CRA International (CRAI) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $186.9 million in Q2 2025, up 9% year-over-year, with broad-based growth across seven practices and strong contributions from both North American (9.4%) and international (7.0%) operations.

• Net income for Q2 2025 rose to $12.1 million, up 85.4% year-over-year, with diluted EPS increasing to $1.79 from $0.94; non-GAAP net income was $12.7 million and non-GAAP EPS was $1.88.

• Utilization rate improved to 76%, while quarter-end consultant headcount decreased 3.2% year-over-year but remained flat after portfolio optimization.

• Management transitions included new CFO and Chief Strategy and Business Transformation Officer.

• Celebrated 60th anniversary and over 27 years as a public company, serving a diverse client base including 85 of the Fortune 100 and 98 of the top 100 law firms.

Financial highlights

• Q2 2025 revenue was $186.9 million (+9.0% YoY); YTD revenue reached $368.7 million (+7.4% YoY).

• Q2 2025 net income was $12.1 million; YTD net income was $30.1 million (+49% YoY).

• Non-GAAP EBITDA for YTD 2025 was $47.7 million (13% margin on constant currency basis); Q2 non-GAAP EBITDA was $23.3 million (12.4% margin).

• Returned $46.6 million to shareholders in Q2 via $3.4 million in dividends and $43.2 million in share repurchases.

• Gross margin improved as costs of services decreased as a percentage of revenue.

Outlook and guidance

• Raised full-year 2025 revenue guidance to $730–$745 million (from $715–$735 million) and non-GAAP EBITDA margin to 12.3%–13.0% (from 12.0%–13.0%).

• Management expects current cash, cash flow, and credit facility to be sufficient for at least the next 12 months.

• Plans to continue regular quarterly dividends and share repurchases, funded by operations and credit facility.

• Cautious optimism maintained due to strong pipeline, but mindful of macroeconomic and geopolitical uncertainties.

• Fiscal year 2025 will include a 14th week in the fourth quarter.