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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 84 added, 57 removed, 118 unchanged (54% of the section changed)

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Critical Accounting Policies and Estimates

Our critical accounting policies involving the more significant estimates and judgments used in the preparation of our financial statements as of April 4, 2026 remain unchanged from January 3, 2026.

Our critical accounting policies involving the more significant estimates and judgments used in the preparation of our financial statements as of July 4, 2026 remain unchanged from January 3, 2026.

Please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended January 3, 2026, filed with the SEC on February 26, 2026 for details on these critical accounting policies.

Recent Accounting Standards

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 CRA’s condensed consolidated financial statements.

Results of Operations—For the Fiscal Quarter Ended April 4, 2026, Compared to the Fiscal Quarter Ended March 29, 2025

There are no recent accounting standards that impact the unaudited condensed consolidated financial statements.

Results of Operations—For the Fiscal Quarter and Fiscal Year-to-Date Period Ended July 4, 2026, Compared to the Fiscal Quarter and Fiscal Year-to-Date Period Ended June 28, 2025

The following table provides operating information as a percentage of revenues for the periods indicated:

Fiscal Quarter

2026 March 29,

Ended Fiscal Year-to-Date

2026 June 28,

Revenues 100.0 % 100.0 % 100.0 % 100.0 %

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Net income 6.4 % 6.5 % 6.0 % 8.2 %

Fiscal Quarter Ended April 4, 2026, Compared to the Fiscal Quarter Ended March 29, 2025

Revenues increased by $19.1 million, or 10.5%, to $201.0 million for the first quarter of fiscal 2026 from $181.9 million for the first quarter of fiscal 2025.

Utilization increased to 77% for the first quarter of fiscal 2026 from 76% for the first quarter of fiscal 2025, while consultant headcount increased to 971 at the end of the first quarter of fiscal 2026 from 947 at the end of the first quarter of fiscal 2025.

Fiscal Quarter Ended July 4, 2026, Compared to the Fiscal Quarter Ended June 28, 2025

Revenues increased by $23.9 million, or 12.8%, to $210.8 million for the second quarter of fiscal 2026 from $186.9 million for the second quarter of fiscal 2025.

Utilization increased to 77% for the second quarter of fiscal 2026 from 76% for the second quarter of fiscal 2025, while consultant headcount increased to 968 at the end of the second quarter of fiscal 2026 from 937 at the end of the second quarter of fiscal 2025.

Overall, revenues outside of the U.S.

represented approximately 20% and 18% of net revenues for each of the first quarters of fiscal 2026 and fiscal 2025, respectively.

Revenues derived from fixed-price projects increased to 18% of net revenues for the first quarter of fiscal 2026 compared to 17% of net revenues for the first quarter of fiscal 2025.

represented approximately 22% and 19% of net revenues for the second quarter of fiscal 2026 and fiscal 2025, respectively.

Revenues derived from fixed-price projects increased to 23% of net revenues for the second quarter of fiscal 2026 compared to 16% of net revenues for the second quarter of fiscal 2025.

The percentage of revenue derived from fixed-price projects depends largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amorti zation).

Costs of services (exclusive of depreciation and amortization) increased by $20.2 million, or 15.7%, to $148.7 million for the second quarter of fiscal 2026 from $128.5 million for the second quarter of fiscal 2025.

The increase in costs of services was due to an increase in employee and incentive compensation of $15.1 million, an increase in forgivable loan amortization, including performance award amortization of $4.7 million, and an increase in client reimbursable expenses of $0.5 million, partially offset by a decrease of $0.1 million in indirect project expenses.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 70.6% for the second quarter of fiscal 2026 from 68.8% for the second quarter of fiscal 2025.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses increased by $0.2 million, or 0.6%, to $35.3 million for the second quarter of fiscal 2026 from $35.1 million for the second quarter of fiscal 2025.

Within this category of expenses, there was a $2.2 million increase in employee and incentive compensation and a $1.1 million increase in software subscriptions and data services, partially offset by a $1.9 million decrease in commissions to non-employee experts, a $0.7 million decrease in miscellaneous and other fees, and a $0.5 million decrease in travel and entertainment for the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025.

As a percentage of revenues, selling, general and administrative expenses decreased to 16.7% for the second quarter of fiscal 2026 from 18.8% for the second quarter of fiscal 2025.

Commissions to our non-employee experts decreased to 1.3% of revenues for the second quarter of fiscal 2026 compared to 2.4% of revenues for the second quarter of fiscal 2025.

Provision for Income Taxes.

The income tax provision was $6.6 million and the ETR was 32.9% for the second quarter of fiscal 2026 compared to $5.0 million and 29.2% for the second quarter of fiscal 2025.

The ETR for the fiscal quarter ended July 4, 2026 was higher than the fiscal quarter ended June 28, 2025 primarily due to an increase in nondeductible executive compensation partially offset by a remeasu rement of deferred tax assets related to changes in current-year state apportionment.

The ETR for the second quarters of fiscal 2026 and 2025 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction.

Specific to the current quarter, an additional offset relates to the remeasurement of deferred tax assets related to changes in current-year state apportionment.

Net income increased to $13.5 million for the second quarter of fiscal 2026 from $12.1 million for the second quarter of fiscal 2025.

The net income per diluted share was $2.10 per share for the second quarter of fiscal 2026, compared to $1.79 for the second quarter of fiscal 2025.

Weighted average diluted shares outstanding decreased by approximately 346,000 shares to approximately 6,407,000 shares for the second quarter of fiscal 2026 from approximately 6,753,000 shares for the second quarter of fiscal 2025.

The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since June 28, 2025, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since June 28, 2025.

Fiscal Year-to-Date Period Ended July 4, 2026, Compared to the Fiscal Year-to-Date Period Ended June 28, 2025

Revenues increased by $43.1 million, or 11.7%, to $411.8 million for the fiscal year-to-date period ended July 4, 2026 from $368.7 million for the fiscal year-to-date period ended June 28, 2025.

Utilization increased to 77% for the fiscal year-to-date period ended July 4, 2026 from 76% for the fiscal year-to-date period ended June 28, 2025, while consultant headcount increased from 937 at the end of the second quarter of fiscal 2025 to 968 at the end of the second quarter of fiscal 2026.

Overall, revenues outside of the U.S.

represented approximately 21% and 18% of net revenues for the fiscal year-to-date period ended July 4, 2026 and June 28, 2025, respectively.

Revenues derived from fixed-price projects increased to 20% of net revenues for the fiscal year-to-date period ended July 4, 2026 compared to 16% of net revenues for the fiscal year-to-date period ended June 28, 2025.

Costs of Services (exclusive of depreciation and amortization).

Costs of services (exclusive of depreciation and amortization) increased by $24.6 million, or 20.4%, to $145.0 million for the first quarter of fiscal 2026 from $120.4 million for the first quarter of fiscal 2025.

The increase in costs of services was due to an increase in employee and incentive compensation of $11.8 million, an increase in forgivable loan amortization, including performance award amortization of $10.2 million, and an increase in indirect project expenses of $2.6 million.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 72.2% for the first quarter of fiscal 2026 from 66.2% for the first quarter of fiscal 2025.

Selling, General and Ad ministrative Expenses.

Selling, general and administrative expenses increased by $2.0 million, or 6.2%, to $34.5 million for the first quarter of fiscal 2026 from $32.5 million for the first quarter of fiscal 2025.

Within this category of expenses, there was a $1.0 million increase in employee and incentive compensation, a $0.7 million increase in travel and entertainment, a $0.5 million increase in legal and professional service fees, a $0.3 million increase in rent expense, and a $0.3 million increase in miscellaneous and other fees, partially offset by a $0.8 million decrease in commissions to non-employee experts for the first quarter of fiscal 2026 as compared to the first quarter of fiscal 2025.

As a percentage of revenues, selling, general and administrative expenses decreased to 17.2% for the first quarter of fiscal 2026 from 17.9% for the first quarter of fiscal 2025.

Commissions to our non-employee experts decreased to 1.5% of revenues for the first quarter of fiscal 2026 compared to 2.0% of revenues for the first quarter of fiscal 2025.

Costs of services (exclusive of depreciation and amortization) increased by $44.9 million, or 18.0%, to $293.8 million for the fiscal year-to-date period ended July 4, 2026 from $248.9 million for the fiscal year-to-date period ended June 28, 2025.

The increase in costs of services was due to an increase of $27.1 million in employee compensation and fringe benefit costs, an increase in forgivable loan amortization of $14.8 million, and an increase of $3.0 million in client reimbursable expenses.

As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 71.3% for the fiscal year-to-date period ended July 4, 2026 from 67.5% for the fiscal year-to-date period ended June 28, 2025.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses increased by $2.2 million, or 3.3%, to $69.8 million for the fiscal year-to-date period ended July 4, 2026 from $67.6 million for the fiscal year-to-date period ended June 28, 2025.

Within this category of expenses, there was a $3.1 million increase in employee compensation and fringe benefit costs, a $1.8 million increase in software subscriptions and data services, a $0.7 million increase in legal and professional service fees, a $0.3 million increase in rent expense, and a $0.3 million increase in travel and entertainment expense, partially offset by a $2.7 million decrease in commissions to non-employee experts, and a $1.3 million decrease in miscellaneous and other fees for the fiscal year-to-date period ended July 4, 2026 as compared to the fiscal year-to-date period ended June 28, 2025.

As a percentage of revenues, selling, general and administrative expenses decreased to 16.9% for the fiscal year-to-date period ended July 4, 2026 from 18.3% for the fiscal year-to-date period ended June 28, 2025.

Commissions to our non-employee experts decreased to 1.4% of revenues for the fiscal year-to-date period ended July 4, 2026 compared to 2.3% of revenues for the fiscal year-to-date period ended June 28, 2025.

Provision for Income Taxes.

The income tax provision was $6.3 million and the ETR was 36.0% for the first quarter of fiscal 2026 compared to $6.6 million and 27.0% for the first quarter of fiscal 2025.

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.

The ETR for the first quarters of fiscal 2026 and 2025 were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction.

Specific to the current quarter, the ETR was also higher due to the recording of a valuation allowance in a foreign jurisdiction.

Net income decreased to $11.1 million for the first quarter of fiscal 2026 from $18.0 million for the first quarter of fiscal 2025.

The net income per diluted share was $1.69 per share for the first quarter of fiscal 2026, compared to $2.62 for the first quarter of fiscal 2025.

Weighted average diluted shares outstanding decreased by approximately 274,000 shares to approximately 6,588,000 shares for the first quarter of fiscal 2026 from approximately 6,862,000 shares for the first quarter of fiscal 2025.

The decrease in weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since March 29, 2025, offset in part by the vesting of shares of restricted stock and time-vesting restricted stock units since March 29, 2025.

The income tax provision was $12.9 million and the ETR was 34.3% for the fiscal year-to-date period ended July 4, 2026, compared to $11.6 million and 27.9% for the fiscal year-to-date period ended June 28, 2025.

The ETR for the fiscal year-to-date period ended July 4, 2026 was higher than the fiscal year-to-date period ended June 28, 2025 primarily due to an increase in nondeductible executive compensation, the recording of a valuation allowance in a foreign jurisdiction, and a decrease in the tax benefit related to share-based compensation.

The increase was partially offset due to the remeasurement of deferred tax assets related to changes in current-year state apportionment and a decrease to a prior year tax reserve.

The ETR for the current and prior fiscal year-to-date periods were both higher than the combined federal and state statutory tax rate primarily due to nondeductible executive compensation and nondeductible meals and entertainment expenses, partially offset by the tax benefit related to share-based compensation and the Foreign-Derived Deduction Eligible Income deduction.

Specific to the current fiscal year-to-date period, the ETR was also higher due to the recording of a valuation allowance in a foreign jurisdiction, partially offset by a remeasurement of deferred tax assets related to changes in current-year state apportionment and a decrease to a prior year tax reserve.

Net income decreased by $5.5 million to $24.6 million for the fiscal year-to-date period ended July 4, 2026 from $30.1 million for the fiscal year-to-date period ended June 28, 2025.

The diluted net income per share was $3.79 for the fiscal year-to-date period ended July 4, 2026, compared to diluted net income per share of $4.42 for the fiscal year-to-date period ended June 28, 2025.

Weighted average diluted shares outstanding decreased by approximately 309,000 shares to approximately 6,498,000 shares for the fiscal year-to-date period ended July 4, 2026 from approximately 6,807,000 shares for the fiscal year-to-date period ended June 28, 2025.

Liquidity and Capital Resources

Fiscal Quarter Ended April 4, 2026

Fiscal Year-to-Date Period Ended July 4, 2026

We believe that our current cash, cash equivalents, cash generated from operations, and amounts available under our revolving credit facility will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months.

As of April 4, 2026, we had $32.5 million of cash and cash equivalents and $54.2 million of borrowing capacity under our revolving credit facility.

During the fiscal quarter ended April 4, 2026, cash and cash equivalents increased by $14.3 million.

As of July 4, 2026, we had $21.4 million of cash and cash equivalents and $77.3 million of borrowing capacity under our revolving credit facility.

During the fiscal year-to-date period ended July 4, 2026, cash and cash equivalents increased by $3.2 million.

We completed the period with cash and cash equivalents of $21.4 million.

The principal drivers of the increase in cash and cash equivalents were net borrowings of $185.0 million, offset by the payment of a significant portion of our fiscal 2025 performance bonuses in the first quarter of fiscal 2026, forgivable loan advances, repurchase of shares, and the payment of dividends.

At April 4, 2026, $5.6 million of our cash and cash equivalents was held within the U.S.

At July 4, 2026, $6.4 million of our cash and cash equivalents was held within the U.S.

We have sufficient sources of liquidity in the U.S., including cash flow from operations and availability on our revolving credit facility to fund U.S.

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Sources and Uses of Cash.

During the fiscal quarter ended April 4, 2026, net cash used in operating activities was $113.9 million.

Net income was $11.1 million for the fiscal quarter ended April 4, 2026.

Uses of cash for operating activities included a decrease in accounts payable, accrued expenses, and other liabilities of $91.2 million, primarily due to the payment of a significant portion of our fiscal 2025 performance bonuses, an increase in forgivable loans for the period of $52.6 million which was primarily driven by $62.3 million of forgivable loan issuances, net of repayments, offset by $9.7 million of forgivable loan amortization, an increase of $27.0 million in unbilled receivables, a $4.8 million decrease in lease liabilities, and a $4.3 million increase in prepaid expenses and other current assets, and other assets.

Partially offsetting these uses of cash was a decrease of $41.7 million in accounts receivable and an increase of $3.2 million in incentive cash awards payable.

Non-cash items included right-of-use amortization of $3.7 million, depreciation and amortization expense of $3.4 million, share-based compensation expenses of $1.4 million, and unrealized foreign currency remeasurement losses, net of $0.3 million.

During the fiscal quarter ended April 4, 2026, net cash used in investing activities was $2.6 million, which consisted of capital expenditures, primarily related to computer equipment.

During the fiscal quarter ended April 4, 2026, net cash provided by financing activities was $131.3 million, primarily as a result of net borrowings under the revolving credit facility of $158.0 million.

During the fiscal year-to-date period ended July 4, 2026, net cash used in operating activities was $118.3 million.

Net income was $24.6 million for the fiscal year-to-date period ended July 4, 2026.

Uses of cash for operating activities included a decrease in accounts payable, accrued expenses, and other liabilities of $77.9 million, primarily due to the payment of a significant portion of our fiscal 2025 performance bonuses, an increase in forgivable loans for the period of $58.3 million which was primarily driven by $80.4 million of forgivable loan issuances, net of repayments, offset by $22.1 million of forgivable loan amortization, a decrease of $14.7 million in accounts receivable, and a $9.2 million decrease in lease liabilities.

Partially offsetting these uses of cash was an increase of $38.3 million in unbilled receivables, an increase of $6.4 million in incentive cash awards payable, and a $1.4 million increase in prepaid expenses and other current assets, and other assets.

Non-cash items included right-of-use amortization of $7.4 million, depreciation and amortization expense of $6.7 million, share-based compensation expenses of $3.8 million, and deferred income taxes of $3.2 million.

During the fiscal year-to-date period ended July 4, 2026, net cash used in investing activities was $4.3 million, which consisted of capital expenditures, primarily related to computer equipment, software and furniture.

During the fiscal year-to-date period ended July 4, 2026, net cash provided by financing activities was $126.2 million, primarily as a result of net borrowings under the revolving credit facility of $185.0 million.

Offsetting this increase in cash provided by financing activities were repurchases of common stock of $49.3 million, payment of cash dividends and dividend equivalents of $7.4 million, and tax withholding payments reimbursed by restricted shares on vesting of $2.1 million.

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Certain of our operating leases have terms that impose asset retirement obligations due to office modifications or the periodic redecoration of the premises, which are included in deferred compensation and other non-current liabilities on our condensed consolidated balance sheets and are recorded at a value based on their estimated discounted cash flows.

At April 4, 2026, we expect to incur asset retirement obligation or redecoration obligation costs over the next twelve months of $0.2 million.

At July 4, 2026, we do not expect to incur asset retirement obligation or redecoration obligation costs over the next twelve months.

The remainder of our asset retirement obligations and redecoration obligations are approximately $3.0 million and are expected to be paid between fiscal year 2026 and fiscal year 2035 when the underlying leases terminate or when the respective lease agreement requires redecoration.

We expect to satisfy these lease and related obligations as they become due from cash generated from operations.

CRA is party to a Credit Agreement, dated as of August 19, 2022 (as amended, the "Credit Agreement") with Bank of America, N.A., as swingline lender, a letter of credit issuing bank and administrative agent, and with Citizens Bank, N.A., as a letter of credit issuing bank.

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.

CRA is party to a Credit Agreement, dated as of August 19, 2022 (as amended, the "Existing Credit Agreement") with Bank of America, N.A., as swingline lender, a letter of credit issuing bank and administrative agent, and with Citizens Bank, N.A., as a letter of credit issuing bank.

The Existing Credit Agreement provides CRA with a $300.0 million revolving credit facility, which may be decreased at CRA's option to $240.0 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 $300.0 million.

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

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.

The expanded facility will continue to provide financial flexibility to support our continued growth and working capital needs.

We may use the proceeds of the revolving credit loans under the Credit Agreement for general corporate purposes and may repay any borrowings under the revolving credit facility at any time, but any borrowings must be repaid no later than August 19, 2027.

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

We may use the proceeds of the revolving credit loans under the Existing Credit Agreement for general corporate purposes and may repay any borrowings under the revolving credit facility at any time, but any borrowings must be repaid no later than August 19, 2027.

Borrowings under the revolving credit facility bear interest at a rate per annum equal to one of the following rates, at our election, plus an applicable margin as described below:

(i) in the case of borrowings in U.S.

dollars by us, the Base Rate (as defined in the Credit Agreement), (ii) in the case of borrowings in U.S.

dollars, a rate based on Term SOFR (as defined in the Credit Agreement) for the applicable interest period, (iii) in the case of borrowings in Euros, EURIBOR (as defined in the Credit Agreement) for the applicable interest period, (iv) in the case of borrowings in Pounds Sterling, a daily rate based on SONIA (as defined in the Credit Agreement), (v) in the case of borrowings in Canadian Dollars, Term CORRA (as defined in the Credit Agreement) for the applicable interest period, (vi) in the case of borrowings in Swiss Francs, a daily rate based on SARON (as defined in the Credit Agreement), or (vii) in the case of borrowings in any other Alternate Currency (as defined in the Credit Agreement), the relevant daily or term rate determined as provided in the Credit Agreement.

dollars by us, the Base Rate (as defined in the Existing Credit Agreement), (ii) in the case of borrowings in U.S.

dollars, a rate based on Term SOFR (as defined in the Existing Credit Agreement) for the applicable interest period, (iii) in the case of borrowings in Euros, EURIBOR (as defined in the Existing Credit Agreement) for the applicable interest period, (iv) in the case of borrowings

in Pounds Sterling, a daily rate based on SONIA (as defined in the Existing Credit Agreement), (v) in the case of borrowings in Canadian Dollars, Term CORRA (as defined in the Existing Credit Agreement) for the applicable interest period, (vi) in the case of borrowings in Swiss Francs, a daily rate based on SARON (as defined in the Existing Credit Agreement), or (vii) in the case of borrowings in any other Alternate Currency (as defined in the Existing Credit Agreement), the relevant daily or term rate determined as provided in the Existing Credit Agreement.

The applicable margin on borrowings based on the Base Rate varies within a range of 0.25% to 1.00% depending on our consolidated net leverage ratio, and the applicable margin on borrowings based on any of the other rates described above varies within a range of 1.25% to 2.00% depending on our consolidated net leverage ratio.

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In addition, we are required to pay a fee on the unused portion of the revolving credit facility at a rate per annum that varies between 0.175% and 0.250% depending on our consolidated net leverage ratio.

Under the Credit Agreement, we must comply with various financial and non-financial covenants.

Under the Existing Credit Agreement, we must comply with various financial and non-financial covenants.

The primary financial covenants consist of a maximum consolidated net leverage ratio of 3.0 to 1.0 and a minimum consolidated interest coverage ratio of 2.5 to 1.0.

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

As of April 4, 2026, we were 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.

As of July 4, 2026, we were in compliance with the covenants of the Existing Credit Agreement.

There were $219.0 million and $34.0 million in borrowings outstanding under the revolving credit facility as of July 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 $3.7 million and $3.8 million, as of July 4, 2026 and January 3, 2026, respectively.

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

Subsequent to July 4, 2026, CRA entered into a new credit facility with certain lenders, certain letter of credit issuers, and Bank of America, N.A., as administrative agent.

For more information, see Note 11, Subsequent Events and Part II, Item 5, "Other Information" of this report.

Forgivable Loans

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We may repurchase shares under this program in open market purchases (including through any Rule 10b5-1 plan adopted by us) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations.

During the fiscal quarter ended April 4, 2026, we repurchased and retired 116,040 shares under our share repurchase program at an average price per share of $184.96.

We had approximately $44.5 million available for future repurchases under our share repurchase program as of April 4, 2026.

During the fiscal quarter and fiscal year-to-date period ended July 4, 2026, we repurchased and retired 192,945 and 308,985 shares under our share repurchase program at an average price per share of $144.29 and $159.56, respectively.

During the fiscal quarter and the fiscal year-to-date period ended June 28, 2025, we repurchased and retired 230,673 shares under our share repurchase program at an average price per share of $187.06.

We had approximately $16.6 million available for future repurchases under our share repurchase program as of July 4, 2026.

We plan to finance future repurchases with available cash, cash from future operations, and borrowings available under our revolving credit facility.

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Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration, timing and amounts of any such dividends remain subject to the discretion of our Board of Directors.

During the fiscal quarters ended April 4, 2026 and March 29, 2025, we paid dividends and dividend equivale nts of $3.8 million and $3.5 million, respectively.

During the fiscal quarter and fiscal year-to-date period ended July 4, 2026 we paid dividends and dividend equivale nts of $3.6 million and $7.4 million, respectively.

During the fiscal quarter and fiscal year-to-date period ended June 28, 2025, we paid dividends and dividend equivale nts of $3.4 million and $6.9 million, respectively.

Impact of Inflation

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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-Q

Item 2. Management’s Discussion and Analysis