Cra Internationalinc. (CRAI)
NASDAQ:CRAI
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Cra International
(NASDAQ:CRAI)
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Rating:67Neutral
Price Target:
$166.00
▲(8.38% Upside)
Action:DowngradedDate:02/27/26
The score is driven primarily by solid financial performance (steady revenue growth, healthy margins/ROE, and improving leverage) tempered by notable cash-flow volatility. Earnings call guidance and operating momentum are supportive, while weak technicals (below key moving averages with negative MACD) weigh on the near-term setup; valuation is reasonable with a modest dividend yield.
Positive Factors
Durable Revenue Growth
Eight consecutive years of record revenue and steady growth to $751.6M demonstrate durable demand for CRA's fee-for-service consulting across litigation, regulatory and advisory work. Broad-based practice growth and international outperformance diversify revenue and support sustained top-line momentum.
Negative Factors
Operating Cash-Flow Volatility
Operating cash flow volatility and a sharp decline to about $22M reduce cash-flow reliability versus reported earnings. Working-capital swings can constrain the firm's ability to consistently fund talent investments, buybacks or unexpected needs without drawing on credit or altering capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Revenue Growth
Eight consecutive years of record revenue and steady growth to $751.6M demonstrate durable demand for CRA's fee-for-service consulting across litigation, regulatory and advisory work. Broad-based practice growth and international outperformance diversify revenue and support sustained top-line momentum.
Read all positive factors
Cra International (CRAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend Yield0.97%
Average Volume (3M)183.59K
Price to Earnings (P/E)24.3
Beta (1Y)1.15
Revenue Growth8.69%
EPS Growth34.58%
CountryUS
Employees947
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)2.06
Shares Outstanding6,566,183
10 Day Avg. Volume223,780
30 Day Avg. Volume183,585
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 Cap1.11
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit5.11
Enterprise Value/Ebitda10.35
Forecast
1Y Price Target
$245.00Price Target Upside59.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)8.53
Revenue Forecast (FY)$777.19M
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record operating and financial achievements (record annual and quarterly revenue, strong EBITDA and cash flow conversion, broad-based practice and international growth, robust deal lead flow, and constructive 2026 guidance). Management acknowledged near-term headwinds that are largely non-operational or one-time in nature (increased noncash forgivable loan amortization from concentrated talent investments, a higher projected effective tax rate, elevated DSO and calendar comparability from a 53-week year). Management presented a confident outlook on AI as a revenue/productivity enabler and reiterated disciplined capital allocation (share repurchase expansion, dividends, rapid revolver repayment). Overall, the positives in operating momentum, profitability, cash generation and guidance materially outweigh the noted challenges.Positive Updates
Record Annual and Quarterly Revenue
Fiscal 2025 revenue of $751.6M, up 9.3% YoY, marking CRA's eighth consecutive year of record annual revenue; Q4 revenue was the best quarterly revenue in company history, up 11.6% YoY.
Negative Updates
Increase in Noncash Forgivable Loan Amortization
Noncash forgivable loan amortization is expected to increase by approximately $15M (more than 30% YoY) in fiscal 2026 due to concentrated talent investments, which will depress reported EBITDA on a GAAP-like presentation.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Revenue
Fiscal 2025 revenue of $751.6M, up 9.3% YoY, marking CRA's eighth consecutive year of record annual revenue; Q4 revenue was the best quarterly revenue in company history, up 11.6% YoY.
Read all positive updates
Company Guidance
CRA guided fiscal 2026 revenue of $785 million to $805 million on a constant‑currency basis (versus FY2025 revenue of $751.6 million) and non‑GAAP EBITDA margin of 12.0%–13.0% (FY2025 non‑GAAP EBITDA was $96.8 million, a 12.9% margin); they expect currency to reduce reported revenue by roughly $5 million and reported EBITDA by less than $1 million, noncash forgivable‑loan amortization to increase about $15 million (more than +30% YoY), a return to a 52‑week year (FY2025 was 53 weeks), a projected effective tax rate of 31%–32% for FY2026, and capital expenditures of $4 million–$5 million.Cra International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
76
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 751.58M | 687.41M | 623.98M | 590.90M | 565.93M |
| Gross Profit | 218.16M | 207.48M | 171.73M | 180.82M | 165.88M |
| EBITDA | 96.07M | 97.48M | 81.94M | 86.38M | 81.02M |
| Net Income | 54.78M | 46.65M | 38.48M | 43.62M | 41.68M |
Balance Sheet | |||||
| Total Assets | 628.87M | 571.44M | 553.21M | 550.92M | 555.36M |
| Cash, Cash Equivalents and Short-Term Investments | 18.21M | 26.71M | 45.59M | 31.45M | 66.13M |
| Total Debt | 127.23M | 103.24M | 114.34M | 121.98M | 138.80M |
| Total Liabilities | 415.27M | 359.37M | 341.11M | 339.76M | 349.53M |
| Stockholders Equity | 213.60M | 212.07M | 212.10M | 211.15M | 205.83M |
Cash Flow | |||||
| Free Cash Flow | 18.56M | 33.11M | 57.71M | 21.31M | 73.08M |
| Operating Cash Flow | 22.42M | 49.73M | 60.07M | 25.12M | 75.70M |
| Investing Cash Flow | -3.87M | -18.12M | -2.94M | -18.16M | -2.62M |
| Financing Cash Flow | -29.84M | -48.86M | -44.48M | -38.95M | -51.99M |
Cra International Technical Analysis
Negative
153.16
Price Trends
174.49
Negative
184.10
Negative
186.07
Negative
Market Momentum
-5.40
Positive
35.99
Neutral
29.17
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 153.16 is below the 20-day moving average (MA) of 165.18, below the 50-day MA of 174.49, and below the 200-day MA of 186.07, indicating a bearish trend. The MACD of -5.40 indicates Positive momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.08B | 28.72 | 21.03% | ― | 12.50% | 29.40% | |
68 Neutral | $5.21B | 19.86 | 13.30% | ― | -0.95% | -10.54% | |
67 Neutral | $1.01B | 24.31 | 26.10% | 0.97% | 8.69% | 34.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $1.18B | 17.06 | 9.11% | 0.65% | -3.81% | -7.05% | |
48 Neutral | $121.28M | -3.17 | -59.80% | 6.74% | -10.83% | -1669.11% | |
46 Neutral | $108.34M | -1.29 | -80.76% | ― | -8.73% | -1168.15% |
* Industrials Sector Average
CRAI
Cra International
153.16
-18.02
-10.53%
FORR
Forrester Research
5.65
-3.59
-38.85%
FCN
FTI Consulting
170.34
6.26
3.82%
HURN
Huron Consulting
122.64
-20.81
-14.51%
ICFI
Icf International
64.77
-19.61
-23.24%
RGP
Resources Connection
3.62
-2.54
-41.20%
Cra International Corporate Events
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.