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Sep 27, 2025
CRA Q3 2025 Earnings Report
CRA reported strong revenue and profit growth driven by broad-based contributions, leading to raised revenue guidance and increased lower end of profit guidance for full-year fiscal 2025.
Key Takeaways
Charles River Associates delivered a strong third quarter in fiscal 2025, with revenue increasing by 10.8% year over year to $185.9 million. The growth was broad-based across seven of eleven practices and both North American and international operations. Net income saw a slight increase of 0.3% to $11.5 million, while non-GAAP net income and non-GAAP EBITDA demonstrated more robust growth of 12.7% and 14.6% respectively. The company also raised its full-year fiscal 2025 revenue guidance and increased the lower end of its profit guidance.
Revenue increased by 10.8% year over year, reaching $185.9 million.
Non-GAAP net income grew by 12.7% to $13.7 million, and non-GAAP EBITDA increased by 14.6% to $24.4 million.
Diluted EPS rose by 3.6% to $1.73, and non-GAAP diluted EPS increased by 16.4% to $2.06.
The company raised its full-year fiscal 2025 revenue guidance and increased the lower end of its profit guidance, reflecting confidence in its business performance.
Forward Guidance
For full-year fiscal 2025, on a constant currency basis relative to fiscal 2024, CRA now expects revenue in the range of $740.0 million to $748.0 million and non-GAAP EBITDA margin in the range of 12.6% to 13.0%. This guidance reflects an increase in the revenue range and the lower end of the profit guidance.
Positive Outlook
- Raised full-year fiscal 2025 revenue guidance to $740.0 million - $748.0 million (constant currency).
- Increased the lower end of full-year fiscal 2025 non-GAAP EBITDA margin guidance to 12.6% - 13.0% (constant currency).
- Confidence in CRA’s overall competitive position.
- Increased quarterly cash dividend by 16% from $0.49 to $0.57 per common share.
- Fiscal year 2025 includes a 14th week in the fourth quarter, which may positively impact results.
Challenges Ahead
- Mindful that uncertain global macroeconomic, business, and political conditions can affect the business and clients.
- Does not provide reconciliations of annual non-GAAP EBITDA margin guidance to GAAP net income margin due to estimation uncertainties.
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