CRA Lifts Fiscal 2026 Revenue Guidance After Growth Reaccelerates
Second-quarter revenue reached $210.8 million, up 12.8% from a year earlier, and the firm now sees constant-currency sales of $805 million to $820 million.
Charles River Associates (CRAI), a worldwide provider of economic, financial and management consulting, reported second-quarter revenue of $210.8 million, up 12.8% from a year earlier, a faster pace than the 10.5% increase to $201.0 million in the first quarter.
The consulting firm said the acceleration produced its highest second-quarter profits on record, as measured by net income, earnings per diluted share and EBITDA. President and Chief Executive Officer Paul Maleh attributed the quarter to continued momentum and demand for the firm’s services.
Net income rose 11.4% to $13.5 million, or 6.4% of revenue, after a 38.2% year-over-year decline to $11.1 million, or 5.5% of revenue, in the first quarter. Diluted earnings were $2.10 a share. Non-GAAP net income was $13.9 million, or 6.6% of revenue, or $2.16 a share.
Non-GAAP EBITDA increased 15.3% to $26.8 million, or 12.7% of revenue, reversing a 6.5% year-over-year decline to $23.2 million, or 11.5% of revenue, in the first quarter. Operating income was $23.5 million, or 11.2% of revenue.
Maleh said eight practices grew year over year. Six—Energy, Finance, Forensic Services, Intellectual Property, Life Sciences, and Risk, Investigations & Analytics—posted double-digit revenue growth, up from four double-digit practices in the first quarter. Antitrust & Competition Economics posted another quarterly revenue high. Legal & Regulatory offerings grew 10.1%. Management Consulting services increased 25.5%, after 8.3% growth in the first quarter.
International operations grew 32.9% year over year, faster than the 20.3% increase in the first quarter. North American operations increased 8.7%.
Utilization was 77%. Quarter-end consultant headcount was 968, up 3.3% from a year earlier. Client reimbursables were $20.1 million, or 9.5% of revenue.
Selling, general and administrative expenses were $35.3 million, or 16.7% of revenue. Excluding commissions to non-employee experts, SG&A was 15.5% of revenue. Forgivable loan amortization, including performance award amortization, was $14.9 million, or 7.0% of revenue. Net interest expense was $3.0 million, or 1.4% of revenue.
Cash and cash equivalents were $21.4 million at July 4, 2026. Billed and unbilled receivables were $271.7 million. Total days sales outstanding were 113 days, consisting of 68 days of billed and 45 days of unbilled.
The company returned $31.4 million of capital to shareholders in the quarter, including $3.6 million of dividends and $27.8 million for share repurchases of about 193,000 shares at an average of $144 a share.
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, a 12.2% margin. Maleh said those figures represented the highest first-half performance in the company’s history.
The firm raised full-year fiscal 2026 constant-currency revenue guidance to $805 million to $820 million from a prior range of $785 million to $805 million. Non-GAAP EBITDA margin guidance of 12.0% to 13.0% was reaffirmed. The constant-currency adjustment is expected to decrease reported annual revenue by about $2.5 million and annual EBITDA by less than $250,000. Non-cash forgivable loan amortization is expected to increase in fiscal 2026 by about $15 million. Fiscal 2026 returns to a typical 52-week year after a 53-week fiscal 2025.
On August 6, 2026, CRA announced a five-year credit facility of up to $400 million, consisting of a $75 million term loan and a $325 million revolving credit facility, and a quarterly cash dividend of $0.57 a share, payable September 14, 2026.