CRA International, Inc. (NASDAQ: CRAI) reported fourth‑quarter 2025 results that included revenue of $197.0 million, up 11.6% year‑over‑year, and full‑year revenue of $751.6 million, a 10.5% increase from the prior year. The company’s non‑GAAP net income was $13.7 million for the quarter and $54.8 million for the year, reflecting continued profitability growth driven by strong demand in its Antitrust & Competition Economics, Energy, Forensic Services, and Labor & Employment practices.
The company’s non‑GAAP earnings per share (EPS) of $2.06 fell slightly short of the consensus estimate of $2.11 but matched or narrowly beat the $2.05 estimate used by some analysts. The modest beat or in‑line performance is attributable to a mix of higher‑margin work in the Antitrust and Energy segments offset by a slight decline in the Forensic Services segment, which experienced increased competition and pricing pressure. The EPS outcome also reflects the company’s disciplined cost management, which helped contain operating expenses even as the firm invested in AI‑enabled analytics and talent acquisition.
Operating margin eased to 10.5% from 12.1% in the same quarter last year, while non‑GAAP EBITDA margin slipped slightly. The margin compression is largely due to a shift toward lower‑margin consulting engagements and higher direct‑labor costs associated with the company’s AI initiatives. Despite the compression, the company maintained a healthy margin profile, and management highlighted that the investments are expected to generate long‑term revenue growth and higher‑margin opportunities.
Management raised its full‑year 2026 revenue guidance to a constant‑currency range of $785 million to $805 million, up from the previous $760 million to $780 million range. The guidance increase signals confidence in continued demand across core practice areas and the expected acceleration of AI‑driven services. The company also reaffirmed its non‑GAAP EBITDA margin outlook of 12.0% to 13.0%, indicating that it expects to preserve profitability even as it expands its service mix.
The company announced a $55 million expansion of its share‑repurchase program and a quarterly cash dividend of $0.57 per share, payable on March 20, 2026. The dividend increase and share‑repurchase expansion underscore CRAI’s commitment to returning capital to shareholders while maintaining investment in high‑growth areas.
Management emphasized that the company’s AI strategy is “disciplined and governance‑focused,” with controlled pilots, strong quality‑control processes, and strict data‑security safeguards. CEO Paul Maleh noted that “Companies deploying AI face new competition questions, valuation challenges, intellectual property issues, and governance requirements that will likely increase demand for CRA’s expert judgment and rigorous economic analysis.”
Investors reacted cautiously to the results. While the revenue beat and guidance raise were positive signals, the modest EPS outcome and margin compression tempered enthusiasm, leading to a muted market response. The company’s forward guidance and continued focus on AI‑enabled services suggest a trajectory of sustained growth, but the margin pressure highlights the need for ongoing cost discipline and pricing strategy adjustments.
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