CRA International, Inc.

Second-quarter revenue was $210.8 million, up 12.8% year over year, and CRA said it was the highest quarterly revenue in company history. Non-GAAP net income, earnings per diluted share, and EBITDA increased 9%, 14.9%, and 15.3%, respectively, versus the prior year. For the first half of fiscal 2026, CRA reported revenue of $408.8 million and non-GAAP EBITDA of $49.7 million, for a 12.2% margin, both described as best-ever first-half results. For full-year 2026, management raised constant-currency revenue guidance to $805 million-$820 million from $785 million-$805 million and reaffirmed non-GAAP EBITDA margin guidance of 12.0%-13.0%. Management also said the constant-currency adjustment will decrease reported annual revenue by about $2.5 million and reported annual EBITDA by less than $250,000, and noted noncash forgivable loan amortization is expected to increase by approximately $15 million in fiscal 2026.

Paul Maleh emphasized that the quarter was driven by broad-based strength across the portfolio, with eight practices growing and multiple practices posting record revenue. He said Life Sciences and Energy have had persistent demand over the last two to three quarters, while Antitrust, Forensics, IP, and Risk also remained strong. His tone was upbeat but disciplined: he said the firm is forecasting off record levels it has not previously achieved, while also pointing to strong pipeline conversion and continued confidence in the second half.

Eric Nierenberg highlighted the financial mechanics behind the quarter and the updated outlook. He noted consultant headcount ended at 968, up 3.3% year over year, and non-GAAP SG&A excluding commissions to nonemployee experts was 15.5% of revenue versus 16.3% a year ago. He also said the effective non-GAAP tax rate was 32.6% in Q2 and is expected to be 33% to 34% for the rest of the year, resulting in a full-year range of 32% to 33%; DSO was 113 days, with 68 billed and 45 unbilled.

Analysts pressed management on the durability of strong Management Consulting growth, the impact of DOJ merger-review changes on Antitrust, the effect of the prior-year extra week, and the company’s increased revolver. Paul Maleh said Life Sciences and Energy are seeing strong inbound demand and historically high conversion rates, while the DOJ changes have not affected business yet and could even increase the value of early economics work if reviews become more targeted. On the extra week, he said the prior year’s Q4 week was unusually heavy for holiday timing and likely affected growth rates by about 100 to 150 basis points. On the revolver, management said the new $400 million facility primarily provides flexibility for working capital and intra-year operations, and the $75 million term loan is minimal relative to needs.