Executive Summary

CRA delivered record Q4 revenue of $176.4M (+9.2% YoY) with broad-based contributions and stronger utilization (78%), driving outsized profit growth: GAAP EPS $2.18 (+34.6% YoY), non-GAAP EPS $2.03 (+24.5% YoY), and non-GAAP EBITDA margin 13.9% (+210 bps YoY) .
FY24 set new highs: revenue $687.4M (+10.2%), non-GAAP EBITDA $90.4M (13.2% margin), with adjusted operating cash conversion strong (102% of non-GAAP EBITDA), and year-end debt at $0 after repaying the revolver .
FY25 guidance: revenue $715–$735M (cc) and non-GAAP EBITDA margin 12.0–13.0%; capex guided down to $5–$6M; Board expanded buyback authorization by $45M and declared a $0.49 dividend, signaling confidence and continued capital return discipline .
Mix shift toward Legal & Regulatory (higher-utilization work) and disciplined portfolio optimization supported margin expansion; management flagged talent competition in Antitrust and lateral hiring as manageable within the FY25 margin guide .
Potential stock catalysts: continued high utilization, resilient legal/regulatory demand, Energy/data center-driven work, buyback ramp with ~$58.1M remaining authorization, and a dividend growth trajectory .

What Went Well and What Went Wrong

What Went Well
- Record Q4 revenue with stronger utilization: “Revenue increased 9.2%... to $176.4 million... utilization of 78%... quarterly profits grew at even faster rates” .
- Broad-based momentum: Energy, Finance, and IP delivered double-digit growth; both North America (+7.8%) and International (+15.7%) contributed .
- Cash discipline/capital returns: FY24 adjusted operating cash flow +13% YoY to $92.5M and 102% conversion of non-GAAP EBITDA; debt reduced to $0; buyback authorization expanded by $45M; quarterly dividend at $0.49 .
What Went Wrong
- Higher tax rate in Q4: non-GAAP ETR rose to 30.9% vs 26.1% prior year, driven by deferred tax remeasurement and lower share-based tax benefits .
- Headcount down and continued talent market competition: consulting headcount -5.8% YoY to 946; management noted ongoing lateral talent competition and comp pressure embedded in FY25 margin guide .
- Estimates context unavailable: Wall Street consensus (S&P Global) for Q4 was not retrievable, limiting external beat/miss assessment (see Estimates Context).

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($M)	$161.6	$167.7	$176.4
GAAP EPS (Diluted)	$1.62	N/A	$2.18
Non-GAAP EPS (Diluted)	$1.63	N/A	$2.03
Income from Operations Margin (GAAP)	10.6%	N/A	12.2%
Non-GAAP EBITDA ($M)	$19.0	N/A	$24.4
Non-GAAP EBITDA Margin	11.8%	N/A	13.9%

Key YoY highlights (company-reported): Revenue +9.2%, GAAP net income +30.8%, GAAP EPS +34.6%, non-GAAP EPS +24.5%, non-GAAP EBITDA +28.4% .

KPIs and balance sheet

KPI / Balance Sheet	Q4 2023	Q3 2024	Q4 2024
Utilization	73%	76%	78%
Consultant Headcount (EoP)	1,004	978	946
DSO (days)	N/A	122	106 (76 billed / 30 unbilled)
Cash & Cash Equivalents ($M)	$45.6	$24.5	$26.7
Total Liquidity ($M)	N/A	$160.4	$222.7

Practice highlights (Q4 YoY)

Practice	Q4 2024 YoY Commentary
Energy	Double-digit revenue growth; strong work in data center load planning and energy transactions
Finance	Double-digit revenue growth; active across litigation/arbitration (tax, securities, crypto, bankruptcy)
Intellectual Property	Double-digit revenue growth; notable AI-related IP casework and multi-jurisdictional disputes
Antitrust & Competition Economics	Grew mid-single digits in Q4; remains best-in-class and core growth engine
Labor & Employment	Expanded revenue YoY with complex data analysis litigation work
Risk, Investigations & Analytics	Expanded revenue YoY with global due diligence/investigations
Life Sciences	Achieved YoY growth in Q4; expanding early-stage asset strategy work

Additional Q4 details: North America +7.8% and International +15.7% YoY; SG&A ex. commissions 15.9% of revenue (vs 16.1% prior year Q4) .

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
Revenue (cc)	FY2024	$670–$685M (raised at Q2; reaffirmed Q3)	$687.4M actual	Above top end
Non-GAAP EBITDA Margin	FY2024	12.2%–13.0% (raised at Q2; reaffirmed Q3)	13.2% actual	Above top end
Revenue (cc)	FY2025	—	$715–$735M	New
Non-GAAP EBITDA Margin	FY2025	—	12.0%–13.0%	New
Capex	FY2025	—	$5–$6M	New
Share Repurchase	Ongoing	$13.1M remaining (pre-update)	+$45M authorization; ~$58.1M available	Raised
Dividend	Q1 FY2025	Prior $0.42 (Q3 2024); $0.49 declared Q4	$0.49 per share declaration (paid Mar 14, ’25)	Raised vs prior year

Note: Company provides FY25 guidance on a constant currency basis and does not reconcile non-GAAP EBITDA margin to GAAP due to variability in certain items .

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Antitrust & Competition	Strong; record run; M&A and litigation; regulatory scrutiny persists	Practice up ~30% YoY; pipeline replenishment; broad work	Still strong; +5–6% in Q4; focus on retention amid market disruption	Strong but moderating growth; talent retention in focus
Energy & Data Centers	Hiring senior talent; robust demand; IRPs; data center load	Continued growth and utility planning support	Strong quarter; data center-driven planning; energy transactions	Strengthening
Life Sciences	Stabilizing; saw-tooth performance	Modest decline vs tough comp	Returned to growth; early-stage asset work expanding	Improving
Utilization & Headcount	74% utilization; targeted portfolio optimization (restructuring)	76% utilization; headcount 978	78% utilization; headcount 946 driven by optimization and mix	Higher utilization on mix to Legal & Regulatory
Talent/Comp	University and lateral hiring; optimization actions	Low attrition; active hiring; no restrictions	Competition for talent; comp pressure embedded in FY25 margin guide	Competitive but manageable
Macro/Regulatory	Strong scrutiny in US/EU; admin outcomes uncertain	Broad legal market mixed; CRA outperforming	New administration impact uncertain; January M&A low; outlook still solid	Watchful, but demand resilient
Capital Allocation	Buybacks/dividends ongoing	Dividend raised to $0.49; $13.1M buyback capacity	Buyback +$45M; $0.49 dividend; debt repaid to $0	Increasing returns

Management Commentary

“Revenue for fiscal 2024 increased by 10.2% to $687.4 million… CRA also posted record profits… net income, earnings per diluted share and EBITDA each grew faster than revenue and at rates of more than 20% YoY.”
“For full year fiscal 2025… we expect revenue in the range of $715 million to $735 million and non-GAAP EBITDA margin in the range of 12.0% to 13.0%.”
“CRA’s fiscal 2024 adjusted net cash flows from operations increased 13% YoY to $92.5 million… CRA converted 102% of its non-GAAP EBITDA into adjusted net cash flows from operations.”
“We repaid $60 million… to bring our year-end outstanding debt to 0… Board… authorized an expansion… of $45 million… approximately $58.1 million available.”
On utilization drivers: “Legal and Regulatory… operates at a higher utilization… making up a larger piece of the portfolio… thus… a natural increase” .
On talent: “Competition for talent… employees benefit… from higher wages… margin range incorporates… comp expectations.”

Q&A Highlights

Utilization/headcount: Mix shift to higher-utilization Legal & Regulatory and targeted optimization actions lifted utilization; medium/long-term headcount growth should roughly track revenue growth .
Macro/administration: Too early to call the impact of the new administration; January M&A was near a 10-year low for that month, but broader expectations remain for recovery .
FY25 outlook composition: Desire to see practices beyond Competition close the growth gap; Q4 showed improvements in other practices (Life Sciences, Energy) .
Margin guide puts/takes: FY25 non-GAAP EBITDA margin (12–13%) embeds comp/talent dynamics and portfolio mix; management not “giving back” margin gains .
Antitrust retention/talent: Expect to be net positive on retention/lateral hiring amid market disruption; comp pressure acknowledged and incorporated .

Estimates Context

S&P Global (Capital IQ) Wall Street consensus for Q4 2024 EPS and Revenue was not retrievable at this time due to provider request limits. As a result, we cannot quantify beat/miss versus consensus for Q4 2024. Management’s FY25 guidance and FY24 outperformance versus internal guidance are provided for context .

Key Takeaways for Investors

Quality of growth: High-70s utilization, broad-based practice contributions, and improving mix supported double-digit profit growth; FY24 EBITDA margin (non-GAAP) of 13.2% provides a solid baseline .
FY25 setup: Guidance implies continued revenue growth with prudent margin posture as CRA navigates talent competition and portfolio mix; watch for continued strength in Energy (data center load) and normalization/acceleration in Life Sciences .
Capital returns are ramping: ~$58.1M buyback capacity plus a $0.49 dividend should support EPS and signal confidence; delevered balance sheet adds flexibility .
Pipeline/lead conversion remains healthy: Lead flow and new originations sustained at customary levels; DSO improvement in Q4 supports cash generation .
Risk watch: Higher ETR in Q4 from tax law changes; competitive hiring market could pressure margins, but FY25 range embeds these dynamics .
Catalyst path: Evidence of continued high utilization, conversion of Energy and Life Sciences opportunities, further lateral hires without margin leakage, and increased buyback execution can drive upside .

Other Relevant Q4 Press Releases

CRA managed FirstEnergy Ohio utilities’ standard offer auction process; information session held Dec 3, 2024 ahead of Jan 21, 2025 auction—evidence of active Energy/Auctions workstreams .

Non-GAAP Adjustments & Notes

FY24 non-GAAP metrics exclude items including $8.176M restructuring tied to portfolio optimization (cash severance $2.5M; non-cash $5.7M) and FX .
Q4 non-GAAP figures adjust for FX and valuation changes in contingent consideration; ETR influences called out in CFO remarks .

CRA INTERNATIONAL, INC. (CRAI)·Q4 2024 Earnings Summary