CRA International (CRAI) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 grew 10.8% year-over-year to $185.9 million, with year-to-date revenue reaching $555 million and broad-based growth across practices and geographies.

• Net income for Q3 2025 was $11.5 million, nearly unchanged year-over-year, while year-to-date net income rose 31% to $41.6 million.

• Non-GAAP EBITDA for Q3 2025 grew 14.6% to $24.4 million, with a margin of 13.1%.

• Seven of eleven practices posted year-over-year growth, with antitrust, energy, finance, and IP practices achieving double-digit gains.

• International revenue surged 30.3% year-over-year, driven by antitrust and life sciences practices.

Financial highlights

• Non-GAAP net income, EPS, and EBITDA rose 12.7%, 16.4%, and 14.6% year-over-year, respectively.

• Q3 2025 diluted EPS was $1.73, up from $1.67 in Q3 2024; non-GAAP EPS was $2.06.

• Gross margin for Q3 2025 was 29.3%, down from 31.3% a year ago; year-to-date gross margin improved to 31.4%.

• Consultant headcount ended at 968, down 1% year-over-year but up 3.3% sequentially.

• Cash and cash equivalents at quarter-end were $22.5 million, with $95 million in borrowings.

Outlook and guidance

• FY2025 revenue guidance raised to $740–$748 million, up from $730–$745 million.

• Non-GAAP EBITDA margin guidance increased to 12.6%–13.0% from 12.3%–13.0%.

• Fiscal year ends January 3, 2026, with a 14th week in Q4 2025.

• Management expects current cash, cash equivalents, and available credit to be sufficient for at least the next 12 months.