CRA International’s first quarter results were well received, as the company surpassed Wall Street’s expectations for both revenue and non-GAAP earnings. Management attributed this performance to strong execution across a diversified portfolio, with notable double-digit growth in the energy, finance, intellectual property, and life sciences practices. CEO Paul Maleh highlighted that international operations delivered nearly 20% revenue growth year-over-year, complementing robust demand for antitrust and regulatory consulting services. Maleh stated, "Broad-based contributions drove the quarter’s strong performance," emphasizing the portfolio’s resilience even as project lead flow accelerated after a slow January.
Is now the time to buy CRAI? Find out in our full research report (it’s free).
CRA (CRAI) Q1 CY2025 Highlights:
- Revenue: $181.9 million vs analyst estimates of $176.6 million (5.9% year-on-year growth, 3% beat)
- Adjusted EPS: $2.22 vs analyst estimates of $1.95 (13.8% beat)
- Adjusted EBITDA: $24.79 million vs analyst estimates of $22.1 million (13.6% margin, 12.2% beat)
- The company reconfirmed its revenue guidance for the full year of $725 million at the midpoint
- Operating Margin: 14%, up from 11.4% in the same quarter last year
- Market Capitalization: $1.26 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions CRA’s Q1 Earnings Call
- Andrew Nicholas (William Blair) asked about April activity trends and their impact on guidance. CEO Paul Maleh responded that March’s positive momentum continued into April, but emphasized it’s too early to predict if these trends will persist.
- Andrew Nicholas (William Blair) inquired about the life sciences practice pipeline. Maleh highlighted recent successes and said he is optimistic but wants to see the positive trend continue across litigation, regulatory, and geographic areas.
- Andrew Nicholas (William Blair) questioned headcount plans and talent retention. Maleh explained that while headcount declined year-over-year due to past restructuring, investment in talent remains a priority, aiming for future growth aligned with revenue.
- Marc Riddick (Sidoti & Company) asked whether external events or industry verticals triggered the quarter’s growth acceleration. Maleh noted broad-based portfolio contributions and said no single external factor was responsible for the improvement.
- Kevin Steinke (Barrington Research) sought details on the restructuring and trends in antitrust demand. Maleh stated the restructuring was part of ongoing portfolio optimization and credited the Antitrust & Competition Economics practice for sustained high levels of client engagement.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) whether CRA International can sustain practice diversification and double-digit growth in high-performing segments, (2) trends in consultant utilization and sales pipeline replenishment amid evolving client needs, and (3) the company’s ability to navigate macroeconomic volatility and align its talent strategy with changing demand. Execution on cross-practice collaborations and international expansion will also be important signposts of future performance.
CRA currently trades at $184.90, up from $161.23 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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