Revenue grew by 10.5% in 2026Q1, yet operating margins contracted to 9.0% from 14.0% in 2025Q1, indicating that overhead costs are currently outpacing efficiency gains.
| 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 | 770.71M | 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 % | 10.5% | 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 | 561.49M | 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 | 209.21M | 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 % | 27.15% | 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 | 133.6M | 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 | 137.02M | 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 | 75.61M | 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 % | 9.81% | 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 | 101.23M | 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 % | 13.13% | 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 % | -3.05% | -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) | 25.62M | 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 | 74.89M | 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 | -3.92M | -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 | 3.92M | 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 | -6.28M | -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 | 69.33M | 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% | 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 | 21.41M | 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 % | 30.89% | 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 | 47.91M | 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 % | 6.22% | 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 % | -5.99% | 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) | 47.91M | 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) | 7.27 | 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 % | -2.83% | 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 | 6.59M | 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 | 6.51M | 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% |
Talent acquisition cost inflation
According to the provided financial data, CRAI has maintained a steady revenue growth trajectory, recording a 10.5% increase in 2026Q1, which suggests that the firm is successfully navigating the current regulatory environment and sustaining demand for its specialized economic and litigation consulting services across its core markets.
The firm's ability to sustain double-digit or near-double-digit revenue growth over the last ten quarters indicates a resilient demand profile for expert testimony. Investors should monitor whether this growth is primarily driven by higher billable hours or aggressive pricing, as the latter may face resistance if corporate clients tighten their legal budgets.
As reported in the income statement history, CRAI's gross margin has fluctuated significantly, ranging from a low of 24.1% in 2025Q4 to a peak of 33.8% in 2025Q1, reflecting the inherent variability in project-based consulting economics and the firm's reliance on high-cost, specialized human capital.
The compression in gross margins observed in recent quarters suggests that the firm may be struggling to pass through wage inflation to clients or is experiencing shifts in project mix toward lower-margin engagements. This volatility warrants further investigation into the firm's utilization rates and the competitive landscape for PhD-level talent.
Based on the reported figures, operating income has failed to scale consistently with revenue, as evidenced by the 2026Q1 operating margin of 9.0% compared to the 14.0% achieved in 2025Q1, indicating that overhead and compensation costs are currently outpacing the firm's ability to drive top-line efficiency.
The lack of clear operating leverage suggests that the firm's cost structure is heavily weighted toward fixed or semi-fixed compensation, which limits margin expansion during periods of revenue growth. Investors should watch for signs of improved SG&A discipline, as current trends imply that incremental revenue is not flowing through to the bottom line as effectively as historical peaks might suggest.
Analysis of the income statement reveals that EPS has experienced significant quarterly swings, such as the 35.5% decline in 2026Q1, which appears to be driven by non-operating items and fluctuating tax impacts rather than a fundamental deterioration in the firm's core consulting business model.
The presence of stock-based compensation and potential one-time adjustments makes the reported net income a noisy indicator of operational health. A deeper look at the cash flow statement would be necessary to determine if these earnings fluctuations are purely accounting-driven or if they reflect genuine shifts in the firm's profitability.
While the firm benefits from a niche market position, the recent trend of margin contraction suggests that the competitive environment for expert talent may be intensifying, potentially forcing the firm to increase compensation expenses at a rate that threatens long-term profitability and shareholder value creation.
Short-term investors should be wary of the firm's reliance on a small group of high-billing experts, as any turnover could lead to significant revenue disruption and increased recruitment costs. The current margin profile appears vulnerable to any slowdown in the litigation cycle, which would leave the firm with a high fixed-cost base and limited flexibility.
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.