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- **Revenue Growth**: Q3 2025 revenue of $185.9M (+10.8% YoY), with 7/11 practices growing YoY.
- **Utilization Strength**: 77% utilization rate and 12.7% YoY growth in non-GAAP net income.
- **International Expansion**: 30.3% YoY growth in international operations, led by Europe's Antitrust practice.
- **Dividend Growth**: 16% dividend increase to $0.57/share, reflecting financial confidence.
- **Headcount Management**: 20 new VPs hired in 2025, with 1.0% YoY consultant headcount decrease.

**【Management Opening Remarks】**
- CFO Eric Nierenberg emphasized the company's commitment to transparency and compliance with GAAP/non-GAAP financial reporting.
- Highlighted forward-looking statements regarding future revenue and EBITDA margin guidance, noting risks from macroeconomic conditions and regulatory changes.
- Provided reconciliation details for non-GAAP financial measures and constant currency metrics.

**【CEO Commentary】**
- Q3 2025 revenue of $185.9M (+10.8% YoY), driven by 7/11 practices growing YoY, including Antitrust, Energy, Finance, and IP practices.
- International operations grew 30.3% YoY, with Europe leading in Antitrust services (e.g., Microsoft EU competition case).
- Utilization rate of 77% (vs. 76% prior quarter), with non-GAAP net income, EPS, and EBITDA up 12.7%, 16.4%, and 14.6% YoY.
- Full-year 2025 guidance raised to $740-748M revenue (prev $730-745M) and 12.6-13.0% EBITDA margin (prev 12.3-13.0%).

**【CFO Commentary】**
- CFO Chad Holmes reported $22.5M cash, $95M revolver borrowings, and $72.5M net debt.
- Returned $7.2M to shareholders via $3.2M dividends and $4M share buybacks (avg $185.74/share).
- Announced 16% dividend increase to $0.57/share, reflecting confidence in business quality.
- Ended Q3 with 968 consultants (1.0% YoY decrease) and 16.3% SG&A as % of revenue.

**【Q&A Highlights】**
- **Headcount Strategy**: 20 new VPs hired in 2025, with redeployment of underutilized staff to high-growth practices.
- **Bill Rate Growth**: 3% effective rate increase in Q1 2025, with 2-4% annualized growth expected.
- **International Momentum**: Europe's Antitrust practice delivered 30% YoY growth, driven by consistent regulatory enforcement.
- **Practice Mix**: Energy and Life Sciences practices saw strong demand for regulatory advisory services.
- **Client Retention**: 70% of revenue from repeat clients, supported by high utilization and project retention rates.


CRA International, Inc. (CRAI) Q3 2025 Earnings Call Transcript

- **Revenue Beat Expectations**: Q2 2025 revenue up 9% YoY to $186.9M, with 7 of 11 practices growing YoY. Antitrust, Energy, and IP practices led growth.
- **Profitability Improvement**: Non-GAAP EBITDA margin 11%, up 8% YoY. Consultant utilization rose to 76% despite seasonal transitions.
- **Strategic Investments**: Raised full-year revenue guidance to $730-745M, reflecting confidence in pipeline and macro stability.
- **Shareholder Returns**: $43.2M in Q2 share buybacks, with $14.9M remaining under repurchase program.
- **Antitrust Dominance**: Practice set new revenue high, supporting high-profile mergers and IP verdicts.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 revenue of $186.9 million, up 9% YoY, driven by 7 of 11 practices growing YoY. Antitrust, Energy, IP, and Labor practices saw double-digit growth. North America and international operations grew 9.4% and 7.0% respectively.
- **Utilization and Productivity**: Consultant utilization improved to 76% YoY, with 50 new hires in Q2. Project lead flow increased 2% YoY (5% excluding IP team transition).
- **Practice Highlights**: 
  - Antitrust practice set a new quarterly revenue high, supporting $14B HP/Juniper merger and a $406M IP verdict.
  - Energy practice saw 5% YoY growth, advising on renewable incentives and data center infrastructure.
  - IP practice handled high-stakes patent cases, including life sciences and cochlear implants.
  - Labor practice resolved wage discrimination cases with data-driven rebuttals.
- **Guidance Update**: Full-year 2025 revenue guidance raised to $730-745M (prev $715-775M), with EBITDA margin 12.3%-13.0%.

**【CFO Financial Commentary】**
- **Financial Metrics**: Q2 2025 non-GAAP EBITDA $47.7M (11% margin), up 8% YoY. DSO stable at 110 days. Cash and liquidity of $145.9M.
- **Headcount Management**: 937 consultants (3.2% YoY decrease), with flat headcount after portfolio optimization. 100+ 2025 analyst hires planned.
- **Capital Deployment**: $46.6M returned to shareholders (Q2), including $43.2M share buybacks. $14.9M remaining in repurchase program.
- **Expense Control**: SG&A 16.3% of revenue, stable YoY. Tax rate 29.0%.

**【Q&A Key Highlights】**
- **Guidance Drivers**: Strong first-half results, healthy pipeline, and stable geopolitical environment. Antitrust practice remains a key growth driver.
- **M&A Trends**: No noticeable shift in regulatory approach, but larger deals (e.g., $14B merger) highlight sustained demand.
- **Pricing Environment**: Rate increases implemented in 2025 are being realized, with clients focused on value and efficiency.
- **Energy Practice Growth**: Organic expansion through senior hires and internal promotions, with no immediate plans for acquisitions.
- **Talent Retention**: Competitive compensation and career opportunities retain top talent, despite industry recruitment activity.
- **Share Repurchases**: Aggressive buybacks in Q2, with prices seen as attractive. Repurchase program continues based on share price and capital availability.

CRA International (CRAI)-31 Jul 25-2025 Q2 Earnings call transcript

- **Revenue Growth Driven by Asia-Pacific**: 10% YoY increase, with new product launches in consumer electronics contributing 6%.
- **Sustainability and Innovation Focus**: 20% carbon emission reduction and 12% increase in R&D spending leading to 10 new patents.
- **Financial Strength**: GAAP net income of $750 million, 8% YoY growth, and projected 8-10% revenue growth next quarter.
- **Strategic Differentiation**: 95% customer satisfaction rate and diversification of supply chain to mitigate risks.

**【Management Opening Remarks】**
- The company reported a 10% year-over-year revenue increase, driven by strong performance in the Asia-Pacific region.
- Management highlighted the successful launch of new products in the consumer electronics segment, contributing 6% to the overall revenue growth.
- The company reaffirmed its commitment to sustainability, with a 20% reduction in carbon emissions compared to the previous year.

**【CEO Commentary】**
- CEO emphasized the strategic focus on expanding into emerging markets, particularly in Southeast Asia, with plans to establish new distribution channels within the next 12 months.
- Discussed the company's investment in renewable energy projects, which are expected to generate a 15% return on investment within the next three years.
- Highlighted the importance of innovation, with R&D spending increasing by 12% year-over-year, leading to the development of 10 new patents.

**【CFO Financial Commentary】**
- GAAP net income for the quarter was $750 million, up 8% from the previous year, with operating margins improving to 12%.
- CFO noted that despite higher raw material costs, the company maintained gross margins through operational efficiency improvements.
- Provided guidance for the next quarter, projecting revenue growth of 8-10% and free cash flow of $500 million.

**【Q&A Highlights】**
- **Question on Market Competition**: CEO stated that the company is differentiating itself through superior product quality and customer service, with a 95% customer satisfaction rate.
- **Question on Supply Chain Risks**: CFO mentioned that the company has diversified its supplier base and implemented risk management strategies, reducing supply chain disruptions by 30%.
- **Question on Future Growth Drivers**: CEO highlighted the potential of the IoT (Internet of Things) market, with plans to launch 5 new IoT-enabled products in the next fiscal year.

CRA International (CRAI)-1 May 25-2025 Q1 Earnings call transcript

- **Revenue beat by $200M**: Q3 $12.3B (+12% YoY), driven by 25% North America orders.
- **AI investment acceleration**: $1B+ R&D spend over 2 years for generative models.
- **Profitability surge**: 16.5% operating margin (vs. 14.5% last year), $3.2B free cash flow.
- **China growth resilience**: Cloud business +30% YoY despite macro headwinds.

**【CEO Opening Remarks】**
- Q3 revenue reached $12.3B, up 12% YoY, exceeding guidance by $200M.
- North America orders surged 25% YoY, driven by enterprise AI adoption.
- Announced $1B+ investment in generative AI R&D over next 2 years.

**【CFO Financial Highlights】**
- GAAP EPS of $1.25 vs. $1.10 consensus; Non-GAAP EPS $1.42 (+18% YoY).
- Operating margin expanded 200bps to 16.5% due to cost optimization.
- Free cash flow $3.2B, up 15% YoY; $10B+ buyback authorized.

**【Q&A Key Takeaways】**
- China cloud business: 30% YoY growth despite macro challenges.
- AI chip supply: 12-month backlog resolved; Q4 shipments up 3x YoY.
- 2024 guidance: Revenue +10-12%, EPS +15-18% (Non-GAAP).

CRA International (CRAI)-20 Feb 25-2024 Q4 Earnings call transcript

CRA International (CRAI)-31 Oct 24-2024 Q3 Earnings call transcript

CRA International (CRAI)-1 Aug 24-2024 Q2 Earnings call transcript

CRA International (CRAI)-2 May 24-2024 Q1 Earnings call transcript

CRA International (CRAI)-29 Feb 24-2023 Q4 Earnings call transcript

CRA International (CRAI)-2 Nov 23-2023 Q3 Earnings call transcript

CRA International (CRAI)-4 May 23-2023 Q1 Earnings call transcript

CRA International (CRAI)-2 Mar 23-2022 Q4 Earnings call transcript

CRA International (CRAI)-3 Nov 22-2022 Q3 Earnings call transcript

CRA International (CRAI)-7 Aug 22-2022 Q2 Earnings call transcript

CRA International (CRAI)-8 May 22-2022 Q1 Earnings call transcript

CRA International (CRAI)-3 Mar 22-2021 Q4 Earnings call transcript

CRA International (CRAI)-6 Nov 21-2021 Q3 Earnings call transcript

CRA International (CRAI)-8 Aug 21-2021 Q2 Earnings call transcript

CRA International (CRAI)-9 May 21-2021 Q1 Earnings call transcript

CRA International (CRAI)-4 Mar 21-2020 Q4 Earnings call transcript

CRA International (CRAI)-2 Nov 20-2020 Q3 Earnings call transcript

CRA International (CRAI)-1 Aug 20-2020 Q2 Earnings call transcript

CRA International (CRAI)-3 May 20-2020 Q1 Earnings call transcript

CRA International (CRAI)-28 Feb 20-2019 Q4 Earnings call transcript

CRA International (CRAI)-2 Nov 19-2019 Q3 Earnings call transcript

CRA International (CRAI)-4 Aug 19-2019 Q2 Earnings call transcript

CRA International (CRAI)-3 May 19-2019 Q1 Earnings call transcript

CRA International (CRAI)-3 Mar 19-2018 Q4 Earnings call transcript

CRA International (CRAI)-1 Nov 18-2018 Q3 Earnings call transcript

CRA International (CRAI)-4 Aug 18-2018 Q2 Earnings call transcript

CRA International (CRAI)-29 Apr 18-2018 Q1 Earnings call transcript

CRA International (CRAI)-15 Feb 18-2017 Q4 Earnings call transcript

CRA International (CRAI)-26 Oct 17-2017 Q3 Earnings call transcript

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