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Item 1. Financial Statements

2025-07-31 compared with 2025-05-01 · 112 added, 73 removed, 351 unchanged (35% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

Fiscal Quarter Ended

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

Revenues $ 186,878 $ 171,442 $ 368,729 $ 343,230

18 unchanged sentences

(in thousands)

Fiscal Quarter Ended

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

Net income $ 12,122 $ 6,538 $ 30,124 $ 20,229

54 unchanged sentences

(in thousands)

Fiscal Quarter Ended

2025 March 30,

Fiscal Year-to-Date Period Ended

2025 June 29,

OPERATING ACTIVITIES:

18 unchanged sentences

Purchases of property and equipment ( 2,163 ) ( 3,046 )

Consideration paid for acquisition — ( 1,500 )

Net cash used in investing activities ( 2,163 ) ( 4,546 )

21 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

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

FOR THE FISCAL YEAR-TO-DATE PERIOD ENDED June 28, 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 — $ — $ 12,122 $ — $ 12,122

Foreign currency translation adjustment — — — 3,823 3,823

Share-based compensation expense — 962 — — 962

Restricted shares vesting 4,487 — — — —

Redemption of vested employee restricted shares for tax withholding ( 2,144 ) ( 355 ) — — ( 355 )

Shares repurchased ( 230,673 ) ( 1,206 ) ( 41,944 ) — ( 43,150 )

Accrued excise tax on shares repurchased — — ( 428 ) — ( 428 )

Accrued dividends on unvested shares — — 77 — 77

Cash dividends paid ($ 0.49 per share)

— — ( 3,370 ) — ( 3,370 )

BALANCE AT JUNE 28, 2025 6,561,563 — $ 206,485 $ ( 9,485 ) $ 197,000

See accompanying notes to the condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

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

FOR THE FISCAL YEAR-TO-DATE PERIOD ENDED June 29, 2024 (unaudited)

(in thousands, except share data)

16 unchanged sentences

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

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

See accompanying notes to the condensed consolidated financial statements.

19 unchanged sentences

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

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"), which established reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

Recent Accounting Standards Not Yet Adopted

1 unchanged sentence

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU No.

In December 2023, the FASB issued Accounting Standards Update ("ASU") No.

2023-09, Income Taxes (Topic 740):

5 unchanged sentences

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

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

modeled out the changes to its income tax disclosures.

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

4 unchanged sentences

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.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

1 unchanged sentence

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.

CRA expects the adoption of this ASU will have no impact on its financial position or its results of operations, but will result in additional disclosures.

Revenues and Allowances

4 unchanged sentences

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

Fiscal Quarter Ended

Type of Contract March 29,

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

Type of Contract June 28,

2025 June 29,

2024 June 28,

2025 June 29,

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

Geographic Breakdown March 29,

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

Geographic Breakdown June 28,

2025 June 29,

2024 June 28,

2025 June 29,

Consulting services revenues:

3 unchanged sentences

Total $ 186,878 $ 171,442 $ 368,729 $ 343,230

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.

Under ASC Topic 326, Financial Instruments—Credit Losses , 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

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

Bad debt expense (recovery), net $ 129 $ 18 $ 563 $ 681

3 unchanged sentences

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

Fiscal Quarter Ended

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

Reimbursable expenses $ 19,615 $ 16,361 $ 36,121 $ 33,423

8 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 March 29, 2025, December 28, 2024, and December 30, 2023.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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.

5 unchanged sentences

Contract liabilities $ 2,966 $ 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

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

Amounts included in contract liabilities at the beginning of the period $ 2,567 $ 2,296 $ 6,983 $ 5,612

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 between 0.59% and 5.12 %.

The forgivable loans have terms that are generally between two and eight years with interest rates currently between 0.43 % 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.

During the fiscal year-to-date period ended June 28, 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):

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 fiscal year-to-date period ended June 28, 2025 and fiscal year ended December 28, 2024, approximately $ 0.04 million and $ 5.7 million, respectively, 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 June 28, 2025 are summarized as follows (in thousands):

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 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 1,211

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.

Goodwill, net at June 28, 2025 $ 94,948

Goodwill, net at June 28, 2025 is comprised of goodwill of $ 166.8 million and accumulated impairment of $ 71.9 million.

There were no impairment losses related to goodwill during the fiscal year-to-date period ended June 28, 2025 or during the fiscal year 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.

There were no impairment losses related to intangible assets during the fiscal-year-to-date period ended June 28, 2025 or during the fiscal year ended December 28, 2024.

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

March 29, 2025 December 28, 2024

June 28, 2025 December 28, 2024

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

2 unchanged sentences

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.

Amortization expense related to intangible assets was $ 0.4 million and $ 0.8 million for the fiscal quarter and fiscal year-to-date period ended June 28, 2025, respectively.

Amortization expense related to intangible assets was $ 0.4 million and $ 0.7 million for the fiscal quarter and fiscal year-to-date period ended June 29, 2024, respectively.

Accrued Expenses

6 unchanged sentences

Total accrued expenses $ 139,751 $ 181,413

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.”

As of June 28, 2025 and December 28, 2024, approximate ly $ 82.6 million and $ 144.2 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.”

For the fiscal quarters ended June 28, 2025 and June 29, 2024, CRA’s effective income tax rate (“ETR”) was 29.2 % and 32.0 %, respectively.

The ETR for the second quarter of fiscal 2025 wa s lower than the second quarter of fiscal 2024 primarily due to the impact of state tax law changes effective for the 2025 tax year as well as an ETR true-up adjustment during the second quarter of fiscal 2024 that was substantially less in the current period.

The impact of these items were partially offset by a tax reserve recognized in the estimated annual effective tax rate of fiscal 2025.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

For the fiscal year-to-date periods ended June 28, 2025 and June 29, 2024, CRA's ETR was 27.9 % and 29.3 %, respectively.

The ETR for the current fiscal year-to-date period was lower than the prior year-to-date period primarily due to the impact of state tax law changes effective for the 2025 tax year and an increased benefit related to share-based compensation and the foreign-derived intangible income (“FDII”) deduction.

The impact of these items were partially offset by a tax reserve recognized in the estimated annual effective tax rate of fiscal 2025.

On July 4, 2025, tax legislation known as the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States.

The Company is currently evaluating the impact of U.S.

tax law changes introduced by OBBBA on our consolidated financial statements but does not currently expect a material impact on CRA.

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 ended March 29, 2025 and March 30, 2024.

The two-class method was more dilutive for the fiscal quarters and fiscal year-to-date periods ended June 28, 2025 and June 29, 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 ended March 29, 2025 and March 30, 2024.

Net earnings allocable to these participating securities were not material for the fiscal quarters and fiscal year-to-date periods ended June 28, 2025 and June 29, 2024.

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

Fiscal Quarter Ended

2025 March 30,

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

Net income — basic $ 12,122 $ 6,538 $ 30,124 $ 20,229

7 unchanged sentences

Diluted $ 1.79 $ 0.94 $ 4.42 $ 2.90

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.

For the fiscal quarter and fiscal year-to-date period ended June 28, 2025, 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 5,229 and 1,283 shares, respectively.

There were no anti-dilutive share-based awards for the fiscal quarter and fiscal year-to-date period ended June 29, 2024.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair Value of Financial Instruments

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

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

CRA had no contingent consideration obligations during the fiscal quarter and fiscal year-to-date period ended June 28, 2025.

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)

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):

13 unchanged sentences

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 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.

As of June 28, 2025, CRA was in compliance with the covenants of the Credit Agreement.

There were $ 120.0 million in borrowings outstanding under the revolving credit facility as of June 28, 2025 and no borrowings outstanding as of December 28, 2024.

As of June 28, 2025, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $ 3.5 million.

Commitments and Contingencies

7 unchanged sentences

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”).

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

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.

2 unchanged sentences

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,

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

Revenues $ 186,878 $ 171,442 $ 368,729 $ 343,230

11 unchanged sentences

Subsequent Events

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.

On July 31, 2025, CRA announced that its Board of Directors declared a quarterly cash dividend of $ 0.49 per common share, payable on September 12, 2025 to shareholders of record as of August 26, 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