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Cra International
(NASDAQ:CRAI)
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Rating:65Neutral
Price Target:
$181.00
▲(6.61% Upside)
Action:Downgraded
Date:08/11/26
The score is driven primarily by solid operating performance and a constructive earnings update (raised revenue guidance and reaffirmed margins), tempered by meaningful near-term financial quality risks—especially negative TTM operating/free cash flow and higher leverage. Technical signals are neutral-to-mixed and valuation is reasonable, providing modest support but not enough to offset the cash-flow and balance-sheet concerns.
Positive Factors
Consistent revenue growth and record top-line
Sustained revenue expansion and recent record quarterly/first-half results indicate durable demand for CRAI’s fee-for-service consulting model. Consistent top-line growth across years provides a stable base for earnings, supports reinvestment in talent, and reduces reliance on one-off engagements over the next several quarters.
Negative Factors
Negative operating and free cash flow (TTM)
Negative TTM operating and free cash flow despite positive net income indicates weak cash conversion and working-capital timing issues. Persistent negative cash generation constrains organic reinvestment, increases reliance on external financing, and elevates liquidity risk if collections or project timing do not normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth and record top-line
Sustained revenue expansion and recent record quarterly/first-half results indicate durable demand for CRAI’s fee-for-service consulting model. Consistent top-line growth across years provides a stable base for earnings, supports reinvestment in talent, and reduces reliance on one-off engagements over the next several quarters.
Read all positive factors
Cra International (CRAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend Yield1.34%
Average Volume (3M)164.70K
Price to Earnings (P/E)21.6
Beta (1Y)0.83
Revenue Growth11.46%
EPS Growth-9.16%
CountryUS
Employees968
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)7.60
Shares Outstanding6,276,860
10 Day Avg. Volume159,939
30 Day Avg. Volume164,697
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$245.00Price Target Upside44.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)8.44
Revenue Forecast (FY)$810.54M
Cra International Business Overview & Revenue Model
Company Description
CRA International, Inc., along with its affiliated entities, delivers specialized advisory services across the domains of economics, finance, and management in the United States, the United Kingdom, and globally. The firm provides expert guidance ...
How the Company Makes Money
CRAI makes money primarily by billing clients for professional consulting services. Its revenue model is largely fee-for-service, where clients are charged based on consultant time (hourly or daily billing rates), project-based fees, and retainers...
Cra International Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveys a strong positive operational and financial performance: record quarterly and first-half revenue, broad-based double-digit growth across multiple practices, improved profitability (net income, EPS, EBITDA), an upward revision to full-year revenue guidance, and significant international strength. Offsetting items include higher DSO, an increased noncash amortization charge that reduces reported EBITDA, a higher effective tax rate, and elevated net debt due to revolver usage for working capital and investments. Management believes growth is durable (mid to upper-70s utilization and mid-single-digit headcount growth planned), but they note some forecasting uncertainty given current record-rate comparisons and macro/geopolitical risks.Positive Updates
Record Quarterly and First-Half Revenue
Second-quarter revenue of $210.8 million, up 12.8% year-over-year and the highest quarterly revenue in CRA history; first-half revenue of $408.8 million on a constant-currency basis (best first half in company history).
Negative Updates
Rising Days Sales Outstanding (DSO)
DSO increased to 113 days at quarter end (from 100 days at the end of Q1 2026), comprised of 68 days billed and 45 days unbilled, indicating slower collections and potential working capital pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly and First-Half Revenue
Second-quarter revenue of $210.8 million, up 12.8% year-over-year and the highest quarterly revenue in CRA history; first-half revenue of $408.8 million on a constant-currency basis (best first half in company history).
Read all positive updates
Company Guidance
CRA raised full-year FY2026 revenue guidance to $805.0–$820.0 million (from $785.0–$805.0M prior) on a constant-currency basis and reaffirmed non‑GAAP EBITDA margin of 12.0%–13.0%; year-to-date (H1) constant‑currency revenue was $408.8M with non‑GAAP EBITDA $49.7M (12.2% margin). Management said the constant‑currency adjustment will decrease reported annual revenue by ~$2.5M and reported annual EBITDA by <$0.25M (with an implied H2 reported revenue uplift of ≈$0.5M and EBITDA ≈$0.1M), fiscal 2026 returns to a 52‑week year (FY2025 was 53 weeks), noncash forgivable‑loan amortization is expected to increase by ≈$15M in FY2026 (up >$9M in H1, implying >$5M in H2), the effective tax rate is forecast at 33%–34% for the remainder of the year (32%–33% full year), and operationally the firm finished Q2 with 968 consultants (up 3.3% Y/Y) and 77% utilization and expects mid‑single‑digit headcount growth by year‑end with average utilization in the mid‑to‑upper‑70s.Cra International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 794.64M | 751.58M | 687.41M | 623.98M | 590.90M | 565.93M |
| Gross Profit | 361.69M | 218.16M | 207.48M | 171.73M | 180.82M | 165.88M |
| EBITDA | 247.62M | 96.07M | 97.48M | 81.94M | 86.38M | 81.02M |
| Net Income | 49.30M | 54.78M | 46.65M | 38.48M | 43.62M | 41.68M |
Balance Sheet | ||||||
| Total Assets | 665.25M | 628.87M | 571.44M | 553.21M | 550.92M | 555.36M |
| Cash, Cash Equivalents and Short-Term Investments | 18.21M | 18.21M | 26.71M | 45.59M | 31.45M | 66.13M |
| Total Debt | 194.19M | 127.23M | 103.24M | 114.34M | 121.98M | 138.80M |
| Total Liabilities | 482.42M | 415.27M | 359.37M | 341.11M | 339.76M | 349.53M |
| Stockholders Equity | 182.72M | 213.60M | 212.07M | 212.10M | 211.15M | 205.83M |
Cash Flow | ||||||
| Free Cash Flow | -27.75M | 18.56M | 33.11M | 57.71M | 21.31M | 73.08M |
| Operating Cash Flow | -21.75M | 22.42M | 49.73M | 60.07M | 25.12M | 75.70M |
| Investing Cash Flow | -6.00M | -3.87M | -18.12M | -2.94M | -18.16M | -2.62M |
| Financing Cash Flow | 29.10M | -29.84M | -48.86M | -44.48M | -38.95M | -51.99M |
Cra International Technical Analysis
Negative
169.77
Price Trends
160.69
Positive
156.72
Positive
170.83
Negative
Market Momentum
1.46
Positive
44.07
Neutral
29.20
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 169.77 is below the 20-day moving average (MA) of 173.62, above the 50-day MA of 160.69, and below the 200-day MA of 170.83, indicating a neutral trend. The MACD of 1.46 indicates Positive momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 29.20 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.42B | 21.75 | 25.53% | ― | 13.60% | 14.77% | |
74 Outperform | $1.59B | 17.80 | 8.57% | 0.70% | -7.89% | -16.13% | |
72 Outperform | $4.19B | 18.29 | 15.61% | ― | 7.12% | 15.93% | |
65 Neutral | $1.06B | 21.61 | 24.76% | 1.30% | 11.46% | -9.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $216.66M | -4.98 | -33.27% | ― | -7.54% | 52.04% | |
48 Neutral | $145.52M | -3.50 | -21.44% | 7.43% | -18.02% | 79.32% |
* Industrials Sector Average
CRAI
Cra International
164.21
-20.39
-11.04%
FORR
Forrester Research
11.15
1.65
17.37%
FCN
FTI Consulting
149.82
-18.03
-10.74%
HURN
Huron Consulting
148.33
13.43
9.96%
ICFI
Icf International
86.50
-10.99
-11.27%
RGP
Resources Connection
4.21
-0.25
-5.58%
Cra International Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
CRA International Posts Record Q2 Results, Raises Guidance
Positive
Aug 6, 2026
Charles River Associates reported record second-quarter fiscal 2026 results on August 6, 2026, with revenue rising 12.8% year over year to $210.8 million and delivering its best-ever second-quarter performance in net income, earnings per diluted s...
Executive/Board ChangesShareholder Meetings
CRA International Shareholders Approve Directors and Executive Pay
Positive
Jul 22, 2026
On July 16, 2026, CRA International, Inc. held its annual meeting of shareholders, with voting based on the 6,463,871 common shares outstanding as of the May 22, 2026 record date. Shareholders elected Richard Booth and Christine Detrick as Class I...
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.