What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-10-30 · 108 added, 195 removed, 303 unchanged (50% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

Fiscal Quarter Ended Fiscal Year-to-Date

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

2026 March 29,

Revenues $ 200,975 $ 181,851

18 unchanged sentences

(in thousands)

Fiscal Quarter Ended Fiscal Year-to-Date

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

2026 March 29,

Net income $ 11,132 $ 18,002

6 unchanged sentences

(in thousands, except share data)

September 27,

2025 December 28,

2026 January 3,

Current assets:

45 unchanged sentences

(in thousands)

Fiscal Year-to-Date Period Ended

September 27,

2025 September 28,

Fiscal quarter ended

2026 March 29,

OPERATING ACTIVITIES:

5 unchanged sentences

Share-based compensation expense 1,366 1,390

Bad debt expense (recovery) 718 587

Bad debt expense (recovery), net ( 107 ) 433

Unrealized foreign currency remeasurement (gains) losses, net 267 52

10 unchanged sentences

Purchases of property and equipment ( 2,649 ) ( 974 )

Consideration paid for acquisition — ( 1,500 )

Net cash used in investing activities ( 2,649 ) ( 974 )

3 unchanged sentences

Tax withholding payments reimbursed by shares ( 1,449 ) ( 2,454 )

Cash dividends paid ( 10,098 ) ( 8,850 )

Cash dividends and dividend equivalents paid ( 3,806 ) ( 3,488 )

Repurchase of common stock ( 21,463 ) —

1 unchanged sentence

Effect of foreign exchange rates on cash and cash equivalents ( 458 ) 797

Net decrease in cash and cash equivalents ( 4,215 ) ( 21,105 )

Net increase (decrease) in cash and cash equivalents 14,286 ( 1,113 )

Cash and cash equivalents at beginning of period 18,210 26,711

1 unchanged sentence

Noncash investing and financing activities:

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

Asset retirement obligations $ — $ 191

Increase (decrease) in accounts payable and accrued expenses for property and equipment $ 52 $ ( 596 )

Excise tax on share repurchases $ ( 192 ) $ 39

13 unchanged sentences

Issued Amount

BALANCE AT DECEMBER 28, 2024 6,768,575 $ 1,663 $ 225,461 $ ( 15,051 ) $ 212,073

Net income — — 18,002 — 18,002

Foreign currency translation adjustment — — — 1,743 1,743

Share-based compensation expense — 1,390 — — 1,390

Restricted shares vesting 34,780 — — — —

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

Accrued excise tax on shares repurchased — — 39 — 39

Accrued dividends on unvested shares — — 14 — 14

Cash dividends paid ($ 0.49 per share)

— — ( 3,488 ) — ( 3,488 )

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

BALANCE AT JANUARY 3, 2026 6,547,407 $ 2,480 $ 221,062 $ ( 9,944 ) $ 213,598

Net income — — 11,132 — 11,132

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

Foreign currency translation adjustment, net of tax — — — ( 855 ) ( 855 )

Share-based compensation expense — 1,366 — — 1,366

6 unchanged sentences

— — ( 3,806 ) — ( 3,806 )

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

BALANCE AT APRIL 4, 2026 6,444,116 $ — $ 209,189 $ ( 10,799 ) $ 198,390

See accompanying notes to the condensed consolidated financial statements.

9 unchanged sentences

Net income — — 18,002 — 18,002

Foreign currency translation adjustment — — — ( 1,105 ) ( 1,105 )

Foreign currency translation adjustment, net of tax — — — 1,743 1,743

Share-based compensation expense — 1,390 — — 1,390

1 unchanged sentence

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

Shares repurchased ( 65,882 ) 592 ( 9,834 ) — ( 9,242 )

Accrued excise tax on shares repurchased — — 39 — 39

3 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.

4 unchanged sentences

CRA International, Inc.

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" 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.

CRA offers services in two broad areas:

3 unchanged sentences

Basis of Presentation

The unaudited condensed consolidated financial statements include the accounts of CRA which require consolidation, after the elimination of intercompany accounts and transactions.

The unaudited condensed consolidated financial statements include the accounts of CRA and its wholly-owned subsidiaries (collectively, the "Company") which require consolidation, after the elimination of intercompany accounts and transactions.

These financial statements have been prepared in accordance with the rules and regulations of the U.S.

2 unchanged sentences

GAAP”) for annual financial statements.

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.

In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair presentation of the Company’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 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.

These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended January 3, 2026 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 26, 2026.

Note 1 to the Consolidated Financial Statements included in Part II, Item 8, on Form 10-K for the fiscal year ended January 3, 2026 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

Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software

On January 4, 2026, CRA adopted Accounting Standards Update ("ASU") No.

2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”) , which modernized the accounting for internal-use software.

ASU 2025-06 removed all references to software development stages and requires capitalization of software costs when management has committed to funding the software project and it is probable the project will be completed and the software will be used to perform the function intended.

The adoption of ASU 2025‑06 did not have a material impact on CRA’s condensed consolidated financial statements.

Recent Accounting Standards Not Yet Adopted

Income Taxes (Topic 740):

Improvements to Income Tax Disclosures

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

2023-09, Income Taxes (Topic 740):

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

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 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.

Interim Reporting (Topic 270):

Narrow‑Scope Improvements

In December 2025, the Financial Accounting Standards Board ("FASB") issued ASU 2025‑11, Interim Reporting (Topic 270):

Narrow‑Scope Improvements (“ASU 2025‑11”).

ASU 2025-11 is intended to improve the navigability of interim reporting guidance by clarifying when Topic 270 applies, enhancing the organization of required interim disclosures, and providing additional direction on the form and content of interim financial statements.

The amendments introduce a disclosure principle requiring entities to disclose events occurring after the end of the most recent annual reporting period that have a material impact on the entity.

ASU 2025-11 also compiles a comprehensive list of interim disclosures currently required under U.S.

GAAP, without expanding or reducing existing requirements.

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

ASU 2025‑11 is effective for interim periods within annual reporting periods beginning after December 15, 2027, for public business entities, with early adoption permitted.

CRA is evaluating the impact of the amendments and does not expect them to materially affect its interim reporting, as the changes primarily clarify existing disclosure requirements.

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

3 unchanged sentences

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

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

ASU 2024-03 requires disclosure, in the notes to the financial statements, specified information about certain costs and expenses including employee compensation, depreciation, and intangible asset amortization.

9 unchanged sentences

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 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

Type of Contract April 4,

2026 March 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 Fiscal Year-to-Date

Geographic Breakdown September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

Geographic Breakdown April 4,

2026 March 29,

Consulting services revenues:

3 unchanged sentences

Total $ 200,975 $ 181,851

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Reserves for Variable Consideration and Credit Risk

1 unchanged sentence

Variable consideration reserves are based on specific price concessions and those expected to be extended to CRA customers estimated by CRA's historical realization rates.

Reserves for variable consideration are recorded as a component of the allowances for accounts receivable and unbilled services on the condensed consolidated balance sheets.

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)

Reserves for variable consideration are recorded as a component of the allowances for accounts receivable and unbilled services on the condensed consolidated balance sheet.

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

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

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 Fiscal Year-to-Date

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

2026 March 29,

Bad debt expense (recovery), net $ ( 107 ) $ 433

Reimbursable Expenses

Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants, and other reimbursable expenses.

CRA recovers substantially all of these costs.

Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including those relating to travel, out-of-pocket expenses, outside consultants and other third-party vendor expenses.

CRA recovers substantially all these costs.

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

Fiscal Quarter Ended Fiscal Year-to-Date

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

2026 March 29,

Reimbursable expenses $ 19,057 $ 16,506

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 condensed consolidated balance sheets.

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

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 27,

2025 December 28,

2026 January 3,

2026 December 28,

2 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 27, 2025, December 28, 2024, and December 30, 2023.

The contract assets balance was immaterial as of April 4, 2026, January 3, 2026, and December 28, 2024.

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.

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

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

September 27,

2025 December 28,

2026 January 3,

2026 December 28,

Contract liabilities $ 6,048 $ 9,008 $ 7,340

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 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

2026 March 29,

Amounts included in contract liabilities at the beginning of the period $ 6,586 $ 6,290

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 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.

During the fiscal quarter ended April 4, 2026 and fiscal year ended January 3, 2026 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,

Fiscal Quarter Ended Fiscal Year Ended

2026 January 3,

Beginning balance $ 106,997 $ 55,492

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 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 September 27, 2025 are summarized as follows (in thousands):

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Goodwill, at December 28, 2024 $ 165,630

(2) During the fiscal quarter ended April 4, 2026, approximately $ 0.1 million of amortization was accelerated due to involuntary terminations.

During the fiscal year ended January 3, 2026, approximately $ 1.1 million of amortization was accelerated due to terminations.

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for the fiscal quarter ended April 4, 2026 are summarized as follows (in thousands):

Goodwill, at January 3, 2026 $ 166,611

Accumulated goodwill impairment ( 71,893 )

Goodwill, net at December 28, 2024 93,737

Goodwill, net at January 3, 2026 94,718

Foreign currency translation adjustment ( 245 )

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.

Goodwill, net at April 4, 2026 $ 94,473

Goodwill, net at April 4, 2026 is comprised of goodwill of $ 166.4 million and accumulated impairment of $ 71.9 million.

There were no impairment losses related to goodwill during the fiscal quarter ended April 4, 2026 or during the fiscal year ended January 3, 2026.

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 September 27, 2025 or during the fiscal year ended December 28, 2024.

There were no impairment losses related to intangible assets during the fiscal quarter ended April 4, 2026 or during the fiscal year ended January 3, 2026.

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

September 27, 2025 December 28, 2024

April 4, 2026 January 3, 2026

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

1 unchanged sentence

$ 15,300 $ ( 9,996 ) $ 5,304 $ 15,300 $ ( 9,614 ) $ 5,686

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 $ 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.

Amortization expense related to intangible assets was $ 0.4 million for both the fiscal quarters ended April 4, 2026 and March 29, 2025.

Accrued Expenses

Accrued expenses consist of the following (in thousands):

September 27,

2025 December 28,

2026 January 3,

Compensation and related expenses $ 111,037 $ 192,397

3 unchanged sentences

Total accrued expenses $ 132,454 $ 223,460

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.

As of April 4, 2026 and January 3, 2026, approximate ly $ 68.8 million and $ 161.5 million, respectively, of accrued bonuses were included above in “Compensation and related expense s.”

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

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.

For the fiscal quarters ended April 4, 2026 and March 29, 2025, the effective income tax rate (“ETR”) was 36.0 % and 27.0 %, respectively.

The ETR for the fiscal quarter ended April 4, 2026 was higher than the fiscal quarter ended March 29, 2025 primarily due to an increase in nondeductible executive compensation, the recording of a valuation allowance in a foreign jurisdiction, and a decrease in tax benefit related to share-based compensation, partially offset by a decrease to a prior year tax reserve.

Net Income Per Share

CRA calculates basic earnings per share using the two-class method.

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

The two-class method was more dilutive for the fiscal quarters ended April 4, 2026 and March 29, 2025.

Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all 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 27, 2025 and September 28, 2024.

Net earnings allocable to these participating securities were not material for the fiscal quarters ended April 4, 2026 and March 29, 2025.

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 27,

2025 September 28,

2024 September 27,

2025 September 28,

Fiscal Quarter Ended

2026 March 29,

Net income — basic $ 11,132 $ 18,002

7 unchanged sentences

Diluted $ 1.69 $ 2.62

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.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fair Value of Financial Instruments

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.

during fiscal 2022.

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

Beginning balance $ 190

Remeasurement of acquisition-related contingent consideration ( 190 )

Ending balance $ —

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 April 4, 2026 and March 29, 2025.

Credit Agreement

1 unchanged sentence

The Credit Agreement provides CRA with a $ 250.0 million revolving credit facility, 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, CRA may elect to not increase the revolving

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

credit facility to $ 250.0 million.

The revolving credit facility includes a $ 25.0 million sublimit for the issuance of letters of credit.

3 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 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.

As of April 4, 2026, CRA was in compliance with the covenants of the Credit Agreement.

There were $ 192.0 million and $ 34.0 million in borrowings outstanding under the revolving credit facility as of April 4, 2026 and January 3, 2026, respectively.

The amounts available under the revolving credit facility were reduced by certain letters of credit outstanding, which amounted to $ 3.8 million, as of both April 4, 2026 and January 3, 2026.

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.

3 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

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

financial position or results of operations .

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.

1 unchanged sentence

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.

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 January 3, 2026, filed with the SEC on February 26, 2026.

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.

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

Fiscal Quarter Ended Fiscal Year-to-Date

September 27,

2025 September 28,

2024 September 27,

2025 September 28,

CRA INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fiscal Quarter Ended

2026 March 29,

Revenues $ 200,975 $ 181,851

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Subsequent Events

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.

On May 4, 2026, the Credit Agreement was amended and restated to increase the capacity of the revolving credit facility by $ 50.0 million to $ 300.0 million.

On May 7, 2026, CRA announced that its Board of Directors declared a quarterly cash dividend of $ 0.57 per common share, payable on June 12, 2026 to shareholders of record as of May 26, 2026.

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