What changed in this filing

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Item 1. Financial Statements

2025-05-01 compared with 2024-10-31 · 114 added, 169 removed, 310 unchanged (48% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

Fiscal Quarter Ended Fiscal Year-to-Date

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

2025 March 30,

Revenues $ 181,851 $ 171,789

18 unchanged sentences

(in thousands)

Fiscal Quarter Ended Fiscal Year-to-Date

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

2025 March 30,

Net income $ 18,002 $ 13,691

6 unchanged sentences

(in thousands, except share data)

September 28,

2025 December 28,

9 unchanged sentences

Property and equipment, net 42,785 45,205

Goodwill 94,577 93,989

Goodwill, net 94,139 93,737

Intangible assets, net 6,834 7,216

34 unchanged sentences

(in thousands)

Fiscal Year-to-Date Period Ended

September 28,

2024 September 30,

Fiscal Quarter Ended

2025 March 30,

OPERATING ACTIVITIES:

18 unchanged sentences

Purchases of property and equipment ( 974 ) ( 730 )

Consideration paid for acquisition ( 1,500 ) ( 577 )

Net cash used in investing activities ( 974 ) ( 730 )

5 unchanged sentences

Repurchase of common stock — ( 9,242 )

Net cash provided by (used in) financing activities 15,772 ( 1,390 )

Net cash provided by financing activities 79,058 56,052

Effect of foreign exchange rates on cash and cash equivalents 797 ( 706 )

4 unchanged sentences

Increase (decrease) in accounts payable and accrued expenses for property and equipment $ ( 596 ) $ 454

Asset retirement obligations $ 191 $ —

Excise tax on share repurchases $ 39 $ ( 65 )

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

FOR THE FISCAL YEAR-TO-DATE PERIOD ENDED SEPTEMBER 28, 2024 (unaudited)

FOR THE FISCAL QUARTER ENDED March 29, 2025 (unaudited)

(in thousands, except share data)

16 unchanged sentences

BALANCE AT MARCH 29, 2025 6,789,893 599 $ 240,028 $ ( 13,308 ) $ 227,319

Net income — — 6,538 — 6,538

Foreign currency translation adjustment — — — ( 315 ) ( 315 )

Share-based compensation expense — 1,357 — — 1,357

Restricted shares vesting 6,143 — — — —

Redemption of vested employee restricted shares for tax withholding ( 2,340 ) ( 346 ) — — ( 346 )

Shares repurchased ( 140,497 ) ( 1,011 ) ( 23,095 ) — ( 24,106 )

Accrued excise tax on shares repurchased — — ( 235 ) — ( 235 )

Accrued dividends on unvested shares — — ( 33 ) — ( 33 )

Cash dividends paid ($ 0.42 per share)

— — ( 2,901 ) — ( 2,901 )

BALANCE AT JUNE 29, 2024 6,752,604 — $ 205,351 $ ( 13,602 ) $ 191,749

Net income — — 11,437 — 11,437

Foreign currency translation adjustment — — — 2,895 2,895

Share-based compensation expense — 1,364 — — 1,364

Restricted shares vesting 9,272 — — — —

Redemption of vested employee restricted shares for tax withholding ( 294 ) ( 53 ) — — ( 53 )

Accrued excise tax on shares repurchased — — 16 — 16

Accrued dividends on unvested shares — — ( 21 ) — ( 21 )

Cash dividends paid ($ 0.42 per share)

— — ( 2,874 ) — ( 2,874 )

BALANCE AT SEPTEMBER 28, 2024 6,761,582 1,311 $ 213,909 $ ( 10,707 ) $ 204,513

See accompanying notes to the condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

FOR THE FISCAL YEAR-TO-DATE PERIOD ENDED September 30, 2023 (unaudited)

FOR THE FISCAL QUARTER ENDED March 30, 2024 (unaudited)

(in thousands, except share data)

15 unchanged sentences

— — ( 3,075 ) — ( 3,075 )

BALANCE AT APRIL 1, 2023 6,997,933 $ — $ 210,713 $ ( 13,929 ) $ 196,784

Net income — — 9,508 — 9,508

Foreign currency translation adjustment — — — 1,074 1,074

Share-based compensation expense — 1,158 — — 1,158

Restricted shares vesting 3,630 — — — —

Redemption of vested employee restricted shares for tax withholding ( 1,237 ) ( 136 ) — — ( 136 )

Shares repurchased ( 31,090 ) ( 554 ) ( 2,446 ) — ( 3,000 )

Accrued excise tax on shares repurchased — — ( 27 ) — ( 27 )

Accrued dividends on unvested shares — — ( 47 ) — ( 47 )

Cash dividends paid ($ 0.36 per share)

— — ( 2,528 ) — ( 2,528 )

BALANCE AT JULY 1, 2023 6,969,236 $ 468 $ 215,173 $ ( 12,855 ) $ 202,786

Net income — — 8,596 — 8,596

Foreign currency translation adjustment — — — ( 1,755 ) ( 1,755 )

Share-based compensation expense — 926 — — 926

Restricted shares vesting 10,004 — — — —

Redemption of vested employee restricted shares for tax withholding ( 299 ) ( 31 ) — — ( 31 )

Accrued excise tax on shares repurchased — — 10 — 10

Accrued dividends on unvested shares — — ( 31 ) — ( 31 )

Cash dividends paid ($ 0.36 per share)

— — ( 2,543 ) — ( 2,543 )

BALANCE AT SEPTEMBER 30, 2023 6,978,941 $ 1,363 $ 221,205 $ ( 14,610 ) $ 207,958

BALANCE AT MARCH 30, 2024 6,889,298 $ — $ 225,077 $ ( 13,287 ) $ 211,790

See accompanying notes to the condensed consolidated financial statements.

15 unchanged sentences

GAAP”) for annual financial statements.

Certain prior period amounts have been reclassified to conform to the current period presentation.

These reclassifications had no effect on previously reported results of operations, financial position, or cash flows.

In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair presentation of CRA’s results of operations, financial position, cash flows, and shareholders’ equity for the interim periods presented in conformity with U.S.

Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year.

These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 30, 2023 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 29, 2024 (the “2023 Form 10-K”).

Note 1 to the Consolidated Financial Statements included in Part II, Item 8, on the 2023 Form 10-K describes the significant accounting policies and methods used in preparation of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

Recent Accounting Standards Not Yet Adopted

These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 28, 2024 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 20, 2025.

Note 1 to the Consolidated Financial Statements included in Part II, Item 8, on Form 10-K for the fiscal year ended December 28, 2024 describes the significant accounting policies and methods used in preparation of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

Recent Accounting Standards

Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

On December 28, 2024, CRA adopted Accounting Standards Update ("ASU") No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU 2023-07) .

The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 also requires that a public entity that has a single reportable segment provide all disclosures required by these amendments and all existing segment disclosures in Topic 280.

ASU 2023-07 is effective for CRA for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

CRA plans to adopt the amendment during the fourth fiscal quarter of 2024.

CRA expects the adoption of this ASU will impact its disclosures, but will not have a material effect on its consolidated financial statements.

Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which established reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

Recent Accounting Standards Not Yet Adopted

Income Taxes (Topic 740):

3 unchanged sentences

Improvements to Income Tax Disclosures ("ASU 2023-09") .

The ASU requires disclosure of specific categories in the rate reconciliation, provides additional information for reconciling items that meet a quantitative threshold, and discloses the amount of income taxes paid disaggregated by federal, state, foreign taxes, and individual jurisdiction.

ASU 2023-09 also requires income (or loss) from

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign.

The ASU expands annual disclosures in an entity’s income tax rate reconciliation table and requires annual disclosures regarding cash taxes paid both in the U.S.

(federal, state and local) and foreign jurisdictions.

ASU 2023-09 also requires income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign.

ASU 2023-09 is effective for CRA for annual periods beginning after December 15, 2024.

CRA plans to adopt the amendment during the annual reporting for fiscal year 2025.

CRA has begun to assess the impact of the amendment and has modeled out the changes to its income tax disclosures.

CRA has begun to assess the impact of the amendment and has

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

modeled out the changes to its income tax disclosures.

As the amendment relates solely to disclosures, the adoption is not expected to have an effect on CRA's financial results.

Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No.

2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses ("ASU 2024-03") .

The ASU requires disclosure, in the notes to the financial statements, specified information about certain costs and expenses including employee compensation, depreciation, and intangible asset amortization.

ASU 2024-03, further clarified in ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense

Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date is effective for CRA for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

CRA is in the process of evaluating the impact of adopting ASU 2024-03.

Revenues and Allowances

1 unchanged sentence

Time-and-materials contracts are typically used for litigation, regulatory, and financial consulting projects while fixed-price contracts are principally used for management consulting projects.

In general, project costs are classified in costs of services (exclusive of depreciation and amortization) and are based on the direct salary of CRA’s employee consultants on the engagement, plus all direct expenses incurred to complete the project, including any amounts billed to CRA by its non-employee experts.

In general, project costs are classified in costs of services and are based on the direct salary of CRA’s employee consultants on the engagement, plus all direct expenses incurred to complete the project, including any amounts billed to CRA by its non-employee experts.

Disaggregation of Revenue

The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands):

Fiscal Quarter Ended Fiscal Year-to-Date

Type of Contract September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

Type of Contract March 29,

2025 March 30,

Consulting services revenues:

3 unchanged sentences

Revenues have been attributed to locations based on the location of the legal entity generating the revenues.

Fiscal Quarter Ended Fiscal Year-to-Date

Geographic Breakdown September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

Geographic Breakdown March 29,

2025 March 30,

Consulting services revenues:

3 unchanged sentences

Total $ 181,851 $ 171,789

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Reserves for Variable Consideration and Credit Risk

3 unchanged sentences

Adjustments to the reserves for variable consideration are included in revenues on the condensed consolidated statements of operations.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

CRA also maintains allowances for accounts receivable and unbilled services for estimated losses resulting from clients’ failure to make required payments.

Under ASC 326, CRA estimates allowances based on historical charge-off rates, adjusted for days sales outstanding and expected changes to clients’ financial conditions during the anticipated collection period.

Bad debt expense, net of recoveries of previously written off allowances, is recorded as a component of selling, general and administrative expenses on the condensed consolidated statements of operations.

The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):

Fiscal Quarter Ended Fiscal Year-to-Date

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

2025 March 30,

Bad debt expense (recovery), net $ 433 $ 663

3 unchanged sentences

The following expenses are subject to reimbursement (in thousands):

Fiscal Quarter Ended Fiscal Year-to-Date

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

2025 March 30,

Reimbursable expenses $ 16,506 $ 17,061

Contract Balances from Contracts with Customers

The timing of revenue recognition, billings, and cash collections results in accounts receivables, unbilled services, and contract liabilities on the consolidated balance sheets.

The timing of revenue recognition, billings, and cash collections results in accounts receivables, unbilled services, and contract liabilities on the condensed consolidated balance sheets.

Revenues recognized for services performed, but not yet billed to clients, are recorded as unbilled services.

The following table presents the open and closing balances of CRA's accounts receivable, net and unbilled services, net (in thousands):

September 28,

2025 December 28,

3 unchanged sentences

CRA defines contract assets as assets for which it has recorded revenue because it determines that it is probable that it will earn a performance-based or contingent fee, but is not yet entitled to receive a fee because certain events, such as completion of the measurement period or client approval, must occur.

The contract assets balance was immaterial as of September 28, 2024, December 30, 2023, and December 31, 2022.

The contract assets balance was immaterial as of March 29, 2025, December 28, 2024, and December 30, 2023.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

When consideration is received, or such consideration is unconditionally due from a customer prior to transferring consulting services to the customer under the terms of a contract, a contract liability is recorded.

Contract liabilities are recognized as revenue after performance obligations have been satisfied and all revenue recognition criteria have been met.

Contract liabilities are included in deferred revenue and other liabilities in the condensed consolidated balance sheets.

The following table presents the closing balances of CRA's contract liabilities (in thousands):

September 28,

2025 December 28,

1 unchanged sentence

Contract liabilities $ 4,228 $ 7,340 $ 6,037

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands):

Fiscal Quarter Ended Fiscal Year-to-Date

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

2025 March 30,

Amounts included in contract liabilities at the beginning of the period $ 6,290 $ 4,703

3 unchanged sentences

A portion of these loans is collateralized.

The forgivable loans have terms that are generally between two and six years with interest rates currently ranging up to 5.12 %.

The forgivable loans have terms that are generally between two and six years with interest rates currently between 0.59% and 5.12 %.

The principal amount of forgivable loans and accrued interest is forgiven by CRA over the term of the loans, so long as the employee or non-employee expert continues employment or affiliation with CRA and complies with certain contractual requirements.

During the fiscal quarter ended March 29, 2025 and fiscal year 2024 there were no balances due under these loans for which the full principal and interest were not forgiven or not collected upon termination of employment or affiliation with CRA.

The forgiveness of the principal amount of the loans is recorded as compensation over the service period, which is consistent with the term of the loans.

The following table presents forgivable loan activity for the respective periods (in thousands):

September 28,

Fiscal Quarter Ended Fiscal Year Ended

2025 December 28,

11 unchanged sentences

(1) Relates to the reclassification of performance awards previously recorded as accrued expenses or forgivable loans that have been reclassified to other receivables.

(2) During the quarter ended June 29, 2024, approximately $ 5.7 million of amortization was accelerated due to involuntary terminations.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(2) During the fiscal quarter ended March 29, 2025, approximately $ 0.04 million of amortization was accelerated due to involuntary terminations.

During the fiscal year ended December 28, 2024, approximately $ 5.7 million of amortization was accelerated due to involuntary terminations.

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the fiscal year-to-date period ended September 28, 2024 are summarized as follows (in thousands):

The changes in the carrying amount of goodwill for the fiscal quarter ended March 29, 2025 are summarized as follows (in thousands):

Goodwill, at December 28, 2024 $ 165,630

2 unchanged sentences

Foreign currency translation adjustment 402

Goodwill, net at September 28, 2024 $ 94,577

Goodwill, net at September 28, 2024 of $ 94.6 million, is comprised of goodwill of $ 166.5 million and accumulated impairment of $ 71.9 million.

There were no impairment losses related to goodwill during the fiscal-year-to-date period ended September 28, 2024 or during the fiscal year ended December 30, 2023.

Goodwill, net at March 29, 2025 $ 94,139

Goodwill, net at March 29, 2025 is comprised of g oodwill of $ 166.0 million and accumulated impairment of $ 71.9 million.

There were no impairment losses related to goodwill during the fiscal quarter ended March 29, 2025 or during the fiscal ye ar ended December 28, 2024.

Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized using the straight-line method over their expected useful lives.

There were no impairment losses related to intangible assets during the fiscal quarter ended March 29, 2025 or during the fiscal year ended December 28, 2024.

The components of acquired identifiable intangible assets are as follows (in thousands):

September 28, 2024 December 30, 2023

March 29, 2025 December 28, 2024

(in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

1 unchanged sentence

$ 15,300 $ ( 8,466 ) $ 6,834 $ 15,300 $ ( 8,084 ) $ 7,216

There were no impairment losses related to intangible assets during the fiscal year-to-date period ended September 28, 2024 or during the fiscal year ended December 30, 2023.

Amortization expense related to intangible assets was $ 0.4 million and $ 1.1 million for the fiscal quarter and fiscal year-to-date period ended September 28, 2024, respectively, and $ 0.3 million and $ 1.0 million for the fiscal quarter and fiscal year-to-date period ended September 30, 2023, respectively.

As a result of an asset acquisition in CRA's intellectual property practice, CRA recognized $ 1.5 million of intangible assets related to customer relationships during the second quarter of fiscal 2024.

Amortization expense related to intangible asset s was $ 0.4 million and $ 0.3 million for the fiscal quarters ended March 29, 2025 and March 30, 2024, respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):

September 28,

2025 December 28,

4 unchanged sentences

Total accrued expenses $ 134,439 $ 181,413

As of September 28, 2024 and December 30, 2023, approximately $ 109.5 million and $ 121.2 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.”

For the fiscal quarters ended September 28, 2024 and September 30, 2023, CRA’s effective income tax rate (“ETR”) was 28.7 % and 18.3 %, respectively.

The ETR for the third quarter of fiscal 2024 was higher than the third quarter of fiscal 2023

As of March 29, 2025 and December 28, 2024, approximate ly $ 66.7 million and $ 144.2 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.”

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

primarily due to the release of a valuation allowance in the third quarter of fiscal 2023, partially offset by an increase in the tax benefit related to share-based compensation.

For the fiscal year-to-date periods ended September 28, 2024 and September 30, 2023, CRA's ETR was 29.1 % and 26.4 %.

respectively.

The ETR for the fiscal year-to-date period ended September 28, 2024 was higher than the fiscal year-to-date period ended September 30, 2023, primarily due to the same items noted above.

For the fiscal quarters ended March 29, 2025 and March 30, 2024, CRA’s effective income tax rate (“ETR” ) was 27.0 % and 28.0 %, respectively.

The ETR for the first quarter of fiscal 2025 wa s lower than the first quarter of fiscal 2024 primarily due to the impact of state tax law changes effective for the 2025 tax year and an increase in the tax benefit related to share-based compensation.

Net Income Per Share

1 unchanged sentence

CRA calculates diluted earnings per share using the more dilutive of either the two-class method or treasury stock method.

The two-class method was more dilutive for the fiscal quarters and fiscal year-to-date periods ended September 28, 2024 and September 30, 2023.

The two-class method was more dilutive for the fiscal quarters ended March 29, 2025 and March 30, 2024.

Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all the net earnings for the period had been distributed.

CRA's participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders.

Net earnings allocable to these participating securities were not material for the fiscal quarters and fiscal year-to-date periods ended September 28, 2024 and September 30, 2023.

Net earnings allocable to these participating securities were not material for the fiscal quarters ended March 29, 2025 and March 30, 2024.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):

Fiscal Quarter Ended Fiscal Year-to-Date

September 28,

2024 September 30,

2023 September 28,

2024 September 30,

Fiscal Quarter Ended

2025 March 30,

Net income — basic $ 18,002 $ 13,691

7 unchanged sentences

Diluted $ 2.62 $ 1.95

For the fiscal quarter and fiscal year-to-date period ended September 28, 2024, the anti-dilutive share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average outstanding shares amounted to 4,900 and 1,225 shares, respectively.

For the fiscal quarter and fiscal-year-to-date period ended September 30, 2023, the anti-dilutive share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 6,185 and 5,875 shares, respectively.

Anti-dilutive share-based awards are excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding.

There were no anti-dilutive share-based awards for the fiscal quarters ended March 29, 2025 and March 30, 2024.

Fair Value of Financial Instruments

The following tables show CRA's financial instruments recorded in the condensed consolidated financial statements which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

As of March 29, 2025 and December 28, 2024, CRA did not have any financial instruments measured at fair value on a recurring basis.

The contingent consideration liability pertained to estimated future contingent consideration payments related to the acquisition of bioStrategies Group, Inc.

during fiscal 2022.

CRA had no contingent consideration obligation during the fiscal

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

September 28, 2024

Level 1 Level 2 Level 3

Money market mutual funds $ — $ — $ —

Total Assets $ — $ — $ —

Contingent consideration liability $ — $ — $ 190

Total Liabilities $ — $ — $ 190

quarter ended March 29, 2025.

The following table summarizes the changes in the contingent consideration liability for the fiscal year ended December 28, 2024 (in thousands):

Fiscal Year Ended

December 28, 2024

Level 1 Level 2 Level 3

Money market mutual funds $ — $ — $ —

Total Assets $ — $ — $ —

Contingent consideration liability $ — $ — $ 190

Total Liabilities $ — $ — $ 190

The contingent consideration liability pertains to estimated future contingent consideration payments related to the acquisition of bioStrategies Group, Inc.

during fiscal 2022.

The following table summarizes the changes in the contingent consideration liability (in thousands):

Fiscal Year-to-Date Period Ended Fiscal Year Ended

September 28, 2024 December 30, 2023

Beginning balance $ 190

Remeasurement of acquisition-related contingent consideration ( 190 )

Accretion — 68

Ending balance $ —

6 unchanged sentences

The primary financial covenants consist of a maximum consolidated net leverage ratio of 3.0 to 1 and a minimum consolidated interest coverage ratio of 2.5 to 1.

The primary non-financial covenants include, but are not limited to, restrictions on CRA's ability to

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

incur future indebtedness, engage in acquisitions or dispositions, pay dividends or repurchase capital stock, and enter into business combinations.

The primary non-financial covenants include, but are not limited to, restrictions on CRA's ability to incur future indebtedness, engage in acquisitions or dispositions, pay dividends or repurchase capital stock, and enter into business combinations.

Any indebtedness outstanding under the revolving credit facility may become immediately due upon the occurrence of stated events of default, including CRA's failure to pay principal, interest or fees, or upon the breach of any covenant.

As of September 28, 2024, CRA was in compliance with the covenants of the Credit Agreement.

There were $ 60.0 million in borrowings outstanding under the revolving credit facility as of September 28, 2024 and no borrowings outstanding as of December 30, 2023.

As of September 28, 2024, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $ 4.1 million.

As of March 29, 2025, CRA was in compliance with the covenants of the Credit Agreement.

There were $ 85.0 million in borrowings outstanding under the revolving credit facility as of March 29, 2025 and no borrowings outstanding as of December 28, 2024.

As of March 29, 2025, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $ 3.9 million.

Commitments and Contingencies

As described in the previous note, CRA is party to standby letters of credit with its lenders in support of minimum future lease payments under certain operating leases for office space.

As described in Note 9, CRA is party to standby letters of credit with its banks in support of minimum future lease payments under certain operating leases for office space.

CRA is subject to legal actions arising in the ordinary course of business.

2 unchanged sentences

However, the outcome of such legal actions is inherently unpredictable and subject to inherent uncertainties.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Segment Reporting

CRA manages its business globally within one operating segment, professional and consulting services, in accordance with ASC Topic 280, Segment Reporting (“ASC 280”).

The accounting policies of the professional and consulting services segment are the same as those described in Note 1 of our Annual Report on Form 10-K for the fiscal year ended December 28, 2024, filed with the SEC on February 20, 2025.

The chief operating decision maker, which is our Chief Executive Officer, assesses performance for the professional and consulting services segment and decides how to allocate resources based on consolidated net income that is also reported in the condensed consolidated statements of operations as net income.

The measure of segment assets is reported in the condensed consolidated balance sheets as total assets.

The following table represents consolidated net income reported by segment revenue, segment profit or loss, and significant segment expenses (in thousands):

Fiscal Quarter Ended

2025 March 30,

Revenues $ 181,851 $ 171,789

Employee compensation and fringe benefit costs 112,798 105,149

Forgivable loan amortization 6,652 5,772

Client reimbursable expenses 16,506 17,061

Other segment expense (1)

21,250 24,795

Provision for income taxes 6,643 5,321

Segment net income 18,002 13,691

Reconciliation of profit or loss

Adjustments and reconciling items — —

Consolidated net income $ 18,002 $ 13,691

1 Other segment expenses included in segment net income includes, rent, commissions to non-employee experts, legal and professional services, software subscription and data services, travel and entertainment expenses, training and marketing expenses, other operating expenses, depreciation and amortization, interest expense, net, and foreign currency gains (losses), net.

Subsequent Events

On October 31, 2024, CRA announced that its Board of Directors declared a quarterly cash dividend of $ 0.49 per common share, payable on December 13, 2024 to shareholders of record as of November 26, 2024.

On May 1, 2025, CRA announced that its Board of Directors declared a quarterly cash dividend of $ 0.49 per common share, payable on June 13, 2025 to shareholders of record as of May 27, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements