CRA International (CRAI) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 marked the eighth consecutive year of record annual revenue, reaching $751.6 million, with broad-based growth across service lines and geographies.

• Celebrated 60th anniversary and over 27 years as a public company in 2025.

• Legal & Regulatory Consulting (~80% of revenue) and Management Consulting (~20%) both contributed to growth, with legal/regulatory up 10.3% and management consulting up 6.4% year-over-year.

• Q4 revenue increased 11.6% year-over-year to $197.0 million, the highest quarterly revenue in company history, driven by strong sales pipeline and project origination.

• Serves a diverse client base, including 88 of the Fortune 100 and 98 of the top 100 law firms over the past two years.

Financial highlights

• Fiscal 2025 revenue rose 9.3% to $751.6 million, with non-GAAP EBITDA of $97 million (12.9% margin) and adjusted net cash flows from operations of $108.4 million, converting 112% of non-GAAP EBITDA.

• Full-year GAAP net income was $54.8 million (7.3% of revenue); non-GAAP net income was $55.3 million (7.4% of revenue).

• EPS (non-GAAP, diluted) was $8.23 in 2025, with 8% growth year-over-year and 146% growth over 2021–2025.

• Ended Q4 with $18.2 million in cash and $162.2 million in available credit, totaling $180.4 million in liquidity.

• Record-breaking revenue achieved for eight consecutive fiscal years.

Outlook and guidance

• Fiscal 2026 revenue expected between $785 million and $805 million, with non-GAAP EBITDA margin of 12.0%-13.0% on a constant currency basis.

• Currency effects projected to reduce reported revenue by $5 million and EBITDA by less than $1 million.

• Non-cash forgivable loan amortization expense to increase by over 30% in 2026 due to prior talent investments.

• Effective tax rate for 2026 projected at 31%-32% due to legislative changes.

• Capital expenditures for 2026 expected in the $4 million-$5 million range.