CRA International 2025 Q2 Earnings Beats Expectations as Net Income Surges 85%

CRA International (CRAI) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The total revenue of CRA International increased by 9.0% to $186.88 million in 2025 Q2, up from $171.44 million in 2024 Q2. CRA International surpassed analyst expectations with its strong financial performance in the second quarter of fiscal 2025, driven by robust demand across multiple practices. The company raised its full-year revenue guidance to a range of $730 million to $745 million, reflecting continued confidence in its growth trajectory amid macroeconomic uncertainties.

Revenue
The total revenue of CRA International increased by 9.0% to $186.88 million in 2025 Q2, up from $171.44 million in 2024 Q2.

Earnings/Net Income
CRA International's EPS rose 88.5% to $1.81 in 2025 Q2 from $0.96 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $12.12 million in 2025 Q2, marking 85.4% growth from $6.54 million in 2024 Q2. The EPS reflects strong financial performance consistent with the company's growth.

Post-Earnings Price Action Review
The strategy of buying CRA International (CRAI) shares after their revenue raise quarter-over-quarter on the financial report release date and holding for 30 days delivered impressive returns over the past three years. Achieving a total return of 350.02%, the strategy significantly surpassed the benchmark return of 85.57% by a margin of 264.45%. With a compound annual growth rate (CAGR) of 35.39% and a maximum drawdown of 0.00%, the strategy demonstrated robust performance in terms of both returns and risk management. This approach highlights the effectiveness of capitalizing on CRA International’s positive earnings momentum and underscores the potential for substantial gains while mitigating risk through strategic timing and holding periods.

CEO Commentary
Paul Maleh, CEO of CRA International, highlighted a strong performance in Q2 2025, with revenue increasing 9% year-over-year to $186.9 million. He noted that 7 of the 11 practices experienced growth, particularly in Antitrust & Competition Economics, Energy, Intellectual Property, and Labor & Employment, which each achieved double-digit revenue growth. Maleh expressed optimism about the firm’s trajectory, emphasizing a healthy sales pipeline and consultant productivity, with utilization rates improving to 76%. He acknowledged the importance of navigating uncertain global macroeconomic conditions but maintained a bullish outlook based on the firm’s continued profitability and strategic investments.

Guidance
CRA International raised its revenue guidance for fiscal 2025 to a range of $730 million to $745 million, up from the previous range of $715 million to $735 million. The company also increased its non-GAAP EBITDA margin guidance to between 12.3% and 13.0%. This reflects a strong first half of the fiscal year and a healthy pipeline of opportunities, positioning the firm for continued growth despite potential macroeconomic uncertainties.

Additional News
In recent non-earnings related developments, Charles River Associates (CRA) announced the appointment of Eric Nierenberg as Executive Vice President, effective August 4, 2025, expanding their executive leadership team. Additionally, CRA declared a quarterly cash dividend of $0.49 per common share, payable on September 12, 2025, to shareholders of record as of August 26, 2025. The company also strengthened its Antitrust & Competition Economics Practice by welcoming Dr. Josh Sherman as Vice President, further enhancing its capabilities in this critical area. These strategic moves reflect CRA's commitment to leadership growth and shareholder returns while bolstering its expertise in key consulting domains.