crai-20260404

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________________________________________

FORM 10-Q

________________________________________________________________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 4, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-24049

________________________________________________________________________________________

CRA International, Inc.

(Exact name of registrant as specified in its charter)

________________________________________________________________________________________


			Massachusetts			04-2372210
			(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
			200 Clarendon Street, Boston, MA			02116-5092
			(Address of principal executive offices)			(Zip Code)

(617) 425-3000

(Registrant’s telephone number, including area code)

_____________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, no par value

CRAI

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

Outstanding at May 1, 2026

Common Stock, no par value per share

6,463,038 shares


PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements	3
	Condensed Consolidated Statements of Operations (unaudited)—Fiscal Quarters Ended April 4, 2026 and March 29, 2025	3
	Condensed Consolidated Statements of Comprehensive Income (unaudited)—Fiscal Quarters Ended April 4, 2026 and March 29, 2025	4
	Condensed Consolidated Balance Sheets (unaudited)—April 4, 2026 and January 3, 2026	5
	Condensed Consolidated Statements of Cash Flows (unaudited)—Fiscal Quarters Ended April 4, 2026 and March 29, 2025	6
	Condensed Consolidated Statements of Shareholders’ Equity (unaudited)—Fiscal Quarters Ended April 4, 2026 and March 29, 2025	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	9
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	22
ITEM 4.	Controls and Procedures	22

PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	23
ITEM 1A.	Risk Factors	23
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
ITEM 3.	Defaults Upon Senior Securities	24
ITEM 4.	Mine Safety Disclosures	24
ITEM 5.	Other Information	24
ITEM 6.	Exhibits	25
Signatures		26


	Fiscal Quarter Ended
	April 4, 2026		March 29, 2025
Revenues	$	200,975	$	181,851
Costs of services (exclusive of depreciation and amortization)	145,029		120,354
Selling, general and administrative expenses	34,523		32,538
Depreciation and amortization	3,391		3,411
Income from operations	18,032		25,548
Interest expense, net	(1,011)		(429)
Foreign currency gains (losses), net	378		(474)
Income before provision for income taxes	17,399		24,645
Provision for income taxes	6,267		6,643
Net income	$	11,132	$	18,002
Net income per share:
Basic	$	1.71	$	2.65
Diluted	$	1.69	$	2.62
Weighted average number of shares outstanding:
Basic	6,512		6,775
Diluted	6,588		6,862


	April 4, 2026		January 3, 2026
ASSETS
Current assets:
Cash and cash equivalents	$	32,496	$	18,210
Accounts receivable, net of allowances of $6,750 and $6,664, respectively	141,024		183,264
Unbilled services, net of allowances of $1,698 and $1,489, respectively	92,238		65,598
Prepaid expenses and other current assets	24,789		19,331
Forgivable loans	25,925		16,726
Total current assets	316,472		303,129
Property and equipment, net	36,312		36,713
Goodwill, net	94,473		94,718
Intangible assets, net	5,304		5,686
Right-of-use assets	72,101		76,132
Deferred income taxes	16,550		17,958
Forgivable loans, net of current portion	117,960		90,271
Other assets	3,242		4,266
Total assets	$	662,414	$	628,873
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	24,273	$	30,177
Accrued expenses	132,454		223,460
Deferred revenue and other liabilities	12,647		14,351
Current portion of lease liabilities	17,239		17,223
Current portion of deferred compensation	2,228		10,818
Revolving line of credit	192,000		34,000
Total current liabilities	380,841		330,029
Non-current liabilities:
Deferred compensation and other non-current liabilities	11,582		8,512
Non-current portion of lease liabilities	70,889		76,009
Deferred income taxes	712		725
Total non-current liabilities	83,183		85,246
Commitments and contingencies (Note 9)
Shareholders’ equity:
Preferred stock, no par value; 1,000,000 shares authorized; none issued and outstanding	—		—
Common stock, no par value; 25,000,000 shares authorized; 6,444,116 and 6,547,407 shares issued and outstanding, respectively	—		2,480
Retained earnings	209,189		221,062
Accumulated other comprehensive loss	(10,799)		(9,944)
Total shareholders’ equity	198,390		213,598
Total liabilities and shareholders’ equity	$	662,414	$	628,873


	Common Stock			Retained Earnings		Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Shares Issued	Amount
BALANCE AT JANUARY 3, 2026	6,547,407	$	2,480	$	221,062	$	(9,944)	$	213,598
Net income	—	—		11,132		—		11,132
Foreign currency translation adjustment, net of tax	—	—		—		(855)		(855)

Share-based compensation expense	—	1,366		—		—		1,366
Restricted shares vesting	20,898	—		—		—		—
Redemption of vested employee restricted shares for tax withholding	(8,149)	(1,449)		—		—		(1,449)
Shares repurchased	(116,040)	(2,397)		(19,066)		—		(21,463)
Accrued excise tax on shares repurchased	—	—		(192)		—		(192)
Accrued dividends on unvested shares	—	—		59		—		59
Cash dividends paid ($0.57 per share)	—	—		(3,806)		—		(3,806)
BALANCE AT APRIL 4, 2026	6,444,116	$	—	$	209,189	$	(10,799)	$	198,390


	Fiscal Quarter Ended
Type of Contract	April 4, 2026		March 29, 2025
Consulting services revenues:
Fixed-price	$	35,820	$	30,329
Time-and-materials	165,155		151,522
Total	$	200,975	$	181,851


	Fiscal Quarter Ended
Geographic Breakdown	April 4, 2026		March 29, 2025
Consulting services revenues:
United States	$	160,013	$	149,714
United Kingdom	28,025		23,124
Other	12,937		9,013
Total	$	200,975	$	181,851


	April 4, 2026		January 3, 2026		December 28, 2024
Accounts receivable, net	$	141,024	$	183,264	$	162,293
Unbilled services, net	$	92,238	$	65,598	$	57,255


	Fiscal Quarter Ended		Fiscal Year Ended
	April 4, 2026		January 3, 2026
Beginning balance	$	106,997	$	55,492
Advances	62,367		87,909
Repayments	(50)		(1,933)
Reclassifications from accrued expenses or to other assets (1)	(15,644)		(2,203)
Amortization (2)	(9,685)		(32,721)
Effects of foreign currency translation	(100)		453
Ending balance	$	143,885	$	106,997
Current portion of forgivable loans	$	25,925	$	16,726
Non-current portion of forgivable loans	$	117,960	$	90,271




Goodwill, at January 3, 2026	$	166,611
Accumulated goodwill impairment	(71,893)
Goodwill, net at January 3, 2026	94,718

Foreign currency translation adjustment	(245)
Goodwill, net at April 4, 2026	$	94,473


		April 4, 2026						January 3, 2026
	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Customer relationships	10	$	15,300	$	(9,996)	$	5,304	$	15,300	$	(9,614)	$	5,686


	Fiscal Quarter Ended
	April 4, 2026		March 29, 2025
Amounts included in contract liabilities at the beginning of the period	$	6,586	$	6,290
Performance obligations satisfied in previous periods	$	3,375	$	2,325


	April 4, 2026		January 3, 2026
Compensation and related expenses	$	111,037	$	192,397
Performance awards	7,733		21,278
Direct project accruals	2,603		2,275
Other	11,081		7,510
Total accrued expenses	$	132,454	$	223,460


Period	(a) Total Number of Shares Purchased(1)(2)	(b) Average Price Paid per Share(1)(2)		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2)
January 4, 2026 to January 31, 2026	531	$	189.85	—	$	10,938,899
February 1, 2026 to February 28, 2026	2,216	$	180.80	—	$	65,938,899
March 1, 2026 to April 4, 2026	121,442	$	184.54	116,040	$	44,475,857
Total	124,189	$	185.06	116,040


	CRA INTERNATIONAL, INC.


Date: May 7, 2026	By:	/s/ PAUL A. MALEH
		Paul A. Maleh
		President, Chief Executive Officer, and Chairman of the Board (principal executive officer)


Date: May 7, 2026	By:	/s/ ERIC NIERENBERG
		Eric Nierenberg
		Executive Vice President, Chief Financial Officer and Treasurer (principal financial officer)


Date: May 7, 2026	By:	/s/ SANDRA A. DAVID
		Sandra A. David
		Vice President and Chief Accounting Officer (principal accounting officer)


	Fiscal Quarter Ended
	April 4, 2026		March 29, 2025
Revenues	100.0	%	100.0	%
Costs of services (exclusive of depreciation and amortization)	72.2		66.2
Selling, general and administrative expenses	17.2		17.9
Depreciation and amortization	1.7		1.9
Income from operations	9.0		14.0
Interest expense, net	(0.5)		(0.2)
Foreign currency gains (losses), net	0.2		(0.3)
Income before provision for income taxes	8.7		13.6
Provision for income taxes	3.1		3.7
Net income	5.5	%	9.9	%

SEC Form 10-Q filed by CRA International Inc.