CRA International (CRAI) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $201 million for Q1 FY2026, up 10.5%–11% year-over-year, with broad-based growth across all practices and geographies.

• Double-digit revenue growth in Energy, Finance, Forensic Services, and Life Sciences; Antitrust & Competition Economics set a new quarterly high.

• Legal & Regulatory Consulting accounted for ~80% of revenue, Management Consulting for ~20%, with both segments benefiting from regulatory complexity and M&A activity.

• Consultant headcount increased 2.5% year-over-year to 971, with utilization improving to 77%.

• Served 88 of the Fortune 100 and 98 of the top 100 law firms in the past two years.

Financial highlights

• Q1 FY2026 revenue reached $201 million, up from $181.9 million year-over-year.

• Non-GAAP EBITDA was $23.2 million (11.5% of revenue), with non-cash amortization of forgivable loans at $13.8–$14 million (6.9%–7.0% of revenue).

• Net income declined to $11.1 million (5.5% of revenue), with diluted EPS at $1.69 (GAAP) and $1.99 (non-GAAP).

• Gross margin was 27.8%, down from 33.8% year-over-year; operating margin was 9.0%, down from 14.0%.

• Non-GAAP net income margin for Q1 FY2026 was 6.5%, compared to 8.4% in the prior year.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: revenue of $785–$805 million and non-GAAP EBITDA margin of 12.0%–13.0% on a constant currency basis.

• No inorganic revenue assumed in guidance; cost impact of talent acquisitions included in profit margin outlook.

• Management remains optimistic due to strong start and supportive market trends but notes potential impact from evolving geopolitical and macroeconomic conditions.

• Plans to return ~50% of adjusted net cash flows from operations to shareholders.