What changed in this filing

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Item 1A. Risk Factors

2026-02-26 compared with 2025-02-20 · 35 added, 35 removed, 270 unchanged (21% of the section changed)

22 unchanged sentences

Our ability to secure new engagements and hire qualified consultants as employees depends heavily on our overall reputation as well as the individual reputations of our employee consultants and principal non-employee experts.

Additionally, failure to comply with governmental, regulatory and legal requirements or with our company-wide policies could lead to

governmental or legal proceedings that could expose us to significant liabilities and damage our reputation.

Because we obtain a majority of our revenues from new engagements with existing clients, any client that is dissatisfied with our performance on a single matter could seriously impair our ability to secure new engagements.

Additionally, failure to comply with governmental, regulatory and legal requirements or with our company-wide policies could lead to governmental or legal proceedings that could expose us to significant liabilities and damage our reputation.

Because we obtain a majority of our revenues from new engagements with existing clients, any client that is dissatisfied with our performance on a

single matter could seriously impair our ability to secure new engagements.

Given the frequently high-profile nature of the matters on which we work, any factor that diminishes our reputation or the reputations of any of our employee consultants or non-employee experts could make it substantially more difficult for us to compete successfully for both new engagements and qualified consultants.

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• the need to compensate new employees while they wait for their restrictive covenants with other institutions to expire;

• the potential need to raise significant amounts of capital to finance a transaction or the potential issuance of equity securities that could be dilutive to our existing stockholders;

• the potential need to raise significant amounts of capital to finance a transaction or the potential issuance of equity securities that could be dilutive to our existing shareholders;

• increased costs to improve or coordinate managerial, operational, financial, and administrative systems, including compliance with the Sarbanes-Oxley Act of 2002;

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• potential difficulties in integrating new employees whose service offerings, expertise, or staffing requirements may vary from our existing employee consultants.

Our acquisitions have been accounted for as purchases, some of which involved purchase prices in excess of tangible asset values, resulting in the creation of goodwill and other intangible assets.

Our acquisitions have been accounted for as purchases using acquisition method accounting.

Some of our acquisitions involved purchase prices in excess of tangible asset values, resulting in the creation of goodwill and other intangible assets.

Under generally accepted accounting principles, we do not amortize goodwill or intangible assets acquired in a business combination that are determined to have indefinite useful lives, but instead review them annually (or more frequently if impairment indicators arise) for impairment.

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As a result, we could be materially adversely affected by future changes in tax law or policy (or in their interpretation or enforcement) in the jurisdictions where we operate, including the United States, which could have a material adverse effect on our business, cash flow, results of operations, financial condition, as well as our effective income tax rate.

Increasing scrutiny and changing expectations from governmental organizations, investors, clients and our colleagues with respect to our ESG-related practices and those of our clients may impose additional costs on us or expose us to new or additional risks

There is varied regulation and focus on ESG matters across different jurisdictions, and stakeholder views and priorities regarding these matters continue to evolve and sometimes diverge.

The European Union’s Corporate Sustainability Reporting Directive and from other governmental organizations, and our investors, clients and employees, maintain interest in ESG issues such as environmental stewardship, climate change, and workforce development.

How these various stakeholders evaluate and prioritize different ESG initiatives may shift over time in ways that are difficult to predict.

We continue to evaluate existing, new and proposed governmental requirements, and to monitor, report and assess policies and practices that we believe will align with our client, investor and other third-party imposed ESG-related standards and expectations.

For example, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters, and their evolving methodologies and assessments may lead to negative investor sentiment, stock price fluctuations and the diversion of investment to other companies.

If our ESG practices do not meet evolving rules and regulations or investor or other stakeholder expectations and standards (or if we are viewed in a negative light based on positions we do or do not take or work we do or do not perform for certain clients or industries), then our reputation, our ability to attract or retain employee consultants and non-employee experts, and our ability to attract new engagements and clients could be negatively impacted, as could our attractiveness as an investment, service provider, business partner or acquirer.

Additionally, the relative importance that different stakeholders place on various ESG initiatives may conflict, making it difficult to satisfy all stakeholder expectations.

Similarly, our failure or perceived failure to

pursue or fulfill our current or future goals, targets and objectives or to satisfy various reporting standards within the timelines we announce, or at all, could also have similar negative impacts.

Increasing scrutiny and changing expectations from governmental organizations, investors, clients and our colleagues with respect to our sustainability-related practices and those of our clients may impose additional costs on us or expose us to new or additional risks

There is varied regulation and focus on sustainability matters across different jurisdictions, and stakeholder views and priorities regarding these matters continue to evolve and sometimes diverge.

The European Union’s Corporate Sustainability Reporting Directive and from other governmental organizations, and our investors, clients and employees, maintain interest in sustainability issues such as environmental stewardship, climate change, and workforce development.

How these various stakeholders evaluate and prioritize different sustainability initiatives may shift over time in ways that are difficult to predict.

For example, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to sustainability matters, and their evolving methodologies and assessments may lead to negative investor sentiment, stock price fluctuations and the diversion of investment to other companies.

If our sustainability practices do not meet evolving rules and regulations or investor or other stakeholder expectations and standards (or if we are viewed in a negative light based on positions we do or do not take or work we do or do not perform for certain clients or industries), then our reputation, our ability to attract or retain employee consultants and non-employee experts, and our ability to attract new engagements and clients could be negatively impacted, as could our attractiveness as an investment, service provider, business partner or acquirer.

Additionally, the relative importance that different stakeholders place on various sustainability initiatives may conflict, making it difficult to satisfy all stakeholder

expectations.

Similarly, our failure or perceived failure to pursue or fulfill our current or future goals, targets and objectives or to satisfy various reporting standards within the timelines we announce, or at all, could also have similar negative impacts.

Our revenues, operating results and cash flows are likely to fluctuate

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We may experience significant fluctuations in our revenues and results of operations from one quarter to the next.

If our revenues or net income in a quarter fall or fall below the expectations of securities analysts or investors, the market price of our common stock could fall significantly.

If our revenues or net income in a quarter fall or drop below the expectations of securities analysts or investors, the market price of our common stock could fall significantly.

Our results of operations in any quarter can fluctuate for many reasons, including:

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We are required to prepare our consolidated financial statements in accordance with generally accepted accounting principles in the United States of America, which may change periodically.

From time to time, we are required to adopt new or revised accounting standards issued by recognized authoritative bodies, including the Financial Accounting Standards Board and the Securities and Exchange Commission.

A change in accounting standards or practices may adversely affect our reported

financial results or the way we conduct our business.

From time to time, we are required to adopt new or revised accounting standards issued by recognized authoritative bodies, including the Financial Accounting Standards Board and the SEC.

A change in accounting standards or practices may adversely affect our reported financial results or the way we

conduct our business.

It may also require changes to the current accounting treatment of certain transactions and the way they are reported in our financial statements.

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A portion of these loans is collateralized.

Defaults under these loans could have a material adverse effect on our consolidated statements of operations, financial condition and liquidity.

Defaults under these loans could have a material adverse effect on our consolidated statement of operations, financial condition and liquidity.

Fluctuations in the types of service contracts we enter into may adversely impact revenue and results of operations

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These contracts are more common in our management consulting area, and would likely grow in number with expansion of that area.

Fluctuations in the mix between time-and-material contracts, fixed-price contracts and arrangements with fees tied to performance-based criteria may result in fluctuations

of revenue and results of operations.

In addition, if we fail to accurately estimate third-party vendor expenses and the resources required for a fixed-price project or fail to satisfy our contractual obligations in a manner consistent with the project budget, we might generate a smaller profit or incur a loss on the project.

Revenue generated from fixed-price contracts was approximately 18% of our total revenues for the year ended December 28, 2024.

Fluctuations in the mix between time-and-material contracts, fixed-price contracts and arrangements with fees tied to performance-based criteria may result in fluctuations of revenue and results of operations.

In addition, if we fail to accurately estimate third-party vendor expenses and the resources

required for a fixed-price project or fail to satisfy our contractual obligations in a manner consistent with the project budget, we might generate a smaller profit or incur a loss on the project.

Revenue generated from fixed-price contracts was approximately 17% of our total revenues for the year ended January 3, 2026.

We could incur substantial costs protecting our proprietary rights from infringement or defending against a claim of infringement

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Risks Related to Our Competition

Competition from other litigation, regulatory, financial, and management consulting firms could hurt our business

Competition from other litigation, regulatory, financial, technology and management consulting firms could hurt our business

The market for litigation, regulatory, financial, and management consulting services is intensely competitive, highly fragmented, and subject to rapid change.

We may be unable to compete successfully with our existing competitors or with any new competitors.

In general, there are few barriers to entry into our markets, and we expect to face additional competition from new entrants into the economic and management consulting industries.

In the litigation, regulatory, and financial consulting markets, we compete primarily with other economic and financial consulting firms and individual academics.

In the management consulting market, we compete primarily with other business and management consulting firms, specialized or industry-specific consulting firms, the consulting practices of large accounting firms, and the internal professional resources of existing and potential clients.

Many of our competitors have national or international reputations, as well as significantly greater personnel, financial, managerial, technical, and marketing resources than we do, which could enhance their ability to respond more quickly to technological changes, finance acquisitions, and fund internal growth.

Some of our competitors also have a significantly broader geographic presence and significantly more resources than we do.

In general, there are few barriers to entry into our markets, and we expect to face additional competition from new entrants into our business.

New technologies, such as AI and machine learning, continue to evolve and as a result risks continue to be unknown or uncertain.

There is no assurance that we can successfully develop and deploy AI or other technologies in our business or such technologies will improve and enhance our services, operations or profitability.

Many of our competitors, including possible new entrants, have or may have significantly greater personnel, financial, managerial, technical, and marketing resources than we do, which could enhance their ability to respond more quickly to technological changes (including the adoption of AI), finance acquisitions, and fund internal growth.

Risks Related to Our International Operations

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Additionally, global economic events have caused and may continue to cause significant volatility in currency exchange rate fluctuations.

Revenue generated from our U.K.-based operations was approximately 13% (which includes currency exchange effects) of our total revenues for the year ended December 28, 2024.

Revenue generated from our U.K.-based operations was approximately 13% (which includes currency exchange effects) of our total revenues for the year ended January 3, 2026.

We currently do not hedge our exposure to current foreign currency exchange risks by engaging in foreign exchange hedging transactions, though we may do so in the future.

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We currently have a revolving credit facility with our bank for up to $250.0 million, which may be decreased at CRA's option to $200.0 million during the period from July 16 in a year through January 15 in the next year.

Additionally, for the period from January 16 to July 15 of each calendar year, CRA may elect to not increase the revolving credit facility to $250.0 million.

Additionally, for the period from January 16 to July 15 of each calendar year, we may elect to not increase the revolving credit facility to $250.0 million.

The amounts available under this revolving credit facility are constrained by various financial covenants and reduced by certain letters of credit outstanding.

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Our ability to secure short-term and long-term debt or equity financing in the future will also depend on several factors, including our future profitability, the levels of our debt and equity, restrictions under our existing or any future revolving credit facility, and the overall credit and equity market environments.

There were no borrowings outstanding under the revolving credit facility as of December 28, 2024.

There was $34.0 million in borrowings outstanding under the revolving credit facility as of January 3, 2026.

Risks Related to Our Common Stock

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Any termination of our stock repurchase programs could cause a decrease in the market price of our common stock, and the existence of a stock repurchase program could cause our stock price to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity and trading volumes of our common stock.

There can be no assurance that any stock repurchases under these programs will enhance stockholder value because the market price of our common stock may decline below the levels at which those repurchases were made.

Although our stock repurchase programs are intended to enhance long-term stockholder value, short-term fluctuations in the market price of our common stock could reduce the programs' effectiveness.

There can be no assurance that any stock repurchases under these programs will enhance shareholder value because the market price of our common stock may decline below the levels at which those repurchases were made.

Although our stock repurchase programs are intended to enhance long-term shareholder value, short-term fluctuations in the market price of our common stock could reduce the programs' effectiveness.

Our charter and by-laws, and Massachusetts law may deter takeovers

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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-K

Item 1A. Risk Factors