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Did CRA International beat or miss consensus estimates last quarter?

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What were the key takeaways from CRA International’s earnings call?

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What does CRA International do and what are its main business segments?

- **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.


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