Charles River Associates (NASDAQ:CRAI) Issues Quarterly Earnings Results

Charles River Associates (NASDAQ:CRAI) posted its quarterly earnings data on Thursday. The business services provider reported $2.16 earnings per share for the quarter, topping the consensus estimate of $2.15 by $0.01, FiscalAI reports. The firm had revenue of $210.81 million for the quarter, compared to analysts’ expectations of $198.91 million. Charles River Associates had a net margin of 6.20% and a return on equity of 26.56%.

Here are the key takeaways from Charles River Associates’ conference call:

• Record Q2 performance: Revenue rose 12.8% year over year to $210.8 million, the highest quarterly level in CRA’s history, while non-GAAP EBITDA increased 15.3% and EPS rose 14.9%.
• Management raised fiscal 2026 constant-currency revenue guidance to $805 million–$820 million from $785 million–$805 million, while reaffirming its 12.0%–13.0% non-GAAP EBITDA margin outlook amid a strong pipeline.
• Growth was broad-based, with eight practices contributing year-over-year gains and particularly strong momentum in Energy, Life Sciences, Forensic Services, Risk, Investigations & Analytics, and Antitrust; international revenue increased 32.9%.
• CRA is adding capacity to support demand, with consultant headcount up 3.3% year over year and utilization improving to 77%; management expects mid-single-digit headcount growth by year-end and continued mid-to-upper-70s utilization.
• Net debt reached $197.6 million after working-capital funding, talent investments, and shareholder returns, while DSO increased to 113 days from 100 days in Q1; higher forgivable-loan amortization and a 33%–34% second-half tax rate may also pressure reported profitability.

Charles River Associates Price Performance

NASDAQ CRAI opened at $169.31 on Friday. Charles River Associates has a fifty-two week low of $132.17 and a fifty-two week high of $227.29. The stock’s 50-day moving average is $157.72 and its two-hundred day moving average is $161.92. The firm has a market cap of $1.09 billion, a P/E ratio of 22.54, a price-to-earnings-growth ratio of 1.29 and a beta of 0.66.

Charles River Associates Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 14th. Shareholders of record on Tuesday, August 25th will be given a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, August 25th. Charles River Associates’s dividend payout ratio is presently 31.67%.

Insider Buying and Selling at Charles River Associates

In other news, EVP Jonathan D. Yellin sold 2,250 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $147.72, for a total transaction of $332,370.00. Following the completion of the sale, the executive vice president owned 13,247 shares in the company, valued at approximately $1,956,846.84. This represents a 14.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. lifted its holdings in Charles River Associates by 8.2% in the 4th quarter. Russell Investments Group Ltd. now owns 4,180 shares of the business services provider’s stock worth $839,000 after purchasing an additional 318 shares during the last quarter. Kennedy Capital Management LLC grew its holdings in Charles River Associates by 1.2% during the fourth quarter. Kennedy Capital Management LLC now owns 6,489 shares of the business services provider’s stock valued at $1,302,000 after purchasing an additional 79 shares during the last quarter. Entropy Technologies LP acquired a new position in Charles River Associates during the fourth quarter valued at approximately $401,000. Arkadios Wealth Advisors raised its position in shares of Charles River Associates by 3.1% in the fourth quarter. Arkadios Wealth Advisors now owns 4,388 shares of the business services provider’s stock valued at $881,000 after purchasing an additional 134 shares during the period. Finally, New York State Common Retirement Fund raised its position in shares of Charles River Associates by 25.0% in the fourth quarter. New York State Common Retirement Fund now owns 7,495 shares of the business services provider’s stock valued at $1,504,000 after purchasing an additional 1,500 shares during the period. 84.13% of the stock is owned by institutional investors.

Key Charles River Associates News

Here are the key news stories impacting Charles River Associates this week:

• Positive Sentiment: Record Q2 performance and higher outlook: Revenue increased 12.8% year over year to a record $210.8 million, while adjusted EPS reached $2.16, exceeding analyst estimates. Growth was broad-based, with six practices reporting double-digit revenue gains. CRA raised fiscal 2026 revenue guidance to $805 million-$820 million, above the roughly $801 million consensus, and maintained its 12%-13% non-GAAP EBITDA margin outlook. CRAI Q2 Earnings Beat on Broad-Based Growth, Revenue View Raised
• Positive Sentiment: Capital returned to shareholders: CRA announced a quarterly dividend of $0.57 per share, payable September 14 to shareholders of record August 25. The company also returned $31.4 million to shareholders during the quarter through dividends and share repurchases, signaling confidence in cash generation. CRA International Posts Record Q2 Results, Raises Guidance
• Neutral Sentiment: Credit facility expanded and extended: CRA refinanced and increased its credit facility to as much as $400 million, consisting of a $75 million term loan and a $325 million revolving facility. The additional liquidity may support flexibility and capital allocation, although higher borrowing capacity also increases attention to leverage and financing costs. Charles River Associates Announces Increase and Extension of Credit Facility
• Negative Sentiment: Insider-selling overhang: Recent reported insider activity showed sales but no purchases over the past six months, including sales by CEO Paul Maleh and other executives. While such transactions do not necessarily indicate deteriorating fundamentals, they may weigh on sentiment after the strong earnings report.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings downgraded shares of Charles River Associates from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, May 11th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $245.00.

About Charles River Associates

Charles River Associates (NASDAQ: CRAI) is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients’ needs.

The firm’s service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management.