8-K: CRA International Reports Record Q1 2026 Revenue, Dividend Declared

CRA International announced record first-quarter 2026 revenue of $201.0 million, a 10.5% increase year-over-year, alongside a quarterly cash dividend declaration of $0.57 per share.

Summary

• CRA International reported record revenue of $201.0 million for the first quarter of fiscal 2026, an increase of 10.5% compared to the same period in the prior year.
• The company's net income decreased by 38.2% to $11.1 million, or $1.69 per diluted share, compared to $18.0 million, or $2.62 per diluted share, in Q1 2025.
• Non-GAAP net income also saw a decrease of 14.1% to $13.1 million, or $1.99 per diluted share.
• Non-GAAP EBITDA decreased by 6.5% to $23.2 million.
• The company reaffirmed its full-year fiscal 2026 guidance for revenue between $785 million and $805 million and non-GAAP EBITDA margin between 12.0% and 13.0%.
• The Board of Directors declared a quarterly cash dividend of $0.57 per common share, payable on June 12, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a mixed-to-positive report; record revenue is a strong positive, but the decline in profitability and EPS warrants caution.

Positives

• Record quarterly revenue of $201.0 million, up 10.5% year-over-year, driven by broad-based contributions across eight practices.
• Energy, Finance, Forensic Services, and Life Sciences practices achieved double-digit revenue growth.
• Antitrust & Competition Economics practice set a new quarterly revenue high.
• Legal & Regulatory offerings grew 11.5% and Management Consulting offerings expanded 8.3% year-over-year.
• International operations revenue increased by 20.3% year-over-year.
• Company-wide utilization was 77%, an increase from 76% in Q1 2025.
• Reaffirmed full-year fiscal 2026 revenue guidance of $785 million to $805 million.
• Declared a quarterly cash dividend of $0.57 per share.

Negatives

• Net income decreased by 38.2% to $11.1 million compared to $18.0 million in Q1 2025.
• GAAP earnings per diluted share decreased by 35.5% to $1.69 from $2.62 in Q1 2025.
• Non-GAAP net income decreased by 14.1% to $13.1 million.
• Non-GAAP earnings per diluted share decreased by 10.4% to $1.99.
• Non-GAAP EBITDA decreased by 6.5% to $23.2 million.
• Operating income decreased to $18.0 million (9.0% of revenue) from $25.5 million (14.0% of revenue) in Q1 2025.
• Net cash used in operating activities was $113.9 million for Q1 2026, compared to $80.0 million used in Q1 2025.

Risks

• Evolving geopolitical, global macroeconomic, and business conditions can affect the business.
• Demand for services may decline due to changes in general and industry-specific economic conditions.
• The development and use of artificial intelligence could impact the business.
• Risks inherent in international operations.
• Foreign currency exchange rate fluctuations can impact financial results.
• Potential for unanticipated expenses and liabilities.
• Uncertainty regarding the timing of engagements for services.
• Competitive services and pricing pressures.

Future Outlook

The company reaffirms its full-year fiscal 2026 guidance, expecting revenue between $785 million and $805 million and a non-GAAP EBITDA margin between 12.0% and 13.0%, both on a constant currency basis relative to fiscal 2025. Management is encouraged by the strong start to the year and supportive market trends but remains mindful of evolving geopolitical and macroeconomic conditions.

Management Comments

• "Maintaining the momentum of a record fiscal 2025, CRA continued its strong performance into the first quarter of fiscal 2026 as revenue increased by 10.5% year over year to $201.0 million," said Paul Maleh, CRA's President and Chief Executive Officer.
• "This represents the highest quarterly revenue in the company's history, besting the previous record set by the fourth quarter of fiscal 2025."
• "This strong practice performance reflected balanced growth across our portfolio, as our Legal & Regulatory offerings grew 11.5% year over year and Management Consulting offerings expanded 8.3%."
• "We are reaffirming our financial guidance for full-year fiscal 2026 of revenue in the range of $785 million to $805 million and non-GAAP EBITDA margin in the range of 12.0% to 13.0%, both on a constant currency basis relative to fiscal 2025," said Maleh.
• "We are encouraged by the strong start to the year, supportive market trends, and the continued replenishing of our sales pipeline. However, we remain mindful that evolving geopolitical, global macroeconomic, and business conditions can affect our business."

Industry Context

StockSavvy.ai notes that CRA International's performance, particularly its record revenue driven by broad practice growth, aligns with a trend of increased demand for specialized consulting services in areas like litigation support, regulatory compliance, and strategic advisory, especially in complex economic and geopolitical environments.

Comparison to Industry Standards

• While specific direct competitors' quarterly results are not detailed in this filing, CRA's revenue growth of 10.5% in a challenging economic climate is a strong indicator. For context, major global consulting firms like Accenture and Deloitte have reported varying growth rates depending on their service lines and geographic focus, with some segments experiencing slower growth due to economic headwinds.
• CRA's reported utilization rate of 77% is generally considered healthy within the professional services industry, indicating efficient resource deployment.
• The decrease in net income and EPS, despite revenue growth, suggests pressure on margins, which is a common challenge across the consulting sector due to increased operational costs and competitive pricing.

Stakeholder Impact

• Shareholders: Benefit from a declared quarterly cash dividend of $0.57 per share and potential for future capital appreciation if revenue growth continues and profitability improves.
• Employees: Continued growth in revenue and headcount suggests job security and potential for performance-based compensation, though profitability pressures could influence future compensation structures.
• Clients: Benefit from the company's broad expertise and continued investment in its service offerings across various practices.

Next Steps

• Continue to monitor evolving geopolitical, global macroeconomic, and business conditions.
• Focus on replenishing the sales pipeline.
• Continue paying quarterly dividends, subject to Board discretion.

Key Dates

Recommendation

The record revenue growth is a significant positive, demonstrating strong demand for CRA's services. However, the concurrent decline in net income and EPS, coupled with the reaffirmation of guidance that implies a moderation of growth in the latter half of the year, suggests a balanced outlook. A 'hold' recommendation reflects the need to see sustained profitability improvements alongside revenue growth before considering a more aggressive stance.

Keywords

CRA International, Charles River Associates, Consulting Services, Financial Results, Q1 2026, Revenue Growth, Earnings Per Share, Dividend