Charles River Associates Posts Record Revenue but Faces Profitability Pressures
Event summary
- CRA reported $751.6 million in full-year 2025 revenue, up 9.3% YoY, marking its eighth consecutive year of record annual revenue.
- Q4 2025 revenue grew 11.6% YoY to $197.0 million, with strong performance in Antitrust & Competition Economics, Energy, Forensic Services, and Labor & Employment practices.
- Net income decreased 12.0% YoY in Q4 2025 to $13.2 million, while non-GAAP net income decreased 2.1% YoY to $13.7 million.
- CRA returned $60.9 million to shareholders in 2025, including $13.8 million in dividends and $47.1 million in share repurchases.
- For fiscal 2026, CRA expects revenue between $785 million and $805 million, with non-GAAP EBITDA margin between 12.0% and 13.0%.
The big picture
CRA's strong top-line growth reflects its diversified service portfolio and international expansion, particularly in high-demand areas like antitrust and forensic services. However, the company faces challenges in sustaining profitability as it invests in talent and navigates volatile global economic conditions. The strategic focus on shareholder returns through dividends and repurchases underscores its commitment to delivering value amid market uncertainties.
What we're watching
- Profitability Dynamics
- How CRA will balance its talent investments with maintaining profitability amid rising non-cash forgivable loan amortization.
- Market Conditions
- Whether uncertain global macroeconomic and political conditions will impact CRA's projected revenue growth.
- Shareholder Strategy
- The pace at which CRA will execute its expanded $55.0 million share repurchase program.
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