Revenue growth has accelerated to 12.8% year-over-year in Q2 2026, but gross margins have compressed significantly to 26.2% in Q1 2026, suggesting a structural shift in business mix is eroding profitability despite top-line strength.
CRA International, Inc. (CRAI) annual income statement — 29-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Nov'10 | Nov'09 | Nov'08 | Nov'07 | Nov'06 | Nov'05 | Nov'04 | Nov'03 | Nov'02 | Nov'01 | Nov'00 | Nov'99 | Nov'98 | Nov'97 |
|---|
| Sales/Revenue | 794.64M | 751.58M | 687.41M | 623.98M | 590.9M | 565.93M | 508.37M | 451.37M | 417.65M | 370.07M | 324.78M | 303.56M | 306.37M | 278.43M | 270.39M | 305.23M | 309.67M | 301.64M | 376.75M | 394.64M | 349.89M | 295.47M | 216.74M | 163.46M | 130.69M | 109.8M | 82.55M | 74M | 53M | 44.8M |
| Revenue Growth % | 11.46% | 9.33% | 10.17% | 5.6% | 4.41% | 11.32% | 12.63% | 8.07% | 12.86% | 13.95% | 6.99% | -0.92% | 10.03% | 2.97% | -11.41% | -1.44% | 2.66% | -19.94% | -4.53% | 12.79% | 18.42% | 36.33% | 32.59% | 25.07% | 19.02% | 33.02% | 11.55% | 39.62% | 18.3% | - |
| Cost of Goods Sold | 432.95M | 533.43M | 479.94M | 452.25M | 410.08M | 400.05M | 370.71M | 317.76M | 289.19M | 258.83M | 227.38M | 207.65M | 206.81M | 189.26M | 182.38M | 199.38M | 213.54M | 199.86M | 250.11M | 246.01M | 221.34M | 174.72M | 127.72M | 100.17M | 80.66M | 65.59M | 44.3M | 40.2M | 30.7M | 27.7M |
| COGS % of Revenue | - | 70.97% | 69.82% | 72.48% | 69.4% | 70.69% | 72.92% | 70.4% | 69.24% | 69.94% | 70.01% | 68.41% | 67.5% | 67.97% | 67.45% | 65.32% | 68.96% | 66.26% | 66.39% | 62.34% | 63.26% | 59.13% | 58.93% | 61.28% | 61.72% | 59.73% | 53.66% | 54.32% | 57.92% | 61.83% |
| Gross Profit | 361.69M | 218.16M | 207.48M | 171.73M | 180.82M | 165.88M | 137.66M | 133.61M | 128.46M | 111.25M | 97.4M | 95.91M | 99.56M | 89.17M | 88.01M | 105.84M | 96.13M | 101.78M | 126.64M | 148.63M | 128.55M | 120.75M | 89.02M | 63.29M | 50.03M | 44.21M | 38.25M | 33.8M | 22.3M | 17.1M |
| Gross Margin % | 45.52% | 29.03% | 30.18% | 27.52% | 30.6% | 29.31% | 27.08% | 29.6% | 30.76% | 30.06% | 29.99% | 31.59% | 32.5% | 32.03% | 32.55% | 34.68% | 31.04% | 33.74% | 33.61% | 37.66% | 36.74% | 40.87% | 41.07% | 38.72% | 38.28% | 40.27% | 46.34% | 45.68% | 42.08% | 38.17% |
| Gross Profit Growth % | - | 5.15% | 20.82% | -5.03% | 9.01% | 20.5% | 3.03% | 4.01% | 15.48% | 14.22% | 1.55% | -3.67% | 11.65% | 1.32% | -16.85% | 10.1% | -5.55% | -19.63% | -14.79% | 15.62% | 6.46% | 35.65% | 40.65% | 26.5% | 13.16% | 15.59% | 13.17% | 51.57% | 30.41% | - |
| Operating Expenses | 282.27M | 135.03M | 136.73M | 115.12M | 122.08M | 110.14M | 102.87M | 104.26M | 99.53M | 95.48M | 78.48M | 78.99M | 75.52M | 70.65M | 74.42M | 76.78M | 86.53M | 84.64M | 105.5M | 99.86M | 80.6M | 76.56M | 57.29M | 43.05M | 36.6M | 31.56M | 23.98M | 19.5M | 12.8M | 12.4M |
| OpEx % of Revenue | - | 17.97% | 19.89% | 18.45% | 20.66% | 19.46% | 20.23% | 23.1% | 23.83% | 25.8% | 24.16% | 26.02% | 24.65% | 25.38% | 27.53% | 25.16% | 27.94% | 28.06% | 28% | 25.3% | 23.04% | 25.91% | 26.43% | 26.34% | 28.01% | 28.74% | 29.05% | 26.35% | 24.15% | 27.68% |
| Selling, General & Admin | 137.2M | 135.03M | 125.05M | 115.12M | 110.09M | 97.37M | 90.03M | 93.61M | 89.53M | 86.54M | 70.58M | 72.44M | 69.07M | 64.24M | 67.23M | 71.75M | 80.04M | 76.12M | 105.5M | 99.86M | 80.6M | 76.56M | 57.29M | 43.05M | 36.6M | 31.56M | 21.84M | 17.4M | 11.9M | 11.7M |
| SG&A % of Revenue | - | 17.97% | 18.19% | 18.45% | 18.63% | 17.21% | 17.71% | 20.74% | 21.44% | 23.38% | 21.73% | 23.86% | 22.55% | 23.07% | 24.87% | 23.51% | 25.85% | 25.24% | 28% | 25.3% | 23.04% | 25.91% | 26.43% | 26.34% | 28.01% | 28.74% | 26.45% | 23.51% | 22.45% | 26.12% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 11.68M | 0 | 12M | 12.77M | 12.84M | 10.65M | 387K | -366K | -397K | -647K | -295K | -180K | -177K | 5.03M | 6.49M | 8.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.14M | 2.1M | 900K | 700K |
| Operating Income | 79.42M | 83.12M | 70.75M | 56.61M | 58.74M | 55.74M | 34.8M | 29.35M | 28.93M | 15.76M | 18.92M | 12.39M | 24.04M | 18.52M | -57.81M | 29.06M | 9.6M | 17.13M | 21.15M | 48.77M | 47.95M | 44.19M | 31.73M | 20.23M | 13.43M | 12.66M | 14.27M | 14.3M | 9.5M | 4.7M |
| Operating Margin % | 9.99% | 11.06% | 10.29% | 9.07% | 9.94% | 9.85% | 6.84% | 6.5% | 6.93% | 4.26% | 5.83% | 4.08% | 7.85% | 6.65% | -21.38% | 9.52% | 3.1% | 5.68% | 5.61% | 12.36% | 13.7% | 14.95% | 14.64% | 12.38% | 10.28% | 11.53% | 17.29% | 19.32% | 17.92% | 10.49% |
| Operating Income Growth % | - | 17.49% | 24.98% | -3.62% | 5.38% | 60.19% | 18.56% | 1.43% | 83.55% | -16.68% | 52.65% | -48.45% | 29.83% | 132.03% | -298.91% | 202.72% | -43.96% | -18.98% | -56.64% | 1.71% | 8.52% | 39.25% | 56.82% | 50.66% | 6.11% | -11.3% | -0.2% | 50.53% | 102.13% | - |
| EBITDA | 249.63M | 97.26M | 97.58M | 82.45M | 84.49M | 81.52M | 59.67M | 50.66M | 38.93M | 24.71M | 26.82M | 18.95M | 30.48M | 24.93M | -50.62M | 34.09M | 15.96M | 25.65M | 30.54M | 58.93M | 58.23M | 52.31M | 36.86M | 24M | 16.4M | 16.03M | 16.41M | 16.4M | 10.4M | 5.4M |
| EBITDA Margin % | 31.41% | 12.94% | 14.19% | 13.21% | 14.3% | 14.4% | 11.74% | 11.22% | 9.32% | 6.68% | 8.26% | 6.24% | 9.95% | 8.95% | -18.72% | 11.17% | 5.15% | 8.5% | 8.11% | 14.93% | 16.64% | 17.7% | 17.01% | 14.68% | 12.55% | 14.6% | 19.88% | 22.16% | 19.62% | 12.05% |
| EBITDA Growth % | 119.81% | -0.32% | 18.35% | -2.41% | 3.64% | 36.61% | 17.8% | 30.13% | 57.55% | -7.85% | 41.53% | -37.85% | 22.29% | 149.25% | -248.48% | 113.58% | -37.78% | -16% | -48.18% | 1.21% | 11.31% | 41.92% | 53.6% | 46.33% | 2.31% | -2.34% | 0.08% | 57.69% | 92.59% | - |
| D&A (Non-Cash Add-back) | 170.21M | 14.14M | 26.82M | 25.84M | 25.75M | 25.78M | 24.88M | 21.31M | 9.99M | 8.95M | 7.9M | 6.55M | 6.44M | 6.41M | 7.19M | 5.03M | 6.36M | 8.52M | 9.39M | 10.16M | 10.28M | 8.12M | 5.13M | 3.76M | 2.97M | 3.37M | 2.14M | 2.1M | 900K | 700K |
| EBIT | 77.41M | 81.93M | 70.66M | 56.1M | 60.63M | 55.24M | 34.84M | 28.05M | 29.58M | 15.65M | 22.36M | 12.35M | 23.75M | 18.49M | -57.72M | 28.99M | 8.79M | 17.49M | 25.59M | 48.77M | 47.95M | 44.19M | 31.73M | 20.23M | 13.43M | 12.66M | 14.27M | 14.3M | 9.5M | 4.7M |
| Net Interest Income | -5.08M | -5.36M | -4.42M | -3.81M | -1.83M | -970K | -1.22M | -1.25M | -647K | -484K | -469K | -538K | -431K | -419K | -36K | -576K | -3.11M | -3.93M | -346K | 2.18M | 1.67M | -1.22M | -847K | 85K | 337K | 1.04M | 1.54M | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 45K | 163K | 155K | 264K | 332K | 390K | 451K | 3.13M | 5.51M | 5.09M | 2.15M | 904K | 85K | 337K | 1.04M | 1.54M | 0 | 0 | 0 |
| Interest Expense | 5.08M | 5.36M | 4.42M | 3.81M | 1.83M | 970K | 1.22M | 1.25M | 647K | 484K | 469K | 583K | 594K | 574K | 300K | 911K | 3.5M | 2.92M | 3.48M | 3.34M | 3.42M | 3.37M | 1.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -7.09M | -6.55M | -4.51M | -4.32M | 63K | -1.46M | -1.17M | -2.55M | -2K | -600K | 2.97M | -579K | -726K | -599K | -78.31M | -981K | -4.31M | -1.84M | 2.12M | 1.74M | 1.46M | -999K | -1.11M | -69K | 884K | 1.04M | 734K | 900K | 1.2M | 600K |
| Pretax Income | 72.33M | 76.57M | 66.24M | 52.29M | 58.8M | 54.27M | 33.62M | 26.8M | 28.93M | 15.16M | 21.89M | 11.81M | 23.32M | 17.92M | -58.02M | 28.08M | 5.29M | 15.29M | 23.27M | 50.51M | 49.41M | 43.19M | 30.63M | 20.17M | 14.31M | 13.7M | 15.01M | 15.2M | 10.7M | 5.3M |
| Pretax Margin % | 9.1% | 10.19% | 9.64% | 8.38% | 9.95% | 9.59% | 6.61% | 5.94% | 6.93% | 4.1% | 6.74% | 3.89% | 7.61% | 6.44% | -21.46% | 9.2% | 1.71% | 5.07% | 6.18% | 12.8% | 14.12% | 14.62% | 14.13% | 12.34% | 10.95% | 12.48% | 18.18% | 20.54% | 20.19% | 11.83% |
| Income Tax | 23.03M | 21.79M | 19.59M | 13.81M | 15.18M | 12.6M | 9.12M | 6.05M | 6.46M | 7.46M | 7.66M | 5.49M | 9.91M | 6.68M | -5.18M | 11.14M | 3.98M | 8.09M | 14.24M | 19.7M | 21.18M | 18.53M | 13.95M | 8.74M | 5.88M | 5.85M | 6.17M | 6.2M | 4.3M | 300K |
| Effective Tax Rate % | 31.84% | 28.46% | 29.57% | 26.41% | 25.82% | 23.21% | 27.11% | 22.58% | 22.33% | 49.22% | 34.98% | 46.47% | 42.5% | 37.3% | 8.93% | 39.66% | 75.37% | 52.91% | 61.19% | 39% | 42.87% | 42.9% | 45.54% | 43.33% | 41.07% | 42.68% | 41.09% | 40.79% | 40.19% | 5.66% |
| Net Income | 49.3M | 54.78M | 46.65M | 38.48M | 43.62M | 41.68M | 24.51M | 20.75M | 22.49M | 7.62M | 12.89M | 7.66M | 13.64M | 11.37M | -52.99M | 16.85M | 1.96M | 7.82M | 8.7M | 32.6M | 27.45M | 24.6M | 16.34M | 11.43M | 8.44M | 7.44M | 8.84M | 9M | 6.4M | 5M |
| Net Margin % | 6.2% | 7.29% | 6.79% | 6.17% | 7.38% | 7.36% | 4.82% | 4.6% | 5.39% | 2.06% | 3.97% | 2.52% | 4.45% | 4.08% | -19.6% | 5.52% | 0.63% | 2.59% | 2.31% | 8.26% | 7.84% | 8.33% | 7.54% | 6.99% | 6.46% | 6.77% | 10.71% | 12.16% | 12.08% | 11.16% |
| Net Income Growth % | -12.82% | 17.42% | 21.24% | -11.78% | 4.65% | 70.07% | 18.12% | -7.76% | 195.02% | -40.84% | 68.32% | -43.86% | 19.95% | 121.46% | -414.46% | 759.74% | -74.93% | -10.19% | -73.3% | 18.79% | 11.56% | 50.51% | 43% | 35.48% | 13.4% | -15.84% | -1.79% | 40.63% | 28% | - |
| Net Income (Continuing) | 49.3M | 54.78M | 46.65M | 38.48M | 43.62M | 41.68M | 24.51M | 20.75M | 22.47M | 7.7M | 14.23M | 6.33M | 13.41M | 11.23M | -52.84M | 16.95M | 1.3M | 7.2M | 9.03M | 32.6M | 28.23M | 24.6M | 16.34M | 11.43M | 8.44M | 7.44M | 8.84M | 9M | 6.4M | 5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -679K | 0 | -786K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 321K | 663K | -688K | 619K | 839K | 958K | 803K | 670K | 1.6M | 2.09M | 0 | 0 | 2.24M | 2.19M | 1.85M | 1.7M | 2.24M | 1.83M | 0 | 0 | 300K |
| EPS (Diluted) | 7.69 | 8.14 | 6.74 | 5.39 | 5.91 | 5.45 | 3.07 | 2.53 | 2.62 | 0.89 | 1.49 | 0.83 | 1.38 | 1.12 | -5.21 | 1.57 | 0.18 | 0.73 | 0.74 | 2.68 | 2.24 | 2.13 | 1.55 | 1.16 | 0.91 | 0.81 | 1.01 | 1.05 | 0.84 | 0.78 |
| EPS Growth % | -9.08% | 20.77% | 25.05% | -8.8% | 8.44% | 77.52% | 21.34% | -3.44% | 194.38% | -40.27% | 79.52% | -39.86% | 23.21% | 121.5% | -431.85% | 772.22% | -75.34% | -1.35% | -72.39% | 19.64% | 5.16% | 37.42% | 33.62% | 27.47% | 12.35% | -19.8% | -3.81% | 25% | 7.69% | - |
| EPS (Basic) | - | 8.23 | 6.82 | 5.47 | 6.02 | 5.59 | 3.14 | 2.63 | 2.62 | 0.91 | 1.50 | 0.84 | 1.40 | 1.13 | -5.21 | 1.60 | 0.18 | 0.74 | 0.76 | 2.91 | 2.40 | 2.34 | 1.63 | 1.21 | 0.93 | 0.82 | 1.01 | 1.07 | 0.84 | 0.78 |
| Diluted Shares Outstanding | 6.41M | 6.71M | 6.91M | 7.12M | 7.36M | 7.62M | 7.95M | 8.17M | 8.57M | 8.5M | 8.6M | 9.2M | 9.9M | 10.17M | 10.17M | 10.74M | 10.75M | 10.72M | 10.9M | 12.15M | 12.27M | 11.56M | 10.52M | 9.84M | 9.28M | 9.22M | 8.77M | 8.57M | 7.62M | 6.41M |
| Basic Shares Outstanding | 6.35M | 6.64M | 6.82M | 7.01M | 7.22M | 7.42M | 7.77M | 7.87M | 8.57M | 8.29M | 8.5M | 9.01M | 9.75M | 10.08M | 10.17M | 10.55M | 10.64M | 10.61M | 10.61M | 11.22M | 11.42M | 10.53M | 10.02M | 9.44M | 9.05M | 9.11M | 8.73M | 8.48M | 7.57M | 6.41M |
| Dividend Payout Ratio | - | 25.25% | 26.36% | 28.08% | 21.96% | 19.89% | 30.62% | 32.7% | 26.85% | 64.81% | 9.05% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 182.81% | 32% |
Quick answers to the most common questions about buying CRAI stock.
For fiscal year 2025, CRA International, Inc. (CRAI) reported total revenue of $751.6M. This represents a 1577.6% increase compared to $44.8M in 1997.
CRA International, Inc. (CRAI) is profitable, generating $54.8M in net income for the fiscal year ending 2025 with a net profit margin of 7.3%.
CRA International, Inc. (CRAI) reported an operating income of $83.1M, resulting in an operating profit margin of 11.1%. This margin reflects the operational efficiency of the business before interest and taxes.
CRA International, Inc. (CRAI) generated $218.2M in gross profit for the year, representing a gross profit margin of 29.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High dependency on specialized talent
Metrics are mathematically derived from official filings.
Accelerating Demand for Expert Testimony
CRAI's revenue growth accelerated to 12.8% year-over-year in Q2 2026, a notable uptick from the trailing twelve-month rate of 9.3%, suggesting strengthening demand for its specialized litigation support.
This acceleration appears to validate the firm's strategy of leveraging its academic network in a favorable regulatory environment, as cited in recent context flags. The durable, multi-year nature of major antitrust cases provides a structural tailwind, but the growth's sustainability will depend on the firm's ability to continue converting legal mandates into consistent billings.
Structural Margin Compression from Mix Shift
Gross margins have compressed from over 30% in mid-2025 to 26.2% in Q1 2026, a trend that suggests the Management Consulting segment may be diluting the profitability profile of the higher-margin litigation work.
The reported 29.03% gross margin reflects the high cost of recruiting and retaining PhD-level talent, which acts as a permanent drag on the margin structure compared to peers like Exponent. Based on the data, the firm's operating margin now trails both Huron (11.7%) and FTI (9.6% in certain segments), indicating that pricing power may be insufficient to fully offset rising labor costs and potential mix shifts.
Inconsistent Operating Leverage Execution
Despite consistent revenue growth, operating margin has been volatile, ranging from 6.6% to 14.0% over the past ten quarters, indicating that cost growth has at times outpaced revenue gains.
This volatility suggests that the firm's cost structure is not fully fixed, and its ability to generate leverage from incremental revenue is inconsistent. While SG&A as a percentage of revenue has shown modest improvement, the primary challenge lies in managing the variable compensation and expert fees that form the core of COGS, making margin expansion highly sensitive to utilization rates and billing mix.
EPS Volatility from Non-Operating Factors
Diluted EPS has swung wildly, including a -35.5% decline in Q1 2026 despite a 10.5% revenue increase, pointing to significant non-operational items impacting the bottom line.
The disconnect between revenue growth and EPS growth indicates the influence of factors like variable compensation, tax rates, or other non-operating items, which complicates trend analysis. Investors should focus on operating income trends as a cleaner proxy for the core business performance, as net income appears subject to considerable quarter-to-quarter noise.
Labor-Centric Cost Structure Limits Flexibility
With zero reported R&D and minimal capital expenditure, consultant compensation represents the dominant and almost singular cost driver, making the firm highly sensitive to wage inflation in the competitive PhD talent market.
The cost structure is fundamentally tied to human capital, with SG&A also likely driven by support staff and recruiting. This leaves very little room for cost reduction without impacting service quality or capacity. The firm's low debt-to-equity ratio of 0.60% provides financial flexibility, but does not mitigate the operational pressure of maintaining a bench of world-class experts.
Margin Compression Threatens Growth Narrative
The strongest counter-argument is that accelerating top-line growth is masking a structural decline in profitability, as evidenced by a 500 basis point drop in gross margin since Q2 2025.
Short-sellers would focus on whether the mix is permanently shifting toward lower-margin work or if labor costs are becoming unsustainable without corresponding pricing power. The firm's unique niche may protect it from pure-play competition, but it does not insulate it from the economic reality that its core 'asset'—expert talent—is becoming more expensive to acquire and retain, a risk that current guidance may underappreciate.