CRA International : An Overview of Charles River Associates - Q1 FY2026
CRAI
Published on 05/07/2026 at 10:22 am EDT
An Overview of Charles River Associates
Q1 FY2026
This presentation is subject to and should be read in conjunction with the disclaimers and other statements contained under the heading "Safe Harbor Disclaimer."
A Leading Global Consulting Firm
For over 60 years, Charles River Associates (CRA) has been a premier consulting firm. In 1965, our founders envisioned a company that would bring the developing expertise of academia, especially in the then-burgeoning area of quantitative methods in economics, to the business world. This vision continues to resonate strongly today as we apply cutting-edge quantitative tools and microeconomic analysis to our clients' most important challenges.
Legal & Regulatory Consulting "Cutting Edge Approaches
to High Stakes Cases" (~80% of Revenue)
Management Consulting Sector Specialized Boutique (~20% of Revenue)
Multinational Corporations
Law Firms Government Regulators
Leading Experts Client-Tailored Model Superior Analytics Industry Insight Senior-Led
More than 20 Offices Across 9 Countries
Revenue split ~80% North America and ~20% International
and Dedicated Colleagues
71% of senior staff have advanced degrees, with 39% of the advanced degrees being PhDs
CRA accepts less than 1% of campus applicants
Less than 5% voluntary turnover among top revenue generating employees over past 5 years
45% of senior staff have been at CRA more than 5 years, with 19% of senior staff exceeding 10 years
Our staff hail from over 70 countries across 6 continents
Over 40 languages spoken
Note: Figures as of year-end fiscal 2025.
Each of our practices is highly regarded, and our consultants are recognized for their creative and multidisciplinary approach to solving clients' complex problems in the
US and throughout the world
Antitrust & Competition
Energy
Finance
Financial Economics
Forensic Services
Intellectual Property
Labor & Employment
Life Sciences
Marakon
Risk, Investigations, & Analytics
with 88 of the Fortune 100
Corporate
In the Past Two Years, We Have Partnered with 98 of the Top 100 Law Firms
Law Firm
While Returning Capital to Shareholders
Fiscal 2026 Q1**
Revenue Growth
Headcount Growth
utilization of 77%
EPS
Growth*
Stock Repurchases
average price of
$185 per share
Cash Dividends
Fiscal 2025 9%
1%
utilization of 77%
8% $47M
average price of
$187 per share
$14M
Fiscal Years 2021-2025
utilization of 74%
average price of
$110 per share
*Presented on a non-GAAP basis. A reconciliation to the comparable GAAP financial measures appears at the end of this presentation.
**Growth rates are calculated on a year-over-year basis
We are committed to being the firm of choice for our clients as they address their most important litigation, regulatory, and strategic challenges, as well as for our employees as they seek a fulfilling and exciting place to work
Leading experts in their respective fields
Management team with strong track record of operating performance
History of strong cash flows and no long-term debt
Value-based decision makers with disciplined capital allocation strategy
CRA is positioning itself on the right side of this transition: high-skill, expertise-driven, judgment-intensive work that becomes more valuable in technologically complex environments.
AI Structurally Increases Economic Complexity
As AI adoption expands across industries, business decisions become more complex, regulatory scrutiny intensifies, and litigation risks grow.
Companies deploying AI face new competition questions, valuation challenges, intellectual property issues, and governance requirements that likely will increase demand for CRA's expert judgment, rigorous economic analysis, and credibility in adversarial environments.
AI Productivity Gains Expand Market Opportunity
AI reduces time spent on low-value manual tasks and allows our teams to focus on the highest-impact parts of an engagement-defining the right questions, applying economic theory, providing expert judgment, and defending conclusions.
AI does not replace expert reasoning, defensibility, or credibility in court and regulatory settings. CRA's concentration of advanced-degree professionals and PhDs is a strategic advantage.
AI Raises the Barriers to Entry in Expert Advisory
Commodity consulting and repetitive analytics are more exposed to automation. Elite, defensible, expertise-driven advisory work is not.
CRA's approach to AI adoption is disciplined and governance-focused. We are integrating AI through controlled pilots, strong quality-control processes, reproducibility standards, and strict data security safeguards.
We see AI as both a demand amplifier and a productivity enhancer, and believe it strengthens the position of firms like CRA with deep expertise, strong governance, and established credibility
Healthy EBITDA Margin Despite Inclusion of Non-Cash Amortization of Forgivable Loans
($ in millions)
2021
2022
2023
2024
2025
YTD
Q1 2026
Revenue
$566
$591
$624
$687
$752
$201
EBITDA*
$69
$71
$68
$90
$97
$23
% of Revenue
12.2%
12.0%
10.9%
13.2%
12.9%
11.5%
Non-Cash Amortization of Forgivable Loans**
$33
$35
$37
$36
$44
$14
% of Revenue
5.8%
5.9%
6.0%
5.3%
5.8%
7.0%
*Presented on a non-GAAP basis. A reconciliation to the comparable GAAP financial measures appears at the end of this presentation.
**2024 excludes $5.7 million associated with portfolio optimization actions; 2025 excludes both $1.1M in non-cash charges and the reversal of $5.4M of non-cash charges associated with a previously recorded performance award; and 2026 excludes $0.1 million associated with portfolio optimization actions.
from Operations
($ in millions)
5-Yr Avg.
2021-25
3-Yr Avg.
2023-25
2025
EBITDA*
$79
$85
$97
Adjusted Net Cash Flows from Operations*
$89
$94
$108
EBITDA Conversion Percentage
112%
111%
112%
*Presented on a non-GAAP basis. A reconciliation to the comparable GAAP financial measures appears at the end of this presentation.
Given the strength of our business,
all of our investments have been funded from operations
We always seek to deliver returns well above our cost of capital
Looking forward, we aim to return half of our adjusted net cash flows from operations to shareholders
Uses of Capital (FY2021-25)
Talent,
$229, 46%
Redistribution to Shareholders,
$239, 48%
Cap Ex,
$29, 6%
Note: Dollar figures in millions
We use capital to drive growth, both in support of organic initiatives and inorganic pursuits; over this period, revenue has increased by greater than 45%, or more than $240 million
Historically, our revenue growth has been balanced between organic and inorganic opportunities; our goal is to have a growth engine tilted toward organic initiatives and supplemented by inorganic pursuits
Our talent investments will be focused on service offerings within our existing lines of business and related adjacencies
Uses of Capital (FY2021-25)
Talent,
$229, 46%
Redistribution to Shareholders,
$239, 48%
Cap Ex,
$29, 6%
Note: Dollar figures in millions
Outlays associated with lease expirations and office expansions to accommodate growth accounted for
$8 million of total capital expenditures
Our investments in office buildouts have focused on efficient space planning, reducing our footprint per employee while at the same time offering an attractive destination for top talent
Occupancy of approximately 70% across our offices provides for future expansion without the need for significant capital outlays
Our non-real estate capital expenditures are typically modest, averaging less than $5 million per year
Uses of Capital (FY2021-25)
Talent,
$229, 46%
Redistribution to Shareholders,
$239, 48%
Cap Ex,
$29, 6%
Note: Dollar figures in millions
Redistributions to shareholders have consisted of
$184 million of share repurchases and $55 million of dividend payments
CRA has repurchased 1.7 million shares at an average cost of $110 per share during 2021-2025, reducing net shares outstanding by 15%
We initiated a quarterly dividend of $0.14 per share in Q4 of 2016, with subsequent increases in each year 2017-2025, resulting in a current quarterly dividend of $0.57 per share
During 2021-2025, stock repurchases and dividend payments have combined to deliver an average shareholder yield of 5.5% relative to our average market capitalization
Uses of Capital (FY2021-25)
Talent,
$229, 46%
Redistribution to Shareholders,
$239, 48%
Cap Ex,
$29, 6%
Note: Dollar figures in millions
Outstanding, Magnifying Per Share Value Gains
8.0
Period-end shares outstanding (millions)
7.5
7.0
6.5
7.4
7.1
6.9
6.8
6.5
6.4
6.0
2021 2022 2023 2024 2025 Q1 2026
For FY2026, we have provided the following annual financial guidance on a constant currency basis
Revenue range of
$785 - $805 million*
Non-GAAP EBITDA margin range of 12.0% - 13.0%*
Over the next several years and consistent with past performance, we intend to continue targeting the following metrics
Organically driven average annual revenue growth in the mid-single digits, supplemented by inorganic pursuits when available
Utilization in the mid- to upper-70s
Return approximately 50% of adjusted cash flows from operations to shareholders
*FY2026 guidance as of May 7, 2026. Guidance is presented on a constant currency basis relative to fiscal 2025. Constant currency measure are determined by recalculating the current fiscal period local currency financial measure using the specified corresponding prior fiscal period's foreign exchange rates.
Legal Spend Mergers &
Acquisitions
Regulatory
& Public Policy
Strategy & Operations Consulting
Despite Modest Growth in Legal Spending
$50
$45
Legal Spending per company (millions)
$40
$35
$30
$25
$19.8
$20
$15
$10
61.4%
58.8%
$15.0 $14.1 $13.3
56.8%
60.8%
$13.7 $14.1
61.2%
$21.9
$14.9 $15.7
62.9%
$25.3
$26.0
62.4%
$16.0
$16.3
$16.9
$32.6
65.9%
$16.7
100%
Percent of Legal Spending per company
75%
50%
25%
$27.5
63.2%
$28.9
63.9%
$30.9
64.9%
$20.1
$21.2
$21.6
$5
$0 0%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 P
Average Dollars to Outside Counsel Average Dollars to Internal Legal Departments Average Dollars to Outside Counsel as a percent of total
Source: BTI 24th Annual Survey of Top Legal Decision Makers, October 2025
Disclaimer
CRA International Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 14:21 UTC.