Cra Internationalinc. (CRAI)
NASDAQ:CRAI
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Cra International
(NASDAQ:CRAI)
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Rating:60Neutral
Price Target:
$147.00
▼(-7.45% Downside)
Action:Reiterated
Date:05/11/26
The score is mainly held back by weakening cash-flow quality and higher debt in the TTM period, plus a notably weak technical trend (price below key moving averages with negative MACD). These are partially offset by supportive earnings-call fundamentals (record Q1 revenue and reaffirmed guidance) and a reasonable-but-not-cheap valuation with a modest dividend.
Positive Factors
Record Revenue Growth
Sustained double-digit top-line growth and a record quarter indicate durable client demand and successful go-to-market execution. Persistent revenue expansion supports scale economics, backlog visibility, and reinvestment capacity, strengthening medium-term earnings power and strategic options.
Negative Factors
Deteriorating Cash Generation
A material swing to negative operating and free cash flow raises concerns about the sustainability of reported earnings. Persistent cash conversion weakness can force reliance on external financing, constrain investment in talent, and limit flexibility to pursue strategic hires or inorganic growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Revenue Growth
Sustained double-digit top-line growth and a record quarter indicate durable client demand and successful go-to-market execution. Persistent revenue expansion supports scale economics, backlog visibility, and reinvestment capacity, strengthening medium-term earnings power and strategic options.
Read all positive factors
Cra International (CRAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$909.03M
Dividend Yield0.97%
Average Volume (3M)189.28K
Price to Earnings (P/E)24.1
Beta (1Y)1.05
Revenue Growth10.50%
EPS Growth-3.09%
CountryUS
Employees947
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)7.28
Shares Outstanding6,463,038
10 Day Avg. Volume182,461
30 Day Avg. Volume189,284
Financial Highlights & Ratios
PEG Ratio1.18
Price to Book (P/B)6.23
Price to Sales (P/S)1.77
P/FCF Ratio71.76
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue1.49
Enterprise Value/Gross Profit5.50
Enterprise Value/Ebitda11.44
Forecast
1Y Price Target
$245.00Price Target Upside54.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)8.49
Revenue Forecast (FY)$799.48M
Cra International Business Overview & Revenue Model
Company Description
CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services in the United States, the United Kingdom, and internationally. It advises clients on economic and financial matters pertainin...
How the Company Makes Money
CRA International primarily makes money by billing clients for professional consulting services delivered by its staff consultants and expert professionals. Revenue is generated through client engagements that typically involve providing expert an...
Cra International Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call reflects strong, broad-based top-line growth (10.5% YoY) with record quarterly revenue, improved utilization, robust international expansion (+20.3% YoY), and solid non-GAAP EBITDA (11.5%). Management is actively investing in talent ($62.3M) and returning capital to shareholders while expanding credit capacity. Principal near-term negatives include a sizable rise in noncash forgivable loan amortization (+53% YoY) that reduced reported EBITDA, a $2.6M restructuring charge, an elevated effective tax rate, and net debt that increased due to seasonal bonus-funded borrowings. Management reaffirmed full-year guidance and emphasized confidence in demand and AI as a growth amplifier.Positive Updates
Record Quarterly Revenue
Revenue increased 10.5% year-over-year to $201.0 million, the highest quarterly revenue in company history, surpassing the prior record set in Q4 FY2025.
Negative Updates
Increase in Forgivable Loan Amortization
Noncash amortization of forgivable loans was $13.8 million (6.9% of revenue), an increase of $4.8 million or approximately 53% year-over-year, which materially reduced reported EBITDA and affected margin comparability.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue increased 10.5% year-over-year to $201.0 million, the highest quarterly revenue in company history, surpassing the prior record set in Q4 FY2025.
Read all positive updates
Company Guidance
CRA reaffirmed its full‑year fiscal 2026 guidance after a strong Q1 start: revenue rose 10.5% YoY to $201.0M (company record), non‑GAAP EBITDA was $23.2M (11.5% of revenue) which includes $13.8M (6.9% of revenue) of noncash forgivable‑loan amortization (up $4.8M, +53% YoY) that management baked into profit guidance; consultant headcount was 971 (+2.5% YoY) with utilization at 77% (management targets upper‑70s longer term); non‑GAAP SG&A (ex‑commissions) was 15.6% of revenue and the non‑GAAP effective tax rate was 30.3%; DSO was 100 days (58 billed/42 unbilled); Q1 net cash outlays for talent were $62.3M, $25.3M of capital was returned to shareholders (dividends $3.8M, repurchases $21.5M for ~116k shares) with $44.5M remaining under the repurchase program, total liquidity stood at $86.7M (cash $32.5M + $54.2M available credit), net debt was $159.5M (borrowings $192M), the credit facility was increased by $50M to $300M, and a $2.6M restructuring charge (cash $1.6M, noncash $1.0M) is expected to generate ≈$5M of annual savings that will be redeployed to fuel growth; management noted it does not assume inorganic revenue from future hires in top‑line guidance but does account for related amortization/costs in EBITDA.Cra International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 770.71M | 751.58M | 687.41M | 623.98M | 590.90M | 565.93M |
| Gross Profit | 209.21M | 218.16M | 207.48M | 171.73M | 180.82M | 165.88M |
| EBITDA | 100.51M | 96.07M | 97.48M | 81.94M | 86.38M | 81.02M |
| Net Income | 47.91M | 54.78M | 46.65M | 38.48M | 43.62M | 41.68M |
Balance Sheet | ||||||
| Total Assets | 662.41M | 628.87M | 571.44M | 553.21M | 550.92M | 555.36M |
| Cash, Cash Equivalents and Short-Term Investments | 32.50M | 18.21M | 26.71M | 45.59M | 31.45M | 66.13M |
| Total Debt | 280.13M | 127.23M | 103.24M | 114.34M | 121.98M | 138.80M |
| Total Liabilities | 464.02M | 415.27M | 359.37M | 341.11M | 339.76M | 349.53M |
| Stockholders Equity | 198.39M | 213.60M | 212.07M | 212.10M | 211.15M | 205.83M |
Cash Flow | ||||||
| Free Cash Flow | -17.01M | 18.56M | 33.11M | 57.71M | 21.31M | 73.08M |
| Operating Cash Flow | -11.47M | 22.42M | 49.73M | 60.07M | 25.12M | 75.70M |
| Investing Cash Flow | -5.54M | -3.87M | -18.12M | -2.94M | -18.16M | -2.62M |
| Financing Cash Flow | 22.38M | -29.84M | -48.86M | -44.48M | -38.95M | -51.99M |
Cra International Technical Analysis
Negative
158.84
Price Trends
164.61
Negative
181.68
Negative
184.63
Negative
Market Momentum
-1.27
Negative
43.70
Neutral
35.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRAI, the sentiment is Negative. The current price of 158.84 is below the 20-day moving average (MA) of 160.83, below the 50-day MA of 164.61, and below the 200-day MA of 184.63, indicating a bearish trend. The MACD of -1.27 indicates Negative momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 35.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRAI.
Cra International Risk Analysis
Cra International disclosed 31 risk factors in its most recent earnings report. Cra International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cra International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.56B | 24.15 | 15.14% | ― | 5.60% | 14.32% | |
68 Neutral | $1.17B | 14.51 | 8.35% | 0.65% | -9.45% | -20.88% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.79B | 23.29 | 21.83% | ― | 11.79% | -13.03% | |
60 Neutral | $909.03M | 24.15 | 23.64% | 0.97% | 10.50% | -3.09% | |
52 Neutral | $123.65M | -1.24 | -80.76% | ― | -7.06% | 38.03% | |
51 Neutral | $147.62M | -3.31 | -49.24% | 6.74% | -13.38% | 9.50% |
* Industrials Sector Average
CRAI
Cra International
140.65
-44.24
-23.93%
FORR
Forrester Research
6.37
-3.63
-36.30%
FCN
FTI Consulting
151.25
-10.51
-6.50%
HURN
Huron Consulting
110.23
-36.31
-24.78%
ICFI
Icf International
64.36
-20.54
-24.19%
RGP
Resources Connection
4.30
-0.82
-16.02%
Cra International Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
CRA International Posts Record Revenue, Declares Quarterly Dividend
Neutral
May 7, 2026
Charles River Associates reported that for the fiscal first quarter ended April 4, 2026, revenue rose 10.5% year over year to a record $201.0 million, driven by broad-based practice and geographic growth, notably double-digit gains in Energy, Fina...
Executive/Board ChangesShareholder Meetings
CRA Names Christine Detrick as New Lead Director
Positive
Apr 2, 2026
On March 27, 2026, Charles River Associates director William Concannon informed the board he will retire as a director effective at the close of the company’s 2026 Annual Meeting of Shareholders, scheduled for July 16, 2026. Concannon, who j...
Stock BuybackDividendsFinancial Disclosures
Cra International Posts Record 2025 Results, Boosts Capital Returns
Positive
Feb 26, 2026
On February 26, 2026, Charles River Associates reported fourth-quarter and full-year 2025 results showing its eighth consecutive year of record annual revenue, with fiscal 2025 revenue up 9.3% to $751.6 million and GAAP net income up 17.4% to $54....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.