Charles River Associates (NASDAQ:CRAI) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Charles River Associates beat quarterly estimates: EPS came in at $2.16 versus the $2.15 consensus, while revenue reached $210.81 million, exceeding the $198.91 million estimate. Revenue rose 12.8% year over year to a record quarterly level.
• Management raised fiscal 2026 revenue guidance to $805 million–$820 million from $785 million–$805 million, while maintaining its 12.0%–13.0% non-GAAP EBITDA margin outlook. Growth was broad-based, with international revenue up 32.9%.
• Financial pressures remain: Net debt increased to $197.6 million and DSO rose to 113 days, while higher loan amortization and a 33%–34% second-half tax rate could weigh on reported profitability. CRA also declared a quarterly dividend of $0.57 per share, yielding approximately 1.3%.

Charles River Associates (NASDAQ:CRAI - Get Free Report) posted its quarterly earnings data on Thursday. The business services provider reported $2.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.15 by $0.01, FiscalAI reports. The company had revenue of $210.81 million for the quarter, compared to the consensus estimate of $198.91 million. Charles River Associates had a net margin of 6.22% and a return on equity of 26.02%.

Here are the key takeaways from Charles River Associates' conference call:

• Record Q2 performance: Revenue rose 12.8% year over year to $210.8 million, the highest quarterly level in CRA’s history, while non-GAAP EBITDA increased 15.3% and EPS rose 14.9%.
• Management raised fiscal 2026 constant-currency revenue guidance to $805 million–$820 million from $785 million–$805 million, while reaffirming its 12.0%–13.0% non-GAAP EBITDA margin outlook amid a strong pipeline.
• Growth was broad-based, with eight practices contributing year-over-year gains and particularly strong momentum in Energy, Life Sciences, Forensic Services, Risk, Investigations & Analytics, and Antitrust; international revenue increased 32.9%.
• CRA is adding capacity to support demand, with consultant headcount up 3.3% year over year and utilization improving to 77%; management expects mid-single-digit headcount growth by year-end and continued mid-to-upper-70s utilization.
• Net debt reached $197.6 million after working-capital funding, talent investments, and shareholder returns, while DSO increased to 113 days from 100 days in Q1; higher forgivable-loan amortization and a 33%–34% second-half tax rate may also pressure reported profitability.

Charles River Associates Price Performance

CRAI stock traded down $0.14 during mid-day trading on Thursday, reaching $176.46. The company had a trading volume of 265,349 shares, compared to its average volume of 167,648. Charles River Associates has a 52 week low of $132.17 and a 52 week high of $227.29. The company has a market capitalization of $1.14 billion, a price-to-earnings ratio of 24.51, a PEG ratio of 1.33 and a beta of 0.66. The stock has a 50 day simple moving average of $156.55 and a two-hundred day simple moving average of $162.11.

Charles River Associates Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Tuesday, August 25th will be paid a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Tuesday, August 25th. Charles River Associates's dividend payout ratio (DPR) is currently 31.67%.

Insider Activity at Charles River Associates

In related news, EVP Jonathan D. Yellin sold 2,250 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $147.72, for a total value of $332,370.00. Following the completion of the transaction, the executive vice president directly owned 13,247 shares of the company's stock, valued at approximately $1,956,846.84. This trade represents a 14.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.50% of the company's stock.

Institutional Trading of Charles River Associates

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Kennedy Capital Management LLC increased its position in shares of Charles River Associates by 1.2% in the fourth quarter. Kennedy Capital Management LLC now owns 6,489 shares of the business services provider's stock worth $1,302,000 after purchasing an additional 79 shares during the period. Arkadios Wealth Advisors lifted its position in Charles River Associates by 3.1% during the fourth quarter. Arkadios Wealth Advisors now owns 4,388 shares of the business services provider's stock worth $881,000 after purchasing an additional 134 shares during the period. Jones Financial Companies Lllp acquired a new stake in Charles River Associates during the first quarter worth about $27,000. Russell Investments Group Ltd. grew its stake in Charles River Associates by 8.2% during the fourth quarter. Russell Investments Group Ltd. now owns 4,180 shares of the business services provider's stock worth $839,000 after buying an additional 318 shares in the last quarter. Finally, New York State Common Retirement Fund increased its holdings in Charles River Associates by 25.0% in the 4th quarter. New York State Common Retirement Fund now owns 7,495 shares of the business services provider's stock valued at $1,504,000 after buying an additional 1,500 shares during the period. 84.13% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut shares of Charles River Associates from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, May 11th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $245.00.

About Charles River Associates

Charles River Associates NASDAQ: CRAI is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients' needs.

The firm's service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management.

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