What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-07-31 · 107 added, 72 removed, 391 unchanged (31% of the section changed)

4 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Revenues $ 185,891 $ 167,748 $ 554,620 $ 510,979

19 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Net income $ 11,473 $ 11,437 $ 41,597 $ 31,666

6 unchanged sentences

(in thousands, except share data)

September 27,

2025 December 28,

47 unchanged sentences

Fiscal Year-to-Date Period Ended

2025 June 29,

September 27,

2025 September 28,

OPERATING ACTIVITIES:

32 unchanged sentences

Noncash investing and financing activities:

Increase (decrease) in accounts payable and accrued expenses for property and equipment $ ( 585 ) $ 553

Increase in accounts payable and accrued expenses for property and equipment $ 84 $ 1,228

Asset retirement obligations $ — $ 191

Excise tax on share repurchases $ ( 416 ) $ ( 284 )

6 unchanged sentences

CRA INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

FOR THE FISCAL YEAR-TO-DATE PERIOD ENDED June 28, 2025 (unaudited)

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (unaudited)

(in thousands, except share data)

10 unchanged sentences

Redemption of vested employee restricted shares for tax withholding ( 13,462 ) ( 2,454 ) — — ( 2,454 )

Shares repurchased — — — — —

Accrued excise tax on shares repurchased — — 39 — 39

14 unchanged sentences

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

Net income — — 11,473 — 11,473

Foreign currency translation adjustment — — — ( 1,061 ) ( 1,061 )

Share-based compensation expense — 1,579 — — 1,579

Restricted shares vesting 7,456 — — — —

Redemption of vested employee restricted shares for tax withholding ( 299 ) ( 53 ) — — ( 53 )

Shares repurchased ( 21,532 ) ( 985 ) ( 3,014 ) — ( 3,999 )

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

Accrued dividends on unvested shares — — ( 17 ) — ( 17 )

Cash dividends paid ($ 0.49 per share)

— — ( 3,240 ) — ( 3,240 )

BALANCE AT SEPTEMBER 27, 2025 6,547,188 $ 541 $ 211,660 $ ( 10,546 ) $ 201,655

See accompanying notes to the condensed consolidated financial statements.

CRA INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

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

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (unaudited)

(in thousands, except share data)

27 unchanged sentences

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.

4 unchanged sentences

CRA International, Inc.

and its wholly-owned subsidiaries (collectively, "CRA" or the "Company") is a worldwide leading consulting services firm that applies advanced analytic techniques and in-depth industry knowledge to complex engagements for a broad range of clients.

and its wholly-owned subsidiaries (collectively, "CRA, "the "Company," “we,” “our” or “us”) is a worldwide leading consulting services firm that applies advanced analytic techniques and in-depth industry knowledge to complex engagements for a broad range of clients.

CRA offers services in two broad areas:

15 unchanged sentences

Improvements to Income Tax Disclosures

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

In December 2023, the Financial Accounting Standards Board (“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 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.

CRA has assessed 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 impact on CRA's financial position or its results of operations.

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

17 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

Type of Contract June 28,

2025 June 29,

2024 June 28,

2025 June 29,

Type of Contract September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Consulting services revenues:

4 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

Geographic Breakdown June 28,

2025 June 29,

2024 June 28,

2025 June 29,

Geographic Breakdown September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Consulting services revenues:

15 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Bad debt expense (recovery), net $ 155 $ ( 94 ) $ 718 $ 587

4 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Reimbursable expenses $ 17,802 $ 16,107 $ 53,923 $ 49,530

3 unchanged sentences

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

September 27,

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 June 28, 2025, December 28, 2024, and December 30, 2023.

The contract assets balance was immaterial as of September 27, 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.

2 unchanged sentences

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

September 27,

2025 December 28,

5 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Amounts included in contract liabilities at the beginning of the period $ 1,673 $ 1,656 $ 7,084 $ 5,686

5 unchanged sentences

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 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.

During the fiscal year-to-date period ended September 27, 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 27,

2025 December 28,

3 unchanged sentences

Reclassifications from accrued expenses or to other assets (1)

( 333 ) ( 9,989 )

Amortization (2)

6 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.

(2) During the fiscal year-to-date period ended September 27, 2025 and fiscal year ended December 28, 2024, approximately $ 1.1 million and $ 5.7 million, respectively, of amortization was accelerated due to 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):

The changes in the carrying amount of goodwill for the fiscal year-to-date period ended September 27, 2025 are summarized as follows (in thousands):

CRA INTERNATIONAL, INC.

4 unchanged sentences

Foreign currency translation adjustment 897

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.

Goodwill, net at September 27, 2025 $ 94,634

Goodwill, net at September 27, 2025 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 27, 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-year-to-date period ended June 28, 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 September 27, 2025 or during the fiscal year ended December 28, 2024.

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

June 28, 2025 December 28, 2024

September 27, 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 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.

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 27, 2025, respectively.

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.

Accrued Expenses

Accrued expenses consist of the following (in thousands):

September 27,

2025 December 28,

4 unchanged sentences

Total accrued expenses $ 182,675 $ 181,413

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.

As of September 27, 2025 and December 28, 2024, approximate ly $ 120.4 million and $ 144.2 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.”

For the fiscal quarters ended September 27, 2025 and September 28, 2024, CRA’s effective income tax rate (“ETR”) was 29.3 % and 28.7 %, respectively.

The ETR for the third quarter of fiscal 2025 was higher than the third quarter of fiscal 2024 primarily due to a decreased benefit related to share-based compensation, a remeasurement of deferred tax assets related to changes in current-year state apportionment, and an increase to a prior year tax reserve.

The increase was partially offset by the impact of state tax law changes effective for fiscal 2025.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

For the fiscal year-to-date periods ended September 27, 2025 and September 28, 2024, CRA's ETR was 28.3 % and 29.1 %, 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 fiscal 2025, partially offset by the remeasurement of deferred tax assets related to changes in current-year state apportionment.

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.

CRA has evaluated the impact of the U.S.

tax law changes introduced by the OBBBA on our current year’s consolidated financial statements and have found it to not be material.

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 June 28, 2025 and June 29, 2024.

The two-class method was more dilutive for the fiscal quarters and fiscal year-to-date periods ended September 27, 2025 and September 28, 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 June 28, 2025 and June 29, 2024.

Net earnings allocable to these participating securities were not material for the fiscal quarters and fiscal year-to-date periods ended September 27, 2025 and September 28, 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

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Net income — basic $ 11,473 $ 11,437 $ 41,597 $ 31,666

7 unchanged sentences

Diluted $ 1.73 $ 1.67 $ 6.16 $ 4.57

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.

There were no anti-dilutive share-based awards for the fiscal quarter period ended September 27, 2025.

For the fiscal year-to-date period ended September 27, 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 1,283 shares.

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.

CRA INTERNATIONAL, INC.

1 unchanged sentence

Fair Value of Financial Instruments

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.

As of September 27, 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 September 27, 2025.

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

15 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 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.

As of September 27, 2025, CRA was in compliance with the covenants of the Credit Agreement.

There were $ 95.0 million in borrowings outstanding under the revolving credit facility as of September 27, 2025 and no borrowings outstanding as of December 28, 2024.

As of September 27, 2025, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $ 3.9 million.

CRA has chosen to classify the revolver as a current liability in its condensed consolidated balance sheet, as CRA has the intent to repay the amount within 12 months after the balance sheet date.

Commitments and Contingencies

2 unchanged sentences

In management’s opinion, based on current knowledge, CRA believes it has adequate legal defenses or insurance coverage, or both, with respect to the eventuality of such actions.

CRA does not believe any settlement or judgment relating to any pending legal action would materially affect its financial position or results of operations .

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

CRA does not believe any settlement or judgment relating to any pending legal action would materially affect its

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

financial position or results of operations .

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

Segment Reporting

5 unchanged sentences

Fiscal Quarter Ended Fiscal Year-to-Date

2025 June 29,

2024 June 28,

2025 June 29,

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Revenues $ 185,891 $ 167,748 $ 554,620 $ 510,979

11 unchanged sentences

Subsequent Events

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.

On October 30, 2025, CRA announced that its Board of Directors declared a quarterly cash dividend of $ 0.57 per common share, payable on December 12, 2025 to shareholders of record as of November 25, 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