Charles River Associates (NASDAQ:CRAI) Issues Quarterly Earnings Results

Charles River Associates (NASDAQ:CRAI) announced its quarterly earnings data on Thursday. The business services provider reported $2.06 EPS for the quarter, beating analysts’ consensus estimates of $2.05 by $0.01, FiscalAI reports. The firm had revenue of $196.96 million during the quarter, compared to analysts’ expectations of $190.54 million. Charles River Associates had a return on equity of 26.33% and a net margin of 7.74%.

Here are the key takeaways from Charles River Associates’ conference call:

• Record financials: Fiscal 2025 revenue was $751.6 million (up 9.3%), with non-GAAP EBITDA of $96.8 million (12.9% margin) and the best-ever quarterly revenue in Q4 (up 11.6%), driven by broad-based practice strength.
• Growth guide for FY2026: CRA expects constant-currency revenue of $785M–$805M and non-GAAP EBITDA margin of 12.0%–13.0%, supported by stronger lead flow (weekly project leads +9.3%, new originations +7.7%) and continued momentum in key practices.
• Non-cash and tax headwinds: Forgivable loan amortization is expected to rise by approximately $15 million (+30%) in FY2026 due to talent investments, and the projected effective tax rate increases to ~31%–32%, which will weigh on GAAP/after-tax earnings despite underlying operating strength.
• Strong cash generation and shareholder returns: Adjusted net cash from operations was $108.4 million (112% conversion of EBITDA); CRA returned $61 million to shareholders in FY2025 and expanded its share repurchase authorization by $55 million (now $65.9 million available), with management indicating continued repurchase activity.
• AI adoption as an enabler: CRA hired a VP of AI and is deploying models (e.g., AdequacyX for energy) to boost productivity and support higher-value work, but management expects AI to augment expert judgment rather than replace it, so the financial impact remains an upside opportunity with execution risk.

Charles River Associates Price Performance

Shares of NASDAQ CRAI traded up $7.14 during midday trading on Thursday, reaching $167.40. The company’s stock had a trading volume of 173,129 shares, compared to its average volume of 135,235. The stock has a market capitalization of $1.10 billion, a P/E ratio of 20.12, a PEG ratio of 1.11 and a beta of 0.91. The firm has a 50 day moving average price of $193.49 and a 200-day moving average price of $191.31. Charles River Associates has a 12-month low of $149.96 and a 12-month high of $227.29.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of Charles River Associates in a research report on Monday, December 29th. Barrington Research lifted their price objective on shares of Charles River Associates from $239.00 to $245.00 and gave the company an “outperform” rating in a report on Monday, January 5th. Finally, Wall Street Zen downgraded shares of Charles River Associates from a “buy” rating to a “hold” rating in a research report on Saturday, December 6th. Two investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus target price of $245.00.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Jump Financial LLC raised its stake in shares of Charles River Associates by 72.3% during the 3rd quarter. Jump Financial LLC now owns 32,642 shares of the business services provider’s stock worth $6,807,000 after purchasing an additional 13,692 shares during the period. BNP Paribas Financial Markets grew its position in Charles River Associates by 243.8% during the second quarter. BNP Paribas Financial Markets now owns 11,511 shares of the business services provider’s stock valued at $2,157,000 after buying an additional 8,163 shares during the period. Lazard Asset Management LLC purchased a new stake in Charles River Associates during the second quarter worth about $1,424,000. Kennedy Capital Management LLC raised its position in Charles River Associates by 63.9% in the third quarter. Kennedy Capital Management LLC now owns 6,410 shares of the business services provider’s stock worth $1,337,000 after acquiring an additional 2,500 shares during the period. Finally, Entropy Technologies LP bought a new stake in Charles River Associates in the fourth quarter worth about $401,000. Institutional investors own 84.13% of the company’s stock.

About Charles River Associates

Charles River Associates (NASDAQ: CRAI) is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients’ needs.

The firm’s service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management.