CRA International : An Overview of Charles River Associates Q1 2026

Published: 2026-05-07 10:28:19 ET CRAI

Published on 05/07/2026 at 10:28 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.

Two Lines of Business

Legal & Regulatory Consulting "Cutting Edge Approaches

to High Stakes Cases" (~80% of Revenue)

Management Consulting Sector Specialized Boutique (~20% of Revenue)

Client Base

Multinational Corporations

Law Firms Government Regulators

Sources of Distinctiveness

Leading Experts Client-Tailored Model Superior Analytics Industry Insight Senior-Led

Geographic Footprint

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%

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

$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

Our Business Has Performed Well Through Fluctuations in Global M&A Activity

$1,600

$1,400

Announced deal value (billions)

$1,200

$1,000

$800

$600

$400

$200

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Americas Europe Asia Pacific Japan Africa/ME

Source: LSEG, April 2026

Growing Complexity in Regulatory Markets Benefits Our Legal & Regulatory and Management Consulting Businesses

"So that we can draw a conclusion, updating the way we look at efficiencies matters. This is why we want to adopt an approach that clearly signals we welcome mergers that generate significant benefits for consumers and the EU economy. But we also need to make sure that mergers do not undermine long-term incentives of companies to keep investing and innovating, since those are relevant engines for the EU's competitiveness."

Teresa Ribera, Executive Vice President, European Commission

Remarks at the Conference Shaping the Future of EU Merger Control, 5 March 2026

"Regulatory compliance in an industry of this importance and complexity is never going to be easy. The Commission, however, can facilitate compliance with smarter rule formulation, implementation, and enforcement."

Hester M. Peirce, Commissioner, U.S. Securities and Exchange Commission

Remarks at the 2026 Investment Company Institute Investment Management Conference, 24 March 2026

Demand for Consulting Services Has Been Durable Across Market Cycles

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

$100

$200

$300

$337 $344

$381 $393 $401 $408

$371

$400

1.0% annual real growth

expected for 2027 - 2031

$412 $415 $420 $424

2.1% annual real growth

2022 - 2026

$500

Management Consulting Market Size

and Growth Forecast

$600

Key Trends in Management Consulting

Anticipated growth in business sentiment and aggregate private investment will boost demand for seasoned consultants

(billions)

Ease of entry allows consultants to meet and benefit from external shocks

Expert knowledge of industry advances is crucial for providing sound advice and overseeing the implementation of client processes and procedures

Diversifying client types across various markets can reduce revenue volatility and help companies weather economic disruptions

Source: Management Consulting in the US. IBISWorld, March 2026; figures reflect constant prices using the published year as the base year

The French Competition Authority issued a landmark decision on digital platforms against Doctolib for abusing its dominant position on the markets for online medical appointment booking services and remote medical consultation solutions and for acquiring its main competitor, MonDocteur. CRA supported the lead complainant Cegedim Santé, a health technology company, with analysis addressing relevant market definitions, Doctolib's dominant position, and the exclusionary effects of Doctolib's tying and exclusivity practices.

CRA consultants provided expert testimony and economic analysis in support of Hewlett Packard Enterprise's $14 billion acquisition of Juniper Networks. A global CRA team advised the merging parties in the clearing of the acquisition across 13 antitrust jurisdictions worldwide, including the US Department of Justice, the European Commission, and the United Kingdom's Competition and Markets Authority.

CRA was retained by defendants in a Delaware Chancery Court dispute concerning an alleged breach of contract and fraudulent representation related to the acquisition of a healthcare marketing company. The engagement involved reconciling invoices, contract milestones, and internal accounting records. It also involved researching the reliability and accuracy of due diligence performed prior to the transaction, including evaluating the appropriateness of the EBITDA multiple applied.

CRA's Forensics practice assisted a global consumer electronics company with an intrusion by a nation state actor. CRA reviewed hundreds of systems, software development systems, and software code to look for evidence of tampering. CRA then shared findings with the client, counsel and the FBI to help the government understand the scope of the motivations of this threat actor and assist the client in containing the incident.

CRA experts were retained in a matter involving multiple broadcast networks and a major satellite television provider. The litigation involved copyright infringement, fraud, and breach of contract issues. Extensive econometric analyses, including time series regressions and structural break tests, were conducted to support the quantitative analysis of damages. CRA's expert provided a detailed expert report and deposition testimony.

CRA's Labor & Employment experts advised and testified in a matter involving allegations of independent contractor misclassification in the trucking industry. CRA's team showed that the contractors made decisions consistent with the standard economic model of a profit-maximizing business. CRA also showed that many of the contractual obligations between plaintiffs and the defendant company aligned with arrangements economic theory predicts independent businesses enter to alleviate the effects of free-riding and spillovers.

A large multinational electric utility sought support in the strategic review and enhancement of its Cyber Security Incident Response Plan and Playbook. CRA's energy team conducted a comprehensive assessment of existing documentation, interviews with subject matter experts, and a gap analysis against regulatory obligations to develop an updated framework that strengthens readiness, ensures sustained regulatory adherence, and provides a robust foundation for managing cybersecurity incidents.

A genetics-based biopharmaceutical company sought support from CRA's Life Sciences experts as it faced new competition in a rare disease indication and prepared to launch in a much broader indication. We developed a strategy tree of alternatives, conducted research with U.S. payers, and worked with a cross-functional team of executives to explore a competitive simulation. These efforts have helped our client develop an evolving pricing and positioning strategy to support the blockbuster potential of their product.

Appendix

Supplemental Financial Disclosures

sOciates

drlCS River

33 Sociates

Reconciliation of Non-GAAP Financial Measures

Fiscal YTD

($ in millions, except per share data) Revenues

2020

$ 508.4

2021

$ 565.9

2022

$ 590.9

2023

$ 624.0

2024

$ 687.4

2025

$ 751.6

Q1 2026

$ 201.0

Q1 2025

$ 181.9

Income from operations

34.8

55.7

58.7

57.5

70.8

83.1

18.0

25.5

Operating margin (%)

6.8 %

9.8 %

9.9 %

9.2 %

10.3 %

11.1 %

9.0 %

14.0 %

Net income

$ 24.5

$ 41.7

$ 43.6

$ 38.5

$ 46.7

$ 54.8

$ 11.1

$ 18.0

Net income margin (%) 4.8 % 7.4 % 7.4 % 6.2 % 6.8 % 7.3 % 5.5 % 9.9 %

Weighted average shares outstanding (diluted) in millions

7.9 7.6 7.4 7.1 6.9 6.7

6.6

6.9

Diluted earnings per share

$ 3.07 $ 5.45 $ 5.91 $ 5.39 $ 6.74 $ 8.14

$ 1.69

$ 2.62

Reconciliation of GAAP net income to non-GAAP net income:

GAAP net income $ 24.5 $ 41.7 $ 43.6 $ 38.5 $ 46.7 $ 54.8 $ 11.1 $ 18.0

Other

3.0

0.4

0.3

(0.8)

8.0

(0.5)

1.8

(4.2)

Foreign currency (gains) losses, net

0.5

(1.9)

1.4

0.1

1.2

(0.4)

0.5

Tax effect of non-GAAP adjustments

(0.8) (0.2) 0.3 (0.1) (2.1) (0.2)

0.6 0.9

Non-GAAP adjustments, net of tax

2.2 0.7 (1.3) 0.5 6.0 0.5

2.0 (2.7)

Non-GAAP net income

$ 26.7 $ 42.4 $ 42.3 $ 39.0 $ 52.6 $ 55.3

$ 13.1 $ 15.3

Non-GAAP net income margin (%)

5.2 % 7.5 % 7.2 % 6.2 % 7.7 % 7.4 %

6.5 % 8.4 %

Non-GAAP net income per diluted share outstanding

$ 3.35 $ 5.54 $ 5.74 $ 5.46 $ 7.60 $ 8.23

$ 1.99 $ 2.22

Note: Adjustments referred to as "Other non-recurring case items" include cash paid to settle a contingent consideration, restructuring costs, and acquisition-related costs.

($ in millions)

Fiscal YTD 2020 2021 2022 2023 2024 2025 Q1 2026 Q1 2025

Reconciliation of net income to non-GAAP EBITDA:

Net Income

$ 24.5 $ 41.7 $ 43.6 $ 38.5 $ 46.7 $ 54.8

$ 11.1

$ 18.0

Adjustments needed to reconcile GAAP net income to non-

GAAP net income:

2.2 0.7 (1.3) 0.5 6.0 0.5

2.0

(2.7)

Non-GAAP net income

$ 26.7 $ 42.4 $ 42.3 $ 39.0 $ 52.6 $ 55.3

$ 13.1

$ 15.3

Interest expense (income), net

1.2 1.0 1.8 3.8 4.4 5.4

1.0

0.4

Provision (benefit) for income taxes

10.0 12.8 14.9 13.9 21.7 22.0

5.7

Depreciation and amortization

12.8 12.8 12.0 11.6 11.7 14.1

3.4

Non-GAAP EBITDA

$ 50.7 $ 68.9 $ 71.0 $ 68.3 $ 90.4 $ 96.8

$ 23.2

$ 24.8

Non-GAAP EBITDA margin

10.0 % 12.2 % 12.0 % 10.9 % 13.2 % 12.9 %

11.5 %

13.6 %

GAAP Non-GAAP Difference

Revenue growth (Fiscal Years 2021-2025)

48 %

- %

Earnings per diluted share (EPS) growth (Fiscal Years 2021-2025)

165 %

146 %

(19)%

Revenue growth (Fiscal Year 2025)

9 %

- %

Earnings per diluted share (EPS) growth (Fiscal Year 2025)

21 %

8 %

(13)%

Revenue growth (Fiscal YTD 2026)

11 %

- %

Earnings per diluted share (EPS) growth (Fiscal YTD 2026)

(35)%

(10)%

25 %

($ in millions)

Fiscal Years 2021 2022 2023 2024 2025 3-Yr Avg 5-Yr Avg

EBITDA into adjusted net cash flows from operations:

Non-GAAP EBITDA

$ 68.9 $ 71.0 $ 68.3 $ 90.4 $ 96.8

$ 85.2

$ 79.1

Adjusted Net Cash Flows from Operations

GAAP net cash provided by operating activities

$ 75.7 $ 25.1 $ 60.1 $ 49.7 $ 22.4

$ 44.1

$ 46.6

Forgivable loan advances

14.5 35.0 23.3 45.5 87.9

52.2

41.3

Forgivable loan repayments

(0.1) (0.0) (1.8) (2.8) (1.9)

(2.2)

(1.3)

Other non-recurring cash items

10.4 0.3 - - -

2.1

Adjusted net cash flows from operations

$ 100.6 $ 60.4 $ 81.6 $ 92.5 $ 108.4

$ 94.2

$ 88.7

EBITDA Conversion Percentage

146 % 85 % 120 % 102 % 112 %

111 %

112 %

Note: Adjustments referred to as "Other non-recurring case items" include cash paid to settle a contingent consideration obligation and other acquisition-related costs.

Charles River Associates

200 Clarendon Street

Boston, MA [email protected]

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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 14:27 UTC.