CRA International, Inc. Q2 2026 Earnings Call Summary

Moby Intelligence

Fri, August 7, 2026 at 12:18 AM GMT+3 3 min read

CRA International, Inc. Q2 2026 Earnings Call Summary - Moby

Strategic Performance Drivers

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Achieved the highest quarterly revenue in company history, driven by 12.8% year-over-year growth with 95% of the portfolio contributing to the expansion.
Capitalized on record-breaking global M&A activity, which reached $1.6 trillion in Q2, fueling a sixth consecutive record quarter for the Antitrust & Competition Economics practice.
Leveraged 'demand amplification' from AI complexity, particularly in Forensic Services where sophisticated cyber threats have increased the need for incident response and crisis management.
Realized significant international growth of 32.9%, primarily through organic expansion in European Life Sciences and Antitrust practices without relying on acquisitions.
Optimized the consultant portfolio by shifting capacity to high-growth areas, resulting in a return to net headcount growth of 3.3% and improved utilization of 77%.
Benefited from a robust legal environment where total case filings and court judgments increased by 11% and 5% respectively, supporting a 10.1% rise in Legal & Regulatory services.

Outlook and Strategic Assumptions

Increased full-year 2026 revenue guidance to a range of $805 million to $820 million, reflecting a strong first-half performance and a healthy sales pipeline.
Maintained non-GAAP EBITDA margin guidance of 12.0% to 13.0%, despite an expected $15 million increase in noncash forgivable loan amortization related to talent investments.
Anticipates mid-single-digit headcount expansion by year-end, assuming attrition remains consistent with current observations.
Expects utilization to remain in the mid-to-upper 70s range, though management noted potential 'transitional friction' in Q3 as new university hires are integrated.
Assumes consistent quarterly revenue through the remainder of 2026, while noting that Q4 2026 will face a difficult year-over-year comparison due to the extra week in fiscal 2025.

Financial and Operational Context

Expanded the credit facility to $400 million with a 5-year term to provide maximum flexibility for an enterprise that has grown over 40% since 2022.
Returned $31.4 million to shareholders in Q2 through dividends and the repurchase of approximately 193,000 shares.
Noted a rise in the non-GAAP effective tax rate to 32.6%, primarily driven by an increase in nondeductible executive compensation.
Reported a DSO increase to 113 days from 100 days in the prior quarter, consisting of 68 days billed and 45 days unbilled.

Q&A Session Highlights

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Sustainability of 20% plus growth in Management Consulting

Management attributed the growth to unprecedented changes in the U.S. utility industry and high conversion rates for new project opportunities.
The Energy practice is seeing high demand from utilities, private equity, and tech companies regarding data center load forecasts and 'Utility of the Future' strategies.

Impact of DOJ changes to merger review processes

Management has seen no material impact to date but suggested that more targeted, less burdensome reviews could increase the value of getting economic analysis right early in the process.
The changes are viewed as a shift in focus rather than an elimination of antitrust scrutiny.

Performance and integration of senior vice president hires

The nearly 30 vice presidents hired in 2025 are currently performing ahead of revenue expectations.
Management noted that while restrictive covenants typically limit contribution for the first 12 months, hires generally achieve higher productivity on the CRA platform than at previous firms.