 
Contract Balances from Contracts with Customers
The timing of revenue recognition, billings, and cash collections results in accounts receivables, unbilled services, and contract liabilities in the condensed consolidated balance sheet. Revenues recognized for services performed, but not yet billed to clients, are recorded as unbilled services. The following table presents the open and closing balances of CRA's accounts receivable, net and unbilled services, net (in thousands):
April 4,
2026		January 3,
2026		December 28,
2024
Accounts receivable, net$141,024 $183,264 $162,293 
Unbilled services, net$92,238 $65,598 $57,255 
CRA defines contract assets as assets for which it has recorded revenue because it determines that it is probable that it will earn a performance-based or contingent fee, but is not yet entitled to receive a fee because certain events, such as completion of the measurement period or client approval, must occur. The contract assets balance was immaterial as of April 4, 2026, January 3, 2026, and December 28, 2024.
When consideration is received, or such consideration is unconditionally due from a customer prior to transferring consulting services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after performance obligations have been satisfied and all revenue recognition criteria have been met. Contract liabilities are included in deferred revenue and other liabilities in the condensed consolidated balance sheet. The following table presents the closing balances of CRA's contract liabilities (in thousands):
April 4,
2026		January 3,
2026		December 28,
2024
Contract liabilities$6,048 $9,008 $7,340 
CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands):
Fiscal Quarter Ended
April 4,
2026		March 29,
2025
Amounts included in contract liabilities at the beginning of the period$6,586 $6,290 
Performance obligations satisfied in previous periods$3,375 $2,325