Inquired about the potential impact of recent DOJ changes aimed at accelerating merger reviews and reducing information requests on CRA's Antitrust business.

Paul Maleh stated no impact has been observed to date. He believes the changes aim for more targeted reviews, not elimination of scrutiny, and could increase the value of early economic analysis. “To date, we haven't seen any kind of impact either positive or negative, I would say, at this stage. My understanding is that the change is intended to make merger reviews more targeted and less burdensome on it. It's not to eliminate antitrust scrutiny.”

Asked about the headwind from the extra week in Q4 FY25 for modeling YoY growth and the interest expense implications of the increased revolving credit facility.

Paul Maleh clarified that the extra week in Q4 FY25 was unusually heavy for holiday time, impacting YoY growth by 100-150 bps. He expressed excitement about the new $400M credit facility for flexibility, noting the $75M term loan component is minimal for working capital needs. “The extra week in 2025 was unusually heavy for holiday time. So I would say on a growth rate basis, it probably had about 100 to 150 basis point impact, and not just the straight annual value -- average annual value of an extra week on that.”

Asked about the level of visibility CRA has currently, given the raised guidance and broad-based strength, especially compared to historical trends.

Paul Maleh expressed bullishness but noted the challenge of forecasting off unprecedented peak levels of financial results. He highlighted peak levels of new project opportunities and high conversion rates as positive indicators for continued success. “I'm pretty bullish as with respect to CRA and with respect to where the portfolio sits and what they've been delivering on that. If I were to say what is giving me any pause, is that every quarter, I am trying to forecast off of a level that we've never achieved before.”

CRAI

CRA International (CRAI) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jul 2025 (Q2 FY26)· Industrials· Aug 6, 2026

Source: earnings call transcript

Executive summary

CRA International Q2 FY26 — Record Revenue and Strong Profit Growth

CRA International achieved record quarterly revenue and strong profit growth in Q2 FY26, driven by broad-based contributions across its practice areas, particularly in Life Sciences, Energy, and Forensic Services. The company raised its full-year revenue guidance, reflecting a healthy pipeline and strong first-half performance. Management highlighted the successful integration of new senior talent and the strategic expansion of its credit facility to support continued growth and operational flexibility.

Highlights

Achieved record quarterly revenue of $210.8 million, representing 12.8% year-over-year growth.
Non-GAAP net income grew 9%, diluted EPS grew 14.9%, and EBITDA grew 15.3% year-over-year.
Eight practices, comprising 95% of total revenue, grew year-over-year, with six practices posting double-digit growth.
International operations revenue increased 32.9% year-over-year, and North American revenue increased 8.7%.
Consultant headcount increased 3.3% year-over-year, and utilization ticked up to 77% from 76%.

Concerns

Non-GAAP effective tax rate increased to 32.6% in Q2 FY26 from 29.0% in Q2 FY25.
Days Sales Outstanding (DSO) increased to 113 days at quarter-end from 100 days at Q1 FY26 end.
Evolving geopolitical, global macroeconomic, and business conditions remain potential headwinds.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 revenue (constant currency)	$805 million to $820 million high materiality	FY26	High
Full-year 2026 non-GAAP EBITDA margin	12.0% to 13.0% high materiality	FY26	High
Full-year 2026 constant currency adjustment for reported annual revenue	decrease by approximately $2.5 million low materiality	FY26	High
Full-year 2026 constant currency adjustment for reported annual EBITDA	decrease by less than $250,000 low materiality	FY26	High
Second half FY26 constant currency adjustment for reported revenue	increase reported revenue by approximately $500,000 low materiality	H2 FY26	High
Second half FY26 constant currency adjustment for reported EBITDA	increase reported EBITDA by $100,000 low materiality	H2 FY26	High
Full-year 2026 noncash forgivable loan amortization increase	approximately $15 million medium materiality	FY26	High
Second half FY26 noncash forgivable loan amortization increase	slightly more than $5 million medium materiality	H2 FY26	High
Full-year 2026 effective tax rate	32% to 33% medium materiality	FY26	High
Remainder of FY26 effective tax rate	33% to 34% medium materiality	H2 FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Antitrust & Competition Economics Capitalized on ongoing merger-related activity and continued demand for antitrust services. Quarterly Revenue: new highRecord Quarters: 6 consecutive	—	—	—	—
Energy Achieved strong results across diverse clients including utilities, private equity investors, electric system operators, and large energy consumers. Advised on 'Utility of the Future' strategy and secured multiyear engagement with PJM for data center load forecasts.	—	in excess of 20%	—	—
Finance Active in complex commercial disputes and investigations, including bankruptcy matters. Second consecutive quarter of double-digit revenue growth.	—	double-digit	—	—
Forensic Services Established a new high for quarterly revenue, responding to numerous crisis management events, including cyber incidents amplified by AI sophistication. Quarterly Revenue: new high	—	over 20%	—	—
Intellectual Property Advised on multiple high-stakes litigation and valuation matters, including patent infringement claims for a global smartphone manufacturer and international arbitration.	—	double-digit	—	—
Life Sciences Helped clients build strategies across the life cycle, leveraging AI tools for market analysis and supporting global launch strategies for blockbuster products. Growth driven by both pricing/market access and litigation-related matters.	—	in excess of 20%	—	—
Risk, Investigations & Analytics Worked on large investigative advisory and damage-related expert assignments, including forensic accounting for a fraudulent misrepresentation claim in private aviation.	—	more than 20%	—	—
Legal & Regulatory services Growth supported by trends in the broader legal market, with total case filings up 11% and total court judgments up 5%.	—	10.1%	—	—
Management Consulting services Analyst estimate for growth, confirmed by management's discussion of strong performance in Energy and Life Sciences practices.	—	25-26%	—	—
North America Contributed to overall revenue growth.	—	8.7%	—	—
International Strong growth, particularly in Life Sciences and Antitrust & Competition Economics practices, driven by organic efforts.	—	32.9%	—	—

Deals & partnerships

Fivetran, dbt Labs CRA advised Fivetran on competition and regulatory compliance aspects of its merger with dbt Labs.

The merger brings together two category-defining platforms to advance open data infrastructure for AI. Announced completion on June 1, 2026.

Risks & headwinds

Evolving geopolitical, global macroeconomic, and business conditions ongoing

unquantified

Mitigation:Remain mindful, but encouraged by strong start to year and healthy pipeline.

Increase in non-GAAP effective tax rate Q2 FY26

32.6% in Q2 FY26 vs 29.0% in Q2 FY25

Mitigation:Expect full year rate of 32-33%, with H2 rate of 33-34%.

Increased Days Sales Outstanding (DSO) Q2 FY26

113 days at Q2 FY26 end vs 100 days at Q1 FY26 end

What to watch in Q3 FY26

Management Consulting Growth

next quarter

Current Life Sciences and Energy practices grew in excess of 20% YoY in Q2 FY26

Target Continued persistent double-digit growth

Why it matters

Sustained high growth in these key practices is critical for overall revenue performance and validates the company's strategic focus areas.

Life Sciences and the Energy practice both grew in excess of 20% year-over-year. I think they delivered similar type of year-over-year growth in Q1. So it has been persistent now for the last, let's say, 2 or 3 quarters for both.

Find out whether CRAI delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked for more detail on the 25-26% growth in Management Consulting, specifically which areas are growing fastest and the sustainability of this demand.

Paul Maleh highlighted Life Sciences and Energy practices both growing over 20% YoY, with persistent strength over the last 2-3 quarters. He noted strong inbound opportunities and high conversion rates, making the near-to-medium term positive. He attributed Energy growth to the unprecedented change in the utility industry and data center demand.

“Life Sciences and the Energy practice both grew in excess of 20% year-over-year. I think they delivered similar type of year-over-year growth in Q1. So it has been persistent now for the last, let's say, 2 or 3 quarters for both.”

asked by Andrew Nicholas · answered by Paul Maleh

2 min read 6 chapters

Detailed narrative

Record Performance and Broad-Based Growth

CRA International achieved its highest quarterly revenue ever at $210.8 million, marking a 12.8% year-over-year increase. This growth was broad-based, with eight practices contributing to 95% of total revenue, and six practices (Energy, Finance, Forensic Services, Intellectual Property, Life Sciences, and Risk, Investigations & Analytics) experiencing double-digit growth. The Antitrust & Competition Economics practice also set a new quarterly revenue record.

Strategic Talent Investment and Utilization

The company increased its consultant headcount by 3.3% year-over-year, adding over 60 new consultants in Q2, and saw consultant utilization rise to 77% from 76%. This talent expansion, including the successful ramp-up of 30 new Vice Presidents hired in 2025, is supported by a strong sales pipeline and robust project lead flow, indicating sustained demand for CRA's services.

Legal & Regulatory Market Dynamics

Revenue from Legal & Regulatory services grew by 10.1%, benefiting from broader legal market trends including an 11% increase in total case filings and a 5% increase in total court judgments. The Antitrust & Competition Economics practice capitalized on record M&A activity, which totaled $2.85 trillion in H1 2026, marking the strongest opening period for dealmaking since 1980.

Impact of AI and Crisis Management

The Forensic Services practice grew over 20% year-over-year, driven by increased demand for cyber incident response work. Management noted that AI acts as both a productivity enhancer and a "demand amplifier," as the sophistication of AI tools used by hackers contributes to the complexity and frequency of cyber-attacks, creating a persistent need for forensic expertise.

Energy Transition and Data Center Demand

The Energy practice delivered over 20% year-over-year growth, advising major utilities on "Utility of the Future" strategies, including distributed energy resources and rapidly increasing demand from data centers. The practice also secured a multiyear engagement with PJM to develop enhanced data center load forecasts, highlighting its role in navigating complex energy market shifts.

Enhanced Financial Flexibility

CRA expanded and extended its credit facility to $400 million, consisting of a $75 million term loan and a $325 million revolving credit facility. This new 5-year facility replaces the prior one and provides increased financial flexibility to manage working capital needs and support growth, reflecting management's bullish outlook on the company's future prospects.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.