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CI

CRA INTERNATIONAL, INC. (CRAI)·Q2 2026 Earnings Summary

Executive Summary

  • No primary-source documents for Q2 2026 were available; this recap anchors on S&P Global consensus for Q2 2026 and CRA’s latest reported quarters (Q2–Q3 2025). Values with an asterisk are from S&P Global consensus.
  • Q2 2026 consensus implies modest top-line growth: Revenue $190.16M*, EPS $2.185*, EBITDA $23.39M* versus Q2 2025 actuals ($186.88M revenue, $1.88 EPS, $23.26M EBITDA), suggesting a small beat potential if execution holds [Values retrieved from S&P Global].
  • CRA raised full-year guidance twice in 2H25 (to $730–745M revenue, 12.3–13.0% EBITDA margin in Q2; then to $740–748M, 12.6–13.0% in Q3), reflecting durable demand in antitrust, energy, IP, and strong pricing realization .
  • Operating KPIs remained healthy: utilization 76% (Q2 2025) and 77% (Q3 2025), DSO ~110 days, and robust capital returns (Q2 buybacks ~$43.2M for ~231k shares; Q3 dividend increased 16% to $0.57) .

What Went Well and What Went Wrong

What Went Well

  • Broad-based growth in Q2 2025: antitrust, energy, IP, and labor & employment posted double-digit revenue growth; North America +9.4%, international +7.0% YoY .
  • Management raised FY25 guidance twice, citing strong pipeline and pricing realization; “we expect revenue in the range of $730–$745M and non-GAAP EBITDA margin 12.3%–13.0%” (Q2), later “$740–$748M and 12.6%–13.0%” (Q3) .
  • CEO quote on pricing strength and value delivery: “rate increases…appear to have gone through…clients continue…to demand value…we’re doing a pretty good job” .

What Went Wrong

  • Gross margin compression sequentially (Q1→Q2→Q3 2025) and EBITDA margin variation highlight mix and cost dynamics even amid revenue strength* [Values retrieved from S&P Global].
  • DSO remained elevated at ~110 days with 37 days unbilled, reflecting the nature of engagements and billing cycles .
  • Life Sciences practice saw a “slight decline” in Q2 2025 amid challenging industry dynamics, though first-half 2025 was up YoY .

Financial Results

MetricQ1 2025Q2 2025Q3 2025Q2 2026E
Revenue ($USD Millions)$181.85*$186.88*$185.89*$190.16*
Diluted EPS ($USD)$2.62*$1.79*$1.73*$2.185*
EBITDA ($USD Millions)$28.96*$23.26*$20.70*$23.39*
EBITDA Margin (%)15.92%*12.45%*11.13%*—
EBIT Margin (%)14.05%*10.56%*9.26%*—
Gross Margin (%)33.82%*31.22%*29.28%*—

Note: Asterisks (*) indicate values retrieved from S&P Global.

Additional context:

  • Q2 2025 YoY: Revenue +9.0% to $186.9M; EPS +90.4% to $1.79; non-GAAP EPS +2.7% to $1.88; non-GAAP EBITDA +4.4% to $23.3M .
  • Q3 2025: Revenue $185.9M; non-GAAP EPS $2.06; non-GAAP EBITDA $24.4M (13.1% margin) .

KPIs

KPIQ2 2025Q3 2025
Utilization (%)76% 77%
Consultant Headcount (end of period)937 968
DSO (days)110 (73 billed / 37 unbilled) ~110 (effective commentary)
Share Repurchases~$43.2M; ~231k shares Remaining authorization ~$10.9M
Dividend ($/share)$0.49 declared (payable Sep 12, 2025) Raised to $0.57

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)FY2025 (const. FX)$715–$735M $730–$745M Raised
Non-GAAP EBITDA Margin (%)FY2025 (const. FX)12.0%–13.0% 12.3%–13.0% Raised lower end
Revenue ($USD)FY2025 (const. FX)$730–$745M $740–$748M Raised
Non-GAAP EBITDA Margin (%)FY2025 (const. FX)12.3%–13.0% 12.6%–13.0% Raised lower end
DividendQuarterly$0.49 $0.57 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Antitrust/M&A demandRecord practice revenue, pricing realization noted “Best quarter ever,” broad antitrust work incl. HPE/Juniper Continued strength, non-GAAP EPS beat Improving
Energy/data center loadStrong demand; double-digit growth Q1 Utilities strategy pivots; data center siting/engagement Sustained robust performance Stable-to-improving
Pricing & value deliveryRate increases effective “Rate increases…appear to have gone through” Continued margin focus Stable
Talent & headcountCampus hiring typical; portfolio optimization Headcount 937; >100 new grads incoming 968 consultants; retention stable Stable
Working capital/DSOElevated DSO characteristic of billings DSO 110 days (73 billed/37 unbilled) Similar profile Stable

Management Commentary

  • “Revenue in the second quarter increased by 9% year-over-year to $186.9 million…antitrust and competition economics, energy, intellectual property, and labor and employment each posted double-digit revenue growth.”
  • “Given our strong first-half results and a healthy pipeline, we are increasing our revenue guidance and raising the lower end of our profit guidance.”
  • On energy/data center demand: “As power availability becomes a gating factor for data center development…we are helping clients shape integrated approaches to infrastructure planning, contracting, and energy sourcing.”
  • On pricing: “Rate increases…appear to have gone through…clients continue…to demand value.”
  • On capital returns: strong buyback execution and confidence in outlook .

Q&A Highlights

  • Guidance and visibility: Management remains bullish on pipeline and demand drivers, mindful of geopolitical uncertainty .
  • Antitrust/M&A mix: No material mix shift; long-lived matters keep utilization high across enforcement and M&A-related work .
  • Pricing environment: Realization of 2025 rate increases with continued emphasis on efficient value delivery .
  • Energy practice scaling: Focus on strategic fit over inorganic expansion; strong leadership and targeted investment .
  • Headcount strategy: Typical campus class size; reallocating growth investment to practices with traction while keeping aggregate headcount flat-to-up .

Estimates Context

  • Q2 2026 S&P Global consensus: Revenue $190.16M*, Primary EPS $2.185*, EBITDA $23.39M*; EPS estimates count: 2; Revenue estimates count: 1 [Values retrieved from S&P Global].
  • Versus Q2 2025 actual: Revenue $186.88M*, EPS $1.88* (Primary EPS), EBITDA $23.26M*; Q2 2025 beat consensus (Rev $180.34M*, EPS $1.837*), indicating positive surprise history [Values retrieved from S&P Global].
  • Implication: modest revenue growth and higher EPS vs prior year suggest pricing and mix tailwinds; estimate dispersion is limited (low estimate counts), so revisions post-print could be more sensitive [Values retrieved from S&P Global].

Key Takeaways for Investors

  • Consensus implies a modest top-line advance and stronger EPS in Q2 2026; prior beat history (Q2–Q3 2025) supports a constructive setup if antitrust and energy stay robust [Values retrieved from S&P Global] .
  • Pricing realization and value delivery are intact per management, a key lever for margin resilience even with mixed gross margin trends .
  • Energy/data center advisory is a durable growth vector tied to structural grid constraints and utility strategy pivots—sustained demand likely .
  • Capital returns (buybacks, dividend increase) underscore confidence; watch authorization and post-print commentary for incremental capital allocation signals .
  • Monitor DSO and working capital needs; recurring billing cycles can mask underlying strength but affect near-term cash metrics .
  • Risks: macro/geopolitical uncertainty; practice mix shifts (e.g., life sciences softness) could impact margins; low estimate coverage raises post-print revision volatility [Values retrieved from S&P Global].
  • Trading lens: Near-term upside bias if Q2 2026 prints align with consensus and management reiterates FY trajectory; watch for commentary on pricing, utilization, and antitrust case flow as catalysts [Values retrieved from S&P Global] .

Disclosure: Q2 2026 primary documents were not available in source tools. Where noted with an asterisk (*), values are retrieved from S&P Global consensus.