CRA International (CRAI) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 rose 10.8% year-over-year to $185.9 million, with year-to-date revenue reaching $554.6 million, marking record performance and broad-based growth across practices and geographies.

• Net income for Q3 2025 was $11.5 million, nearly unchanged year-over-year, while year-to-date net income rose 31% to $41.6 million; non-GAAP net income for Q3 was $13.7 million, up 12.7%.

• Seven of eleven practices grew year-over-year, with Antitrust, Energy, Finance, and Intellectual Property practices posting double-digit growth.

• North American revenue increased 6.8%, while international revenue surged 30.3% year-over-year, driven by antitrust and life sciences.

• Celebrated 60th anniversary and serves a diverse client base, including 85 of the Fortune 100 and 98 of the top 100 law firms.

Financial highlights

• Non-GAAP net income, EPS, and EBITDA increased 12.7%, 16.4%, and 14.6% year-over-year, respectively; non-GAAP EBITDA margin was 13.1%.

• Q3 2025 diluted EPS was $1.73, up from $1.67 in Q3 2024; non-GAAP EPS was $2.06.

• Utilization reached 77% in Q3 2025, up from 76% a year ago, with headcount down 1% year-over-year.

• Gross margin for Q3 2025 was 29.3%, down from 31.3% a year ago; operating margin was 9.3%.

• Non-GAAP SG&A expenses were 16.3% of revenue, compared to 16.2% a year ago.

Outlook and guidance

• FY2025 revenue guidance raised to $740–$748 million (previously $730–$745 million); non-GAAP EBITDA margin guidance increased to 12.6%–13.0%.

• Fiscal year ends January 3, 2026, with a 14th week in Q4 2025.

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